It's true — sand dunes in Colorado rival sand dunes of the Great Sahara Desert! The highest dunes at Great Sand Dunes National Monument can exceed the highest dunes in the Great Sahara, extending over 700 feet in height. However, like all sand dunes, they tend to move around in the wind. This can cause a bit of trouble for temporary structures located near the "escaping" dunes. Roads, parking lots, campgrounds, small buildings, trees, and other vegetation are destroyed when a sand dune moves in and takes over. Such dunes are called "escape dunes" in the sense that they move out of the main body of sand dunes and, by the force of nature (prevailing winds), take over whatever space they choose to occupy. In most cases, dune movement does not occur quickly. An escape dune can take years to relocate itself. Just how fast does an escape dune move? Let x be a random variable representing movement (in feet per year) of such sand dunes (measured from the crest of the dune). Let us assume that x has a normal distribution with μ = 13 feet per year and σ = 2.2 feet per year. Under the influence of prevailing wind patterns, what is the probability of each of the following? (Round your answers to four decimal places.) (a) an escape dune will move a total distance of more than 90 feet in 6 years (b) an escape dune will move a total distance of less than 80 feet in 6 years (c) an escape dune will move a total distance of between 80 and 90 feet in 6 years
In: Statistics and Probability
It's true — sand dunes in Colorado rival sand dunes of the Great Sahara Desert! The highest dunes at Great Sand Dunes National Monument can exceed the highest dunes in the Great Sahara, extending over 700 feet in height. However, like all sand dunes, they tend to move around in the wind. This can cause a bit of trouble for temporary structures located near the "escaping" dunes. Roads, parking lots, campgrounds, small buildings, trees, and other vegetation are destroyed when a sand dune moves in and takes over. Such dunes are called "escape dunes" in the sense that they move out of the main body of sand dunes and, by the force of nature (prevailing winds), take over whatever space they choose to occupy. In most cases, dune movement does not occur quickly. An escape dune can take years to relocate itself. Just how fast does an escape dune move? Let x be a random variable representing movement (in feet per year) of such sand dunes (measured from the crest of the dune). Let us assume that x has a normal distribution with μ = 16 feet per year and σ = 2.9 feet per year. Under the influence of prevailing wind patterns, what is the probability of each of the following? (Round your answers to four decimal places.)
(a) an escape dune will move a total distance of more than 90 feet in 6 years
(b) an escape dune will move a total distance of less than 80 feet in 6 years
(c) an escape dune will move a total distance of between 80 and 90 feet in 6 years
In: Statistics and Probability
It's true — sand dunes in Colorado rival sand dunes of the Great Sahara Desert! The highest dunes at Great Sand Dunes National Monument can exceed the highest dunes in the Great Sahara, extending over 700 feet in height. However, like all sand dunes, they tend to move around in the wind. This can cause a bit of trouble for temporary structures located near the "escaping" dunes. Roads, parking lots, campgrounds, small buildings, trees, and other vegetation are destroyed when a sand dune moves in and takes over. Such dunes are called "escape dunes" in the sense that they move out of the main body of sand dunes and, by the force of nature (prevailing winds), take over whatever space they choose to occupy. In most cases, dune movement does not occur quickly. An escape dune can take years to relocate itself. Just how fast does an escape dune move? Let x be a random variable representing movement (in feet per year) of such sand dunes (measured from the crest of the dune). Let us assume that x has a normal distribution with μ = 14 feet per year and σ = 3.2 feet per year. Under the influence of prevailing wind patterns, what is the probability of each of the following? (Round your answers to four decimal places.)
