Zoe Corporation Has the Following Information for the Month of March

question 25

Essay

Zoe Corporation has the following information for the month of March. Determine the (a) cost of goods manufactured and (b) cost of goods sold. $\begin{array}{lr}\text { Cost of materials used in production } & \$ 69,000 \\\text { Direct labor } & 27,000 \\\text { Factory overhead } & 34,000 \\\text { Work in process inventory, March 1 } & 15,000 \\\text { Work in process inventory, March 31 } & 19,500 \\\text { Finished goods inventory, March 1 } & 25,000 \\\text { Finished goods inventory, March 31 } & 23,000\end{array}$

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Definitions:

Risk-Free Rate

The return on an investment with no risk of financial loss, typically represented by the yield on government securities like U.S. Treasury bonds.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Convertible Bond

A type of bond that can be converted into a predetermined amount of the issuer's equity at certain times during its life, usually at the discretion of the bondholder.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an asset at a set price within a specified time.