EA5.
1 answer:
Answer:
$4,500
Explanation:
Given that,
Beginning balance of work in process = $4,000
Ending balance of work in process = $3,000
Direct labor:
= Cost of goods manufactured + Ending balance of work in process - Beginning balance of work in process - Material used - Overhead applied
= $7,500 + $3,000 - $4,000 - $1,500 - $500
= $4,500
Note:
Table is missing from the question so I have attached the table.
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Answer:
As a result of a fall in interest and YTM, the bond price will increase by $15.04
Explanation:
To calculate the change in price due to fall in interest rate, we must first calculate the price of the bond before and after the fall of interest rates.
To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 1000 * 0.062 * 0.5 = $31
Total periods (n)= 2 * 2 = 4
r or YTM = 6% * 1/2 = 3% or 0.03
The formula to calculate the price of the bonds today is attached.
<u />
<u>Before Interest rates Fell</u>
Bond Price = 31 * [( 1 - (1+0.03)^-4) / 0.03] + 1000 / (1+0.03)^4
Bond Price = $1003.717098 rounded off to $1003.72
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<u>After Interest Rates Fell</u>
New YTM = 6% - 0.8% = 5.2% or 0.052
Semi Annual YTM = 0.052 * 0.5 = 0.026
Bond Price = 31 * [( 1 - (1+0.026)^-4) / 0.026] + 1000 / (1+0.026)^4
Bond Price = $1018.764647 rounded off to $1018.76
Change in Bond Price = 1018.76 - 1003.72 = $15.04
As a result of a fall in interest and YTM, the bond price increased by $15.04
