Use the table below to answer the following two questions: Units of output Total fixed cost Total variable cost
1 150 50, 2 150 96, 3 150 140, 4 150 180
1) What is the marginal cost of producing the third unit of output? a) $20 b) $44 c) $70 d) this cannot be determined from the data
2) At which unit of production do diminishing returns become evident? a) 1 b) 2 c) 3 d) 4
3) Accounting costs are often unsatisfactory from economists' point of view because a) they fail to allow for depreciation, or wearing out of capital assets over a period. b) accountants attempt to minimize costs to make profits look good. c) they often exclude the opportunity costs of the firm's equity capital. d) accounting procedures are designed to overstate costs in order to minimize business tax liability.
4) As output rises, marginal product eventually diminishes and a) average product becomes negative b) fixed costs increase c) total costs fall d) Marginal cost increases
5) In the short run, a firm will eventually experience rising per-unit costs because of a) economies of scale b) diseconomies of scale c) the law of supply d) the law of diminishing returns.
In: Economics
Eastland Company reports the following for the month of June.
|
Date |
Explanation |
Units |
Unit cost |
Total cost |
|
Jun-01 |
Inventory |
252 |
4 |
1,008 |
|
12 |
Purchase |
378 |
9 |
3,402 |
|
23 |
Purchase |
630 |
12 |
7,560 |
|
30 |
Inventory |
202 |
Compute the cost of the ending inventory and the cost of goods sold under FIFO and LIFO.
Do not copy from Chegg, otherwise, I have to report the answer.
In: Accounting
ronghorn Corp reports the following for the month of June.
|
Date |
Explanation |
Units |
Unit Cost |
Total Cost |
||||
| June 1 | Inventory | 120 | $5 | $600 | ||||
| 12 | Purchases | 346 | 6 | 2,076 | ||||
| 23 | Purchases | 189 | 7 | 1,323 | ||||
| 30 | Inventory | 229 |
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.)
|
June 1 |
$ | |
|
June 12 |
$ | |
|
June 15 |
$ | |
|
June 23 |
$ | |
|
June 27 |
$ |
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.)
|
FIFO |
LIFO |
Moving-Average |
||||
| The cost of the ending inventory | $ | $ | $ | |||
| The cost of goods sold | $ | $ | $ |
In: Accounting
ronghorn Corp reports the following for the month of June.
|
Date |
Explanation |
Units |
Unit Cost |
Total Cost |
||||
| June 1 | Inventory | 120 | $5 | $600 | ||||
| 12 | Purchases | 346 | 6 | 2,076 | ||||
| 23 | Purchases | 189 | 7 | 1,323 | ||||
| 30 | Inventory | 229 |
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.)
|
June 1 |
$ | |
|
June 12 |
$ | |
|
June 15 |
$ | |
|
June 23 |
$ | |
|
June 27 |
$ |
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.)
|
FIFO |
LIFO |
Moving-Average |
||||
| The cost of the ending inventory | $ | $ | $ | |||
| The cost of goods sold | $ | $ | $ |
In: Accounting
Pronghorn Corp reports the following for the month of June.
|
Date |
Explanation |
Units |
Unit Cost |
Total Cost |
||||
| June 1 | Inventory | 120 | $5 | $600 | ||||
| 12 | Purchases | 346 | 6 | 2,076 | ||||
| 23 | Purchases | 189 | 7 | 1,323 | ||||
| 30 | Inventory | 229 |
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.)
|
June 1 |
$ | |
|
June 12 |
$ | |
|
June 15 |
$ | |
|
June 23 |
$ | |
|
June 27 |
$ |
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.)
|
FIFO |
LIFO |
Moving-Average |
||||
| The cost of the ending inventory | $ | $ | $ | |||
| The cost of goods sold | $ | $ | $ |
In: Accounting
|
Calculating the Value of Ending Inventory and Cost of Goods Sold: Perpetual Method |
|||
| Total Units | Unit Cost | Total Cost | |
| Beginning inventory on hand | |||
| 1-Jan | 60,000 | $2.00 | $120,000 |
| Purchases during month | |||
| 5-Jan | 103,600 | $2.00 | $207,200 |
| 20-Jan | 293,900 | $2.10 | $617,190 |
| Sales of inventory | |||
| 25-Jan | 383,900 | ||
| Beginning inventory at | |||
| 1-Feb | 73,600 | ||
| Purchases during month | |||
| 8-Feb | 282,200 | $2.20 | $620,840 |
| 23-Feb | 153,500 | $2.60 | $399,100 |
| Sales of inventory | |||
| 27-Feb | 407,600 | ||
| Ending Inventory | 101,700 | ||
| FIFO | |||
| Jan | Feb | ||
| Cost of goods sold | Cost of goods sold | ||
| Ending inventory | Ending inventory | ||
In: Accounting
| Calculating the Value of Ending Inventory and Cost of Goods Sold: Perpetual Method |
| Total Units | Unit Cost | Total Cost | |
| Beginning inventory on hand | |||
| 1-Jan | 60,000 | $2.00 | $120,000 |
| Purchases during month | |||
| 5-Jan | 103,600 | $2.00 | $207,200 |
| 20-Jan | 293,900 | $2.10 | $617,190 |
| Sales of inventory | |||
| 25-Jan | 383,900 | ||
| Beginning inventory at | |||
| 1-Feb | 73,600 | ||
| Purchases during month | |||
| 8-Feb | 282,200 | $2.20 | $620,840 |
| 23-Feb | 153,500 | $2.60 | $399,100 |
| Sales of inventory | |||
| 27-Feb | 407,600 | ||
| Ending Inventory | 101,700 | ||
| LIFO | |||
| Jan | Feb | ||
| Cost of goods sold | Cost of goods sold | ||
| Ending inventory | Ending inventory | ||
In: Accounting
Kaleta Company reports the following for the month of
June.
