this is the case information? according to case information answer the question?[hewwit tennis is customer]
Un 4 January, Hewitt Tennis ordered racquets to be delivered to the club on 18 January. The goods were priced for sale at $5,500 and were acquired from the supplier at a discounted price of $2,130. Hewitt Tennis paid $3,500 upon the delivery of goods and made the remaining payment on 5 February. In preparation of the order as well as the anticipated sales increase, Nick ordered premium tennis racquets with the latest design from the major brands on 4 January. There were no additional purchases of lower-priced racquets as these products were in abundance in the inventory. One batch of Babolat and Head racquets with a total cost of $7,200 arrived on 5 January, the payments were due in three instalments of equal amounts over the next 60 days, the first instalment was made to the supplier on 24 January, the other two payments were made later in February. A separate batch of Wilson racquets were delivered to the store with an invoice of $1,900 on 7 January, Ash & John paid for this purchase in cash in full As cash balance became critically low after the payment for Wilson racquets, Nick took out a short- term loan of $3,000 under the name of Ash & John on 8 January to maintain a healthy cash position, In addition to this large order, Ash & John also earn a contract with Hewitt Tennis to offer on-site racquet stringing service at the club's biggest annual event, the Lleyton Cup, in February, $1,200 cash was received for the contracted service when the contract was signed on 6 January. In preparation of this service provision, Nick made the business decision to increase Ash & John's service capacity by acquiring a second-hand stringing machine in good condition from one of the competing sports stores that recently filed bankruptcy. Nick agreed to a bargain price of $800 for the machine after much negotiation on 9 January before picking up the machine on 15 January and paying in cash in full, Other sales in early January include a $680 cash sale on 3 January of goods that cost $440, and a $950 credit sale on 11 January of goods that cost $680. In terms of service provision, Nick sold a prepaid package of 10 standard stringing services for $600 cash on 10 January, the customer used up two services on day. The package is valid for use within 180 days from the day of purchase. During this period, Ash & John also provided a large volume of stringing service to Queensland Tennis Centre. This service was booked and prepaid for in December last year. The discount bulk charge averaged $50 per service. On 31 January, the provision of a total of 133 Mid to Late January 2021 - Another Period of Struggle Just as the sales began to increase, the reported cases of UK strain of COVID-19 sent the greater Brisbane area into a three-day lock down between 11 and 14 January 2021. The lock down along with the requirement of mandatory use of facial masks in certain public indoor spaces between 11 and 22 January caused the store sales to plummet. Very few customers visited the store since 11 January, and Nick only managed to make two small sales during this time: a credit sale of $80 goods that cost $50 on 19 January and another credit sale of $130 at cost $90 on 26 January. There was no purchase of stringing services in this period. C-2 (4 marks) Would it be appropriate to use the cost flow assumptions of weighted average costs to account for the costs of sales of tennis racquets? Include discussion on: why or why not with reference to the case information you need to mention specific information in the case to support your reason(s) for why or why not): outcome if Ash & John was to adopt the particular cost flow assumption (weighted-average costs). Moln Un 4 January, Hewitt Tennis ordered racquets to be delivered to the club on 18 January. The goods were priced for sale at $5,500 and were acquired from the supplier at a discounted price of $2,130. Hewitt Tennis paid $3,500 upon the delivery of goods and made the remaining payment on 5 February. In preparation of the order as well as the anticipated sales increase, Nick ordered premium tennis racquets with the latest design from the major brands on 4 January. There were no additional purchases of lower-priced racquets as these products were in abundance in the inventory. One batch of Babolat and Head racquets with a total cost of $7,200 arrived on 5 January, the payments were due in three instalments of equal amounts over the next 60 days, the first instalment was made to the supplier on 24 January, the other two payments were made later in February. A separate batch of Wilson racquets were delivered to the store with an invoice of $1,900 on 7 January, Ash & John paid for this purchase in cash in full As cash balance became critically low after the payment for Wilson racquets, Nick took out a short- term loan of $3,000 under the name of Ash & John on 8 January to maintain a healthy cash position, In addition to this large order, Ash & John also earn a contract with Hewitt Tennis to offer on-site racquet stringing service at the club's biggest annual event, the Lleyton Cup, in February, $1,200 cash was received for the contracted service when the contract was signed on 6 January. In preparation of this service provision, Nick made the business decision to increase Ash & John's service capacity by acquiring a second-hand stringing machine in good condition from one of the competing sports stores that recently filed bankruptcy. Nick agreed to a bargain price of $800 for the machine after much negotiation on 9 January before picking up the machine on 15 January and paying in cash in full, Other sales in early January include a $680 cash sale on 3 January of goods that cost $440, and a $950 credit sale on 11 January of goods that cost $680. In terms of service provision, Nick sold a prepaid package of 10 standard stringing services for $600 cash on 10 January, the customer used up two services on day. The package is valid for use within 180 days from the day of purchase. During this period, Ash & John also provided a large volume of stringing service to Queensland Tennis Centre. This service was booked and prepaid for in December last year. The discount bulk charge averaged $50 per service. On 31 January, the provision of a total of 133 Mid to Late January 2021 - Another Period of Struggle Just as the sales began to increase, the reported cases of UK strain of COVID-19 sent the greater Brisbane area into a three-day lock down between 11 and 14 January 2021. The lock down along with the requirement of mandatory use of facial masks in certain public indoor spaces between 11 and 22 January caused the store sales to plummet. Very few customers visited the store since 11 January, and Nick only managed to make two small sales during this time: a credit sale of $80 goods that cost $50 on 19 January and another credit sale of $130 at cost $90 on 26 January. There was no purchase of stringing services in this period. C-2 (4 marks) Would it be appropriate to use the cost flow assumptions of weighted average costs to account for the costs of sales of tennis racquets? Include discussion on: why or why not with reference to the case information you need to mention specific information in the case to support your reason(s) for why or why not): outcome if Ash & John was to adopt the particular cost flow assumption (weighted-average costs). Moln
