Transcribed Image Text: Moon Company includes 1 coupon in each box of soap powder that it packs, 10 coupons being

Transcribed Image Text: Moon Company includes 1 coupon in each box of soap powder that it packs, 10 coupons being
redeemable for a premium consisting of a kitchen utensil. In 2014, Moon Company purchased
36,000 premiums at $1.00 each and sold 540,000 boxes of soap powder @ $4.00 per box. Based
on past experience, it is estimated that 60% of the coupons will be redeemed. During 2014,
144,000 coupons were presented for redemption.
During 2015, 29,000 premiums were purchased at $1.10. The company sold 1,200,000 boxes of
soap at $4.00 and 495,000 coupons were presented for redemption.
Instructions
Prepare all the entries that would be made relative to sales of soap powder and to the premium
plan in both 2014 and 2015. Assume a FIFO inventory flow.

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