A Treasury Bill with a Par Value of $100,000 Due

question 96

Multiple Choice

A Treasury bill with a par value of $100,000 due two months from now is selling today for $98,039, with an effective annual yield of

• A)12.40%.
• B)12.55%.
• C)12.62%.
• D)12.68%.
• E)None of the options

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Definitions:

Beginning Work in Process Inventory

Beginning work in process inventory represents the value of production inputs that are partially completed at the start of an accounting period.

Manufacturing Overhead Cost

The indirect costs associated with manufacturing, including expenses related to the operation of the factory like utilities and rent.

Conversion Cost

Direct labor cost plus manufacturing overhead cost.

Equivalent Unit

A measure used in cost accounting to express the amount of work done on a product in terms of fully completed units.