Flounder Ltd$.$ purchases units of wood frames that have manufacturer's volume rebates from Novak Inc. The rebate requires Flounder

to purchase a minimum number of units in a calendar year. The initial unit cost of each wood frame is $$3\mathrm{.}00$ before any rebate. If more

than $4,140$ units are purchased, the rebate is $$0\mathrm{.}50$ per unit for all units purchased beyond the base amount of $4,140$ units. Flounder

has a June $30$ fiscal year end. By June $30,2023,$ Flounder had purchased $2,850$ wood frames for the six$-$month period from January $1,$

$2023,$ to June $30,2023.$ Flounder estimates that an additional $2,850$ wood frames will be purchased from July $1,2023,$ to December

$31,2023.$ Flounder's management is very confident that this estimate will be confirmed by future purchases from Novak.

$($b$)$

Correct Answer

Your answer is correct.

Calculate the amount of any rebate that Flounder should accrue at June $30,2023,$ assuming the rebate cannot be cancelled by

Novak. $($Round answer to $2$ decimal places, e$.$g$.52\mathrm{.}75.)$

Accrued rebate receivable

Solution

$($c$)$

Your answer is incorrect.

Calculate the unit cost that Flounder should use in the costing of wood frames, using the perpetual inventory system. $($Round

answer to $4$ decimal places, e$.$g$.52\mathrm{.}1212.)$

Per unit cost

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