The following information is available: Units in process, Dec. 1 (60 percent converted) 2,000 units

The following information is available: Units in process, Dec. 1 (60 percent converted) 2,000 units Units in process, Dec. 31 (50 percent converted) 1,000 units Units started during the month 7,500 units Materials are added at the beginning of the process. How many equivalent units in process for conversion were there in December

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  1. Explanation:

    UNITS TO ACCOUNT FOR:    

    Beginning Work in Process units                                      2,000

    Add: Units Started in Process                                      7,500

    Total Units to account for:                                              9,500

    Equivalent Units:    

                                                                    UNITS                   Conversion cost

                                                                                % Completion      Units

    Units completed                           8500100%             8,500

    Ending Work in Process                   100030%                        300

    Total Equivalent units                           9500                      8,800

  2. 65% = 0.65 = 65/100
    (65/100) / (5/5) = 13/20
    13/20 is the simplest fraction achievable.

    I hope this helps, let me know if you have any questions!

  3. 2.01yrs

    Explanation:

    future value = present value * (1+r)^n

    where r = interest rate per period

    and n = number of periods

    =>

    1480 * (1+7.7%/2)^n = 1300 * (1+7.7%)^n

    =>

    n = 2.01 year

  4. $915.71  

    Explanation:

    Price of the bond is determined by calculating the present value of all cash flows.

    We will use following formula in Excel

    =nper(rate,pmt.-pv,fv)

    rate = Interest rate = 12% x 6/12 = 6%

    pmt = Coupon Payment=$1000 x 8.3% x 6/12=$41.50  

    pv = Price of first coupon = $813.04

    fv = Face value = $1000

    Placinf all the values in the formula

    =nper(6%,41.50,-813.04,1000)= 16.00  

    Years to maturity=16/2=8 years

    The years to maturity of second bond=8+3=11 years

    price of second bond=-pv(rate,nper,pmt,fv)

    rate = 6%

    nper = 11 years x 2= 22

    pmt =5.3% x $1000=$53

    fv = $1000

    Placing values in the formula

    =-pv(6%,22,53,1000)=$915.71  

  5. $ 915.71  

    Explanation:

    In order to determine the second bond price we need to determine the number of years to maturity of the first bond using nper formula in excel.

    =nper(rate,pmt.-pv,fv)

    rate is the semiannual interest rate of 6% (12%*6/12)

    pmt is the semiannual interest=$1000*8.3%*6/12=$41.50  

    pv is the current price at $813.04

    fv is the face value of $1000

    =nper(6%,41.50,-813.04,1000)= 16.00  

    The years to maturity=16/2=8 years

    The years to maturity of second bond=8+3=11 years

    price of second bond=-pv(rate,nper,pmt,fv)

    rate is 6%

    nper is 11 years multiplied by 2= 22

    pmt =5.3%*$1000=$53

    fv is $1000

    =-pv(6%,22,53,1000)=$915.71  

  6. 7,800 units

    Explanation:

    work in process December 1 = 2,000 units x 60% = 1,200 equivalent units

    work in process December 31 = 1,000 units x 50% = 500 equivalent units

    unis started during the month = 7,500

    total units transferred out = 2,000 units + 7,500 units - 1,000 units = 8,500

    equivalent conversion units = total units transferred out + ending WIP - beginning WIP = 8,500 units + 500 units - 1,200 units = 7,800

  7. [tex]p\%=\dfrac{p}{100}\\\\206\%=\dfrac{206}{100}=\dfrac{206:2}{100:2}=\dfrac{103}{50}=\dfrac{100+3}{50}=\dfrac{100}{50}+\dfrac{3}{50}=2\dfrac{3}{10}\\\\\boxed{206\%=\frac{103}{50}=2\frac{3}{50}}[/tex]

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