1. True or false?(1 point each)
   1. When marginal product is less than average product, average product is decreasing.
   2. In the long run, fixed costs are small.
   3. Marginal cost is the increase in total cost that results from a one-unit increase in a variable input.
   4. The vertical distance between the average variable cost curve and the average total cost curve equals average fixed cost.
   5. Average fixed costs are constant.
   6. Perfectly competitive firms are price takers.
   7. In the long run, perfectly competitive firms make zero economic profit, that is, their owners make a normal profit.
   8. In the short-run, a firm shuts down when the price is less than the average total cost.
   1. If a firm is maximizing profits, the extra revenue it receives from selling its last unit of output exceeds the extra cost of producing that unit.

At the beginning of May, Williams Industries has 200 units of a product with a unit cost of $500. Its inventory records report the following transactions for the month of May:

Williams sells 500 units in May.

a) Compute the Cost of Goods Sold (COGS) for May for this product, assuming Hanna uses FIFO, LIFO, and Average Cost inventory methods.

b) Compute the Ending Inventory Balance (EI) for May for this product, assuming Hanna uses FIFO, LIFO, and Average Cost inventory methods.

c) Assume the total revenue is $350,000, what are the Gross Profit Margin under FIFO, LIFO, and Average Cost methods?

TASK-1 Using EOQ technique calculate the required items

Tim John is the purchasing manager at the headquarters of a multinational fast food chain with a central inventory operation. Tim's fastest-moving inventory item has a demand of 30 units per day. The cost of each unit is $150, and the inventory carrying cost is $5 per unit per year. The average ordering cost is $70 per order. (It is a corporate operation, and there are 300 working days per year)

1. What is the EOQ?
2. What is the average inventory if the EOQ is used?
3. What is the optimal number of orders per year?
4. What is the optimal number of days in between any two orders?
5. What is the annual cost of ordering and holding inventory?
6. What is total inventory management cost?
7. What is total materials cost
8. What is the total annual inventory cost to be recorded in accounts?

Flexible Overhead Budget Carson Wood Products Company prepared the following factory overhead cost budget for the Press Department for April of the current year, during which it expected to require 9,000 hours of productive capacity in the department: Variable overhead cost: Indirect factory labor $70,200 Power and light 2,610 Indirect materials 25,200 Total variable overhead cost $98,010 Fixed overhead cost: Supervisory salaries $34,300 Depreciation of plant and equipment 21,560 Insurance and property taxes 13,720 Total fixed overhead cost 69,580 Total factory overhead cost $167,590 Assuming that the estimated costs for May are the same as for April, prepare a flexible factory overhead cost budget for the Press Department for May for 7,000, 9,000, and 11,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

Every year Bridgeport Industries manufactures 6,200 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows:

Flintrock, Inc., has offered to sell 6,200 units of part 231 to Bridgeport for $34 per unit. If Bridgeport accepts Flintrock’s offer, its freed-up facilities could be used to earn $12,800 in contribution margin by manufacturing part 240. In addition, Bridgeport would eliminate 40% of the fixed overhead applied to part 231.

(a) Calculate total relevant cost to make and net cost to buy.

(b) Should Bridgeport accept Flintrock’s offer?

Select an option                                                          Yes No

Presidio, Inc., produces one model of mountain bike. Partial information for the company follows:

Required:
1. Complete Presidio’s cost data table.
2. Calculate Presidio’s contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $620.
3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $620.

Complete Presidio’s cost data table. (Round your Cost per Unit answers to 2 decimal places.)

Calculate Presidio’s contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $620. (Round your Contribution Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.))

Calculate net operating income (loss) at each of the sales levels assuming a sales price of $620. (Round your answers to the nearest whole dollar amount.)

Cost of Production Report: Average Cost Method

Use the average cost method with the following data:

Prepare a cost of production report for the Cutting Department of Tanner Carpet Company for December 2016 using the average cost method. If required, round your cost per equivalent unit answer to two decimal places.

Cost of Production Report: Average Cost Method

Use the average cost method with the following data:

Prepare a cost of production report for the Cutting Department of Tanner Carpet Company for December 2016 using the average cost method. If required, round your cost per equivalent unit answer to two decimal places.