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Avatar Company Uses the Direct Method to Prepare Its Statement

question 131

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Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following financial statement information for the year 2014: Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following financial statement information for the year 2014:   On Avatar's statement of cash flows, using the direct method, what amount will be shown for payments to suppliers for Inventory and Other operating expenses? A) $162,000 B) $142,000 C) $244,000 D) $136,000 On Avatar's statement of cash flows, using the direct method, what amount will be shown for payments to suppliers for Inventory and Other operating expenses?


Definitions:

Job-Order Costing

An accounting system used to assign manufacturing costs to individual products or batches, making it possible to track the cost of specific jobs or orders.

Process Costing

An accounting methodology used for homogenous products that accumulates direct and indirect costs, and then assigns them to units of output on an average basis.

Cost Reconciliation Report

A report used to reconcile the costs between starting and ending inventory levels with the costs of goods manufactured and sold.

Work in Process Inventory

Items that are in the process of being manufactured but are not yet complete.

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