a. Explain why the marginal cost curve intersects the average total and variable cost curves at their

respective minimum values:

b. At what point on the ATC will a perfectly competitive firm always produce in the long run:

c. The supply curve for a perfectly competitive firm is the same as one of the cost curves based on a specific criterion, state both the curve and the criterion.

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:

a. Prepare a cost of goods manufactured statement for January.

b. Determine the cost of goods sold for January.
$

What are costs? What are benefits? What tangible cost and benefits? What are in intangible cost and benefits? What direct and indirect cost?

What is earned value (EV)? Explain how earned value management can be used to control costs and measure project performance.

The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be $130,000, and total direct labor costs would be $100,000. During February, the actual direct labor cost totaled $12,500, and factory overhead cost incurred totaled $16,750.

Required:

a. What is the predetermined factory overhead rate based on direct labor cost?

%

b. Journalize the entry to apply factory overhead to production for February 28. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

c. What is the February 28 balance of the account Factory Overhead-Blending Department?

d. Does the balance in part (C) represent over- or underapplied factory overhead?

Discuss the assumptions that are inherent in production setup cost, ordering cost and carrying costs. How valid are they?

A firm in a competitive market has the following cost structure:

              Output              Total Cost        

              0                         $5

              1                         $10                    

              2                         $12                    

              3                         $15                    

              4                         $24                    

              5                         $40

If the market price is $3, what will this firm do in the short run? show all your work

1- The Variable Cost, (VC), of making 10 fidgets is 100, the Variable Cost, (VC), of making 11 fidgets is 110, What is the Marginal Cost, (MC), of making the 11th fidget?

2- The Total Cost, (TC), of making 10 widgets is 490 , the Total Cost, (TC), of making 11 widgets is 550,What is the Marginal Cost, (ATC), of making the 11th widget?

3- The Total Cost, (TC), of making 10 widgets is 490, the Total Cost, (TC), of making 11 widgets is 550,What is the Average Total Cost, (ATC), of making 11 widgets?

4- The Total Cost, (TC), of making 10 widgets is 490, the Total Cost, (TC), of making 11 widgets is 550,What is the Average Total Cost, (ATC), of making 10 widgets?

5- If Marginal Cost is less than (below) Average Total Cost

6-

If Marginal Cost is greater than (above) Average Total Cost

Japanese companies are companies that apply Material Flow of Cost Accounting (MFCA) and this cost calculation method is then brought to Indonesia. Material Flow of Cost Accounting (MFCA) collaborates with ISO 14051. In connection with of MFCA to Indonesia, explain the MFCA starting from the historical process of MFCA, the definition of MFCA, the process of calculating MFCA, and the advantages if the companies using MFCA (using info graphic and explanation, you can also using example)

If price exceeds the minimum of average total cost, then comparing marginal revenue to marginal cost
(x) tells a firm the total amount of profit that it will generate.
(y) indicates how much additional profit is generated by the last unit of production.
(z) tells a firm whether it should increase output, decrease output or remain at the present level of output.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only

A profit maximizing firm in a competitive market produces widgets. Suppose the market price for widgets increases to $15. At the profit maximizing (loss minimizing) quantity of 25,000 widgets, the ATC is equal to $18 and the AFC is equal to $5. Given these conditions the
(x) firm will continue its production of widgets in the short run since it is producing at its profit maximizing (loss minimizing) quantity and price exceeds average variable cost at that quantity.
(y) firm will experience a loss of $75,000 since total revenue is $375,000 and total cost is $450,000.
(z) the firm will continue to produce 25,000 widgets since it would lose $125,000 if it shut down and did not produce any widgets.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

A profit maximizing firm in a competitive market produces T-shirts. Suppose the market price for T-shirts decreases to $8. At the profit maximizing (loss minimizing) quantity of 40,000 T-shirts, the AVC is equal to $6 and the AFC is equal to $2. Given these conditions the
(x) firm will experience zero economic profits since price is equal to average total cost.
(y) the firm will continue to produce 40,000 T-shirts in the short run since it would earn an accounting profit at that level of production.
(z) firm will exit in the long run because firms must receive more than zero economic profit in the long run in order to stay in business.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

Use your knowledge of cost functions to calculate the missed cost data in the accompanying table.

Round your answers to two digits after the decimal.

What is the total cost when producing zero units?

total cost: $

What is the marginal cost for the first unit?

marginal cost: $

What is the average total cost when producing three units?

average total cost: $

What is the average variable cost when producing four units?

average variable cost: $