Posted by Deb on .
Your company manufactures specialty items. In order to reduce any loss from a customer canceling an order after production has been started, your company requests a 50% deposit before it will start the manufacturing process. On January 3, you get an order for a product that costs $2,000 to make. On January 15 you get a $1500 deposit and start production of the product. You have spent $1,750 on the manufacture of the product as of January 31 and another $250 in February before you deliver the finished product on February 12. You receive $500 on February 15 and the final $1,000 on March 12. What are the revenues and expenses associated with this product for January, February, and March?
Here are some accounting tutorials you might like to have: