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At the start of November, Penco Refinery had Work in Process inventory consisting of 4,800 units that were 70 percent complete with respect to materials and 60 percent complete with respect to conversion costs. The cost of the units was $41,600 ($27,700 of material cost and $13,900 of labor and overhead). During November, the company started 46,000 units and incurred $408,500 of material cost and $390,800 of labor and overhead. The company completed 48,300 units during the month, and 2,500 units were in process at the end of November. The units in ending Work in Process were 90 percent complete with respect to materials and 50 percent complete with respect to conversion costs.
What are the cost per equivalent unit for materials and conversion costs?
What is the cost of items completed during November? and lastly, what is the cost of ending Work in Process?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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