Question

In: Accounting

Smooth Blend, Inc., a calendar year company, produces several blends of whiskey. Maturing whiskey is stored...

Smooth Blend, Inc., a calendar year company, produces several blends of whiskey. Maturing whiskey is stored for 3 years in a large, dark aromatic warehouse owned by Smooth Blend. Smooth Blend sells the whiskey to Distributor Company at the beginning of the aging process (January 1, 2011). Distributor Company will pick up the whiskey at the end of the aging process (December 31, 2013) and take it to its facilities for bottling. Distributor Company pays the full purchase price to Smooth Blend on January 1, 2011 to protect itself against price increases. When should Smooth Blend recognize revenue? Why? Would your answer change If the quality control manager of Distributor Company had the right to taste the whiskey on December 31, 2013 and receive a full refund if not satisfied with the quality of the liquor? If there was no right of return but Smooth Blend promised to help Distributor Company attract customers? If Smooth Blend acquired a fixed price option from Distributor Company to repurchase the whiskey in 6 months?

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Case A: Revenue Recognition for Products Smooth Blend, Inc., a calendar year company, produces several blends...
Case A: Revenue Recognition for Products Smooth Blend, Inc., a calendar year company, produces several blends of whiskey. Maturing whiskey is stored for 3 years in a large, dark aromatic warehouse owned by Smooth Blend. Smooth Blend sells the whiskey to Distributor Company at the beginning of the aging process (January 1, 2011). Distributor Company will pick up the whiskey at the end of the aging process (December 31, 2013) and take it to its facilities for bottling. Distributor Company...
Case A: Revenue Recognition for Products Smooth Blend, Inc., a calendar year company, produces several blends...
Case A: Revenue Recognition for Products Smooth Blend, Inc., a calendar year company, produces several blends of whiskey. Maturing whiskey is stored for 3 years in a large, dark aromatic warehouse owned by Smooth Blend. Smooth Blend sells the whiskey to Distributor Company at the beginning of the aging process (January 1, 2011). Distributor Company will pick up the whiskey at the end of the aging process (December 31, 2013) and take it to its facilities for bottling. Distributor Company...
A chemical company produces a special industrial chemical that is a blend of three chemical ingredients....
A chemical company produces a special industrial chemical that is a blend of three chemical ingredients. The beginning-year cost per pound, the ending-year cost per pound, and the blend proportions follow. (Round your answers to the nearest integer.) Cost per Pound ($) Ingredient Beginning Ending Quantity (pounds) per 100 Pounds of Product A 1.50 3.45 25 B 8.75 9.90 10 C 0.99 0.90 70 (a) Compute the price relatives for the three ingredients. Item Price Relative A B C (b)...
Happy Dog inc produces three types of dog food. Puppy blend is produced for dogs that...
Happy Dog inc produces three types of dog food. Puppy blend is produced for dogs that are less than 1 year old. Adult bed for dogs between 1 and 8 years old, and Geriatric blend for dogs over 8 years old. Each bag has a unique recipe that requires, among other ingredients, exact quantities of certain raw materials. Formulate a linear porgramming model that produces as many bags of dog food as possible without exceeding the demand or the available...
The production planner for Fine Coffees, Inc. produces two coffee blends: American (A) and British (B)....
The production planner for Fine Coffees, Inc. produces two coffee blends: American (A) and British (B). He can only get 300 pounds of Colombian beans per week and 200 pounds of Dominican beans per week. Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of bean. Profits for the American blend are $2.00 per pound, and profits for...
Buffalo Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000...
Buffalo Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $12 par common stock. At no time has Buffalo issued any potentially dilutive securities. Listed below is a summary of Buffalo’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2015 2,160,000 2. Shares issued as a result of a 12% stock dividend on September 30, 2016 259,200 3. Shares issued for cash on March 31, 2017...
Flint Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000...
Flint Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $12 par common stock. At no time has Flint issued any potentially dilutive securities. Listed below is a summary of Flint’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2018 2,160,000 2. Shares issued as a result of a 12% stock dividend on September 30, 2019 259,200 3. Shares issued for cash on March 31, 2020...
Portillo Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000...
Portillo Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 £10 par ordinary shares. At no time has Portillo issued any potentially dilutive securities. Listed below is a summary of Portillo’s ordinary share activities. 1. Number of ordinary shares issued and outstanding at December 31, 2014 2,400,000 2. Shares issued as a result of a 10% share dividend on September 30, 2015 240,000 3. Shares issued for cash on March 31, 2016 2,000,000 Number...
Assume the Schwartz Inc is a public company with a calendar year end. Schwartz must determine...
Assume the Schwartz Inc is a public company with a calendar year end. Schwartz must determine when and how it will adopt the revised revenue standard. A. In what period must Schwartz firt apply ASC 606-10 B. How must the standard be initially applied (prospectively, retrospectively)? Explain. C. Could Schwartz early adopt if it chose to do so?
Marin Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,610,000...
Marin Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,610,000 shares of $10 par common stock. At no time has Marin issued any potentially dilutive securities. Listed below is a summary of Marin’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2018 1,920,000 2. Shares issued as a result of a 10% stock dividend on September 30, 2019 192,000 3. Shares issued for cash on March 31, 2020...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT