Bespoke Inc. has manufactured a machine specifically to the design of its customer. The machine could...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bespoke Inc. has manufactured a machine specifically to the design of its customer. The machine could not be used by any other party. Bespoke Inc. has never manufactured this type of machine before and expects a number of faults to materialize in its operation during its first year of use, which Bespoke Inc. is contractually bound to rectify at no further cost to the customer. The nature of these faults could well be significant. As of Bespoke Inc.'s year-end, the machine had been delivered and installed, the cus- tomer invoiced for $100,000 (the contract price), and the costs incurred by Bespoke Inc. up to that date amounted to $65,000. Required How should Bespoke Inc. recognize this transaction? Bespoke Inc. has manufactured a machine specifically to the design of its customer. The machine could not be used by any other party. Bespoke Inc. has never manufactured this type of machine before and expects a number of faults to materialize in its operation during its first year of use, which Bespoke Inc. is contractually bound to rectify at no further cost to the customer. The nature of these faults could well be significant. As of Bespoke Inc.'s year-end, the machine had been delivered and installed, the cus- tomer invoiced for $100,000 (the contract price), and the costs incurred by Bespoke Inc. up to that date amounted to $65,000. Required How should Bespoke Inc. recognize this transaction?
Expert Answer:
Answer rating: 100% (QA)
The hardware made by Company B is the first of its sort and ther... View the full answer
Related Book For
Accounting Information Systems
ISBN: 978-1133935940
10th edition
Authors: Ulric J. Gelinas, Richard B. Dull
Posted Date:
Students also viewed these accounting questions
-
Describe how Web 2.0 tools might be used by any of the managers depicted in Figure 10.1, a horizontal perspective of the OE/S process, or in Figure 10.2, a vertical perspective of the OE/S process.
-
During Year 1, ABC Inc's ending inventory was overstated by $10,000. During Year 2, ABC Incs ending inventory was understated by $20.000. Assuming that the Year 2 books have not yet been closed, the...
-
Describe four traditional approaches to the design of work in America.
-
The average annual salary for all U.S. teachers is $47,750. Assume that the distribution is normal and the standard deviation is $5680. Find the probability that a randomly selected teacher earns a....
-
How are indicators and indexes used in judgmental forecasting?
-
Given that G = (x + y2)ax + xzay + (z2 + zy)az, find the vector component of G along a at point P(8, 30, 60). Your answer should be left in the Cartesian system.
-
In general how have interest rates changed since the late 1980s according to Figure 11.1? FIGURE 11.1 Interest and Inflation Rates, 1988-2010 10p Rate (%) 8 6 10-Year Treasury Bonds 4 2 AAA Corporate...
-
The forecasts generated by two forecasting methods and actual sales are as follows: (a) Compute the MSE, the MAD, the MAPE, the RSFE and the tracking signal for each forecasting method. Which method...
-
A commercial building has 120 office spaces. Each office space has one, two, or three filing cabinets. There is one filing cabinet in 45 percent of the office spaces, and two filing cabinets in 35...
-
A manufacturing company has shared the following results for their latest year of operations. Inventory Beginning inventory: Number of units produced: Number of units sold: Number of units in ending...
-
As the Program Manager on the newly formed Integrated Product Team, you are responsible and have the authority to make and carry out decisions in support of the mission and organizational goals. You...
-
An energy company with headquarters in Dallas, Texas, is thinking about developing a system to track the efficiency of its oil refineries in North America. Each week, the ten refineriesas far as...
-
Inventory levels for Remi are currently held at $400,000 and have been increasing at a rate of 6% over the past 10 years. In order to hold down inventory costs, Remi has decided that if they exceed...
-
Explain why bond issuers might voluntarily choose to put restrictive covenants into a new bond issue.
-
Explain what the size effect is.
-
A societal utility function for an entire nation is found to be In U = 3.2 0.52lnG + 0.47 InB, where G and B are guns and butter. Interpret the coefficients. What happens to utility for the nation...
-
Walkerville has $8 million in excess cash and $4.5 million in debt. The company is expected to have free cash flow of $27 million in 2023 and $34 million in 2024. Beyond 2024, free cash flow is...
-
Suppose the concentration of glucose inside a cell is 0.1 mm and the cell is suspended in a glucose solution of 0.01 mm. a. What would be the free energy change involved in transporting 10-o mole of...
-
Table provides a vendor comparison for a system that is under consideration for purchase. Based on the data provided, which system should be selected under each of the following scenarios? a. Lowest...
-
If a business process is implemented with OLRT processing, we do not need to worry about update completeness and update accuracy. Do you agree? Discuss fully.
-
The following is a list of six control plans from this chapter. Control Plans A. Service level agreements B. Library controls C. Security guards D. User manuals E. Biometric identification systems F....
-
Construct a frequency and relative frequency histogram of the five-year rate of- return data discussed in Example 3. Approach To draw the frequency histogram, use the frequency distribution in Table...
-
Construct a frequency and relative frequency histogram of the five-year rate of- return data discussed in Example 3. Approach We will use StatCrunch to construct the frequency and relative frequency...
-
The data in Table 14 represent the two-year average percentage of persons living in poverty, by state, for the years 20122013. Draw a stem-and-leaf plot of the data. Approach Step 1 Treat the integer...
Study smarter with the SolutionInn App