Currently the Yields for Fixed-Interest Euromarket Securities (MTNs)are 6

question 17

Multiple Choice

Currently the yields for fixed-interest euromarket securities (MTNs) are 6.5% per annum.An existing MTN with a face value of USD 1 million,paying 7.3% per annum coupons and maturing in three years trades currently at a price of:

• A) $982 371.28
• B) $1 000 000.00
• C) $1 049 367.68
• D) $1 678 976.97

Evaluate the impact of beginning and ending work in process inventories on equivalent units and cost per equivalent unit under the FIFO method.

Interpret operating data to calculate equivalent units of production for materials and conversion costs.

Understand the construction and purpose of the cost reconciliation report under the FIFO method.

Analyze the effects of changes in production costs and work in process inventories on FIFO process costing outcomes.