35% in the second year, and 50% in the third year. Service contracts sold are as follows. How much is the unearned revenue from service contracts as of December 31, 2019? * 2018 2019 2020 Number of service contracts sold 1,400 1,820 1,650
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- NAPAPALUNOK AKO AS OF THE MOMENT INC. sells 3-year service contracts for air conditioning units for P1,500 each. Sales of service contracts are made evenly throughout each year. The company estimates that 15% of repairs are done in the first year from the date of sale, 35% in the second year, and 50% in the third year. Service contracts sold are as follows. How much is the unearned revenue from service contracts as of December 31, 2019? 1. Use the information given. How much revenue from service contracts is recognized in 2019? a. P204,750 b. P525,000 c. P729,750 d. P1,144,500 Use the information given. How much revenue from service contracts sold in 2019 is recognized in 2020? a. P682,500 b. P862,500 c. P955,500 d. P1,842,750NAPAPALUNOK AKO AS OF THE MOMENT INC. sells 3-year service contracts for air conditioning units for P1,500 each. Sales of service contracts are made evenly throughout each year. The company estimates that 15% of repairs are done in the first year from the date of sale, 35% in the second year, and 50% in the third year. Service contracts sold are as follows. How much is the unearned revenue from service contracts as of December 31, 2019? Use the information given. How much is the unearned revenue from service contracts as of December 31, 2020? a. P4,657,125 b. P3,468,750 c. P2,475,000 d. P1,237,500NAPAPALUNOK AKO AS OF THE MOMENT INC. sells 3-year service contracts for air conditioning units for P1,500 each. Sales of service contracts are made evenly throughout each year. The company estimates that 15% of repairs are done in the first year from the date of sale, 35% in the second year, and 50% in the third year. Service contracts sold are as follows. How much is the unearned revenue from service contracts as of December 31, 2019? a. P 1,417,500 b. P 2,525,250 c. P 3,370,500 d. P 3,942,750
- Dunne Co. sells equipment service contracts that cover a twoyear period. The sales price of each contract is $600. Dunne's past experience is that, of the total dollars spent for repairs on service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. Dunne sold 1,000 contracts evenly throughout the 2020. 1. What is the contract revenue for 2020? a. 120,000 b. 240,000 c. 300,000 d. 150,0002. What amount should be reported as deferred service revenue on December 31,2020? a. 540,000 b. 480,000 c. 360,000 d. 300,0003. What is the contract revenue for 2021? a. 180,000 b. 360,000 c. 300,000 d. 120,0004. What is the contract revenue for 2022? a. 240,000 b. 360,000 c. 180,000 d. 0(i) Electronics Ltd manufactures air conditioners. It purchases 200,000 units of a particular type of compressor part, CU30, each year at a cost of $64 per unit. Annual carrying cost (for insurance, material handling, breakage etc) per unit is 5% of the unit purchase price. Currently Electronics Ltd places 50 orders for 4,000 units each year and ordering costs per purchase order are $18. d) Calculate the EOQ.e) What is the minimum ordering cost?f) What is the minimum storage cost?(i) Electronics Ltd manufactures air conditioners. It purchases 200,000 units of a particular type of compressor part, CU30, each year at a cost of $64 per unit. Annual carrying cost (for insurance, material handling, breakage etc) per unit is 5% of the unit purchase price. Currently Electronics Ltd places 50 orders for 4,000 units each year and ordering costs per purchase order are $18. a) Calculate the current annual ordering cost.b) Calculate the current annual carrying cost.c) What is the current total stock administration cost?d) Calculate the EOQ.e) What is the minimum ordering cost?f) What is the minimum storage cost?g) What is the minimum total stock administration cost?h) How much savings would Electronics Ltd. make using the EOQ policy, rather than the current policy of purchasing 4,000 units per order. (ii) Maximum usage for Electronics Ltd. for any one week is 1,000 units and the minimum usage 400 units. Suppliers take anywhere from 2 to 4 weeks to deliver supplies after…
- A manufacturer has a production facility that requires 19,111 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead time of 6 days. The unit purchase cost is $12.8 per unit. The cost to place and process an order from the supplier is $113 per order. The unit inventory carrying cost per year is 20 percent of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. What is the optimal total annual inventory and purchase cost for the manufacturer? Use at least 4 decimal places.A manufacturer has a production facility that requires 14,979 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead time of 14 days. The unit purchase cost is $27 per unit. The cost to place and process an order from the supplier is $172 per order. The unit inventory carrying cost per year is 17 percent of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. What is the optimal length of inventory cycle in days? Use at least 4 decimal places.Sleepwell LLC has entered into a contract to supply 50,000 units of sleeping mattes to customer on sale or return basis at OMR 60 each. The cost of making each sleeping mattress is 32 OMR. The term of sales provides three months to customer for the date of sale to return the items and get a full refund. The experience indicates that such customer tends to return back some items and it can be reliably estimated to be around 8% of such sold items are usually returned. find right of return assets. OMR 3,000,000 OMR 240,000 None of them OMR 128,000 Solve PC issues 1 important messag 3 total messages 03:43 EN
- 1. A company uses 1,500 units of Zeron per year. Each unit has an invoice cost of P222, including shipping costs. Because of the volatile nature of Zeron, it costs P860 for liability insurance on each shipment. The costs of carrying the inventory amount to P65 per item per year exclusive of a 20 percent cost of capital. Other order costs amounts to P18 per order. At present, the company orders 250 units at a time. What is the annual cost of the company's current order policy? 2. Summer Company has annual fixed costs of P90,000. This year, it recorded profit of P30,000 which is 10% of its sales. In the coming year, sales volume is expected to increase by P200,000 and the profit ratio will go up to 22%. What is Summer's break even sales ratio in the coming year? 3. Corporation C is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for P133.60 per unit.…Mazon Inc. plans to sell 7,000 units each quarter next year. During the first two quarters each unit will sell for OMR12; during the last two quarters the sales price will increase OMR1.50 per unit. What is Mazon's estimated sales revenue for next year? Select one: a. OMR 397,000 b. OMR 357,000 c. OMR 378,000 d. OMR 336,000Dunne Co. sells equipment service contracts that cover a twoyear period. The sales price of each contract is $600. Dunne's past experience is that, of the total dollars spent for repairs on service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. Dunne sold 1,000 contracts evenly throughout the current year. In its December 31 balance sheet, what amount should Dunne report as deferred service contract revenue? Group of answer choices $540,000 $480,000 $360,000 $300,000