Coming Home Corporation uses a weighted-average process costing system to collect costs related to production. The following sel
ected information relates to production for October: Materials Conversion Units completed and transferred out 49,000 49,000 Equivalent units: work in process, October 31 11,000 5,000 Total equivalent units 60,000 54,000 Materials Conversion Costs in work in process on October 1 $ 9,000 $ 5,400 Costs added to production during October 243,000 513,000 Total cost $ 252,000 $ 518,400 All materials at Coming Home are added at the beginning of the production process. What total amount of cost should be assigned to the units completed and transferred out during October? a. $676,200 b. $667,800 c. $642,000 d. $690,000
1 answer:
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Answer:
1276.5
Explanation:
Today, Eric deposited an amount(PO) that is = 1000
The annual nominal Interest rate for the first 7 years = i
This is convertible semiannually.
As such,
The semi-annual interest rate for first 7 years =
The number of semi-annual periods in 7 years (k) = 2*7 = 14
The magnitude of the deposit at end of year 7( P7),
= P7 == P0 * (1 + i/2)14 ------ equation 1
On the other hand,
The nominal interest rate after 7 years = 2i which is convertible quarterly
The effective quarterly interest rate = =
The number of quarters between the end of year 7 and year 10.5 = 4* (10.5 - 7) = 14
The amount of deposit at the end of year 10.5 year = P10.5
=
* (1 +
---equation 2
We are given the following:
=1980
We shall thus substitute this value into the equation as
1980 = *( 1 + i/2)14
Further, we have worked out that
P7 == P0 * (1- i/2)14 *(1
We shall therefore substitute equation 1 into equation 2 as follows
1980 = P0 * (1+ i/2)14 *( 1 + i/2)14
1980 = 1000* (1+ i/2)14 *( 1 + i/2)14
This can also be rewritten as
1000* (1+ i/2)14 *( 1 + i/2)14 =1980
(1+ i/2)14 *( 1 + i/2)14 =1980/1000
(1+ i/2)28 =1.98
(1+ i/2) = 1.981/28
(1+ i/2) = 1.0247
i/2 = 1.0247 -1
i/2 = 0.0247
1 = 0.0247 *2 =0.0494
At the end of year 5, the amount has accumulated to an amount = X
X = Po * ( 1 + i/2 )10
= 1000 * ( 1 + 0.0494/2)10
= 1000 * ( 1 + 0.0247)10
= 1000 + ( 1.0247)10
= 1000* 1.276467
= 1276.5