Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,600 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $702,315 in total. The ending work in process inventory in January consisted of 3,900 units, which were 50% complete with respect to materials and 30% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:

Required:

1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.

2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.

3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.

4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)

A firm that produces electricity using coal that emits pollution. For every part per million, P, the firm is fined $10,000. However, it can invest in scrubbers, S, that cost $25,000 each and reduce pollution according to the formula P=10/S

1. Explain how the firm should approach this problem.

2. The cost of the fine is given by ($10,000)(P) or ($10,000)(10/S). So, each additional scrubber reduces the cost of the fine by $100,000/S². Find the optimal number of scrubbers to invest in, what the amount of pollution will be, and what the total cost to the firm will be.

3. Suppose the fine doubles. Find the optimal number of scrubbers to invest in, what the amount of pollution will be, and what the total cost to the firm will be. (Round to the nearest whole scrubber) Explain what is happening.

4. Keeping the fine at $10,000, suppose the cost of scrubbers doubles. Find the optimal number of scrubbers to invest in, what the amount of pollution will be, and what the total cost to the firm will be. (Round to the nearest whole scrubber)) Explain what is happening.

5. Does it ever make sense for the firm to not invest in scrubbers?

6. Does it make sense for the government to try to eliminate pollution?

Thanks

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,600 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $690,168 in total. The ending work in process inventory in January consisted of 2,400 units, which were 70% complete with respect to materials and 50% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:

Required:

1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.

2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.

3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.

4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)

1. The Industries has 50 obsolete desktop computers that are carried in inventory at a total cost of $27,800. If these computers are upgraded at a total cost of $12,000, they can be sold for a total of $32,000. As an alternative, the computers can be sold in their present condition for $12,200. The sunk cost in this situation is:

2. In order to maintain consistency, a cost that is relevant in one decision should be regarded as relevant in other decisions as well.

3.K&J Products processes sugar cane in Hawaii. The company buys a batch of sugar cane from farmers for $190 which is then crushed in the company's plant at a cost of $111. Two intermediate products, cane fiber and cane syrup, are created from the crushing process. The cane fiber can be sold at the split off point for $121 or processed further at a cost of $113 to make the end product (industrial fiber) that can be sold for $245. The cane syrup can be sold at the split off point for $141 or processed further at a cost of $129 to make the end product (molasses) that can be sold for $303. What is the financial advantage (or disadvantage) for the company from processing one batch of sugar cane into the end products - industrial fiber and molasses?

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,400 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $666,408 in total. The ending work in process inventory in January consisted of 2,600 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:

Required:

1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.

2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.

3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.

4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)

(Perfect Competition) Individual firms operating in the market for widgets have costs given by C(q) = 1000 + 10q². The market demand function is given by D(p) = 10, 000 − 100p.

A) Provide formulas for a firm’s fixed cost, variable cost, average total cost, and average variable cost: F C, V C(q), AT C(q), and AV C(q), respectively.

B) The marginal cost function is given by M C(q) = 20q. Find the individual firm’s short-run supply function, q(p). (Note that min{AV C} = 0, and assume all fixed costs are sunk.)

C) What is the quantity at which average total cost is minimized, q^min? (Hint: consider the relationship between AT C and M C when AT C is minimized.) What is the average total cost at q^min?

D) If there is free entry and exit, then what is the long-run equilib- rium price, p^∗? How many units does each individual firm produce, q^∗? How many firms, n^∗, are needed to meet the demand at p^∗? (Your answers should be the values of p^∗, q^∗, and n^∗.)

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,200 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $671,100 in total. The ending work in process inventory in January consisted of 3,000 units, which were 60% complete with respect to materials and 40% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows: Materials Labor Overhead Cost per equivalent unit $ 14.10 $ 3.40 $ 7.60 Required: 1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month. 2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January. 3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January. 4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)

Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following information:

Required:
1 & 2. Using the weighted-average method of process costing, complete each of the following steps:

a. Reconcile the number of physical units worked on during the period.  



b. Calculate the number of equivalent units.



c. Calculate the cost per equivalent unit. (Round cost per Equivalent Unit to 5 decimal places.)  



d. Reconcile the total cost of work in process.(Use Cost per Equivalent Unit rounded to 5 decimal places and round your final answers to the nearest whole dollar amount.)

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,500 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $647,100 in total. The ending work in process inventory in January consisted of 3,000 units, which were 50% complete with respect to materials and 30% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:

Required:

1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.

2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.

3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.

4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,700 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $662,176 in total. The ending work in process inventory in January consisted of 3,300 units, which were 40% complete with respect to materials and 20% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:

Required:

1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.

2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.

3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.

4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)