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Prevatte Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products - 'peels' and 'skinless spuds'. The 'peels' can then be processed further to make a cocktail of 'organic nutrients'. The 'skinless spuds' can be processed further to make 'frozen french fries'. A batch of potatoes costs $45 to buy from farmers and $12 to peel in the company's plant. The peeling costs of $12 are allocated equally to the 'peels' and the 'skinless spuds'. The 'peels' produced from a batch can be sold as is for $27 or processed further at a cost of $16 to make the 'organic cocktails' that are sold for $47. The 'skinless spuds' can be sold as is for $38 or processed further at a cost of $27 to make the 'frozen french fries' which can be sold for $59. a. Should the 'peels' and 'skinless spuds', be sold as is or processed further into an end product? What is the economic advantage or disadvantage to selling at split off or further processing each item? Show your work! Bonus: (2 points) Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of potatoes into the cocktail of organic nutrients and frozen french fries? Show your work!
you desire to do a survey of likely voters in michigan to determine whether they would support a tax increase to
On February 2, 2011, it was determined that the patent's useful life would expire at the end of 2013. How much would Lexicon record as amortization expense for this patent for the year ending December 31, 2011?
1. the revenue recognition principle indicates that revenue is recognized wheni. the benefits can be measured
1.borrowed 540000 in jan 2014 made 12 monthly payments during the year reducing the balance of the loan by 40628. 2.
resources appendix a the home depot inc. annual report in fundamentals of financial accounting write a 1050- to
At the end of the year prior to the sale, Rita's basis in RSTU was $60,000. The partnership allocates $12,000 of income to Rita for the portion of the year she was a partner. On the date of the sale, the partnership assets and the agreed fair mark..
Using the following information and assuming that all inventory is purchased on account, compute cash paid for inventory:
Paulsen Company sells 100,000 units for $15 a unit. Fixed costs are $350,000 and net income is $250,000. What should be reported as variable expenses in the CVP income statement?
Lupe and Rodrigo, father and son, each own 50% of the stock outstanding of Heron Corporation (Eof $400,000). During the current year, Heron redeems all of Lupe's shares for $250,000. The transaction cannot qualify as a complete termination redempt..
on january 1 2008 jose company purchased a building for 200000 and a delivery truck for 20000. the following expenses
tawstir corporation has 500 obsolete personal computers that are carried in inventory at a total cost of 720000. if
x company is considering buying a part next year that they currently make. this years total production costs for 11900
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