Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales data for portable game players are as follows:

The business maintains a perpetual inventory system, costing by the last-in, first-out method.

Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4.

Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

1) A reciprocating compressor has two stages with inlet air going into LP stage at 1 bar, 16°C and at the rate of 12 m3/min. Air is finally delivered at 7 bar and there is perfect intercooling at optimum pressure between the stages. The index for compression is 1.25 and compressor runs at 600 rpm. Neglecting clearance volume determine intermediate pressure and total power required.

2) A reciprocating compressor of single stage and double acting type has free air delivered at 14 m3/min measured at 1.013 bar, 288 K. Pressure and temperature at suction are 0.95 bar and 305 K. The cylinder has clearance volume of 5% of swept volume. The air is delivered at pressure of 7 bar and expansion and compression follow the common index of 1.3. Determine the volumetric efficiency with respect to free air delivery.

3)1)Single stage impulse turbine has equal blade angles and nozzle angle of 15°. Determine the maximum possible blade efficiency if the blade velocity coefficient is 0.85. Determine the blade speed to steam velocity ratio if the actual blade efficiency is 90% of maximum blade efficiency.

4) The velocity of steam entering a simple impulse turbine is 1000 m/s, and the nozzle angle is 200. The mean peripheral velocity of blades is 400 m/s and the blades are symmetrical. If the steam is to enter the blades without shock, what will be the blade angles. Neglecting the friction effects on the blades, calculate tangential force on the blades and the diagram power for a mass flow of 0.75 kg/s. Estimate axial thrust & diagram efficiency.

5)1)Single stage impulse turbine has equal blade angles and nozzle angle of 15°. Determine the maximum possible blade efficiency if the blade velocity coefficient is 0.85. Determine the blade speed to steam velocity ratio if the actual blade efficiency is 90% of maximum blade efficiency.

Height vs Weight - Erroneous Data: You will need to use software to answer these questions.

Below is the scatterplot, regression line, and corresponding data for the height and weight of 11 randomly selected adults. You should notice something odd about the last entry.

You should be able copy and paste the data by highlighting the entire table.

Answer the following questions regarding the relationship.

(a) Using all 11 data pairs for height and weight, calculate the correlation coefficient. Round your answer to 3 decimal places.
r =

(b) Is there a significant linear correlation between these 11 data pairs?

YesNo    

(c) Using only the first 10 data pairs for height and weight, calculate the correlation coefficient. Round your answer to 3 decimal places.
r =

(d) Is there a significant linear correlation between these 10 data pairs?

YesNo    

(e) Which statement explains this situation?

The height for the last data pair must be an error.The erroneous value from the last data pair ruined a perfectly good correlation.    Despite the low correlation coefficient from part (a), there is probably a significant correlation between height and weight.All of these are valid statements.

Additional Materials

1. A student researcher works at ski resort. For a student project, they would like to know whether the proportion of skiers on a particular day is about the same as the proportion of snowboarders. They take a stratified random sample, looking at each of the 3 chair lifts and randomly selecting every other chair of people to mark whether they are a skier (1) or a snowboarder (0). Which test is most appropriate to test whether the proportion of skiers is not 0.50?

           [ Choose ] Two Sample t test Matched Pairs t test Multiple Regression Analysis Simple Linear Regression Single-factor ANOVA One Proportion z Test         

2. A team of engineers perform an experiment to test the strength of four cable types made from different materials. They would like to see whether any of the cable types have an average strength that is stronger than the others. They test the strength of seven cables for each cable type and compare the averages of the four groups. What type of procedure is appropriate to tell if there is a difference between the average strength between the cable types?

           [ Choose ] Two Sample t test Matched Pairs t test Multiple Regression Analysis Simple Linear Regression Single-factor ANOVA One Proportion z Test         

3. In order to attract wasps into a trap, a group of researchers are interested in the effectiveness of two different types of wasp attractants. They set up an experiment with “Wasp Bait A” and “Wasp Bait B” and randomly assign 40 identical traps to receive one of two attractants. After a significant time period, the average number of wasps per trap are compared between the two attractants. What procedure will best test the difference in the average number of trapped wasps among the two attractants?

           [ Choose ] Two Sample t test Matched Pairs t test Multiple Regression Analysis Simple Linear Regression Single-factor ANOVA One Proportion z Test         

4. Often students claim they forget much of the information they learn from a course soon after the course ends. In an educational study, researchers would like to estimate the average difference in scores from a test taken at the conclusion of a course and again 6 months after the conclusion of the course. Specifically, they would like to see whether the average difference between the two test scores is other than 0. What type of procedure is appropriate for this scenario?

           [ Choose ] Two Sample t test Matched Pairs t test Multiple Regression Analysis Simple Linear Regression Single-factor ANOVA One Proportion z Test         

5. A real estate website would like to build a model and test to see which factors are good at predicting the selling price of homes on their site. They would like to predict house sale price based on several factors including number of bedrooms, number of bathrooms, age of home, square footage and more. What type of analysis would be appropriate for this scenario?

