The Following Information Has Been Provided by New Age, Inc

question 121

Multiple Choice

The following information has been provided by New Age, Inc.: $$\begin{array} { | l | r |} \hline \text { Direct Labor } & \$ 25,100 \\\hline \text { Direct Materials Used } & 11,000 \\\hline \text { Direct Materials Purchased } & 16,710 \\\hline \text { Cost of Goods Manufactured } & 49,000 \\\hline \text { Ending Work-in-Process Inventory } & 11,200 \\\hline \text { Corporate Headquarters' Property Taxes } & 1500 \\\hline \text { Manufacturing Overhead } & 19,350 \\\hline\end{array}$$ Calculate the beginning balance of the Work-in-Process Inventory account.

• A) $93,250
• B) $60,200
• C) $4750
• D) $44,250

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Definitions:

Time To Maturity

The duration remaining until the final payment date of a loan, bond, or other financial instrument, at which point the principal (and usually the final interest payment) is due to be paid.

Interest Rate Risk

The risk that the value of an investment will decrease due to a change in interest rates.

High Coupon Bond

A bond that offers a relatively high interest rate (or coupon rate) compared to the current prevailing rates of other similar bonds.

Interest Rate Sensitivity

A measure of how much the price of an investment, particularly bonds, changes in response to changes in interest rates.