question 7,8, 15,16,17,18,19,20
Use the following information for questions 7 and 8. The following information was available from the inventory records of Rich Company for January: Units Unit Cost 9.77 Total Cost Balance at January 1 Purchases January 6 January 26 3,000 E29,310 2,000 10.30 10.71 20,600 28,917 2,700 Sales: January 7 January 31 Balance at January 31 (2,500) (4.000) 1,200 Assuming that Rich does not maintain perpetual inventory records, what should be the inventory January 31, using the weighted-average inventory method, rounded to the nearest dollar? E12,606. 7. at a. b. 12,284. c. E12,312. d. 12,432. 8, Assuming that Rich maintains parpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar? 12,606. a. b. 12,284. c. 12.312. d. 12.432 April 1 and finished on December 1. The fraction April 1 to find weighted-average accumulated 15. Construction of a qualifying asset is started on used to expenditure made multiply expenditures is 8/8 on an a. b. 8/12 C. 9/12, d. 11/12 16. Interest revenue earned on specific borrowings for qualifying assets reduces the cost of the qualifying asset. reduces interest expense reported on the income statement. increases equity in the period earned. None of these answer choices are correct. a. b. C. d. 17. Mendenhall Corporation constructed a building expenditures were 4,000,000, actual interest was 600,000, and avoidable interest was 300,000 If the salvage value is 800,000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is a. 237,500. at a cost of E10,000,000. Average accumulated b. 245,000. 257,500 C. d. E337,500. 18. Messersmith Company is constructing a building. Construction began in 2019 and the building completed 12/31/19. Messersmith made payments to the construction company of 1,000,000 9/1, and 2,000,000 on 12/31. Average accumulated expenditures were was 7/1, 2,100,000 on on 1,025,000 a. b. 1,200,000. 3,100,000. C. d. E5,100,000. at a cost of 20,000,000. Average accumulated 19. Huffman Corporation constructed a building expenditures were 8,000,000, actual interest was 1,200,000, and avoidable interest was 600,000. If the salvage value is 1,600,000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is 475,000 b. 490,000 c. S515,000. a. d. 675,000. 20. During 2019, Kimmel Co. incurred average accumulated expenditures of E400,000 during construction of assets that qualified for capitalization of interest. The only debt outstanding during 2019 was a 500,000, 10 % , 5-year note payable dated January 1, 2017. What is the amount of interest that should be capitalized by Kimmel during 2019? O V a. b. 10,000. 40,000. c. d. 50,000
