Compute the July 2014 Cost of Capital (Rounded to Nearest

question 64

Multiple Choice

Compute the July 2014 cost of capital (rounded to nearest percent) for an investment center with the following information:

• A)5 percent
• B)53 percent
• C)10 percent
• D)61 percent

---

Definitions:

Cost Reconciliation Report

A financial document used to reconcile and explain the differences between the cost of beginning and ending inventories in the manufacturing process.

Equivalent Units

A concept in cost accounting used to estimate the amount of finished goods produced from raw materials and partial productions.

Units Transferred Out

In a production or manufacturing process, this refers to the number of units completed and moved out of a process or department during a given period.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale during the period.