An individual who has NO prior experience in starting up a business, inheriting a business or purchasing a business.

EvenFlo Pipes forecasts a small increase in sales next year. To achieve this growth in sales, however, the firm must purchase an

TEA [102]

Answer: a. The firm must purchase lumpy assets to achieve the increase in sales.

Explanation:

EvenFlo Pipes needs to sell more pipes in order to see an increase in sales. Assuming they are the producers, they will need to produce more pipes than they have been doing and this will need them to increase their production capacity.

To do so they would have to invest in fixed assets as these are what produce pipes. This is why the firm will have to purchase lumpy assets that will help them produce and sell more pipes.

3 0

3 years ago

At the beginning of 2023, the Mackinac Company purchased a machine for $510,000 (salvage value of $60,000) that had a useful lif

Ratling [72]

Answer:

$10,000 credited

Explanation:

DATA

Machine cost = 510,000

Salvage value = $60,000

Useful life = 6 years

Depreciation = $60,000/6years

Depreciation = $10,000

It means that we have overstated depreciation expense for the year with the amount of $10,000.

Retained earnings will be credited by $10,000 As the depreciation expense was overstated mistakenly by $10,000

4 0

2 years ago

A company started a new product, and in the first month started 100,000100,000 units. The ending work in process inventory was 2

sukhopar [10]

Answer:

$240,000

Explanation:

Calculation for What is the value of the inventory transferred out, using the weighted-average inventory method

First step is to calculate the Equivalent material cost=

Equivalent material cost= 20,000×100%×$6

Equivalent material cost= 120,000

Second step is to calculate Equivalent conversion cost

Equivalent conversion cost=20,000×75%×8

Equivalent conversion cost=120,000

Now let calculate the value of the inventory transferred out, using the weighted-average inventory method

Inventory value transferred out= 120,000+120,000

Inventory value transferred out=$240,000

Therefore the value of the inventory transferred out, using the weighted-average inventory method is $240,000

4 0

2 years ago

Juanita owns 60% of the stock in a C corporation that had a profit of $200,000 in the current year. Carlos owns a 60% interest i

Ivan

Answer:

The statement which is incorrect or not true is Option A.

Explanation:

Juanita owns 60% of stock in the corporation, so from the profit of $200,000 in the current year, she should report

= $200,000 × 60%

= $120,000

But the Corporation distributed $45,000 to Juanita. Therefore, she should report only $45,000 for this year not $120,000.

Therefore, the first option is incorrect.

4 0

3 years ago

uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost for

OLga [1]

Answer:

$11,026 Favorable

Explanation:

The computation of the spending variance for plane operating costs in November is shown below:

= Budgeted cost - Actual cost

= [(84 × $3,160) + (252 × $18) + $593,00] - $318,250

= $329,276 - $318,250

= $11,026 Favorable

5 0

3 years ago