Plato Company reports the following for the month of June.

A) Compute the cost of the ending inventory and the cost of good sold under (1) FIFO, (2) LIFO, (3) average cost

B) Which costing method gives the highest ending inventory? the highset cost of goods sold? why?

C) How do the average cost value for ending inventory and cost of goods slid related to ending invetory and cost of goods sold for FIFO AND LIFO

D) Explain why the average cost is not $6

An industry consists of two (perfectly) firms. Firm 1 has a total cost function given by ??1(?1)=?1 +(?1)^2

while firm 2 has a total cost function given by ??2(?2)=3*?2+(1/2)*(?2)^2 .

1. (a) Let ? denote the (exogenous) price at which each firm can sell its output. Write down each firm’s profit-maximization problem and the associated first-order conditions (FOCs).

2. (b) Derive the firms’ supply functions ?∗(?) and ?∗(?) and verify that these functions are

   linearly increasing in ?.

3. (c) Derive the industry supply curve ?(?). [Hint: Draw a picture and remember the notion of horizontal summation. You should demonstrate that the industry supply curve is a piecewise function in ?]

4. Again assuming that the firms act as price takers, find the industry equilibrium when the industry demand curve is given by ??(?)=(9/2)-(1/2)p .[Hint: It may be useful to add the relevant to the graph considered in part (c)]

5. (e) Calculate the output and profit of each firm under the equilibrium characterized in part (d).

b. Determine the direct materials quantity variance for batch K-111. If required, round amounts to the nearest cent. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Standard Product Cost, Direct Materials Variance

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,200 pounds) has the following standards:

Standard Quantity

Standard Price

Whole tomatoes

2,000

lbs.

$ 0.42

per lb.

Vinegar

110

gal.

$ 2.60

per gal.

Corn syrup

9

gal.

$ 9.30

per gal.

Salt

44

lbs.

$ 2.30

per lb.

The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch K-111 were as follows:

2,100 lbs. of tomatoes

106 gal. of vinegar

10 gal. of corn syrup

43 lbs. of salt

a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.

Ingredient

Standard Cost per Batch

Whole tomatoes

$

Vinegar

$

Corn syrup

$

Salt

$

Total

$

Standard unit materials cost per pound

$

b. Determine the direct materials quantity variance for batch K-111. If required, round amounts to the nearest cent. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Ingredient

Materials Quantity Variance

Favorable/Unfavorable

Whole tomatoes

$

Vinegar

$

Corn syrup

$

Salt

$

Total direct materials quantity variance

1. Costs with a wage of $24

2. Costs with a wage of $20 and a time of 10 minutes

3. Costs with a wage of $20 and a rent of $100,000

4. Kim and Pat underwrite insurance. Each underwrites 50 accounts per month. Each account takes four hours to underwrite. The value of their time is $40 per hour. Monthly costs for each are $1,500 for an office, $2,000 for a receptionist, and $2,400 for a secretary. Calculate the average and incremental cost per case for Kim and Pat.

5. If Kim and Pat merge their operations, they would need only one receptionist, and their rent for the joint office would be $2,800 per month. All other values stay the same. Calculate the average and incremental cost per case for the merged office. Are there economies of scale at 100 accounts per month? Should Kim and Pat merge their offices
?

Please answer 2 and 3. I have the answer for 1.

A firm's total cost function is given by the equation: TC = 4000 + 5Q + 10Q2.

(1) Write an expression for each of the following cost concepts:

a. Total Fixed Cost

b. Average Fixed Cost

c. Total Variable Cost

d. Average Variable Cost

e. Average Total Cost

f. Marginal Cost

(2) Determine the quantity that minimizes average total cost and minimizing average variable cost.

(3) Why does its average variable cost curve achieve its minimum at a lower level of output than the average total cost curve?

Pronghorn Corp reports the following for the month of June.

A sale of 375 units occurred on June 15 for a selling price of $8 and a sale of 51 units on June 27 for $9.

Calculate the average cost per unit, using a perpetual inventory system. (Round answers to 3 decimal places, e.g. 5.125.)

eTextbook and Media

Calculate cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 375 units occurred on June 15 for a selling price of $8 and a sale of 51 units on June 27 for $9. (Round answers to 0 decimal places, e.g. 125.)

Compute the total manufacturing cost assigned to Job 407. (Round your intermediate and final answers to 2 decimal places.)

Diewold Company has two departments, Milling and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Milling Department bases its rate on machine-hours, and the Assembly Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:

Required:

1. Compute the predetermined overhead rate to be used in each department. (Round your answers to 2 decimal places.)

2. Assume that the overhead rates you computed in (1) above are in effect. The job cost sheet for Job 407, which was started and completed during the year, showed the following:

3. Would you expect substantially different amounts of overhead cost to be charged to some jobs if the company used a plantwide overhead rate based on direct labor-hours instead of using departmental rates?

Table 1. shows the hourly production and Total Cost estimates for a new manufacturing firm wishing to enter the smart phone market. Fill in the blank cells in columns a., b., c., d., and e. on the table by computing the appropriate values.

Can you show the excel formula ??

Question 2 :

A)

The long-run average total cost curve shows:

Select one:

a. the plant size or scale that the firm should build.

b. the average total cost of producing where diminishing returns are not present.

c. the lowest average total cost of producing every level of output in the long run.

d. where the most profitable level of output occurs.

B)

The minimum efficient scale is the:

Select one:

a. smallest output level where fixed costs are minimised.

b. level of output where diminishing returns have not set in yet.

c. level of output where all possible economies of scale have been exhausted.

d. plant size that yields the most profit.

C)

If a perfectly competitive firm achieves productive efficiency then:

Select one:

a. the price of the good it sells is equal to the benefit consumers receive from consuming the last unit of the good sold.

b. it is producing at minimum efficient scale.

c. it will raise its price in order to earn an economic profit.

d. it is producing the good it sells at the lowest possible cost.

D)

Both buyers and sellers are price takers in a perfectly competitive market because:

Select one:

a. both buyers and sellers in a perfectly competitive market are concerned for the welfare of others.

b. each buyer and seller is too small relative to others to independently affect the market price.

c. each buyer and seller knows it is illegal to collude to affect price.

d. the price is determined by government intervention and dictated to buyers and sellers.

E)

If a perfectly competitive firm's price is less than average variable cost, the firm:

Select one:

a. should increase output.

b. should shut down.

c. is earning a profit.

d. should increase price.

F)

A perfectly competitive firm's supply curve is its:

Select one:

a. marginal cost curve above the minimum of average fixed cost.

b. marginal cost curve above minimum average variable cost.

c. marginal cost curve above minimum average total cost.

d. marginal cost curve.

G)

If a competitive industry has a perfectly price-elastic long-run supply curve, it is:

Select one:

a. a decreasing-cost industry.

b. an increasing-cost industry.

c. a fixed-cost industry.

d. a constant-cost industry.

Consider the natural ln transformation (“ln” transformation) of variables labour cost (L_COST), and total number of rooms per hotel (Total_Rooms).

4.1 Use the least squares method to estimate the regression coefficients b0 and b1 for the log-linear model

4.2 State the regression equation 4.3 Give the interpretation of the regression coefficient b1. Give an interpretation of the coefficient of determination R2. Also, test the significance of your model using the F-test. How, does the value of the coefficient of determination affect the outcome of the above test?

4.4.Test whether a 1% increase of the total number of rooms per hotel can increase the labour cost by more than 0.20%? Use the 5% level of significance for this test.