The fixed costs for manufacturing a certain item are $ 300 per week and the total costs for manufacturing 20 units per week are $ 410.
a) Determine the relationship between the total cost and the number of units produced, assuming it is linear.
b) What will be the cost of manufacturing 30 units a week?
In: Advanced Math
Consider a monopolist facing the following situation:
|
Quantity |
0 |
10 |
20 |
30 |
40 |
50 |
60 |
70 |
|
Price |
$50 |
$45 |
$40 |
$35 |
$30 |
$25 |
$20 |
$15 |
|
Marginal Revenue |
$40 |
$35 |
$25 |
$15 |
$2.5 |
$2.5 |
$15 |
|
|
Total Cost |
$100 |
$370 |
$700 |
$960 |
$1120 |
$1225 |
$1650 |
$2250 |
|
Marginal Cost |
$27 |
$35 |
$26 |
$16 |
$11 |
$43 |
$60 |
|
|
Average Total Cost |
$37 |
$35 |
$32 |
$28 |
$25 |
$28 |
$32 |
A. Graph the following:
Demand Curve
Marginal Revenue Curve
Marginal Cost Curve
Average Total Cost Curve
B. Identify the profit maximization point for the monopolist. What are the price and quantities that will maximize profit? What is the total profit received at this point?
C. Suppose you were the regulator of this monopoly and you wished to set price and quantity at the perfectly competitive price and quantity, what would those values be?
D. Compare the results you got in B with the results in C.
In: Economics
Consider a monopolist facing the following situation:
Quantity 0 10 20 30 40 50 60 70
Price $50 $45 $40 $35 $30 $25 $20 $15
Marginal Revenue $40 $35 $25 $15 $2.5 $2.5 $15
Total Cost $100 $370 $700 $960 $1120 $1225 $1650 $2250
Marginal Cost $27 $35 $26 $16 $11 $43 $60
Average Total Cost $37 $35 $32 $28 $25 $28 $32
A. Graph the following: Demand Curve Marginal Revenue Curve Marginal Cost Curve Average Total Cost Curve
B. Identify the profit maximization point for the monopolist. What are the price and quantities that will maximize profit? What is the total profit received at this point?
C. Suppose you were the regulator of this monopoly and you wished to set price and quantity at the perfectly competitive price and quantity, what would those values be?
D. Compare the results you got in B with the results in C.
In: Economics
The Painting Department of Y Manufacturing Company has the following production and manufacturing cost data for October. Production: Beginning inventory 8,000 units that are 100% complete as to materials and 40% complete as to conversion costs; units started into production 27,000; ending inventory of 12,000 units that are 20% complete as to conversion costs. Manufacturing Costs: Beginning work in process inventory of $40,000, comprised of $30,000 of materials and $10,000 of conversion costs. Materials added during the month, $110,000; labor and overhead applied during the month, $62,000 and $55,000, respectively. Instructions 1. Compute the equivalent units of production for materials and conversion costs for the month of October. Physical units Materials Conversion cost Transferred out Work in process (October 31st) Total 2. Compute the unit costs for materials and conversion costs. Total Per unit Materials Conversion cost Total 3. Determine the costs to be assigned to the units transferred out and ending work in process. Cost to be accounted for Total Transferred out Work in process Materials Conversion cost
In: Accounting
Lucy’s Lucky Licorice makes delicious licorice candies. For a
unit of licorice, the standard materials cost is 4 pounds of sugar
at a cost of $.49 per pound. The standard cost of labor is 2.6
hours at $12.00 per hour.
In February, Lucy’s used 8,620 pounds of sugar at a cost of $3,879
to manufacture 2,200 units of licorice. In addition, Lucy’s labor
cost was $68,788, with 5,930 labor hours.
.Required:
A) Compute the materials total, price and quantity variances and indicate whether the variances are favorable or unfavorable. (12 points) Hint: Materials Price Variance = AQ(AP-SP); Materials Quantity Variance = SP(AQ-SQ); Total Materials Variance = (AQ)(AP)-(SQ)(SP)
B) Compute the labor total, price and quantity variances and indicate whether the variances are favorable or unfavorable. (12 points) Hint: Labor Price Variance = AQ(AP-SP); Labor Quantity Variance = SP(AQ-SQ); Total Labor Variance = (AQ)(AP)-(SQ)(SP
In: Accounting
Cost Behavior Analysis in a Restaurant: High-Low Cost Estimation
Assume a
Potbelly’s restaurant has the following information available regarding costs at representa-
tive levels of monthly sales:
Monthly sales in units
5,000 8,000 10,000
Cost of food sold ...................................$10,000$16,000$20,000
Wages and fringe benefits ............................4,2004,3204,400
Fees paid delivery help...............................1,100 1,760 2,200
Rent on building ....................................1,100 1,100 1,100
Depreciation on equipment ...........................900900900
Utilities ...........................................8009201,000
Supplies (soap, floor wax, etc.) ........................250340400
Administrative costs.................................1,700
1,700 1,700
Total .............................................$20,050$27,040 $31,700
Required
a. Identify each cost as being variable, fixed, or mixed.
