Upon completion of the manufacturing process for a given product, work in process inventory decreases and finished goods inventory increases

TRUE:

Explanation:

When the products are manufactured, its raw material is moved to production; then, labor costs are incurred to mould or process the product upto a certain level. Since the products are only partially completed, all costs are posted to WIP. When the products are completed, the costs are moved from WIP to finished goods, with both accounts being part of the inventory.

That is why on completion of manufacturing process for a given product WIP inventory decreases and Finished Goods inventory increases.

16. Interest rate per period = 6%/2 = 3%

Interest per period = 3% of $2,000,000 = $60,000

Yield per period = 8%/2 = 4%

No of periods = 8 * 2 = 16 periods

Present value of the interest = $60,000 * PVIFA (4%, 16) = $60,000 * 11.652 = $699,120

17. Present value of the principal = $2,000,000 * PVIF (4%,16) = $2,000,000 * .534 = $1,068,000

Issue price of the bonds = Present value of the principal + Present value of the interest = $1,068,000 + $699,120 = $1,767,120