Unit Cost and Cost Assignment, Nonuniform Inputs

Loran Inc. had the following equivalent units schedule and cost for its fabrication department during September:

Required:

1. Calculate the unit cost for materials, for conversion, and in total for the fabrication department for September. If required, round your answers to the nearest cent.

2. Calculate the cost of units transferred out and the cost of EWIP. Round unit cost value to the nearest cent in intermediate calculations. If required, round final answers to the nearest dollar.

Unit Cost and Cost Assignment, Nonuniform Inputs

Loran Inc. had the following equivalent units schedule and cost for its fabrication department during September:

Required:

1. Calculate the unit cost for materials, for conversion, and in total for the fabrication department for September. If required, round your answers to the nearest cent.

2. Calculate the cost of units transferred out and the cost of EWIP. Round unit cost value to the nearest cent in intermediate calculations. If required, round final answers to the nearest dollar.

1. The table below shows the quantity of pizza that can be produced in an hour at a pizza restaurant, depending on how many workers are working. For example, with one worker, the restaurant can produce 13 pizzas in an hour. Show all your calculations for full credit.

1. Define marginal product.
2. Calculate the marginal product and fill in the column in the table.
3. Suppose that the fixed costs for the restaurant are $100 and that the workers are paid $20 per hour. Calculate the variable costs and total costs, then fill in the fixed cost, variable cost, and total cost columns.
4. Define marginal cost.
5. Calculate the marginal costs for this restaurant and fill in the column in the table.
6. Define average cost.
7. Calculate the average costs for this restaurant and fill in the final column in the table.

When the short-run marginal cost curve is upward-sloping,

Multiple Choice

• Diminishing returns occurs with greater output.

• There are diseconomies of scale.

• The average total cost curve is upward-sloping.

• The average total cost curve is above the marginal cost curve.

A firm in a perfectly competitive industry knows the following about its costs and revenue. The firm would like to maximize profit and has hired a consultant for advice.

Price           Q of Output              Total Revenue              Total Cost               Total Fixed Cost

P?                  Q?                             7,400                           TC?                           3,300

Total Variable Cost          Average Total Cost          Average Variable Cost         MC                  

       TVC?                                 9                                   3                                5

Part 1. Average Fixed Cost ____

Part 2. Price _____

Part 3: Quantity _____

Part 4. Total Cost _____

Part 5. What is the value of the profit or loss (-) at the current output ( include the - sign if it's a loss) ____

Part 6. Consultant's Advice:   As a consultant, what advice would you give to this firm:(Choose ONE answer from the following) **worth 5 marks _______

  
1. Firm should do nothing; it is already profit maximizing/loss minimizing

2. Firm should reduce quantity of output

3. Firm should increase quantity of output

4. Firm should shutdown operations

5. The given number set is inconsistent

The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs.

Job 602 was started in production in May, and these costs were assigned to it in May: direct materials, $500; direct labor, $250; and overhead, $150. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be finished in July. No raw materials are used indirectly in June. (Assume this company’s predetermined overhead rate did not change over these months.)

Required:
1. What is the cost of the raw materials used in June for each of the three jobs and in total?
2. How much total direct labor cost is incurred in June?
3. What predetermined overhead rate is used in June?
4. How much cost is transferred to finished goods inventory in June?

What is the cost of the raw materials used in June for each of the three jobs and in total?

How much total direct labor cost is incurred in June?

What predetermined overhead rate is used in June?

How much cost is transferred to finished goods inventory in June?

Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months:

Required:
1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. (Round your answers to 2 decimal places.)

2. Using these estimates, calculate Mountain’s total cost for filling 450 cavities.

Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the process. During November, the company transferred 810,000 units of product to finished goods. At the end of November, the work in process inventory consists of 197,000 units that are 90% complete with respect to conversion. Beginning inventory had $392,730 of direct materials and $123,413 of conversion cost. The direct material cost added in November is $2,628,270, and the conversion cost added is $2,344,837. Beginning work in process consisted of 61,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 61,000 were from beginning work in process and 749,000 units were started and completed during the period.

2. Compute both the direct material cost and the conversion cost per equivalent unit.

Find a Formula for the degree 2 Taylor polynomial T₂(x,y) at (a,b)=(pi/2,0). Do not simplify your formula. Use a 3d graphing tool to verify T2(x,y) does a good job of approximating f(x,y) near (a,b)

What did Keynes mean when he said “Markets can stay irrational longer than you can stay solvent”? Explain how that process led to failures or near failures of such companies as Lehman Bros., Merrill Lynch, Wachovia, Bear Stearns and others.