Sylvester Co. takes out a 12% loan of $500,000 on 1/1/year 4 to finance construction of a building for the company’s own use. Construction begins immediately, and $600,000 is spent on the construction at an even pace during year 4. Another $400,000 is spent at an even pace during year 5, with construction completed on 12/31/year 5. No other construction loans are taken out. Sylvester incurred unrelated interest expenses of $10,000 and $15,000 in year 4 and year 5, respectively, on loans that bear interest at 10%. How much interest can Sylvester capitalize in year 4 and year 5?

Waterway company’s record of transactions for the month of april was as follows. purchases sales april 1 (balance on hand) 672 @ $6.00 april 3 560 @ $11.00 4 1,680 @ 6.08 9 1,568 @ 11.00 8 896 @ 6.41 11 672 @ 12.00 13 1,344 @ 6.51 23 1,344 @ 12.00 21 784 @ 6.61 27 1,008 @ 13.00 29 560 @ 6.79 5,152 5,936 (a) calculate average-cost per unit. (b) assuming that periodic inventory records are kept in units only, compute the inventory at april 30 using lifo and average-cost. (c) assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) fifo and (2) lifo. (d) compute cost of goods sold assuming periodic inventory procedures and inventory priced at fifo.