(a) an escape dune will move a total distance of more than 90 feet in 7 years
(b) an escape dune will move a total distance of less than 80 feet in 7 years
(c) an escape dune will move a total distance of between 80 and 90 feet in 7 years
In: Statistics and Probability
It's true — sand dunes in Colorado rival sand dunes of the Great Sahara Desert! The highest dunes at Great Sand Dunes National Monument can exceed the highest dunes in the Great Sahara, extending over 700 feet in height. However, like all sand dunes, they tend to move around in the wind. This can cause a bit of trouble for temporary structures located near the "escaping" dunes. Roads, parking lots, campgrounds, small buildings, trees, and other vegetation are destroyed when a sand dune moves in and takes over. Such dunes are called "escape dunes" in the sense that they move out of the main body of sand dunes and, by the force of nature (prevailing winds), take over whatever space they choose to occupy. In most cases, dune movement does not occur quickly. An escape dune can take years to relocate itself. Just how fast does an escape dune move? Let x be a random variable representing movement (in feet per year) of such sand dunes (measured from the crest of the dune). Let us assume that x has a normal distribution with μ = 10 feet per year and σ = 3.8 feet per year. Under the influence of prevailing wind patterns, what is the probability of each of the following? (Round your answers to four decimal places.) (a) an escape dune will move a total distance of more than 90 feet in 9 years .5000 Correct: Your answer is correct. (b) an escape dune will move a total distance of less than 80 feet in 9 years .3850 Incorrect: Your answer is incorrect. (c) an escape dune will move a total distance of between 80 and 90 feet in 9 years
In: Statistics and Probability
It's true — sand dunes in Colorado rival sand dunes of the Great
Sahara Desert! The highest dunes at Great Sand Dunes National
Monument can exceed the highest dunes in the Great Sahara,
extending over 700 feet in height. However, like all sand dunes,
they tend to move around in the wind. This can cause a bit of
trouble for temporary structures located near the "escaping" dunes.
Roads, parking lots, campgrounds, small buildings, trees, and other
vegetation are destroyed when a sand dune moves in and takes over.
Such dunes are called "escape dunes" in the sense that they move
out of the main body of sand dunes and, by the force of nature
(prevailing winds), take over whatever space they choose to occupy.
In most cases, dune movement does not occur quickly. An escape dune
can take years to relocate itself. Just how fast does an escape
dune move? Let x be a random variable representing
movement (in feet per year) of such sand dunes (measured from the
crest of the dune). Let us assume that x has a normal
distribution with μ = 14 feet per year and σ =
3.9 feet per year.
Under the influence of prevailing wind patterns, what is the
probability of each of the following? (Round your answers to four
decimal places.)
(a) an escape dune will move a total distance of more than 90
feet in 7 years
(b) an escape dune will move a total distance of less than 80 feet
in 7 years
(c) an escape dune will move a total distance of between 80 and 90
feet in 7 years
In: Statistics and Probability
It's true — sand dunes in Colorado rival sand dunes of the Great Sahara Desert! The highest dunes at Great Sand Dunes National Monument can exceed the highest dunes in the Great Sahara, extending over 700 feet in height. However, like all sand dunes, they tend to move around in the wind. This can cause a bit of trouble for temporary structures located near the "escaping" dunes. Roads, parking lots, campgrounds, small buildings, trees, and other vegetation are destroyed when a sand dune moves in and takes over. Such dunes are called "escape dunes" in the sense that they move out of the main body of sand dunes and, by the force of nature (prevailing winds), take over whatever space they choose to occupy. In most cases, dune movement does not occur quickly. An escape dune can take years to relocate itself. Just how fast does an escape dune move? Let x be a random variable representing movement (in feet per year) of such sand dunes (measured from the crest of the dune). Let us assume that x has a normal distribution with μ = 10 feet per year and σ = 3.7 feet per year.
Under the influence of prevailing wind patterns, what is the probability of each of the following? (Round your answers to four decimal places.)
