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Ace chemical company manufatures a liquid used to was boats. ace began 2011 with 10,000 units in process with cost of $12000 for materials and $162,000 for materials and labor. all materials are added at the start of production and materials and labor are added at a consistent rate during production. 90,000 unts are added to productiong during the period, and 80,000 completed. the cost of the added units was $96,000 for materials and $180,000 for conversion costs. the uncompleted units are 50% completed as to conversion costs.
a. What is the cost of the units completed? why?
b. What is the cost of the units not completed? why?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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