Consider a firm with a short run Total Cost (TC) given by TC=2000 + 1000Q - 40Q2 + Q3 . What is the firms marginal cost? What is firm's shut down price?
In: Economics
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Sigfusson Supplies reported beginning inventory of 115 units, for a total cost of $4,025. The company had the following transactions during the month: |
| Jan. | 6 | Sold 45 shovels on account at a selling price of $45 per unit. | ||||||||||||
| 9 | Bought 35 shovels on account at a selling price of $35 per unit. | |||||||||||||
| 11 | Sold 35 shovels on account at a cost of $50 per unit. | |||||||||||||
| 19 | Sold 45 shovels on account at a selling price of $55 per unit. | |||||||||||||
| 27 | Bought 35 shovels on account at a cost of $35 per unit. | |||||||||||||
| 31 | Counted inventory and determined that 25 units were on hand. | |||||||||||||
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Prepare the journal entries that would be recorded using periodic inventory system based on the above information. |
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Prepare the journal entries that would be recorded using a perpetual inventory system, including any “book-to-physical” adjustment that might be needed. Jan O6 Record the sales revenue on account Jan 06 Record the Cost of Goods sold Jan 09 Record the Purchase of inventory on account Jan 11 Record the sales revenue on account Jan 11 Record the cost of goods sold Jan 19 Record the sales on account Jan 19 Record the cost of goods sold Jan 27 Record the purchase of inventory on account Jan 31 Record the book to physical adjustment
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In: Accounting
Explain the significance that the average total cost (ATC) curve has on profit and loss based on each type of market structure. Explore how the ATC curve affects all four market structures and identify whether firms will earn a profit or loss based on the placement of the ATC curve and price.
Market Structures are as followed: perfectly competitive, monopolistic competitive, oligopolistic, and monopoly market structures
In: Economics
Construct the following network(AOA) and determine the minimum total cost to complete the project if indirect cost is Rs.1500 per day.
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Activity |
NT |
CT |
NC |
CC |
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1-2 |
6 |
4 |
6000 |
7800 |
|
1-3 |
7 |
4 |
3000 |
4200 |
|
2-3 |
4 |
1 |
5000 |
9200 |
|
2-5 |
6 |
5 |
6000 |
7500 |
|
3-4 |
7 |
3 |
2000 |
6800 |
|
4-5 |
3 |
1 |
2000 |
4000 |
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4-6 |
7 |
3 |
4000 |
5600 |
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5-6 |
5 |
4 |
3000 |
4100 |
In: Operations Management
On January 1, Staley Utilities Company acquired a power plant at a total cost of $23,580,000, and paid cash. The estimated cost (in today's market) to dismantle the plant and restore the property at the end of the plant's 15-year life is $4,859,000 Staley's cost of capital is 2. Staley will depreciate the asset over its useful life using the straight-line method. The asset has no residual value.
Requirements:
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a. |
Prepare the journal entries required to record the acquisition of the plant asset. |
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b. |
Prepare the journal entry to record the first year's depreciation and accretion accrual. Now journalize the first year's accretion accrual. |
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c. |
Prepare the journal entries required to record the disposal of the asset and the settlement of the asset retirement obligation at the end of the fifth year after acquisition. Staley sold the asset for $16,007,000 and the costs of dismantling the plant and restoring the property totaled $5,420,000. Begin by journalizing the disposal of the asset at the end of the fifth year after acquisition. Now journalize the settlement of the asset retirement obligation at the end of the fifth year after acquisition. |
In: Accounting
Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:
| Units Produced | Total Costs | |||
| 1,260 | $221,760 | |||
| 2,610 | 277,690 | |||
| 4,060 | 344,960 | |||
a. Determine the variable cost per unit and the total fixed cost.
| Variable cost: (Round to the nearest dollar.) | $ per unit |
| Total fixed cost: | $ |
b. Based on part (a), estimate the total cost for 1,920 units of production.
| Total cost for 1,920 units: | $ |
In: Accounting
What is the total cost (e.g. the sum of set-up costs and holding costs) of producing the gold seals using a Silver-Meal algorithm? Period - Forecast below :
Period 1 - 130
Period 2 - 30
Period 3 - 60
Period 4 - 50
Period 5 - 200
Period 6 - 550
Period 7 - 180
Period 8 - 140
Period 9 - 60
Period 10 - 50
Period 11 - 100
Period 12 - 250
Set Up cost 1660.5
Holding Cost/seal 2.46/period
Please solve using Silver-meal heuristic.
In: Operations Management
Freedom Co. purchased a new machine on July 2, 2016, at a total installed cost of $49,000. The machine has an estimated life of five years and an estimated salvage value of $6,700.
Required:
a-1. Calculate the depreciation expense for each year of the asset's life using Straight-line depreciation.
| Year | Depreciation Expense |
| 1 | $8,460 |
| 2 | $8,460 |
| 3 | $8,460 |
| 4 | $8,460 |
| 5 | $8,460 |
a-2. Calculate the depreciation expense for each year of the asset's life using Double-declining-balance depreciation.
| Year | Depreciation Expense |
| 1 | $19,600 |
| 2 | $11,760 |
| 3 | $7,056 |
| 4 | $3,884 |
| 5 | $0 |
b. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2016, under each method? (Note: The machine will have been used for one-half of its first year of life.)
| Depreciation Expense | |
| Straight‑line | $4,230 |
| Double-declining balance | $9,800 |
c. Calculate the accumulated depreciation and net book value of the machine at December 31, 2017, under each method.
| Cost | Accumulated Depreciation | Net Book Value | |
| Straight‑line | $49,000 | $0 | $0 |
| Double-declining‑balance | 49,000 | 0 | 0 |
In: Accounting
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CH: 20; Irwin, Inc., constructed a machine at a total cost of $79 million. Construction was completed at the end of 2012 and the machine was placed in service at the beginning of 2013. The machine was being depreciated over a 10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $2 million. At the beginning of 2016, Irwin decided to change to the straight-line method. |
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Ignoring income taxes, prepare the journal entry relating to the machine for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) |
| Record the entry relating to the machine for 2016 |
In: Accounting
An industry is perfectly competitive. Each firm is identical and has a total cost function T C(q) = 50 + 2q^2 . The market demand function for products is Q = 1,020 − P, where P is the market price.
(a) Below, graph the firm’s short-run supply curve and provide a brief explanation.
q*=____ Q*=____ P*=______. N*=______
(b) What is the long-run equilibrium firm quantity (q), market quantity (Q), price, and number of firms (N)?
q*=____ Q*=____ P*=______. N*=______
(c) Suppose that the market for products is actually controlled by a monopoly. Find the equilibrium price and quantity in the market. What will monopoly profits be?
Q*=____. P*=_____. Profit=______
In: Economics