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3 years ago

When manufacturers such as pampered chef sell directly to consumers, they perform both production and retailing activities?

1 answer:

8 0

That statements is true

Manufacturer is a type of business that transform raw materials into a sellable goods, so technically they can be considered as a producer in the market.
Retailers is someone that sell the goods that produced by the manufacturers to the consumers.

So, in this case, they did perform both production and retailing activities

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Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase

ioda

Answer: See Explanation

Explanation:

You didn't give the methods to use but let me use 2 main methods.

First, let's use the Straight line Depreciation. This will be:

= ($71000 + $3000 + $2000 - $3000) / 5

= $73000/5

= $14600

Year 1 Depreciation = $14600

Year 2 depreciation = $14600

Secondly, let's use the double declining method of Depreciation will be:

= 1/5 × 2

= 0.2 × 2

= 0.4

= 40%

Year 1 depreciation will be:

= 76000 × 40%

= 76000 × 0.4

= $30400

Year 2 Depreciation will be:

= ($76000 - $30400) × 40%

= $45600 × 40/100

= $45600 × 0.4

= $18240

7 0

2 years ago

It is argued that LIFO should not be allowed to compute net income because a. it does not match costs to revenues, especially wh

Bogdan [553]

Answer:

d. it causes profits to be understated when prices are rising and allows a company to dodge taxes.

Explanation:

The LIFO method should not be permitted to determine the net income as in this case the profits would be understated at the time when price is increased due to this it permits the company to dodge taxes as the inventory consumed in the production process also the high inventory value would be involved in the cost of sales that represent the high cost, this result in lower profits and taxes

Hence, the option d is correct

8 0

3 years ago

Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departme

e-lub [12.9K]

Answer:

Inacio Corporation

The cost per equivalent unit for materials for the month in the first processing department is closest to:

= $14.50

Explanation:

a) Data and Calculations:

Units Materials Conversion

Beginning work in process 2,300 $14,400 $6,500

Percentage of completion 75% 20%

Units started during the month 11,000

Total units available 13,300

Units transferred to the next 9,900 100% 100%

Ending work in process 3,400 90% 30%

Costs added during the month $173,500 $243,500

Equivalent units of production:

Units Materials Conversion

Units transferred to the next 9,900 9,900 (100%) 9,900 (100%)

Ending work in process 3,400 3,060 (90%) 1,020 (30%)

Equivalent units of production 12,960 10,920

Costs of production: Materials Conversion

Beginning work in process $14,400 $6,500

Costs added during the month 173,500 243,500

Total costs of production $187,900 $250,000

Cost per equivalent unit: Materials Conversion

Total costs of production $187,900 $250,000

Equivalent units of production 12,960 10,920

Cost per equivalent unit $14.50 $22.89

7 0

3 years ago

The ________ method adjusts net income to find net cash provided by operating activities.

Vaselesa [24]

Answer:

indirect

Explanation:

The indirect method adjusts net income to find net cash provided by operating activities.

4 0

2 years ago

Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently.

kipiarov [429]

Answer and Explanation:

As per the data given in the question,

Cash flow Amount PV Factor at 10% for 8 annual installments Present Value

Installments $4,000 5.3349 $21,339.60

Down Payment $27,000 1 $27,000

Value of equipment $48,339.60

Refer to the PVIFA factor

Table or calculator function FVAD of $ 1

Future value $570,000

n = 5

i = 7.00%

Divided it by FV factor 6.1533

Annual Deposit $92,633.22

Refer to the FVAD table

Table or calculator function PVAD of $ 1

Payment $137,000

n = 20

i = 10.00%

Multiplied by PV factor 9.36492

Liability $1,282,994.04

Refer to the PVAD table

5 0

3 years ago