FINANCIAL AND MANAGERIAL ACCOUNTING
FINANCIAL AND MANAGERIAL ACCOUNTING
9th Edition
ISBN: 2818440048890
Author: Wild
Publisher: MCG CUSTOM
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Chapter 20, Problem 3E
To determine

Production Budget:

It is the budget which provides the details regarding the amount of units to be produced by the entity in order to meet the requisite demand. Formula to calculate production budget,

    Productionbudget=Sales+Ending inventoryOpeninginventory

To prepare: Production budget for the month of April, May, June.

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On January 1, 2014, Wonder, Inc., reports net assets of $965,000, although equipment (with a four-year life) having a book value of $525,000 is worth $600,000, and an unrecorded patent is valued at $56,200. Halifax Corporation pays $910,000 on that date for an 85% ownership in Wonder. If the patent is to be written off over a 12-year period, at what amount should it be reported on consolidated statements at December 31, 2015? a) $50,500.77 b) $46,833.33 c) $42,755.55 d) $38,901.22
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