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Question - The XYZ Company makes dishes. During the current month, direct materials costing $450,000 were put into production. Direct labor of $120,000 was incurred and overhead equaled $150,000. Selling and administrative expenses totaled $80,000 for the month and the company manufactured 60,000 dishes. Assume there was no beginning inventory and that 58,000 crab pots were sold.
Required:
A. What is cost of goods sold for the month?
B. What is the cost of ending finished goods for the month?
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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