LIFO Perpetual Inventory

The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are as follows:

Required:

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.

3. Determine the ending inventory cost on June 30, 2016.
$

A company has recorded data on the weekly sales for its product (y) ($10), the unit price of the competitor's product (x₁), and advertising expenditures (x₂) ($10). The data resulting from a random sample of 7 weeks follows. Use Excel's Regression Tool to answer the following questions:

1. What is the estimated weekly sales if the unit price is $0.40, and advertising is $50? How does sales ($10) units and advertising ($10) fit into this answer?

2. What is the marginal contribution of price to sales? Again, how does the units being in terms of $10 for advertising and sales affect the overall answer?

7. Dave’s Pizza periodically has a special week-long sale. As part of the advertising campaign Dave’s

runs one or more television commercials during the weekend preceding the sale. Data from a sample of

4 previous sales are shown.

Number of Ads

Weekly Revenue

12

27600

5

13385

9

15486

15

2820

Estimate the slope and intercept for the number of ads and weekly revenue for Dave’s Pizza. (5 points)

Estimate weekly revenue if 17 ads are placed. Explain your answer. (3 points)

how would you answer these questions

MNO uses activity based costing where overhead from three different cost centers are allocated to products based upon the following:

Activity Driver Overhead Costs                                   Product A                                Product B

Setup                       Production Runs $100,000 80 productions runs 20 production runs

Inspection           Inspection Hours $300,000 200 hours                               100 hours

Machining            Machine Hours $800,000 5,000 hours                          3,000 hours

Raw materials are directly followed to each product and the amount of raw materials used for Product A was $300,000 and for Product B was $200,000. Direct labor is directly followed to each product and the amount of direct labor used for product A was $100,000 and for product B was $50,000. There were 12,000 units of product A manufactured and 10,000 units of product B manufactured.

1. Calculate the total unit cost of making product A and product B using ABC. Show computations.

2. If MNO uses one plant wide rate to allocate all the overhead based upon direct labor direct labor hours and product A used 20,000 direct labor hours and product B used 10,000 direct labor hours calculate the total unit cost of product A and product B.

MNO uses activity based costing where overhead from three different cost centers are allocated to products based upon the following:

Activity                 Driver - Overhead Costs - Product A - Product B

Setup                    Production Runs - $100,000 - 80 productions runs - 20 production runs

Inspection           Inspection Hours - $300,000 - 200 hours - 100 hours

Machining           Machine Hours - $800,000 - 5,000 hours - 3,000 hours

Raw materials are directly followed to each product and the amount of raw materials used for Product A was $300,000 and for Product B was $200,000. Direct labor is directly followed to each product and the amount of direct labor used for product A was $100,000 and for product B was $50,000. There were 12,000 units of product A manufactured and 10,000 units of product B manufactured.

Calculate the total unit cost of making product A and product B using ABC. Show computations.

If MNO uses one plant wide rate to allocate all the overhead based upon direct labor direct labor hours and product A used 20,000 direct labor hours and product B used 10,000 direct labor hours calculate the total unit cost of product A and product B.

Is it true that students tend to gain weight during their first year in college? Cornell Professor of Nutrition David Levitsky recruited students from two large sections of an introductory health course. Although they were volunteers, they appeared to match the rest of the freshman class in terms of demographic variables such as sex and ethnicity. The students were weighed during the first week of the semester, then again 12 weeks later at the end of the semester (weights are in pounds).

1) Construct a dotplot depicting the distribution of the change in the students’ weights from the beginning of the semester to the end of the semester.

2)Suppose Professor Levitsky wishes to use the data he collected from his students in a research paper. He wants to prove freshman students tend to gain weight during their first semester in college.

Frame this research question as a hypothesis testing problem. Identify the parameter being tested, the null value, and explicitly write out the null and alternative hypothesis in terms of the parameter and null value.

Kitchen Supply, Inc. (KSI), manufactures three types of flatware: institutional, standard, and silver. It applies all indirect costs according to a predetermined rate based on direct labor-hours. A consultant recently suggested that the company switch to an activity-based costing system and prepared the following cost estimates for year 2 for the recommended cost drivers.

In addition, management estimated 8,000 direct labor-hours for year 2.

Assume that the following cost driver volumes occurred in January, year 2:

Actual labor costs were $14 per hour.

Required:

a.

(1) Compute a predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost driver units prepared by the consultant. (Round your answers to 2 decimal places.)

(2) Compute a predetermined rate for year 2 using direct labor-hours as the allocation base. (Round your answer to 2 decimal places.)

b. Compute the production costs for each product for January using direct labor-hours as the allocation base and the predetermined rate computed in requirement a(2). (Do not round intermediate calculations.)

c. Compute the production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) (Do not round intermediate calculations.)

The following table contains the demand from the last 10 months:

a. Calculate the single exponential smoothing forecast for these data using an α of 0.30 and an initial forecast (F₁) of 31. (Round your answers to 2 decimal places.)

b. Calculate the exponential smoothing with trend forecast for these data using an α of 0.30, a δ of 0.30, an initial trend forecast (T₁) of 1.00, and an initial exponentially smoothed forecast (F₁) of 30. (Round your answers to 2 decimal places.)

c-1. Calculate the mean absolute deviation (MAD) for the last nine months of forecasts. (Round your answers to 2 decimal places.)

#Create a class called FrapOrder. FrapOrder should
#have two attributes (instance variables): size and
#extra_shots. Make sure the variable names match those
#words. size will be a character, either "S", "M", or "L".
#extra_shots will be an integer.
#
#FrapOrder should have a constructor with two required
#parameters, one for each of those attributes (size and
#extra_shots, in that order).
#
#FrapOrder should also have a method called get_total.
#get_total should calculate the total cost of the order.
#If size is "S", the base cost is 2.50. If the size is "M",
#the base cost is 3.50. If the size is "L", the base cost is
#4.50. Then, each extra shot costs $0.35.
#
#For example, if size is "M" and extra_shots is 2, then
#get_total would return 4.2: 3.50 + 0.70 = 4.20 (and Python
#drops trailing 0s).
#
#total should NOT be an attribute of the class; instead,
#total should be calculated and returned live when the method
#get_total is called.
#
#The get_total method should have NO parameters besides self.
#Instead, it should calculate the total based on the current
#values for the size and extra_shots attributes.

#Write your class here!

#The code below will test your function. If it works, it
#should print "M" (without the quotes), 2, and 4.2 in that
#order.
test_order = FrapOrder("M", 2)
print(test_order.size)
print(test_order.extra_shots)
print(test_order.get_total())