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Problem - Company employs a, FIFO process costing system. The following information was taken from the accounting records of Department A for the month of July:
1) Work in process inventory at July 1 consisted of 16,000 units that were 37% complete with respect to direct materials and 59% complete with respect to conversion costs.
2) Work in process inventory at July 31 consisted of 31,000 units that were 75% complete with respect to direct materials and 30% complete with respect to conversion costs.
3) The direct material unit cost for July was $2.25 and the conversion unit cost for July was $3.80.
4) Department A started work on 76,000 units in July and completed 61,000 units during July.
Calculate the cost to complete the units in beginning work in process.
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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