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quester [9]
2 years ago
5

On January 1, 2021, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for

use on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 205,000 September 1, 2021 $ 306,000 December 31, 2021 $ 306,000 March 31, 2022 $ 306,000 September 30, 2022 $ 205,000 Kendall borrowed $752,000 on a construction loan at 7% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $4,510,000 in 7% bonds payable outstanding in 2021 and 2022.
Interest capitalized for 2021 was:
Business
1 answer:
beks73 [17]2 years ago
3 0

Answer:

The correct answer is "$21490".

Explanation:

The given expenditures are:

January:

= $205000

September:

= $306000

December:

= $306000

Now,

January average will be:

= 205000\times \frac{12}{12}

= 205000 ($)

September average will be:

= 306000\times \frac{4}{12}

= 102000

December average will be:

= 306000\times \frac{0}{12}

= 0

The total average will be:

= 205000+102000+0

= 307000 ($)

Hence,

The Interest capitalized for year 2021 will be:

= Interest \ rate\times Weighted \ average

On substituting the estimated values, we get

= 7 \ percent\times 307000

= 21490 ($)

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Answer:

c. skimming pricing

Explanation:

Based on the information provided within the question it can be said that in this scenario Xerox was using a skimming pricing strategy to help recover the cost of its research and development. This is a pricing strategy in which the company places a really high initial price for it's new product, but then goes lowering the price as time passes. This also makes individuals believe that they are getting a bargain when prices begin to drop and decide to buy more.

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3 years ago
Windsor, Inc. sells merchandise on account for $3700 to Morton Company with credit terms of 2/10, n/30. Morton Company returns $
IrinaK [193]

Answer:

Dr. Cash                          $2,842

Dr. Discount Expense    $58

Cr. Account Receivable $2,900

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Sales = $3,700

Returns = $800

Amount Due = $3,700 - $800 = $2,900

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7 0
3 years ago
One of the top-selling items at a gift shop at Hilo, HI are autographed pictures of Jack Star. Sales are 18 pictures per week, a
ValentinkaMS [17]

Answer:

a. 54

b. 810 dollars

c. 390 dollars

d. 75 pictures

e. 561.6 dollars and 562.5 dollars

f. 38 pictures

Explanation:

demand per week = 18 pictures

annually this demand = 18 *52 = 936

charge per unit = 60 dollars

order for 6 weeks = 6*18 = 108 quantities

cost of ordering = 45 dollars

cost of holding annually = 15 dollars

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b. current annual holding cost

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= \sqrt{\frac{2*936*45}{15} }

= \sqrt{5616}

= 74.9

≈ 75 pictures have to be ordered

e. ordering holding cost per picture

936/75 * 45

= 561.6 dollars

and inventory holding cost per picture

= 75/2 * 15

=562.5 dollars

f. shop inventory per year at optimal ordering quantity

= 75/2

= 37.5

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What measuring tool is used to measure the distance in which a part can move freely?
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