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Moon software inc. is planning to issue two types of 25-year, noncallable bonds to raise a total of $6 million, $3 million from each type of bond. first, 3,000 bonds with a 10% semiannual coupon will be sold at their $1,000 par value to raise $3,000,000. these are called "par" bonds. second, original issue discount (oid) bonds, also with a 25-year maturity and a $1,000 par value, will be sold, but these bonds will have a semiannual coupon of only 6.25%. the oid bonds must be offered at below par in order to provide investors with the same effective yield as the par bonds. how many oid bonds must the firm issue to raise $3,000,000? disregard flotation costs, and round your final answer up to a whole number of bond Answers: 3 17.In a cost of production report using process costing, transferred-in costs are similar tothea.cost of material added at the beginning of production.b.conversion cost added during the period.c.cost transferred out to the next department.d.cost included in beginning inventory.ANSWER:aEASYIn order to continue enjoying our site, we ask that you confirm your identity as a human. Thank you very much for your cooperation. Transferred-in costs are costs accumulated during the upstream production processes within a company. Transferred-in costs are the costs accumulated by the product at any given point in production. They are "transferred in" to the new business department that receives the partially finished product and is responsible for continuing the production process. Transferred-in costs combine manufacturing costs by the various departments and
production processes. How Transferred-In Costs WorkTransferred-in costs are more often used in cost accounting for companies that produce continuous similar units through a series of operations such as petroleum, chemical, textile, and food processing companies. Example of Transferred-In CostsIf department A is responsible for starting a widget, and department B is responsible for finishing the widget, the costs incurred during production in department A would be "transferred-in costs" for department B who is responsible for continuing the production process. Transferred-in cost is also referred to as the accumulated cost of a product when it first arrives in the production department. The unit cost of a product is determined by dividing the total costs charged to the production department by the output of that department. Recommended textbook solutions
Glencoe Accounting: First Year Course1st EditionGlencoe McGraw-Hill 548 solutions Financial Accounting2nd EditionDon Herrmann, J. David Spiceland, Wayne Thomas 1,208 solutions Financial Accounting9th EditionCharles T. Horngren 1,286 solutions Financial Accounting9th EditionCharles T. Horngren, Walter T Harrison, Walter T. Harrison Jr. 1,286 solutions What are transferred in costs in process costing?Transferred-in costs are the costs accumulated by the product at any given point in production. They are "transferred in" to the new business department that receives the partially finished product and is responsible for continuing the production process.
What are the similarities of process cost systems and job order cost systems?The similarities between job order cost systems and process cost systems are the product costs of materials, labor, and overhead, which are used determine the cost per unit, and the inventory values. The differences between the two systems are shown in Table 5.1.
How is Operation costing similar to job and process costing?What is Operation Costing? Operation costing is a mix of job costing and process costing. It may be used when a product initially uses different raw materials, and is then finished using a common process that is the same for a group of products.
Which cost accumulation method will most likely be used by a company that mass produces similar products?Process costing is used when there is mass production of similar products, where the costs associated with individual units of output cannot be differentiated from each other.
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