Question
Pharma-C, a company that makes drugs, makes both over-the-counter and generic prescription drugs. The main office of Pharma-C is in the United States, but its
"Pharma-C," a company that makes drugs, makes both over-the-counter and generic prescription drugs. The main office of Pharma-C is in the United States, but its parent company is based in Germany.
In November 2021, 10,000 bottles of Pharma-cough C's children's medicine with a grape flavour were sent to different distributors and retailers. Pharma C found out on December 31, 2021, that 2,000 of the bottles had dosing cups that didn't have the correct 5 mL and 10 mL graduations. If the wrong dosing cup is used, a child could get too much medicine.
This is a worry for Pharma-C. Pharma-C does not have to recall its children's cough medicine because of the wrong dosing cups.
No one has sued Pharma-C for the bottles that were sent out. Pharma-C has voluntarily recalled the cough medicine for kids because the dosing cups had the wrong information on them. This could be unsafe.
Pharma-C told the public about the recall on January 2, 2022. The recall is expected to cost $10,000. As a Certified Public Accountant, you were asked to help the accountant on the issue surrounding voluntaryrecalloftheproduct .
Please Note this is Critical thinking case study,
PLease useCPA Format/Rule. Add issues, Handbook Analysis using IFRS and CPA Standards, Recommendation, and Calculations.
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