There are two Cournot competitors, A & B. Each has total cost of 12x, where x is a firm’s output,

and demand is X = 400 – P, where P is market price. What will market price be in equilibrium?

(a.) $239.8

(b.) $141.3

(c.) $130

(d.) $208

Graph it with labels, thanks!

Question (2)

Required:

1. Assume ABC uses the Weighted – Average method calculate I-ending inventory, II-cost of goods sold andIII-gross profit.  

2. Assume ABC uses LIFOmethod calculate I-ending inventory, II-cost of goods sold andIII-gross profit.  

Manufacturing Income Statement, Reports the total cost of making products that are available for sale during the period.Statement of Cost of Goods Manufactured

Several items are omitted from the income statement and The total cost of making and finishing a product.cost of goods manufactured statement data for two different companies for the month of December.

Required:

1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

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2. Prepare On Company's statement of cost of goods manufactured for December.

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3. Prepare On Company's income statement for December.

The total and marginal cost functions for a typical sub-bituminous coal producer are: T C = 75, 000 + 0.1Q 2 MC = 0.2Q where Q is measured in railroad cars per year. The industry consists of 55 identical producers. The market demand curve is: QD = 140, 000 − 425P where P is the price per carload. The market can be regarded as competitive. (a) Calculate the short run equilibrium price and quantity in the market. Calculate the quantity that each firm would produce. (b) Calculate producer surplus, consumer surplus, and total surplus at the equilibrium values. Calculate each firm’s profit (or loss). (c) Suppose that the sub-bituminous coal industry is a constant cost industry. What long-run price do you expect to observe? If demand is stable in the long run, what quantity of coal do you expect will be sold? How many coal producers do you expect int he long run?

A city government adds street lights within its boundaries at a total cost of $300,000. The lights should burn for at least 10 years but can last significantly longer if maintained properly. The city sets up a system to monitor these lights with the goal that 97 percent will be working at any one time. During the year, the city spends $48,000 to clean and repair the lights so that they are working according to the specified conditions. However, it spends another $78,000 to construct lights for several new streets in the city. Prepare the entries assuming infrastructure assets are capitalized with depreciation recorded. Prepare the entries assuming infrastructure assets capitalized with government using the modified approach.

Carmel Inc. started the business year with 200 units of inventory that cost a total amount of $34,000 (all units were purchased for the same price). During the year, the company entered into the following transactions:

1 .Purchasing on Feb 1st an additional 200 units for the price of 180 each.

2 .Purchasing on April 15th an additional 70 units for the price of 210 each.

3 .Purchasing on November 1st an additional 110 units for the price of 260 each.

4 .Selling on October 1st, 450 units for the total amount of $2,000,000.

Required:

A. Compute the cost of ending inventory and COGS assuming FIFO (Using the periodic or the perpetual method.

B. Compute the cost of ending inventory and COGS assuming LIFO and using the periodic method.

C. Compute the cost of ending inventory and COGS assuming LIFO and using the perpetual method.

D. Compute the cost of ending inventory and COGS assuming Average Cost and the periodic method.

E. When prices are rising, which method will result in:

1. Highest gross profit?

2. A more accurate (i.e., closer to replacement cost) ending balance of Inventory on the balance sheet?

3. Highest pre-tax earnings, which lead to higher tax payments?

4. A more accurate (i.e., closer to economic profit) net income?

Exercise World began January with merchandise inventory of 90 crates of vitamins that cost a total of $5,850.00. During the month, Exercise World purchased and sold merchandise on account as follows:

Jan 2 Purchase 130 crates @ $76 each

       5 Sale 140 crates @ $ 100 each

     16 Purchase 170 crates @ 86 each

Calculate the cost of goods sold, using: LIFO, FIFO, and Weighted average methods (20 points)

Exercise World began January with merchandise inventory of 90 crates of vitamins that cost a total of $5,850.00. During the month, Exercise World purchased and sold merchandise on account as follows:

Jan 2 Purchase 130 crates @ $76 each

       5 Sale 140 crates @ $ 100 each

     16 Purchase 170 crates @ 86 each

Calculate the cost of goods sold, using: LIFO, FIFO, and Weighted average methods

What is the product cost for Job 23 which consists of 400 units and total manufacturing costs of direct materials $3,200, direct labor $6,400, and overhead of $2,800?  

Prepare a cost of goods manufactured and cost of goods sold section of the income statement

Suppose the market for cotton is competitive. A typical cotton farmer has a total cost function of: C = 100 + 15q – 6q^2 + q^3 . The prevailing market price is $15.

a. Find the profit-maximizing output level of this farmer. Calculate the corresponding profit at this output level. Show your steps.

b. Suppose all the fixed cost is unavoidable. Explain whether this farmer should shut down its production in the short run.