Babies R' Big is a national chain of specialty retail stores that offer infant clothing, toys, furniture, and other supplies. On January 13, 2018, Babies R' Big issued a purchase order for 2,500 cribs to its supplier, Mommy Heinsohn Mfg., at a total price of $65.80 per crib. Upon receiving the purchase order Mommy Heinsohn Mfg. notified Babies R' Big that it was entitled to a one-time 10% preferred customer discount on the price of the cribs.

On February 20, 2018, Mommy Heinsohn Mfg. produced the 2,500 cribs for Babies R' Big at a total cost of $90,475.

On February 25, 2018, Mommy Heinsohn Mfg. shipped the cribs to Babies R' Big via Cousy Old School Delivery under terms: FOB Shipping Point. The cribs arrived at Babies R' Big on February 28, 2018 with an invoice from Mommy Heinsohn Mfg. for the total price of the 2,500 cribs reduced by the 10% discount. On February 28, 2018, Cousy Old School Delivery issued and invoice for $740 of freight charges for the delivery of the cribs. During March 2018, Babies R' Big sold 1,820 Mommy Heinsohn cribs at a retail price of $109.99 per crib.

Identify the exact day on which Babies R' Big must record the purchase of the cribs according to GAAP.

According to GAAP, what was total historic cost of the 2,500 Mommy Heinsohn cribs purchased by Babies R' Big?

According to GAAP, what was the cost per unit (unit cost) of the 2,500 Mommy Heinsohn cribs purchased by Babies R' Big?

Indicate how Babies R' Big would report the effects to the sale of the 1,820 Mommy Heinsohn cribs during March in its GAAP financial statements.

1. Cost of Goods Sold
2. Net Sales Revenue
3. Gross Profit

4. Inventory @ March 31

Match each of the options above to the items below.

• $200,181.80

• $108,319.12

• $91,862.68

• $40,470.88

On what exact date should Mommy Heinsohn Mfg. recognize revenue from the sale of the 2,500 cribs to Babies R' Big?

On what exact date should Mommy Heinsohn Mfg. recognize expense from the sale of the 2,500 cribs to Babies R' Big?

What was the amount of the gross profit recognized by Mommy Heinsohn Mfg. from the sale of the 2,500 cribs to Babies R' Big? (Enter the $ and a comma as needed but no cents such as: $12,540.)