Suppose movie downloads cost $1 apiece and game downloads cost $2. If the marginal utility of movie downloads at the optimal mix of consumption is 20 utils, what is the marginal utility of a game download?
Instructions: Enter your answer as a whole number.
utils
In: Economics
12 - What is target cost per unit?
A.Target cost per unit is the average total unit cost over the
product's life cycle.
B.Target cost per unit is the average total unit cost over the
contribution margin ratio.
C.Target cost per unit is the contribution margin per unit over the
average total unit cost.
D.Target cost per unit is the variable unit cost over the
product's life cycle.
13 - What is value engineering?
A.Charging different prices to different customers for the same
product or service.
B. A cost-reduction technique, used primarily during the design
function in the value chain, that uses information about all value
chain functions to satisfy customer needs while reducing
costs.
C.Continuous improvement during manufacturing.
D.The effect of price changes on sales volume.
In: Accounting
The Assembly Department uses a process cost accounting system and a weighted-average cost flow assumption. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During July, RM190,000 of materials costs and RM133,000 in conversion costs were charged to the department. The beginning work in process inventory was RM108,000 on July 1, comprised of RM80,000 of materials costs and RM28,000 of conversion costs.
Other data for the month of July are as follows:
Beginning work in process inventory, 7/1 25,000 units (40% complete)
Units completed and transferred out 90,000 units
Ending work in process inventory, 7/31 10,000 units (20% complete)
Required:
Answer the following questions and show computations to support your answers.
How many physical units have to be accounted for in July?
What are the equivalent units of production for materials and for conversion costs for the month of July?
What is the total cost assigned to the 90,000 units that were transferred out of the process in July?
What is the total cost of the July 31 inventory?
[TOTAL: 10 MARKS]
In: Accounting
Bluebird Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing 25,000 units of Product K are as follows:
Variable costs: $2.50
Direct Materials 4.25
Direct Labor 1.25
Factory Overhead 0.50
Total: 8.50
Fixed Costs $25,000
Selling and Administrative expenses 17,000
Bluebird desires a profit equal to a 5% rate of return on invested assets of $642,500
a) determine the amount of desired profit from the production and sale of Product K
b) determine the total manufacturing costs and the cost amount per unit for the production of 25,000 units of Product K
c) determine the markup percentage of Product K
d) determine the selling price of Product K
Round your markup percentage to one decimal place, and other intermediate calculations and final answer to two decimal places. SHOW WORK
In: Accounting
discuss the concept of cost transformation and how management accountants can contribute towards the cost transformation of an organisation.
In: Accounting
COST ACCOUNTING
COST OF PRODUCTION SUMMARY: WEIGHTED AVERAGE AND FIFO METHODS
The Company uses a single department production process.
Materials are added at the start of the production process and
labor and overhead are added as indicated. For January 2015, the
Company records have the following information:
UNITS:
Beginning
WIP:
10,000 units
100% complete for materials, 50% complete for labor; 30% complete for overhead
Units started in process 50,000 units
Units completed 49,000 units
Ending WIP: 11,000 units
100% complete for materials, 60% complete for labor; 20% complete for overhead
PRODUCTION COSTS:
Work in Process, Beginning of the
Month:
Materials
$ 22,000
Labor
18,000
Overhead
11,000
51,000
Current Month Costs:
Materials
$ 320,000
Labor
180,160
Overhead
152,840
653,000
Total Costs:
$
704,000
REQUIRED:
Prepare a Cost of Production Summary using the weighted average method (calculations for equivalent units of production, cost per equivalent unit of production, total cost for units completed and WIP, ending). Prepare your calculations for Materials, Labor, and Overhead separately.
Prepare the appropriate journal entries at month end.
Prepare a Cost of Production Summary using the FIFO method (calculations for equivalent units of production, cost per equivalent unit of production, total cost for WIP, beginning, units started and completed and WIP, ending). Prepare your calculations for Materials, Labor, and Overhead separately.
Prepare the appropriate journal entries at month end.
You need to present your work in an excel spreadsheet and you need to create your own formatting (templates).
In: Accounting
Cost of Trade Credit Calculate the nominal annual cost of nonfee trade credit under each of the following terms. Assume that payment is made either on the discount date or on the due date. 1/10 net 20; 2/10 net 60; 3/10 net 45; 2/10 net 45; 2/10 net 40
In: Finance
I'm having trouble calculating total cost.
The question is: Calculate the total cost for next February when 1,300 tons are expected to be extracted. I understand that trucking and hauling will be 144,970, and I also add 20,000 for depreciation, im not sure about the other costs and how to add.
Antioch Extraction, which mines ore in Montana, uses a calendar year for both financial-reporting and tax purposes. The following selected costs were incurred in December, the low point of activity, when 1,000 tons of ore were extracted:
| Straight-line depreciation | $ | 20,000 | |
| Charitable contributions* | 5,000 | ||
| Mining labor/fringe benefits | 135,000 | ||
| Royalties | 145,000 | ||
| Trucking and hauling | 144,970 | ||
*Incurred only in December.
Peak activity of 2,300 tons occurred in June, resulting in mining labor/fringe benefit costs of $310,500, royalties of $301,000, and trucking and hauling outlays of $174,970. The trucking and hauling outlays exhibit the following behavior:
| Less than 1,000 tons | $ | 129,970 | |
| From 1,000–1,499 tons | 144,970 | ||
| From 1,500–1,999 tons | 159,970 | ||
| From 2,000–2,499 tons | 174,970 | ||
Antioch uses the high-low method to analyze costs.
Required:
1. Classify the five costs listed in terms of their behavior: variable, step-variable, committed fixed, discretionary fixed, step-fixed, or semivariable.
2. Calculate the total cost for next February when 1,300 tons are expected to be extracted.
3-a. Is hauling 1,000 tons with respect to Antioch’s trucking/hauling cost behavior cost-effective?
3-b. Given the current scenario at what number of tons can cost-effectiveness be achieved?
4. Distinguish between committed and discretionary fixed costs. If Antioch were to experience severe economic difficulties, which of the two types of fixed costs should management try to cut?
5. Speculate as to why the company’s charitable contribution cost arises only in December.
In: Accounting
Wu Company incurred $44,200 of fixed cost and $54,600 of variable cost when 2,100 units of product were made and sold.
If the company's volume increases to 2,600 units (within relevant range), the total cost per unit will be:
$17.00.
$21.00.
$43.00.
$38.00.
In: Accounting
The Assembly Department uses a process cost accounting system and a weighted-average cost flow assumption. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During July, $190,000 of materials costs and $137,100 in conversion costs were charged to the department. The beginning work in process inventory was $93,000 on July 1, comprised of $80,000 of materials costs and $13,000 of conversion costs.
Other data for the month of July are as follows:
Beginning work in process inventory, 7/1 25,000 units (40% complete)
Units completed and transferred out 70,000 units
Ending work in process inventory, 7/31 30,000 units (30% complete)
Answer the following questions and show computations to support your answers.
1. How many physical units have to be accounted for in July?
2. What are the equivalent units of production for materials and for conversion costs for the month of July?
3. What is the total cost assigned to the 70,000 units that were transferred out of the process in July?
4. What is the total cost of the July 31 inventory?
In: Accounting