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3 years ago

Costs of Acquiring Fixed Assets

Business

2 answers:

Zepler [3.9K]3 years ago

8 0

Answer:

The answer is given below:

Explanation:

1.Yes

2.Yes

3.Yes

4.Yes

5.Yes

6. Yes

7.No

8.Yes

9.Yes

10.No

11.No

12.No

As a rule of thumb,those costs which increase the value or useful life of asset should be capitalized where as those costs that are incurred to maintain the usage of asset are revenue expenditure and should be charged to income statement not the asset.

Olegator [25]3 years ago

7 0

Answer:

Yes

Explanation:

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Answer:

$\frac{\$60p+\$90q}{p+q}$

Explanation:

Data provided in the question:

Cost of chair P = $60

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Number of chair P ordered = p

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Now,

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MC Qu. 93 Schrank Company is trying to decide how... Schrank Company is trying to decide how many units of merchandise to order

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Answer:

43,000 units

Explanation:

Given that,

Projected sales in August = 48,000

Projected sales in September = 38,000

Projected sales in October = 58,000

Ending inventory is the 25% of the next month's sales.

The units purchased in the month of September includes the amount of sales in this month and the amount of ending inventory for this month but the amount of beginning inventory excludes from this calculation of purchases.

Ending inventory for September:

= 25% of the next month's sales

= 0.25 × Sales in October

= 0.25 × 58,000

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Here, the opening inventory for September is the amount of ending inventory for August.

Opening inventory for September:

= 0.25 × Sales in September

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= 9,500

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= Sales in September + Ending inventory for September - Opening inventory for September

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