Austin Co. 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:

Austin Co. 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 cost per equivalent unit to two decimal places and the other answers to the nearest dollar. If an answer is zero, enter “0”.

Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities and then completed the first-stage allocations of costs to the activity cost pools. The results appear below. Activity Cost Pool Activity Measure Total Cost Total Activity Serving a party of diners Number of parties served $ 17,490 5,300 parties Serving a diner Number of diners served $ 105,780 12,900 diners Serving drinks Number of drinks ordered $ 35,700 10,200 drinks The above costs include all of the costs of the restaurant except for organization-sustaining costs such as rent, property taxes, and top-management salaries. Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. Other costs, such as washing plates and glasses, depend on the number of diners served or the number of drinks served. Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month (including organization-sustaining costs) was $180,000 and that 12,000 diners had been served. Therefore, the average cost per diner was $15. Required: 1&2. According to the activity-based costing system, what is the total cost and average cost per diner for serving each of the following parties of diners? (Round your intermediate calculations to 2 decimal places. Round your Total Cost final answers to 2 decimal places and your Average Cost final answers to 3 decimal places.)

Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities and then completed the first-stage allocations of costs to the activity cost pools. The results appear below.

The above costs include all of the costs of the restaurant except for organization-sustaining costs such as rent, property taxes, and top-management salaries.

Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. Other costs, such as washing plates and glasses, depend on the number of diners served or the number of drinks served.

Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month (including organization-sustaining costs) was $180,000 and that 12,000 diners had been served. Therefore, the average cost per diner was $15.

Required:

1&2. According to the activity-based costing system, what is the total cost and average cost per diner for serving each of the following parties of dinners? (Round your intermediate calculations to 2 decimal places. Round your Total Cost final answers to 2 decimal places and your Average Cost final answers to 3 decimal places.)

The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 30,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $70,100 consisted of $50,800 of direct materials costs and $19,300 of conversion costs.

During the month, the forming department started 400,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 85% complete as to materials and 35% complete as to conversion. Units completed in the forming department are transferred to the painting department.

Cost information for the forming department is as follows:

Exercise 20-6 Weighted average: Cost per EUP and costs assigned to output LO C2

1.
Calculate the equivalent units of production for the forming department.

2.
Calculate the costs per equivalent unit of production for the forming department.

3.
Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.

The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 32,000 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $71,100 consisted of $51,400 of direct materials costs and $19,700 of conversion costs.

During the month, the forming department started 410,000 units. At the end of the month, the forming department had 30,000 units in ending inventory, 90% complete as to materials and 40% complete as to conversion. Units completed in the forming department are transferred to the painting department.

Cost information for the forming department is as follows:

Exercise 16-6 Weighted average: Cost per EUP and costs assigned to output LO C2

1.
Calculate the equivalent units of production for the forming department.

2.
Calculate the costs per equivalent unit of production for the forming department.

3.
Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.

Question Set 3. A small manufacturing plant produces specialized stainless steel valves for high-pressure steam systems. Each valve costs $2000 to produce. The plant incurs $1,200,000 in fixed annual costs. The plant sells the valves directly to power plants for $6400 each. For this question set, use the following formulas:

[Total Profit] = [Total Revenue] – [Total Cost]

[Total Revenue] = [Production] x [Unit Revenue]

[Total Cost] = [Production] x [Variable Unit Cost] + [Fixed Costs]

1. Create a data table (as demonstrated during lab exercise 2), that shows what total profit would be if the company produced 100 to 400 valves, in increments of 20. You must use a data table structure to receive credit for this problem. (6pts)

2. Create a scatter chart that displays the variable total profit (and no other variables) as a function of the number of valves produced and sold. At low production quantities, total profit may be negative but should still be displayed. Label your chart axes appropriately. (6pts)

Consider a production function of two inputs, labor and capital, given by Q = (√L + √K)2. Let w = 2 and r = 1. The marginal products associated with this production function are as follows:MPL=(√L + √K)L-1/2MPK=(√L + √K)K-1/2

a) Suppose the firm is required to produce Q units of output. Show how the cost-minimizing quantity of labor depends on the quantity Q. Show how the cost-minimizing quantity of capital depends on the quantity Q.

b) Find the equation of the firm’s long-run total cost curve.

c) Find the equation of the firm’s long-run average cost curve.

d) Find the solution to the firm’s short-run cost minimization problem when capital is fixed at a quantity of 9 units (i.e., K = 9).

e) Find the short-run total cost curve, and graph it along with the long-run total cost curve.

f ) Find the associated short-run average cost curve

ASDA Company reported the following activity in the Assembly Department for the month of May:

Required:

1- Compute the equivalent units of production using the weighted-average method

2- Compute the cost per equivalent unit using the weighted-average method

3- Assign costs to units using the weighted-average method

4- Prepare a cost reconciliation report

Compute and Apply Cost

1- Compute the equivalent units of production using the weighted-average method

2- Compute the cost per equivalent unit using the weighted-average method

3- Assign costs to units using the weighted-average method

4- Prepare a cost reconciliation report