All categories

2 years ago

Purchase

Business

1 answer:

USPshnik [31]2 years ago

8 0

Answer:

The total cost to be capitalized for each of these two pieces of equipment:

Purchase equipment = $180,708

Construction equipment = $678,432

Explanation:

a) Data and Calculations:

Purchase

Cash paid for equipment, including sales tax of $7,400 $155,400

Freight and insurance cost while in transit 2,960

Cost of moving equipment into place at factory 4,588

Wage cost for technicians to test equipment 5,920

Special plumbing fixtures required for new equipment 11,840

Total cost to be capitalized = $180,708

Construction

Material and purchased parts (gross cost $296,000; failed to take 2% cash discount) $296,000

Imputed interest on funds used

during construction (stock financing) 20,720

Labor costs 281,200

Allocated overhead costs:

Fixed $29,600

Variable $44,400 74,000

Cost of installing equipment 6,512

Total capitalized costs = $678,432

You might be interested in

The raw materials or reactants of the photosynthetic process include

Firdavs [7]

<h3><u>Full Question:</u></h3>

The raw materials or reactants of the photosynthetic process include

A. glucose and oxygen.

B. carbon dioxide and glucose.

C. carbon dioxide and water.

D. carbon dioxide and oxygen.

The raw materials or reactants of the photosynthetic process include carbon dioxide and water.

<h3><u>Explanation:</u></h3>

The process by which the light energy obtained from the sun is converted into chemical energy is photosynthesis. This process takes place in all plants having chloroplast pigments. The raw materials of this process is water and carbon dioxide.

In the photosynthesis process water, carbon dioxide and minerals will be converted into oxygen and some organic compounds that are filled with energy. This acts as an energy source for the plants to survive. This process will not be possible in the absence of the chloroplast pigment.

3 0

2 years ago

1) Decide whether you would expect relationship between the following pairs of dependent and independent variables (respectively

kvasek [131]

Answer:

(a) GDP is a dependent variable and aggregate net investment is a independent variable. There is a positive relationship between the variables which means that an increase in the net investment will lead to increase GDP.

(b) There is a negative relationship between the variables which means that as the supply of wheat increases, as a result price of wheat falls. So, as the number of acres of wheat planted in a season increases as a result price of wheat decline.

(c) There is a negative relationship between the variables which means that an increase in the interest rate in an economy will lead to increase the cost of borrowings and hence, net investment falls.

(d) There is a negative relationship between the variables because of the law of demand. It states that an increase in the price of a commodity will lead to reduce the quantity demanded for that commodity.

(e) There is no relationship between these variables. Both the variables are totally uncorrelated.

4 0

3 years ago

Rearden Metals is considering opening a strip mining operation to provide some of the raw materials needed in producing Rearden

melomori [17]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The initial purchase of the land and the associated costs of opening up mining operations will cost $100 million today. The mine is expected to generate $16 million worth of ore per year for the next 12 years. At the end of the 12th year Rearden will need to spend $20 million to restore the land to its original pristine nature appearance.

We need to sum each cash flow until the total initial investment is paid:

Number of years= 100,000,000/16,000,000= 6.25 years

To be exact:

0.25*365= 95 days

It will take 6 years and 95 days to recover the initial investment.

5 0

3 years ago

Each of the following are types of__________allocation methods:

storchak [24]

Answer:

Each of the following are types of Overheads allocation methods.

Explanation:

Factory overheads such as rent, electricity or water can not be traced directly to a cost object.

When determining the cost of a cost object these overheads are apportioned to departments they pass through for processing or the actual job using an allocation method.

The common methods for allocating overheads are plant-wide rate method, departmental overhead rate method and activity-based costing method.

5 0

3 years ago

During 2021, Farewell Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding. Th

grigory [225]

Answer:

a) c. $4.34

b) b. $4.10

Explanation:

a) Find Farewell's diluted earnings per share for 2021.

Use the formula below:

Diluted EPS = (Net income after tax - preferred dividend) / diluted common stock