Grande Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 10,000 units were started, and 5,000 units completed. Ending work in process is 60% complete. The cost per equivalent unit of material is __________.

options:

a)$1.00 if total material cost is $9,000

b)$1.00 if total material cost is $6,000

c)$1.00 if total material cost is $10,000

d)$1.00 if total material cost is $8,000

e)none of these

Assume that actual overhead consisted of $20,000 for indirect labor, $20,000 for indirect material, and $15,000 for depreciation of factory equipment. Based on the preset rates, $50,000 of overhead was applied to work in process. Which of the following statements is true?

options:

a)there will be a $10,000 credit balance in Factory Overhead

b)there will be a $5,000 credit balance in Factory Overhead

c)none of these

d)there will be a $5,000 debit balance in Factory Overhead

The contract interest rate for bonds ___________.

options:

a)must equal the effective interest rate

b)will fluctuate over the life of the bond

c)has no relation to the cash flow associated with a particular bond

d)is greater than the effective interest rate when bonds are issued at a premium

e)none of these