(a) an escape dune will move a total distance of more than 90 feet in 9 years
(b) an escape dune will move a total distance of less than 80 feet in 9 years
(c) an escape dune will move a total distance of between 80 and 90 feet in 9 years
In: Math
The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31 are as follows:
Date | Transaction | Number of Units | Per Unit | Total | |
|---|---|---|---|---|---|
| Jan. | 1 | Inventory | 7,500 | $ 75.00 | $ 562,500 |
| 10 | Purchase | 22,500 | 85.00 | 1,912,500 | |
| 28 | Sale | 11,250 | 150.00 | 1,687,500 | |
| 30 | Sale | 3,750 | 150.00 | 562,500 | |
| Feb. | 5 | Sale | 1,500 | 150.00 | 225,000 |
| 10 | Purchase | 54,000 | 87.50 | 4,725,000 | |
| 16 | Sale | 27,000 | 160.00 | 4,320,000 | |
| 28 | Sale | 25,500 | 160.00 | 4,080,000 | |
| Mar. | 5 | Purchase | 45,000 | 89.50 | 4,027,500 |
| 14 | Sale | 30,000 | 160.00 | 4,800,000 | |
| 25 | Purchase | 7,500 | 90.00 | 675,000 | |
| 30 | Sale | 26,250 | 160.00 | 4,200,000 | |
| Instructions | |
| 1. | Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3 , using the first-in, first-out method. |
| 2. | Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles. |
| 3. | Determine the gross profit from sales for the period. |
| 4. | Determine the ending inventory cost as of March 31. |
| 5. | Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower? |
| CHART OF ACCOUNTS | |
| Midnight Supplies | |
| General Ledger | |
| ASSETS110Cash111Petty Cash120Accounts Receivable131Notes Receivable132Interest Receivable141Inventory145Office Supplies146Store Supplies151Prepaid Insurance181Land191Office Equipment192Accumulated Depreciation-Office Equipment193Store Equipment194Accumulated Depreciation-Store EquipmentLIABILITIES210Accounts Payable221Notes Payable222Interest Payable231Salaries Payable241Sales Tax PayableEQUITY310Common Stock311Retained Earnings312Dividends313Income Summary | REVENUE410Sales610Interest RevenueEXPENSES510Cost of Goods Sold515Credit Card Expense516Cash Short and Over520Salaries Expense531Advertising Expense532Delivery Expense533Insurance Expense534Office Supplies Expense535Rent Expense536Repairs Expense537Selling Expenses538Store Supplies Expense561Depreciation Expense-Office Equipment562Depreciation Expense-Store Equipment590Miscellaneous Expense710Interest Expense |
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in
Exhibit 3
, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.
Date | Purchases | Cost of goods Sold | Inventory | ||||||
Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
Jan. 1 | |||||||||
10 | |||||||||
10 | |||||||||
28 | |||||||||
28 | |||||||||
30 | |||||||||
Feb. 5 | |||||||||
10 | |||||||||
10 | |||||||||
16 | |||||||||
16 | |||||||||
28 | |||||||||
Mar. 5 | |||||||||
5 | |||||||||
14 | |||||||||
14 | |||||||||
25 | |||||||||
25 | |||||||||
30 | |||||||||
30 | |||||||||
31 | Balances | ||||||||
2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
1 | ||||||||
2 | ||||||||
3 | ||||||||
4 |
3. Determine the gross profit from sales for the period.
4. Determine the ending inventory cost as of March 31.
5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?
In: Accounting
Case 4
Natha Corporation manufacturers two types of travel mugs: Simple, and Sophisticated. The company budgets to produce 20,000 units of the Simple mugs and 10,000 units of the Sophisticated mugs. Manufacturing takes place in two production departments: Machining and Assembly. The Simple mugs are produced in batches of 200 units; however, due to the more intricate detail included on the Sophisticated mugs, they are produced in batches of 50 units.
