Austin Company manufactures a product called Aster in a three-process series. All materials are introduced at the beginning of the first process. Austin uses the first-in, first-out method of inventory costing. Unit and cost data for the first process (Department A) for the month of December follow:

Prepare Austin's Department A cost of production report for December.

Round your cost per equivalent unit amounts to two decimal places. Round all other amounts to the nearest dollar. If an amount value is zero enter "0" as answer.

FIFO Perpetual Inventory

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

Required:

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

-- Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account.

-- Determine the gross profit from sales for the period.
$______

-- Determine the ending inventory cost as of June 30.
$____________

-- Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?

[The following information applies to the questions displayed below.]

Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:

During the year, Natalie rented out the condo for 90 days, receiving $18,500 of gross income. She personally used the condo for 50 days during her vacation. Assume there are 365 days in the year.

Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

a. What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related to the condo?

b. What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo?

c. If Natalie’s basis in the condo at the beginning of the year was $210,000, what is her basis in the condo at the end of the year?

d. Assume that gross rental revenue was $3,700 (rather than $18,500). What amount of for AGI deductions may Natalie deduct in the current year related to the condo?

Sunland Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance for Doubtful Accounts is a debit of $5,000.

The company produced the following information from aging its accounts receivable at year end. Complete the aging schedule and calculate the total estimated uncollectible accounts.

Record the bad debt adjusting entry using the information determined in part (a).

In the following year, $22,000 of the outstanding accounts receivable is determined to be uncollectible. Record the write off of the uncollectible accounts.

The company collects $3,500 of the $22,000 of accounts that was determined to be uncollectible in part (c). The company also expects to collect an additional $1,000. Record the journal entry (or entries) to restore the accounts receivable and the cash collected. Collection of the $1,000 is expected in the near future.

Cain Components manufactures and distributes various plumbing products used in homes and other buildings. Over time, the production staff has noticed that products they considered easy to make were difficult to sell at margins considered reasonable, while products that seemed to take a lot of staff time were selling well despite recent price increases. A summer intern has suggested that the cost system might be providing misleading information.

The controller decided that a good summer project for the intern would be to develop, in one self-contained area of the plant, an alternative cost system with which to compare the current system. The intern identified the following cost pools and, after discussion with some plant personnel, appropriate cost drivers for each pool. There were:

In this particular area, Cain produces two of its many products: Standard and Deluxe. The following are data for production for the latest full year of operations.

Required:

a. The current cost accounting system charges overhead to products based on machine-hours. What unit product costs will be reported for the two products if the current cost system continues to be used?

b. The intern suggests an ABC system using the cost drivers identified above. What unit product costs will be reported for the two products if the ABC system is used?

The current cost accounting system charges overhead to products based on machine-hours. What unit product costs will be reported for the two products if the current cost system continues to be used? (Do not round intermediate calculations and round "Unit cost" answers to 2 decimal places.)

Baird Electronics produces video games in three market categories: commercial, home, and miniature. Baird has traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor hours. The company recently implemented an ABC system when it installed computer-controlled assembly stations that rendered the traditional costing system ineffective. In implementing the ABC system, the company identified the following activity cost pools and cost drivers:

     
Additional data for each of the product lines follow:     

    
Required

1. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines.

2. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines.

(For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all other calculations to the nearest whole dollar. Round "Cost per Unit" to 2 decimal places. Round your answers for "Total Cost" to the nearest whole dollar amount.)

​Intel's average cost in a given year falls with the quantity that it produces. In​ addition, extra production this year lowers the average cost curve next year. For​ example, in year​ 1,

AC=42

if quantity is 20 and

AC=30

if quantity is 60. If Intel produces 20 in year 1 and 40 in year​ 2, the average cost in year 2 will be

30.

​However, for every extra 10 units it produces in year​ 1, its AC for any given quantity in year 2 falls by

5​%.

What is the total cost and the average cost over the two years combined if the firm produces 20 in year 1 and 40 in year​ 2?

The total cost​ (C) is

C=​$20402040.

​(Enter your response rounded to two decimal​ places.)

The average cost​ (AC) is

AC=​$3434.

​(Enter your response rounded to two decimal​ places.)

What is the total cost and average cost over the two years combined if the firm produces 60 in year 1 and 40 in year​ 2?

The total cost​ (C) is

C=​$nothing.

​(Enter your response rounded to two decimal​ places.)

The average cost​ (AC) is

AC=​$nothing.

​(Enter your response rounded to two decimal​ places.)

Over the two years​ combined, what is the true additional cost of producing 60 instead of 20 in year​ 1?

The marginal cost of producing 60 units in year 1 instead of 20 is

Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows:

Type I rooms do not have wireless Internet access and are not available for the Business rental class.

Round Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 140 rentals in the Super Saver class, 60 rentals in the Deluxe class, and 40 rentals in the Business class. Round Tree has 125 Type I rooms and 135 Type II rooms.

1. Use linear programming to determine how many reservations to accept in each rental class and how the reservations should be allocated to room types.
   

   Variable	# of reservations
   SuperSaver rentals allocated to room type I
   SuperSaver rentals allocated to room type II
   Deluxe rentals allocated to room type I
   Deluxe rentals allocated to room type II
   Business rentals allocated to room type II

   
   Is the demand by any rental class not satisfied?