The probability of a loss occurring can be reduced my loss prevention
Answer:
The correct answer is "$21490".
Explanation:
The given expenditures are:
January:
= $205000
September:
= $306000
December:
= $306000
Now,
January average will be:
= 
= 
($)
September average will be:
= 
= 
December average will be:
= 
= 
The total average will be:
= 
= 
($)
Hence,
The Interest capitalized for year 2021 will be:
= 
On substituting the estimated values, we get
= 
= 
($)
Answer:
c. Payback is the amount of time to recover the initial investment. No discounting occurs and all cash flows after the payback period are not accounted for. The rule is intuitive and used by small business owners
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested. The NPV does account for all cash flows as well as time value of money.
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
. The IRR does account for all cash flows.
The discounted payback period discounts cash flows
Answer:
185 teddy bears are in work in progress inventory
Explanation:
given data
receives order = 250 teddy bears
fabric = 300 yards
ribbon = 200 yards
cotton = 250 pounds
to find out
how many teddy bears can be considered work-in-process inventory
solution
we know that teddy bears to be manufactured is = 250
so finished and this comes under finished goods inventory are
goods inventory = 65 teddy bears
and still in the process is 185 teddy bears
so they needs to undergo further process because the work is still not completed
so we can say that 185 teddy bears are in work in progress inventory
If you are looking for the adjusting entry at the end of the year, it would be:
Office Supplies Expense 5000 Office Supplies 5000
The amount to be recorded is 5000 because:
Beginning supplies is $240
Then there is an additional supplies $5,200
So there is a total of 5,440 supplies.
But the ending inventory is $440.
Deduct the $440 from the $5440 which will give us $5,000. This is to make sure that the amount in the journal entry at the end of the year will be same with the physical count of the supplies.
