Manual for concept p-1020

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Exercise 1-18A The process of shipping the encased speakers back to Sonic Company by Moore Cabinet, Inc. This process can be eliminated if Moore ships the product to Sonic’s customers directly.

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Regarding objectivity, the officers didn’t communicate information fairly and objectively.

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When a customer wants to buy a T-shirt from Anne Kyser, the supplier could print the school’s special art design on a generic T-shirt and deliver the T-shirt to Ms. Moreover, their actions certainly discredited the accounting profession. Option 2 Cooke Manufacturing Company Income Statement Balance Sheet Sales revenue $72,000 Assets 1 Cost of goods sold (30,000) Cash $ 72,000 2 Gross margin 42,000 Finished goods inv. unit: $40,000 ÷ 4,000 = $10 Cost of goods sold: $10 x 3,000 = $30,000.

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The supplier could bring in enough generic T-shirts. Regarding integrity, the officers’ personal interests conflicted with the public interest because the officers reaped a bonus that they didn’t deserve. 1-17 Chapter 01 - Management Accounting and Corporate Governance Problem 1-23A (continued) a. 0 Total assets $82,000 Net income $42,000 Equity Common Stock Retained earnings Total equity 1 Total product cost: $24,000 $16,000 = $40,000.


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