These costs called as Transferred costs.
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Explanation:</u></h3>
The costs that are accumulated during the time of upstream production process in a firm refers to Transferred costs. These are associated with the goods that are transferred to the next department of a business from one department. With this product there will be a continuation of the production process.
These are semi finished goods that are transferred for the purpose of continuing the production process. When these units are moved form the processing department to the next department, these transferred cost will be transferred from one work in process account to the next account.
Another answer to go along with the rest is (contribute to keeping ecosystems productive) I hope this helps
Answer:
The correct answer is $17,000.
Explanation:
According to the scenario, the given data are as follows:
Bonds percent = 7%
Par value of bonds = $500,000
Market rate = 6.5%
Cash received = $505,000
So, we can calculate the amount of recorded interest for semiannual interest period by using following formula:
First we calculate the premium on bonds,
So, Premium on bonds = Cash received - Par value of bonds
= $505,000 - $500,000
= $5,000
So, straight line amortization = Premium on bonds ÷ years
= $5,000 ÷ 5
= $1,000
So, Amount of interest expense for first semiannual is as follows:
Amount of interest = ( Par value of bonds × Bonds percent ) ÷ 2 - (straight line amortization ÷ 2)
= ( $500,000 × 7% ) ÷ 2 - ( $1,000 ÷ 2 )
= $17,500 - $500
= $17,000.
Answer:
The solution shows that a rate of return of 10% which provides an annuity factor of 4.868 generates an NPV which is equal to zero. Thus, our IRR or internal rate of return is 10%.
Explanation:
The IRR or internal rate of return is the rate at which NPV or Net Present Value of the investment becomes zero. We are provided with the initial outlay for the project and the annual cash inflows along with time period. Using the annuity factors given below, we need to find out the factor which makes the NPV zero. The NPV is calculated as follows,
NPV = Present Value of Cash Inflows - Initial Outlay
We can try out each annuity factor and see what NPV is generates.
1. 6% rate (Annuity factor = 5.582)
NPV = (30000 * 5.582) - 146040
NPV = $21420
2. 8% rate (Annuity factor = 5.206)
NPV = (30000 * 5.206) - 146040
NPV = $10140
3. 10% rate (Annuity factor = 4.868)
NPV = (30000 * 4.868) - 146040
NPV = $0
So, from the above solution we can see that a rate of return of 10% which provides an annuity factor of 4.868 generates an NPV which is equal to zero. Thus, our IRR or internal rate of return is 10%
