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jolli1 [7]
4 years ago
5

A company is constructing an asset for its own use. Construction began in 2017. The asset is being financed entirely with a spec

ific new borrowing. Construction expenditures were made in 2017 and 2018 at the end of each quarter. The total amount of interest cost capitalized in 2018 should be determined by applying the interest rate on the specific new borrowing to the:a. total accumulated expenditures for the asset in 2017 and 2018.b. weighted-average accumulated expenditures for the asset in 2017 and 2018.c. weighted-average expenditures for the asset in 2018.d. total expenditures for the asset in 2018.
Business
2 answers:
dimulka [17.4K]4 years ago
4 0

Answer:

The total amount of interest cost capitalized in 2018 should be determined by applying the interest rate on the specific new borrowing to the weighted-average accumulated expenditures for the asset in 2017 and 2018

Explanation:

Interest cost is the increasing value of interest a borrower pays on a debt obligation over the duration of the borrowing. In other words, you pay interest when you borrow and you earn interest when you lend or deposit funds in bank accounts.

Given that construction began in 2017 and expenditures were made in 2017 and 2018; to get the total amount of interest cost capitalized in 2018; we must first get the total accumulated expenditures for assets in 2017 and 2018; after which that weighted average is calculated.

This is so because the weighted-average accumulated expenditures one of the amounts used in determining the amount of interest to be capitalized when a company self-constructs certain long-term assets.

Ira Lisetskai [31]4 years ago
3 0

Answer:

option B

Explanation:

On the off chance that an advantage is being built and is being financed totally with a particular new obtaining. Development costs are spread more than two years The aggregate sum of intrigue cost promoted in the subsequent year is dictated by applying the loan cost on the particular new obtaining to the weighted-normal amassed consumption's for the advantage in both of the years.

The correct answer is option B

 weighted-average accumulated expenditures for the asset in 2017 and 2018.

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Assume that direct material costs in beginning Work-in-Process Inventory is $500 and an additional $1,500 worth of materials is
Len [333]

Answer:

$4.00

Explanation:

Data provided:

Direct material costs in beginning Work-in-Process Inventory = $500

worth of materials is added during the month = $1,500

Equivalent units for direct materials = 500 units

Now,

the total cost incurred

= Direct material costs in beginning Work-in-Process Inventory + worth of materials is added during the month

= $500 + $1,500

= $2,000

Now,

The Cost per equivalent unit for direct materials

= \frac{\textup{Total cost incurred}}{\textup{Equivalent units for direct materials}}

The Cost per equivalent unit for direct materials  = \frac{2000}{500}

or

The Cost per equivalent unit for direct materials = $4.00

8 0
4 years ago
EB11.
devlian [24]

Complete Question is as under:

JJ Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follow:

PRODUCTS              Selling Price Per Unit            Variable Cost Per Unit

TRUNK SWITCH                  $60                                        $28

GAS DOOR SWITCH           $75                                         $33

GLOVE BOX LIGHT             $40                                         $22

Their sales mix is reflected in the ratio 4:4:1. If annual fixed costs shared by the three products are 18,840.

Requirement 1: How many units of each product will need to be sold in order for JJ to break even?

Requirement 2: Use the information from the previous exercises involving JJ Manufacturing to determine their break-even point in sales dollars.

Kindly Find the Solution in the attachment.

3 0
4 years ago
Ed is a self-employed heart surgeon who has incurred the following reasonable expenses:$1,000 in air fare to repair investment r
lyudmila [28]

Answer:

A. $1,300 "for AGI.

Explanation:

The computation of the deductible amount is shown below:

= Air fare to repair investment rental property + 50% × (Meals + tickets to a football game with hospital administrators)

= $1,000 + 50% × ($500 + $100)

= $1,000 + $300

= $1,300

For meals and tickets, 50% deduction is applicable whereas for the air fair full deduction is applicable

And, for investment in seminar no deduction is allowed

6 0
4 years ago
What is the key to success?
Alisiya [41]
Honesty and working hard.
4 0
3 years ago
Read 2 more answers
As an MNC (multinational corporation) seeks to balance and honor the ethical standards of both the home and host countries, conf
sergeinik [125]

The manager should analyze the legal and ethical differences of home country compared to the host country and<u> develop a strategy that is beneficial to the company and does not clash with the ethical and legal parameters of the host country.</u> It is important to analyze each area that may affect the company, such as government, employee, supplier, investor and customer protectionism, and to analyze common ethical, legal and cultural standards for stakeholders and then develop policies and standards that do not negatively influence the country.

Hypernormas are very effective in solving these possible conflicts, as they guide the lowest-level norms to the highest-level ones, which are those related to fundamental principles for humanity. Which is effective to guide management in an international market.

6 0
4 years ago
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