A company with a June 30 fiscal year-end entered into a $3,000,000 construction project on April 1 to be completed on September 30. The cumulative construction-in-progress balances at April 30, May 31, and June 30 were $500,000, $800,000, and $1,500,000, respectively. The interest rate on company debt used to finance the construction project was 5% from April 1 through June 30 and 6% from July 1 through September 30. Assuming that the asset is placed into service on October 1, what amount of interest should be capitalized to the project on June 30?

$11,666            

Explanation:

The computation of the mount of interest should be capitalized to the project on June 30 is shown below:

= $500,000 × 0.05 × 3 months ÷ 12 months + $300,000 × 0.05 × 2 months ÷ 12 months  + $700,000 × 0.05 × 1 months ÷ 12 months

= $6,250 +  $2,500  + $2,916

= $11,666        

The $300,000 is come from

= $800,000 - $500,000

And, the $700,000 is come from

= $1,500,000 -$800,000

= $700,000          

According to the months, the number of months are chosen.                                                                                      

d. automatic stabilizers.

explanation:

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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