Fanelli Corporation, a merchandising company, reported the following results for July:
| Number of units sold | 6,400 | |
| Selling price per unit | $ | 600 |
| Unit cost of goods sold | $ | 416 |
| Variable selling expense per unit | $ | 56 |
| Total fixed selling expense | $ | 125,900 |
| Variable administrative expense per unit | $ | 24 |
| Total fixed administrative expense | $ | 207,800 |
Cost of goods sold is a variable cost in this company.
Required:
a. Prepare a traditional format income statement for July.
b. Prepare a contribution format income statement for July.
In: Accounting
1. A company has fixed cost of $45,000, variable cost per unit of $11, and sells its product at $18 each.
a) What quantity must the firm sell in order to break-even? Explain how you reached this conclusion.
b) What is the firm's total revenue at the break-even level of output? Show your calculation.
c) What is the firm's total variable cost at the break-even level of output?
d) What quantity must the firm sell in order to make a profit of $62,000? Explain how you reached this conclusion.
In: Operations Management
Jim runs a nursery. Identify the following costs he faces as fixed costs, average fixed costs, variable costs, average variable costs, total costs, average total costs, or marginal costs:
a) The rent he pays on his greenhouse in the short run
b) The rent he pays on his greenhouse in the long run
c) the cost of soil, water, and seeds in the short run
d) the per-unit cost of producing a nursery plant in the short run
e) the opportunity cost of shutting the nursery down and not producing any plants in the short run
In: Economics
For each of the following, evaluate whether the statement is true or false, and provide an explanation for your answer.
In: Economics
The total production of a particular commodity is given by the Cobb-Douglas function: f(x,y)=bx^α*y^(1−α), b is a given positive constant and 0<α<1 . Assume that we want to maximize production with a given cost constraint mx+ny−p=0 where m and n are the cost of a unit of labour and a unit of capital, respectively, and p the total cost.
Show that each term will always be negative guaranteeing a maximum (in the sufficiency H test) using the values obtained of x and y for maximum production.
In: Math
Cost of Goods Manufactured for a Manufacturing Company
Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter.
Work in process inventory, August 1$3,700 $31,500 (e)
Total manufacturing costs incurred during August26,300 (c) 184,900
Total manufacturing costs(a) $368,600 $200,700
Work in process inventory, August 315,700 77,400 (f)
Cost of goods manufactured(b) (d) $168,600
a.$
b.$
c.$
d.$
e.$
f.$
In: Accounting
Direct Materials Variances
The following data relate to the direct materials cost for the production of 1,900 automobile tires:
| Actual: | 57,600 lbs. at $1.7 per lb. | |
| Standard: | 56,400 lbs. at $1.65 per lb. |
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Materials Price Variance | $ | |
| Direct Materials Quantity Variance | $ | |
| Total Direct Materials Cost Variance | $ |
In: Accounting
The following is the information related to the
movement of the goods at Al-Silasil Company during the month of
July 2011:
Number of units 100 / 400 /200 /300 /500 Total
1500
Unit price 4/6/7/10/12
Total cost 400/2400 /1400 /3000 /6000
and upon inventory it is clear that there are 600 units not sold at
the end of July 2011. Required: Determine the cost of goods at the
end of the period, and the cost of sales according to
1. First in first out (FIFO) method 2. Incoming in first out first
(LITO) method
In: Accounting
Fanelli Corporation, a merchandising company, reported the following results for July:
| Number of units sold | 6,800 | |
| Selling price per unit | $ | 610 |
| Unit cost of goods sold | $ | 420 |
| Variable selling expense per unit | $ | 64 |
| Total fixed selling expense | $ | 126,300 |
| Variable administrative expense per unit | $ | 32 |
| Total fixed administrative expense | $ | 208,200 |
Cost of goods sold is a variable cost in this company.
Required:
a. Prepare a traditional format income statement for July.
b. Prepare a contribution format income statement for July.
In: Accounting
Company X has purchased 1,000 shares of Company Y at a cost of OMR 5 per share on 1st January 2018. Transaction cost Total OMR 80. Company X has classified these shares as available for sale investment. On December 31, 2018 fair value of company Y shares has increased to OMR 7 per share. On March 1, 2019, Company X sells all the share OMR 8 per share and the transaction cost total is OMR 100. Which of the following is the correct journal entry for sale of the investment?
In: Accounting