Tanghang Industries production budget from the 2^nd quarter of 2018, projected the following amounts of units to be produced:

April 1,100 units

May     1,250 units

June     1,300 units

Each unit requires 2 parts of component A and 3 parts of component B. Component A cost is $1.15 per unit and component B cost is $.85 per unit.

Calculate the Direct Material budgeted cost for May 2018

Calculate the Direct Material budgeted cost for the quarter April - June 2018

The raw materials inventory policy is 0 ending inventory, 0 beginning inventory. How much inventory of component A is required in April 2018?

Each unit requires the following labor:

2 hours in the processing department

1 hour in the assembly department

Processing department labor rate is $5/hour

Assembly department labor rate is $7/hour

Using the information from the production budget of Tangshang Industries

Calculate Total Direct Labor Cost in the processing department for the quarter April – June 2018.

Calculate Total Direct Labor Cost for June 2018.

Calculate Total Direct Labor Cost for the quarter April – June 2018.

Variable Factory overhead is $.60 per unit

Fixed Factory overhead is $1,000 monthly

Using the information from the production budget of Tangshang Industries

Calculate total variable overhead cost for May 2018

Calculate total variable overhead cost for the quarter April - June 2018

Calculate total overhead cost for the quarter April - June 2018

Calculate total product cost for the quarter April - June 2018

Calculate total product cost per unit for the quarter April - June 2018

If the sale price is $34.00, what will be the Gross Profit per unit?

If the sale price is $34.00 for the units produced during the quarter, what will be the Total Gross Profit?

1. The price level depends upon?

The 2020 inventory data for Garden Corporation’s patio furniture Bermuda set is presented below. Assume that Garden uses periodic inventory tracking.

When Garden examines the actual units in ending inventory, they see that 15 of the units are from 2020 beginning inventory, 20 units are from the 1/20/20 purchase, and 60 units are from the 6/15/20 purchase.  

1. In a period of falling prices, which of the following statements is true?
   1. FIFO produces a lower amount of net income than LIFO
   2. LIFO produces a lower cost for ending inventory than FIFO
   3. Average cost produces a higher net income than FIFO or LIFO
   4. LIFO produces a higher cost of goods sold than FIFO

2. Heavenly Rest, Inc. uses a periodic inventory system. When a warehouse supervisor counts the inventory on December 31, 2019, he accidentally counts one pile of blankets twice, resulting in 2019 ending inventory being overstated by $100,000. The warehouse supervisor counts the December 31, 2020 inventory correctly. Which of the following statements is true related to Heavenly Rest's 2019 and 2020 financial statements?
   1. 2019 Cost of Goods Sold will be understated by $100,000.
   2. 2020 Beginning Inventory will be understated by $100,000.
   3. 2020 Cost of Goods Sold will be overstated by $100,000.
   4. All of the above are true.
   5. Both a and c are true.

3. On October 28, Unilever sells and ships $100,000 worth of merchandise to Target. The goods are shipped FOB shipping point and arrive at Target stores on November 4. Which of the following statements is TRUE?
   1. The goods are in transit on October 31 so neither company includes the $100,000 as part of its October 31 Inventory balance.
   2. Unilever includes the $100,000 as part of its October 31 Inventory balance.
   3. Target includes the $100,000 as part of its October 31 Inventory balance.
   4. Both companies include the $50,000 as part of their October 31 Inventory balances.

5. Suppose that I am spending $6,000 every month, but now I suppose to save $2,000 every month and only spend $4,000. According to the classical economists, how will this decision to save affect my country’s RGDP?

   1. RGDP will increase

   2. RGDP will decrease

   3. RGDP will not change

6. Suppose that the current wage rate in a market is $14 per hour and the equilibrium wage rate is $12. Given this information, we can assume that…

   1. The quantity of labor supplied will exceed the quantity of labor demanded.

   2. The quantity of labor demanded will exceed the quantity of labor supplied.

   3. The quantity of labor supplied will equal the quantity of labor demanded.

7. Draw a Classical Economic Model that is operating at the long-run equilibrium. In the short run, what will most likely happen to CPI if the AD curve shifts right?

   1. CPI will increase

   2. CPI will decrease

   3. CPI will stay the same

8. Draw a Classical Economic Model that is operating at the long-run equilibrium. In the long run what will most likely happen to CPI if the AD curve shifts right?

   1. CPI will continue to increase

   2. CPI will continue to decrease

   3. CPI will return to its original level

1) Which of the following numbers is most likely to represent the correlation between a 25 year old person’s income and their spending on entertainment?

a)–1 b) –0.6 c) 0 d)0.6 e) 1

2) A club prefers when bands start their sets on time. The probability that a band performing there starts on time is 35%. The probability that a band is invited back there is 60%. What is the probability that a band performing there starts on time and is invited back to perform there again?

a) exactly 5% b) at least 5% and less than 21% c) exactly 21% d) more than 21% and at most 35% e) exactly 35% f) more than 35%

3) A bar band gets an average of 8 gigs per month, with a standard deviation of 3. If you wish to use the Z distribution calculator to determine how the probability that the band gets no more than 6 gigs this month, you should enter the following

a) above 7.5 b) above 8 c) above 8.5 d) below 7.5 e) below 8 f) below 8.5

On June 1, Parker-Mae Corporation (a U.S.-based company) received an order to sell goods to a foreign customer at a price of 145,000 francs. Parker-Mae will ship the goods and receive payment in three months, on September 1. On June 1, Parker-Mae purchased an option to sell 145,000 francs in three months at a strike price of $1.12. The company designated the option as a fair value hedge of a foreign currency firm commitment. The option's time value is excluded in assessing hedge effectiveness, and the change in time value is recognized in net income. The fair value of the firm commitment is measured by referring to changes in the spot rate (discounting to present value is ignored). Relevant exchange rates and option premiums for the franc are as follows:

Parker-Mae Corporation must close its books and prepare its second-quarter financial statements on June 30.

1. Prepare journal entries for the foreign currency option, foreign currency firm commitment, and export sale.

2. What is the impact on net income in each of the two accounting periods?

3. What is the amount of net cash inflow resulting from the sale of goods to the foreign customer?

Cost Flow Relationships

The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils:

Using the above information, determine the following missing amounts:

Suppose two seemingly similar goods or services with significantly different prices. Discuss a minimum of three different possible explanations of why those price differences might exist. Be specific about your assumptions. Be clear in why those goods or services have different prices and whether or not those price differences might disappear over time. Give examples of two goods that might fit each of your explanations. What generalizations about how prices relate to one another can you make? Focus on the economic concepts and focus on the first part of the question, then briefly mention the examples.

The accompanying table lists the cross-price elasticities of demand for several goods, where the ­percent quantity change is measured for the first good of the pair, and the percent price change is measured for the second good.

Good                                                                                        Cross-price elasticities of demand

Apple and orange                                                                                +0.95

Shirt and trousers                                                                                -2.55

Explain the sign of each of the cross-price elasticities. What does it imply about the relationship between the two goods in question?

b.

Which of the following goods are likely to have elastic demand, and which are likely to have inelastic demand? Justify you answers.

Egg

Restaurant meal