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-   -   Accounting issue (https://www.askmehelpdesk.com/showthread.php?t=409272)

  • Oct 24, 2009, 03:32 PM
    SamiBrady
    Accounting issue
    Margine sold for 18,000 equipment that cost 40,000 and had a book value of 30,000. Margine would report?
    a. operating cash inflows of 18000
    b. operating cash inflows of 8000
    c. financing cash inflows of 18000
    d. investing cash inflows of 18000

    could u help me out with this one... thanks Sami
  • Oct 24, 2009, 11:51 PM
    morgaine300

    Please see the guidelines for posting homework problems:
    Ask Me Help Desk - Announcements in Forum : Homework Help

    And since it's multiple choice, it's also nice to see why you chose a particular answer.
  • Oct 25, 2009, 11:46 AM
    SamiBrady
    I'm thinking it's B... but I'mnot sure
  • Oct 25, 2009, 05:01 PM
    correa58

    3.
    Vodopich Corporation has provided the following data from its activity-based costing system:

    Activity Cost Pool Total Cost Total Activity
    Assembly $703,000 37,000 machine-hours
    Processing orders $103,500 2,300 orders
    Inspection $114,480 1,590 inspection-hours

    Data concerning the company's product P58Z appear below:

    Annual unit production and sales 460
    Annual machine-hours 910
    Annual number of orders 91
    Annual inspection hours 33
    Direct materials cost $35 per unit
    Direct labor cost $24 per unit

    According to the activity-based costing system, the average cost of product P58Z is closest to (rounded):
    $106 per unit
    $46 per unit
    $52 per unit
    $111 per unit
    References
  • Oct 25, 2009, 09:17 PM
    morgaine300

    correa58, please post your question to your own thread. It's not even related to the original post. (Think what would happen if everyone just posted all their questions in the same thread.)

    Also see the guidelines for posting homework problems:
    Ask Me Help Desk - Announcements in Forum : Homework Help

    I just posted that in post #2, which obviously you ignored.
  • Oct 25, 2009, 09:20 PM
    morgaine300
    SamiBrady, two things. One, it's cash flows. You have to concentrate on the actual cash received. Did you receive 8000?

    Second, selling equipment isn't an operating activity. That has to do with your day-to-day operations, so related to your sales and purchases and everyday expenses, and the asset/liability accounts that go along with that, such as A/R, A/P, inventory.

    Investing activities are basically all assets that aren't current. Assets are what the company invests in.

    Financing activities are all liabilities that aren't current and all equity. Financing means how the company financed themselves, through either debt or equity.
  • Mar 23, 2012, 02:33 AM
    azharaa
    Vodopich Corporation has provided the following data from its activity-based costing system:

    Activity Cost Pool Total Cost Total Activity
    Assembly $740,000 37,000 machine-hours
    Processing orders $70,400 1,600 orders
    Inspection $107,440 1,580 inspection-hours

    Data concerning the company's product P58Z appear below:

    Annual unit production and sales 430
    Annual machine-hours 900
    Annual number of orders 93
    Annual inspection hours 26
    Direct materials cost $35 per unit
    Direct labor cost $24 per unit

    According to the activity-based costing system, the average cost of product P58Z is closest to (rounded):
    $115 per unit
    $51 per unit
    $55 per unit
    $111 per unit

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