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Kings Company gives warranties at the time of sale. Sales of P20,000.000 were made evenly throughout 2016. Experience indicates that 90% of the products sold require no warranty repairs; 7% would require minor repairs costing 10% of the sales price. The appropriate discount repairs/ replacement costing 85% of the sales price. The appropriate discount factors for cash flows expected to occur on June 30, 2016 is 0.935. an appropriate risk-adjustment factor to reflect the uncertainties in the cash flow estimates is an increment of 6%.
Problem 1: The warranty provision for 2016 is
A company incurs research and development costs of $200,000 in 2013 of which $50,000 of these costs relate to development activities because certain criteria have been met which suggest that an intangible asset has been created. What amount should be..
Computing product costs in an ABC system. McKnight, Inc., manufactures bookcases and uses an activity-based costing system. McKnight's activity areas and related data follow.Compute the manufacturing product cost per unit of each type of bookcase.
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You are in charge of procuring a machine for your factory. The process will take about a year to complete and is a major investment in specialized equipment that will make or break the profitability of the company. It is expected the equipment will o..
Bad debts written off -P30,000; Purchases - P1,750,000; Inventory, Dec 31 - P420,000; Gross profit on cost - 20%. What is the inventory on January 1?
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