|
Date |
Explanation |
Units |
Unit Cost |
Total Cost |
||||
| June 1 | Inventory | 332 | $7 | $2,324 | ||||
| 12 | Purchase | 664 | 8 | 5,312 | ||||
| 23 | Purchase | 498 | 9 | 4,482 | ||||
| 30 | Inventory | 166 |
Assume a sale of 730 units occurred on June 15 for a selling price
of $10 and a sale of 598 units on June 27 for $11.
Calculate cost of goods available for
sale.
| The cost of goods available for sale |
$12,118 |
Calculate Moving-Average unit cost for June 1, 12, 15, 23 & 27. (Round answers to 3 decimal places, e.g. 2.525.)
| June 1 | $
|
|
| June 12 | $ | |
| June 15 | $ | |
| June 23 | $ | |
| June 27 | $ |
Calculate the 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 730 units occurred on June 15 for a selling price of $10 and a sale of 598 units on June 27 for $11. (Round answers to 0 decimal places, e.g. 1,250.)
|
FIFO |
LIFO |
Moving-Average Cost |
||||
| The cost ending inventory | $ | $ | $ | |||
| The cost of goods sold | $ | $ | $ |
In: Accounting
The following information relates to Ali Manufacturing Company
for the last period.
S.No. Cost Items Total Cost (Rs.)
1 Rent of Building 725,000
2 Depreciation of machinery 290,000
3 Fire Insurance 103,000
4 Power 590,000
5 Repair of Machinery 80,000
6 Air conditioning 63,000
7 Supervision 45,500
8 Cleaning 4,620
9 Lighting 130,000
10 Canteen 68,600
11 Hospital & Dispensary 176,400
Total 2,276,120
Products
A1 A2 A3
Machine Hours 4,800 4,200 3,600
Value of Machine 4,500,000 5,000,000 1,250,000
No. of Employees 140 105 140
Area (square Feet) 6,400 7,500 10,600
As evident from the data provided, this firm is engaged in the
production of three products, A1,
A2 and A3. The associated indirect manufacturing costs along with
information about potential
cost drivers is also made available. You are required to perform
the following tasks.
Required:
a) Assign the cost driver to each cost item. Also justify your
assignment.
b) Apportion costs to each product and show total indirect
manufacturing cost chargeable
to each product.
c) Which cost driver would you recommend to be used as single
driver, if the company
intends to employ conventional costing
In: Accounting
Swifty Company reports the following for the month of June.
| Date | Explanation | Units | Unit Cost | Total Cost | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
June |
1 |
Inventory |
315 | $7 | $2,205 | ||||||||
|
12 |
Purchase |
735 | 8 | 5,880 | |||||||||
|
23 |
Purchase |
1,050 | 9 | 9,450 | |||||||||
|
30 |
Inventory |
392 | |||||||||||
Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average cost. (Round average cost per unit to 2 decimal places, e.g. 5.25 and final answers to 0 decimal places, e.g. 2,520.)
| FIFO | LIFO | AVERAGE COST | |||||
|---|---|---|---|---|---|---|---|
|
Ending inventory |
enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
|
Cost of goods sold |
$enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
Susan Inc. uses the lower-of-cost-or-net-realizable-value
(LCNRV) basis for its inventory. The following data are available
at December 31
| Units | Cost/Unit | NRV/Unit | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|
Cameras |
||||||||||
|
Minolta |
5 | $171 | $156 | |||||||
|
Canon |
8 | 142 | 157 | |||||||
|
Light Meters |
||||||||||
|
Vivitar |
12 | 124 | 120 | |||||||
|
Kodak |
10 | 122 | 134 | |||||||
What amount should be reported on Susan's financial statements,
assuming the lower-of-cost-or-net-realizable-value rule is
applied?
| Total | $enter a dollar amount |
In: Accounting