Lower-of-Cost-or-Market Inventory

Data on the physical inventory of Katus Products Co. as of December 31 follows:

Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows:

Required:

Determine the inventory at cost as well as at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet, and complete the pricing of the inventory. When there are two different unit costs applicable to an item:

Insert the quantity and unit cost of the last purchase.

On the following line, insert the quantity and unit cost of the next-to-the-last purchase.

Total the cost and market columns and insert the lower of the two totals in the LCM column.

The first item on the inventory sheet has been completed as an example.

1.

The goal of antitrust laws is to

Group of answer choices

Control the structure of an industry only.

Prevent monopolies from forming.

Control the structure of an industry and alter industry behavior.

Alter industry behavior only.

2.

Profit regulation occurs when regulation requires the natural monopolist to set

Group of answer choices

Price equal to average total cost.

Marginal revenue equal to average total cost.

Price equal to average variable cost.

Price equal to marginal cost.

3.

Profit regulation of a natural monopoly is achieved when

Group of answer choices

P = ATC.

MR = MC.

P = MC.

MR = minimum ATC.

1. Short-run production.

a. What is the key feature of short-run production?

b. One key assumption for the short-run production is diminishing returns to labor. Explain what it means, how is Malthus's view regarding population and standard of living relate to this concept? What has Malthus missed when he made the prediction?

c. What does diminishing returns related to the concepts Total Cost , Marginal Cost, Average Variable Cost, Average Fixed Cost, Total Product , Marginal Product, Average Product, etc? Use graphs to show.

d. Evaluate the relevance of this assumption of diminishing returns to labor in modern production.

A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below:

For in-house manufacturing:

For purchasing from supplier:

Using this information, find the best decision if the demand is 6,500 parts. Round your answers to the nearest dollar.

Total cost of production: $   
Total cost of outsourcing: $  

The best decision is to -Select-manufacture in-houseoutsourceItem 3 .

Determine the break-even quantity at which the firm would be indifferent between manufacturing the part in-house or outsourcing it. Round your answer to the nearest whole number.

parts=_______?

A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below:

For in-house manufacturing:

For purchasing from supplier:

1. Using this information, find the best decision if the demand is 6,500 parts. Round your answers to the nearest dollar.

   What is the total cost of production: $  
   what is the total cost of outsourcing: $  

   what is the best decision?

1. Determine the break-even quantity at which the firm would be indifferent between manufacturing the part in-house or outsourcing it. Round your answer to the nearest whole number.

Desilets Corporation has provided the following data from its activity-based costing accounting system:

Distribution of Resource Consumption across Activity Cost Pools:

The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.

Required:

a. Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the Unit Processing activity cost pool.

ABC company offers tours of spectacular tourist destinations such as Chicago and New York. The tours usually have between 5 and 50 people on them.   For each person who goes on the trip, the company incurs $10 per day in food cost, $50 per day in lodging, and $25 per day in entrance admissions and fees. Also, the company incurs a certain total cost per day for transportation, regardless of whether the tour is full or not.    On the last tour, the total cost to the company per person per day was $100. There were 30 people on the tour. If the next tour has 20 people, what will be the cost per person per day?

Rocky Mountain Tire Center sells 13,000 ?go-cart tires per year. The ordering cost for each order is ?$35?, and the holding cost is 30?% of the purchase price of the tires per year. The purchase price is ?$21 per tire if fewer than 200 tires are? ordered, ?$16 per tire if 200 or? more, but fewer than 5,000?, tires are? ordered, and ?$14 per tire if 5,000 or more tires are ordered. ?Rocky? Mountain's optimal order quantity is 5000 units ?

?b) What is the total cost of this? policy? Total annual cost of ordering optimal order size equals? $_______ ?(round your response to the nearest whole? number).

1)

At the profit-maximizing level of output, for both a pure monopolist and a purely competitive firm, which of the following is true:

2)

Which of the following is not an example of why markets may not provide efficient outcomes:

3)

Fickel Company has two manufacturing departments.- Asembley and testing & packing. The predetermined overhead rates in asembley and testing and packing are $27.00 per direct labor hour and $23 per direct labor hour, respectfully. The companys direct labor wage is $29 per hour. the following pertains to job N-60

Asmebley Testing and packing

direct materials $415 $55

Direct labor $348 $87

What is the total manufacturing cost assigned to Job N-60?

If job N-60 Consists of 10 units, what is the unit product cost for this job?

1. Total Manufacturing cost _____________

2.Unit product cost ___________ per unit