1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
professor190 [17]
2 years ago
9

General Product Inc. distributed 150 million coupons in 2021. The coupons are redeemable for 40 cents each. General anticipates

that 70% of the coupons will be redeemed. The coupons expire on December 31, 2022. There were 45 million coupons redeemed in 2021 and 31 million redeemed in 2022. General recognizes coupon expense in the period coupons are issued. What was General's coupon liability as of December 31, 2021
Business
1 answer:
Rasek [7]2 years ago
5 0

General Product Inc.'s coupon liability as of December 31, 2021, is $24 million.

<h3>What is coupon liability?</h3>

Coupon liability is a contingent liability arising from coupon redemption obligations.

As a potential future liability, only the amount that can be reasonably estimated should be recognized.

<h3>Data and Calculations:</h3>

Distributed coupons = 150 million

Coupon redemption cost per unit = 40 cents

Total potential liability from coupons = $60 million (150 million x $0.40)

Probability of occurrence = 70%

Estimated redeemable liability = $42 million ($60 million x 70%)

Redeemed coupons in 2021 = 45 million or $18 million (45 million x $0.40)

Recognized contingent liability for 2021 = $24 million ($42 - $18 million)

Thus, General Product Inc.'s coupon liability as of December 31, 2021, is $24 million.

Learn more about coupon liabilities at brainly.com/question/17963028

#SPJ1

You might be interested in
To find the annual rate of return on any given stock, add the stock's dividend for the year plus the change in the stock's price
katrin2010 [14]

Answer:

The statement is: True.

Explanation:

The Annual Rate of Return or Yearly Rate of Return is the amount earned over an investment within one year. It is typically represented as a percentage and takes into consideration capital appreciation and the payment of dividends. The formula to calculate the annual rate of return is the following:

Annual Rate of Return = (EYP - BYP)/BYP X 100%

Where:

EYP = End of year price

BYP = Beginning of year price

8 0
3 years ago
Although the overall divorce rate has declined in the past two decades, divorce among _________ couples is rising. elderly middl
Svetach [21]
<span>middle-aged. Some contributing factors to this are: a) after children grow up, some couples no longer have a common goal. b) infidelity, typically involving a younger person that brings excitement. c) people are living longer, so some people want to get out now rather then spend the additional years in misery.</span>
7 0
3 years ago
In the long​ run, a perfectly competitive market will A.supply whatever amount consumers demand at a price determined by the min
In-s [12.5K]

Answer: Option (A) is correct.

Explanation:

Correct Option: A.supply whatever amount consumers demand at a price determined by the minimum point on the typical​ firm's average total cost curve.

In the long run, equilibrium price of a perfectly competitive firm implies that there is no economic profit for the firm. This situation occur when the marginal cost is equal to the average total cost.

The firm is break even when the price is equal to the minimum point of average total cost of the firm. So, there is no possibility of economic profit for the firm.

5 0
3 years ago
Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departme
lakkis [162]

Answer:

Option D , $15.12

Explanation:

Weighted-average method :

Materials

Units transferred to the next department = 10,300

Ending work in process:

Materials: 1,200 units × 90%  = 1080

Equivalent units of production  =10,300+1080= 11,380

Materials

Cost of beginning work in process inventory= $2,700

Costs added during the period  = $173,900

Total cost (a)  =$173,900+$2,700 = $176,600

Equivalent units of production (b)= 11,380

Cost per equivalent unit (a) ÷ (b) = $15.51

The cost per equivalent unit for materials for the month in the first processing department is closest to $15.51

3 0
3 years ago
Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two j
Naddika [18.5K]

Answer:

Stine Company

1. Summary Journal Entries:

Debit Work in Process $10,400

Credit Materials  $10,400

To record materials requisitioned for production.

Debit Work in Process $12,500

Credit Direct Labor $12,500

To record direct labor time tickets.

Debit Work in Process $7,500

Credit Manufacturing overhead $7,500

To record manufacturing overhead applied to production.

Debit Finished goods inventory $7,540

Credit Work in Process $7,540

To record the transfer of Job No. 429 to finished goods inventory.

2. Work in Process Inventory Control

Account Titles             Debit    Credit

Beginning balance    $3,500

Direct materials         10,400

Direct labor               12,500

Overhead                   7,500

Finished Goods Inventory     $7,540

Ending Balance                     26,360

Job Sheets                              Job 429       Job 430      Job 431     Total

Beginning WIP                         $2,000          $1,500                        $3,500

Direct materials                         2,500           3,500       $4,400      10,400

Direct labor                                 1,900           3,000         7,600      12,500

Manufacturing overhead (60%) 1,140             1,800        4,560        7,500

Finished Goods Inventory     $7,540                                               (7,540)

Work in Process                                           $9,800    $16,560  $26,360

Explanation:

a) Data and Computations:

Balance in Work in Process Inventory = $3,500

Job No. 429 $2,000

Job No. 430  $1,500

Job                  Materials              Labor Time

Number   Requisition Slips               Tickets

429                  $2,500                      $1,900

430                    3,500                        3,000

431                     4,400 $10,400          7,600 $12,500

General use                        800                         1,200

Total                              $11,200                     $13,700

Total manufacturing overhead:

Indirect materials  $800

Indirect labor      $1,200

Total                  $2,000

5 0
3 years ago
Other questions:
  • What tips should he follow? Check all that apply. Cross your arms in front of you. Stand with your hands in your pockets. Don’t
    6·1 answer
  • In its first year of operations, Roma Company reports the following:
    8·1 answer
  • The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $125 per share for months, and you believ
    8·1 answer
  • WHY do we pay tax and what is it use for
    14·2 answers
  • Suppose that a country bandcountry band called Only HereOnly Here has released its first CD with WantedWanted Records at an inte
    9·1 answer
  • A bond par value is $1,000 and the coupon rate is 5.1 percent. The bond price was $946.02 at the beginning of the year and $979.
    6·1 answer
  • Product differentiation that makes the product better for some consumers and worse for others is A) always welfare decreasing. B
    15·1 answer
  • Swifty Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Product A
    8·1 answer
  • 67. A provision in a whole life policy that allows a policy owner to terminate the policy in return for a reduced paid-up policy
    7·1 answer
  • which of the following is omitted in a barter transaction?a) tradeb) medium of exchangec) store of valued) money
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!