Bridgeport Ltd. purchases units of wood frames that have manufacturers volume rebates from Sarasota Inc. The rebate requires Bridgeport to purchase a minimum number of units in a calendar year. The initial unit cost of each wood frame is $3.50 before any rebate. If more than 4,190 units are purchased, the rebate is $0.75 per unit for all units purchased beyond the base amount of 4,190 units. Bridgeport Ltd. has a June 30 fiscal year end. By June 30, 2020, Bridgeport had purchased 3,150 wood frames for the six-month period from January 1, 2020, to June 30, 2020. Bridgeport estimates that an additional 3,150 wood frames will be purchased from July 1, 2020, to December 31, 2020. Bridgeports management is very confident that this estimate will be confirmed by future purchases from Sarasota.

1. Calculate the amount of any rebate that Bridgeport should accrue at June 30, 2020, assuming the rebate cannot be cancelled by Sarasota.

2. Calculate the unit cost that Bridgeport should use in the costing of wood frames, using the perpetual inventory system.