1. The Cutting Department of Tangu Carpet Company provides the following data for December 2016. Assume that all materials are added at the beginning of the process.

   Work in process, December 1, 14,600 units, 80% completed		$178,704*
   *Direct materials (14,600 × $9.2)	$134,320
   Conversion (14,600 × 80% × $3.8)	44,384
   	$178,704
   Materials added during December from Weaving Department, 224,800 units		$2,101,880
   Direct labor for December		385,960
   Factory overhead for December		471,728
   Goods finished during December (includes goods in process, December 1), 227,400 units		—
   Work in process, December 31, 12,000 units, 35% completed		—

   a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the The rate used to allocate costs between completed and partially completed production.cost per equivalent unit computations, round your answers to two decimal places.

   Tangu Carpet Company
   Cost of Production Report-Cutting Department
   For the Month Ended December 31, 2016
   Unit Information
   Units charged to production:
   Inventory in process, December 1
   Received from Weaving Department
   Total units accounted for by the Cutting Department
   Units to be assigned costs:
   		Equivalent Units
   	Whole Units	Direct Materials	Conversion
   Inventory in process, December 1
   Started and completed in December
   Transferred to finished goods in December
   Inventory in process, December 31
   Total units to be assigned cost
   Cost Information
   Costs per equivalent unit:
   		Direct Materials	Conversion
   Total costs for December in Cutting Department		$	$
   Total equivalent units
   Cost per equivalent unit		$	$
   Costs assigned to production:
   	Direct Materials	Conversion	Total
   Inventory in process, December 1			$
   Costs incurred in December
   Total costs accounted for by the Cutting Department			$
   Costs allocated to completed and partially completed units:
   Inventory in process, December 1 balance			$
   To complete inventory in process, December 1		$
   Cost of completed December 1 work in process			$
   Started and completed in December	$
   Transferred to finished goods in December			$
   Inventory in process, December 31
   Total costs assigned by the Cutting Department			$

   Feedback

   b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (November). If required, round your answers to two decimal places.

   	Increase or Decrease	Amount
   Change in direct materials cost per equivalent unit	Decrease Increase	$
   Change in conversion cost per equivalent unit	Decrease Increase	$

Equivalent Units and Related Costs; Cost of Production Report; Entries

Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Department, the materials pass through the Reaction and Filling departments, emerging as finished chemicals.

The balance in the account Work in Process—Filling was as follows on January 1:

The following costs were charged to Work in Process—Filling during January:

During January, 37,100 units of specialty chemicals were completed. Work in Process—Filling Department on January 31 was 3,200 units, 50% completed.

Required:

1. Prepare a cost of production report for the Filling Department for January. If an amount is zero, enter "0". If required, round your cost per equivalent unit answers to two decimal places.

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Required:

For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.

2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

3. What was the total manufacturing cost assigned to Job P?

4. If Job P included 20 units, what was its unit product cost?

5. What was the total manufacturing cost assigned to Job Q?

6. If Job Q included 30 units, what was its unit product cost?

7. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q?

8. What was Sweeten Company’s cost of goods sold for March?

9. What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department?

orley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies.

For years, Worley believed that the 8% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:

Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $35,000 to buy from manufacturers):

Required:

1. Compute the total revenue that Worley would receive from University and Memorial.

2. Compute the activity rate for each activity cost pool.

3. Compute the total activity costs that would be assigned to University and Memorial.

4. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $35,000 cost of goods sold that Worley incurred serving each hospital.)

Question (October 2015)

ABC Company developed the following information for its products:

Required:

(a) Calculate variable cost per unit and total fixed expenses.

(b) Calculate the operating profit for ABC Company using contribution margin income statement.

(c) Calculate the break-even quantity.

(d) If the company plans improve its marketing strategy by paying a marketing agency a fixed amount of RM10,000 a year, how many additional units must be sold to earn the same operating income it is now making? Check your answer by preparing a contribution margin income statement based on the new quantity.

Data concerning a recent period’s activity in the Assembly Department, the first processing department in a company that uses the FIFO method in its process costing, appear below:

A total of 26,000 units were completed and transferred to the next processing department during the period. Beginning work in process inventory consisted of 2,000 units and ending work in process inventory consisted of 1,000 units.

Required:

1. Compute the Assembly Department's cost of ending work in process inventory for materials, conversion, and in total for the period.

2. Compute the Assembly Department's cost of units transferred out to the next department for materials, conversion, and in total for the period.

4. Use Table II below to estimate costs for a company.

Table II

4a. Plot the level of production and cost data for each period. Insert a trend line and display the R² in the plot. Attach the plot to this assignment.

4b. Estimate the fixed and variable costs of production, and the total cost function using simple linear regression.

4c. Evaluate the model’s goodness of fit for cost estimation

4d. Estimate the total cost of producing 400 units and the 95% confidence interval of the estimation.

Develop and test an HTML document that has text boxes for apple (69 cents each), orange (59 cents each), and banana (49 cents each), along with a Submit button. These text boxes take a number, which is the purchased number of the particular fruit. Add a max property value of 99 and a min property value of 0. Add event handlers using the min and max properties to check on values input through the text boxes of the document to ensure that the input values are numbers in the range. Each of the text boxes should have its own onclick event handler. These handlers must add the cost of their fruit to a total cost. An event handler for the Submit button must produce an alert window with the message "Your total cost is $xxx.xx" where xxx.xx is the total cost of the chosen fruit, including 7.75 percent sales tax. This handler must return false (to avoid actual submission of the form data).

Data concerning a recent period’s activity in the Assembly Department, the first processing department in a company that uses the FIFO method in its process costing, appear below:

A total of 26,500 units were completed and transferred to the next processing department during the period. Beginning work in process inventory consisted of 1,200 units and ending work in process inventory consisted of 2,700 units.

Required:

1. Compute the Assembly Department's cost of ending work in process inventory for materials, conversion, and in total for the period.

2. Compute the Assembly Department's cost of units transferred out to the next department for materials, conversion, and in total for the period.

QUESTION 3

A firm's production function is Q = 2 KL, with MP _L = 2K and MP _K = 2L. The wage rate is $4 per hour, and the rental rate of capital is $5 per hour. If the firm wishes to produce 100 units of output in the long run, how many units of K and L should it employ?

QUESTION 4

If TC = Q³ - 20 Q² + 220 Q, and MC = 3Q _²- 40Q + 220, then there are economies of scale until the level of output reaches:

QUESTION 6

Diseconomies of scale exist when: