Cool-IT Ltd. manufactures and sells air conditioning equipment
to retailers across North America. In 2020, Cool-IT signed a
two-year contract with BigMart Ltd. to supply it with 63,300 units
at a price of $78 per unit. Cool-IT’s cost to manufacture these
units is $51. The following schedule summarizes the production,
delivery, and payments in relation to the contract. Production
costs are recorded to inventory:
2020 | 2021 | Total | ||||
Air conditioning units delivered | 41,500 | 21,800 | 63,300 | |||
Production costs incurred | $2,116,500 | $1,111,800 | $3,228,300 | |||
Cash payments received | $2,780,000 | $1,868,400 |
$4,648,400 |
Prepare the required summary journal entries for the contract based on your analysis in part “a.” (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date |
Account Titles and Explanation |
Debit |
Credit |
2020 |
|||
(To record sales revenue) |
|||
(To record cost of goods sold) |
|||
(To record collections on account) |
|||
2021 |
|||
(To record sales revenue) |
|||
(To record cost of goods sold) |
|||
(To record collections on account) |
Cool-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT...
Cool-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT signed a two-year contract with BigMart Ltd. to supply it with 63,300 units at a price of $78 per unit. Cool-IT’s cost to manufacture these units is $51. The following schedule summarizes the production, delivery, and payments in relation to the contract. Production costs are recorded to inventory: 2020 2021 Total Air conditioning units delivered 41,500 21,800 63,300 Production costs incurred $2,116,500 $1,111,800 $3,228,300...
Application Problem 4-5A a1, b-c (Part Level Submission) Cool-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT signed a two-year contract with BigMart Ltd. to supply it with 63,300 units at a price of $78 per unit. Cool-IT’s cost to manufacture these units is $51. The following schedule summarizes the production, delivery, and payments in relation to the contract. Production costs are recorded to inventory: 2020 2021 Total Air conditioning units delivered 41,500...
Cool-It Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT signed a two-year contract with BigMart Ltd. to supply it with 57,100 units at a price of $77 per unit. Cool-IT's cost to manufacture these units is $54. The following schedule summarizes the production, delivery, and payments in relation to the contract. Production costs are recorded to inventory: Air conditioning units delivered Production costs incurred Cash payments received 2020 2021 34,200 22,900 $1,846,800 $1,236,600...
ANSWER PART C ( WITH FULL STEPS PLEASE) Application Problem 4-5A a1, b-c (Part Level Submission) Cool-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT signed a two-year contract with BigMart Ltd. to supply it with 63,300 units at a price of $78 per unit. Cool-IT's cost to manufacture these units is $51. The following schedule summarizes the production, delivery, and payments in relation to the contract. Production costs are recorded to inventory:...
is it possible to have the steps oplication Problem 4-5A al, b-c (Part Level Submission) pol-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT signed a two-year contract with BigMart Ltd. to supply it with 64,800 units at a price of $72 per it. Cool-IT's cost to manufacture these units is $53. The following schedule summarizes the production, delivery, and payments in relation to the contract. Production costs are recorded to inventory: r...
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On January 1, 2020, Oriole Ltd. sold on account 1,400 units of its product for a total price of $567,000 with a warranty guarantee that the products were free of any defects. The products have a one-year assurance-type warranty and Oriole estimates that the cost will be $23,800. The cost of the units is $473,000. In addition, the company sold extended warranties related to 600 units for a one-year period beyond the one-year assurance period at a cost of $16,500....
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Presented below is information related to equipment owned by Bonita Company at December 31, 2020. Cost Accumulated depreciation to date Expected future net cash flows Fair value $9,810,000 1,090,000 7,630,000 5,232,000 Bonita intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $21,800. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the...
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