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Unformatted text preview: iece of equipment. The equipment will cost $10,000 and is expected to last 5 years
with no salvage value. Assume Sare's tax rate is 25%. What is the company's expected after-tax cash flow if the net income before
tax is expected to be $8,000?
e None of the above 8 Which of the following is true of a manufacturing company?
a Process costing is used when the company needs cost information kept separate by the product produced.
b All factory costs go into the cost of inventory.
c Companies typically include detailed information about their fixed and variable costs in their financial statements.
d The three inventory accounts for a manufacturing business are (1) direct materials, (2) direct labor, and (3) manufacturing overhead.
e Manufacturing businesses typically include all selling expenses in the cost of inventory. Use the following information to answer questions 9 through 12:
Walnut Company produces a product that has variable cost of $7 per unit and fixed cost of $4 per unit when 3,000 units are produced
9 If the sales price per unit is $12...
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- Fall '08