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.
$

create a regression model for the Wedding Cost data set, using Wedding Cost as the dependent variable, and all other variables as independent variables. Try whether the Bride and Groom were payors for the wedding, and at least one additional interaction term in the model. Do that by Excel

Cost of Goods Sold Budget

The controller of MingWare Ceramics Inc. wishes to prepare a cost of goods sold budget for September. The controller assembled the following information for constructing the cost of goods sold budget:

Use the preceding information to prepare a cost of goods sold budget for September. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

A3

-

10. Imagine a firm with the short run cost structure: Total Cost ( TC)= 9 +q2Marginal Cost(M)= 2q.

(a)

Write out expressions for total fixed cost (

FC

), total variable cost (

VC

), average variable cost (

AVC

),

and average total cost (

ATC

). Be sure to show your work. [4]

(b)

At what quantity is

AVC

at its minimum (at what

AVC

level)? At what quantity

is

ATC

at its

minimum (at what

ATC

level)? [3]

(c)

Given your results above, sketch

MC

and

AVC

from

q

= 0 to

q

= 9. Calculate

ATC

for q = 1, 3, 6,

and 9. Use this information to add

ATC

to your diagram (from

q

= 1 to

q

= 9). [4]

(d)

Assuming that the firm is

a price

-

taker operating in a competitive market, derive an expression for

the firm’s supply curve, (ie. the profit maximizing output for the firm as a function of the market

price). What is the shut

-

down price for this firm (ie. at what price would this f

irm choose to produce

zero)? [3]

(e)

Suppose the competitive market is composed of firms (and potential firms) identical to the one

described above. Is it possible that a market price of $8 is a short run equilibrium price? Is it

possible that a market pric

e of $4 is a short run equilibrium price? Explain. [4]

(f)

Assuming that the minimum point of the short run

ATC

curve for all firms is also the minimum point

of the long run average cost curve (

LRAC

) is it possible that either of the prices identified in par

t (e)

is a long run equilibrium price? Explain. [4]

(g)

Under the assumptions of parts (e) and (f), what is the long run equilibrium price in this market? If,

at that price, the quantity demanded in the market is 882 units, what is long run equilibrium numb

er

of firms in this market? [4]

Prepare a statement of cost showing:

(a) value of materials consumed (b) total cost of production (c) cost of goods sold and (d) the amount of profit From the following details relating to a toy manufacturing concern:

Opening stock: raw materials                                25,000

Finished goods                                                          20,000

Raw materials purchased                                   2, 50,000

Wages paid to laborers 1, 00,000

Closing stock: raw materials                                   20,000

Finished goods                                                           25,000

Chargeable expenses                                                10,000

Rent, rates, and taxes (factory)                                25,000

Motive power                                                             10,000

Factory heating and lighting                                    10,000

Factory insurance                                                        5,000

Experimental expenses                                             2,500

Waste materials in factory                                        1,000

Office salaries                                                            20,000

Printing and stationery                                              1,000

Salesmen’s salary                                                     10,000

Commission to traveling agents                              5,000

Sales                                                                        5, 00,000

1. Statement of Cost of Goods Manufactured for a Manufacturing Company

   Cost data for Johnstone Manufacturing Company for the month ended March 31 are as follows:

   Inventories	March 1		March 31
   Materials	$229,750		$204,480
   Work in process	158,530		141,090
   Finished goods	119,470		139,050

   Direct labor		$413,550
   Materials purchased during March		441,120
   Factory overhead incurred during March:
   	Indirect labor	44,110
   	Machinery depreciation	26,650
   	Heat, light, and power	9,190
   	Supplies	7,350
   	Property taxes	6,430
   	Miscellaneous costs	11,950

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

   Johnstone Manufacturing Company
   Statement of Cost of Goods Manufactured
   For the Month Ended March 31
   			$
   Direct materials:
   	$
   	$
   		$
   Factory overhead:
   	$
   Total factory overhead
   Total manufacturing costs incurred during March
   Total manufacturing costs			$
   Cost of goods manufactured			$

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

Question #2

Cost Flow Relationships

The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils:

Using the above information, determine the following missing amounts:

1. Is this cost function a short-run or long-run cost function? ? = 1 3 ? 3 − ? 2 + 2? + 90 a. Short-run b. Long-run c. There is information to answer question _____

2. The ______illustrates the various combinations of L and K that can produce the same level of output. a. Isoquant b. Isocost c. Expansion path _____

3. For a cost-minimizing firm that chooses the optimal level of L and K, it will always choose to employ more of the input that has a lower per unit cost. a. True b. False _____

4. Does this production function exhibit constant, increasing or decreasing returns to scale? ? = 2?? + ? 2 a. CRS b. IRS c. DRS

Explain situation where fixed cost becomes variable cost.

In details please with examples.