b. Use the high-low method to develop a schedule identifying the amount of each cost that is mixed or
variable per unit. Total the amounts under each category to develop an equation for total monthly
costs.
c. Predict total costs for a monthly sales volume of 9,800 units
In: Accounting
In: Accounting
Horizontal and Vertical Analysis
Selected data from the financial statements of Jones Hardware Company follows.
| 2019 | 2018 | |||
| Accounts receivable | $63,600 | $38,000 | ||
| Merchandise inventory | 12,300 | 16,000 | ||
| Total assets | 450,000 | 380,000 | ||
| Net sales | 380,000 | 270,000 | ||
| Cost of goods sold | 178,000 | 210,000 | ||
Required:
1. Calculate by how much accounts receivable, merchandise inventory, total assets, net sales, and cost of goods sold increased or decreased in dollar terms from 2018 to 2019.
| Accounts receivable | $ | |
| Merchandise inventory | $ | |
| Total assets | $ | |
| Net sales | $ | |
| Cost of goods sold | $ |
2. Indicate what happened from 2018 to 2019 to accounts receivable and merchandise inventory as a percentage of total assets. Round to the nearest whole percent.
| Accounts receivable | from % in 2018 to % in 2019. |
| Merchandise inventory | from % in 2018 to % in 2019. |
Indicate what happened from 2018 to 2019 to cost of goods sold as a percentage of net sales (rounded to the nearest whole percent).
Cost of goods sold from % in 2018 to % in 2019.
In: Finance
Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year:
| Molding | Fabrication | Total | |||||
| Machine-hours | 23,000 | 33,000 | 56,000 | ||||
| Fixed manufacturing overhead costs | $ | 700,000 | $ | 250,000 | $ | 950,000 | |
| Variable manufacturing overhead cost per machine-hour | $ | 5.80 | $ | 5.80 | |||
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs:
| Job D-70: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 377,000 | $ | 326,000 | $ | 703,000 |
| Direct labor cost | $ | 210,000 | $ | 120,000 | $ | 330,000 |
| Machine-hours | 16,000 | 7,000 | 23,000 | |||
| Job C-200: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 290,000 | $ | 290,000 | $ | 580,000 |
| Direct labor cost | $ | 170,000 | $ | 260,000 | $ | 430,000 |
| Machine-hours | 7,000 | 26,000 | 33,000 | |||
Delph had no underapplied or overapplied manufacturing overhead during the year.
Required:
1. Assume Delph uses a plantwide predetermined overhead rate based on machine-hours.
a. Compute the plantwide predetermined overhead rate.
b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200.
c. If Delph establishes bid prices that are 140% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200?
d. What is Delph’s cost of goods sold for the year?
In: Accounting
Statement of Cost of Goods Manufactured for a Manufacturing Company
Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows:
| Inventories | January 1 | January 31 | ||
| Materials | $153,000 | $134,640 | ||
| Work in process | 105,570 | 92,900 | ||
| Finished goods | 78,030 | 91,560 | ||
| Direct labor | $275,400 | |
| Materials purchased during January | 293,760 | |
| Factory overhead incurred during January: | ||
| Indirect labor | 29,380 | |
| Machinery depreciation | 17,750 | |
| Heat, light, and power | 6,120 | |
| Supplies | 4,900 | |
| Property taxes | 4,280 | |
| Miscellaneous costs | 7,960 | |
a. Prepare a cost of goods manufactured statement for January.
| Disksan Manufacturing Company | |||
| Statement of Cost of Goods Manufactured | |||
| For the Month Ended January 31 | |||
| Work in process inventory, January 1 | $ | ||
| Direct materials: | |||
| Materials inventory, January 1 | $ | ||
| Purchases | |||
| Cost of materials available for use | $ | ||
| Less materials inventory, January 31 | |||
| Cost of direct materials used | $ | ||
| Direct labor | |||
| Factory overhead: | |||
| Indirect labor | $ | ||
| Machinery depreciation | |||
| Heat, light, and power | |||
| Supplies | |||
| Property taxes | |||
| Miscellaneous costs | |||
| Total factory overhead | |||
| Total manufacturing costs incurred during January | |||
| Total manufacturing costs | $ | ||
| Less work in process inventory, January 31 | |||
| Cost of goods manufactured | $ | ||
Feedback
a. Add the beginning materials and purchases and subtract the ending materials. Add direct labor and factory overhead. This will give total manufacturing costs. Then, add the total manufacturing costs to the beginning work in process and subtract the ending work in process.
b. Determine the cost of goods sold for
January.
$
In: Accounting