The company’s Controller has asked you to compare the plantwide, departmental, and activity- based cost allocation methods. To assist in your analysis, the Controller has provided you with the budgeted cost information for the 2020 fiscal year.
|
Natha Budgeted Information for the Year Ended December 31, 2020 |
|||
|
Machining Department |
Simple |
Sophisticated |
Total |
|
Direct materials cost |
$90,000.00 |
$52,500.00 |
$142,500.00 |
|
Direct labour cost |
45,000.00 |
30,000.00 |
75,000.00 |
|
Overhead costs |
120,000.00 |
||
|
Machine hours |
12,000 |
18,000 |
30,000 |
|
Direct labour hours |
4,000 |
1,000 |
5,000 |
|
Assembly Department |
Simple |
Sophisticated |
Total |
|
Direct materials cost |
$7,500.00 |
$15,000.00 |
$22,500.00 |
|
Direct labour cost |
22,500.00 |
37,500.00 |
60,000.00 |
|
Overhead costs |
40,000.00 |
||
|
Machine hours |
6,000 |
4,000 |
10,000 |
|
Direct labour hours |
3,500 |
500 |
4,000 |
Required:
|
Quantity of Cost Driver |
|||||
|
Activities |
Cost Driver |
Activity Cost |
Simple |
Sophisticated |
Total |
|
Materials handling |
Number of parts |
$45,000.00 |
6,000 |
9,000 |
15,000 |
|
Setups |
Number of setups |
$74,500.00 |
104 |
45 |
149 |
|
Inspection |
Inspection hours |
$40,500.00 |
7,500 |
1,500 |
9,000 |
|
$160,000.00 |
|||||
In: Accounting
Case 4
Natha Corporation manufacturers two types of travel mugs: Simple, and Sophisticated. The company budgets to produce 20,000 units of the Simple mugs and 10,000 units of the Sophisticated mugs. Manufacturing takes place in two production departments: Machining and Assembly. The Simple mugs are produced in batches of 200 units; however, due to the more intricate detail included on the Sophisticated mugs, they are produced in batches of 50 units.
The company’s Controller has asked you to compare the plantwide, departmental, and activity- based cost allocation methods. To assist in your analysis, the Controller has provided you with the budgeted cost information for the 2020 fiscal year.
|
Natha Budgeted Information for the Year Ended December 31, 2020 |
|||
|
Machining Department |
Simple |
Sophisticated |
Total |
|
Direct materials cost |
$90,000.00 |
$52,500.00 |
$142,500.00 |
|
Direct labour cost |
45,000.00 |
30,000.00 |
75,000.00 |
|
Overhead costs |
120,000.00 |
||
|
Machine hours |
12,000 |
18,000 |
30,000 |
|
Direct labour hours |
4,000 |
1,000 |
5,000 |
|
Assembly Department |
Simple |
Sophisticated |
Total |
|
Direct materials cost |
$7,500.00 |
$15,000.00 |
$22,500.00 |
|
Direct labour cost |
22,500.00 |
37,500.00 |
60,000.00 |
|
Overhead costs |
40,000.00 |
||
|
Machine hours |
6,000 |
4,000 |
10,000 |
|
Direct labour hours |
3,500 |
500 |
4,000 |
Required:
|
Quantity of Cost Driver |
|||||
|
Activities |
Cost Driver |
Activity Cost |
Simple |
Sophisticated |
Total |
|
Materials handling |
Number of parts |
$45,000.00 |
6,000 |
9,000 |
15,000 |
|
Setups |
Number of setups |
$74,500.00 |
104 |
45 |
149 |
|
Inspection |
Inspection hours |
$40,500.00 |
7,500 |
1,500 |
9,000 |
|
$160,000.00 |
|||||
In: Accounting
A lab is trying to determine how many test kits it should order from its supplier. They use 780 kits per year. The annual holding cost is $3 per kit per year. The ordering cost is $15 per order. The supplier delivers their orders all at one time, but offers a quantity discount. What is the optimum condition (order quantity) and total cost (ordering, holding and item cost)? Draw the Order quantity (Q) verses Total Annual Cost graph with 3 item prices.
| Quantity | Price |
| 1-72 | 60 |
| 73-144 | 56 |
| 145 and more | 53 |
In: Operations Management