           [ Choose ] Two Sample t test Matched Pairs t test Multiple Regression Analysis Simple Linear Regression Single-factor ANOVA One Proportion z Test

Requirements: Mr. Smith is preparing for a meeting with his banker to arrange the financing for the first quarter. Based on his sales forecast and the information he has provided (as detailed in the Situation below), your job as his new financial analyst is to prepare the following reports for the First Quarter of 2019: 1. Monthly Sales Budget 2. Monthly Production Budget 3. Monthly Direct Materials Budget 4. Monthly Schedule of Expected Cash Collection from Customers 5. Monthly Schedule of Expected Cash Payments for Direct Materials 6. Monthly Cash Budget 7. Monthly and Quarterly Budgeted Income Statements 8. Quarterly Budgeted Balance Sheet Situation: Iona Corporation makes standard-size 2-inch fasteners, which it sells for $155 per thousand. Mr. Smith is the majority owner and manages the inventory and finances of the company. He estimates sales for the following months in year 2019 to be: January ............... $263,500 (1,700,000 fasteners) February ............. $186,000 (1,200,000 fasteners) March ................. $217,000 (1,400,000 fasteners) April ................... $310,000 (2,000,000 fasteners) May .................... $387,500 (2,500,000 fasteners) In 2018, Iona Corporation’s budgeted sales were $175,000 in November and $232,500 in December (1,500,000 fasteners). Past history shows that Iona Corporation collects 50 percent of its accounts receivable in the normal 30-day credit period (the month after the sale) and the other 50 percent in 60 days (two months after the sale). It pays for its materials 30 days after receipt. In general, Mr. Smith likes to keep a two-month supply of inventory in anticipation of sales. Inventory at the beginning of December was 2,600,000 units. (This was not equal to his desired two-month supply.) Page 2 The major cost of production is the purchase of raw materials in the form of steel rods, which are cut, threaded, and finished. Last year raw material costs were $52 per 1,000 fasteners, but Mr. Smith has just been notified that material costs have risen, effective January 1, to $60 per 1,000 fasteners. The Iona Corporation uses FIFO inventory accounting. Labor costs are relatively constant at $20 per thousand fasteners, since workers are paid on a piecework basis. Overhead is allocated at $10 per thousand units, and selling and administrative expense is 20 percent of sales. Labor expense and overhead are direct cash outflows paid in the month incurred, while interest and taxes are paid quarterly. The corporation usually maintains a minimum cash balance of $25,000, and it puts its excess cash into marketable securities. The average tax rate is 40 percent, and Mr. Smith usually pays out 50 percent of net income in dividends to stockholders. Marketable securities are sold before funds are borrowed when a cash shortage is faced. Ignore the interest on any short-term borrowings. Interest on the long-term debt is paid in March, as are taxes and dividends. As of year-end, the Iona Corporation’s budgeted balance sheet was as follows: IONA CORPORATION Budgeted Balance Sheet December 31, 2018 Assets Current assets: Cash ........................................................... $ 30,000 Accounts receivable.................................... 320,000 Inventory .................................................... 237,800 Total current assets .................................. $ 587,800 Fixed assets: Plant and equipment ................................... 1,000,000 Less: Accumulated depreciation .............. 200,000 800,000 Total assets ................................................... $1,387,800 Liabilities and Stockholders’ Equity Accounts payable ......................................... $ 93,600 Long-term debt, 8 percent ............................. 400,000 Common stock ............................................. $ 504,200 Retained earnings ......................................... 390,000 894,200 Total liabilities and stockholders’ equity ....... $1,387,800

Beth is a second-grader who sells lemonade on a street corner in your neighborhood. Each cup of lemonade costs Beth $0.20 to produce; she has no fixed costs. The reservation prices for the 10 people who walk by Beth's lemonade stand each day are listed in the following table.

Beth knows the distribution of reservation prices (that is, she knows that one person is willing to pay $0.50, another $0.45, and so on), but she does not know any specific individual’s reservation price.

a. Calculate the marginal revenue of selling an additional cup of lemonade. (Start by figuring out the price Beth would charge if she produced only one cup of lemonade, and calculate the total revenue; then find the price Beth would charge if she sold two cups of lemonade; and so on.)

b. What is Beth’s profit-maximizing price?

Instruction: Enter your response rounded to two decimal places.

$ .

c. At that price, what are Beth’s economic profit and total consumer surplus?

Instruction: Enter your responses rounded to two decimal places.

Economic profit: $ per day.

Consumer surplus: $ per day.

d. What price should Beth charge if she wants to maximize total economic surplus?

Instruction: Enter your response rounded to two decimal places.

Price to maximize total economic surplus: $ .

STRAIGHT FROM THE BOOK

Roulette In the casino game of roulette there is a wheel with 19 black slots, 19 red slots, and 2 green slots. In the game, a ball is rolled around a spinning wheel and it lands in one of the slots. It is assumed that each slot has the same probability of getting the ball. This results in the table of probabilities below.

Fair Table Probabilities

You watch the game at a particular table for 130 rounds and count the number of black, red, and green results. Your observations are summarized in the table below.

Outcomes (n = 130)

The Test: Test the claim that this roulette table is not fair. That is, test the claim that the distribution of colors for all spins of this wheel does not fit the expected distribution from a fair table. Test this claim at the 0.01 significance level.

(a) What is the null hypothesis for this test?

H₀: The probabilities are not all equal to 1/3.H₀: p₁ = 19/40, p₂ = 19/40, and p₃ = 2/40.    H₀: p₁ = p₂ = p₃ = 1/3H₀: The probabilities associated with this table do not fit those associated with a fair table.

(b) The table below is used to calculate the test statistic. Complete the missing cells.
Round your answers to the same number of decimal places as other entries for that column.

(c) What is the value for the degrees of freedom?
(d) What is the critical value of χ²? Use the answer found in the χ²-table or round to 3 decimal places.
t_α =

(e) What is the conclusion regarding the null hypothesis?

reject H₀

fail to reject H₀    

(f) Choose the appropriate concluding statement.

We have proven that this table is fair.

The results of this sample suggest the table is not fair.    

There is not enough data to conclude that this table is not fair.