Syarikat Sabah prepares lumber for companies who manufacture furniture.

(a) The main product is finished lumber with a byproduct of wood shavings. The byproduct

is sold to plywood manufacturers. For July, the manufacturing process incurred

RM332,000 in total costs. 80,000 board feet of lumber were produced and sold along

with 6,800 kg of shavings. The finished lumber sold for RM6.00 per board foot and the

shavings sold for RM0.60 a kg. There were no beginning or ending inventories.

Required:

Prepare two statements of financial position as at 31 December 2019 showing the

byproduct as a cost reduction during production, and as a revenue item when sold each.

[10 marks]

(b) Distinguish and briefly discuss the merits [or demerits] between the two principal

methods of accounting for byproducts: the production byproduct method and the sale

byproduct method.

[10 marks]

(c) Identify the revenue or expense amounts necessary to make a sell-or-process-further

decision and the reasons behind them.

[5 marks]

(d) Identify the four methods of allocating joint costs to individual products and the most

preferred method among accountants.

[5 marks]

for question (a) guide step by step

Question 18 (3 points)

Which of the following is an example of an "open market operation"?

Question 19 (3 points)

Frank's Fish Fry sells fish fry dinners. Frank's revenue equals the quantity of fish fry dinners he sells times the price he charges for a fish fry dinner.

From last year to this year, his quantity increases by 4% and the price he charges increases by 3%. Frank's revenue increases approximately by

Question 20 (3 points)

Nominal GDP = 600, real GDP = 400, and the nominal money supply equals 200.

Velocity equals

Suppose the market for cau-hot-dogs is characterized by the following daily demand and supply curves. Drawing a diagram of the curves will help you find the right answers. Demand curve: P = 1300 - Q Supply curve: P = 180 + 9Q .Suppose the government requires the seller to pay 10% of the final price of a cau-hot-dog as an ad valorem tax.

1. What is the gross price of a cau-hot-dog in this case? What is the after-tax quantity of cau-hot-dog? How much is the price paid by the buyers for a cau-hot-dog in this case? How much will the seller receive for each sale of a cau-hot-dog in this case? Whose tax burden is greater in this case? How much is the total tax revenue for the government in this case?

3. If the government imposes a unit tax on the buyers instead of the ad-valorem tax on the sellers, how much should be the amount of tax per cau-hot-dog to raise the same amount of the total tax revenue?

4. If the government imposes the ad-valorem tax on the buyers instead of the seller, would the buyers bear a greater tax burden than the seller bears?

1.

Any firm that has economies of scale will

Group of answer choices

Prefer to produce a small amount of total industry output.

Try to spread production over many plants.

Face an upward-sloping long-run average total cost curve.

Be able to produce at a lower unit cost as it increases production.

2.

Antitrust laws can restrain the abuse of monopoly power.

Group of answer choices

True

False

3.

If a monopolist is producing a level of output where MR is less than MC, then it should

Group of answer choices

Increase its output.

Lower its output.

Lower its price.

Shift its marginal cost curve upward.

4.

Market power is

Group of answer choices

Enjoyed by all firms at high levels of output.

The ability to alter the market price of a product.

Most common for competitive firms.

A characteristic of all market structures.

5.

Monopolists set prices

Group of answer choices

At the minimum of the long-run average total cost curve.

Without constraints since there is no competition.

At the output where marginal revenue equals marginal cost.

On the marginal revenue curve.

1)

A company sells soccer goals to customers over the Internet. History shows that 2% of the company’s goals will need repair under the warranty program. For the year, the company has sold 4,100 goals and 48 have been repaired. If the estimated cost to repair a goal is $140, what would be the Warranty Liability at the end of the year?

2)

On January 23, a company purchases inventory for $100. On February 12, the inventory is sold for $150 on account. Which of the following is recorded on February 12?

3)

On January 23, a company purchases inventory for $100. On February 12, the inventory is sold for $150 on account. Which of the following is recorded on February 12?

1. Which of the following describes how a merchandise income statement is different from a service income statement?

1. The revenue from a merchandise business is reported as fees earned.
2. The program and production expenses are subtracted from gross profit to arrive at operating income.
3. Depreciation and amortization expenses are added to the cost of goods sold.
4. A merchandise business shows a gross profit line.

2) Which of the following statements is false?

1. The accounting equation is reflected in the balance sheet.
2. The balance sheet is classified to categorize the various items within the statement.
3. Classifying items help the user see where a company gets its resources.
4. Classifying items on a balance sheet helps show the company's earnings potential.

3)Which of the following statements is true?

1. The sale of goods and services results in expenses.
2. The costs of operating a company are called revenue.
3. A company must generate net income in order to be sustainable.
4. The income statement reports the financial position of a company at a specific point in time.

4) Which statement summarizes and explains the changes in retained earnings during the accounting period?

1. Balance Sheet
2. Income Statement
3. Retained Earnings Statement
4. Trial Balance

Q Multistep income statement

10. Examples of monopolistically competitive markets include the markets for

A. postage stamps and wheat.

B. restaurant dining and laundry services

C. furniture and used cars in a large city.

D. All of the above are correct.

E. B and C, only

11. In a monopolistically competitive industry, price is

A. above marginal cost since each firm is a price setter.

B. equal to marginal cost since each firm is a price taker.

C. below marginal cost since each firm is a price taker.

D. always a fraction of marginal cost since each firm is a price setter.

E. always a fraction of marginal cost since each firm is a price taker.

12. Which of the following is true regarding the production and pricing decisions of monopolistically competitive firms? Monopolistically competitive firms choose the quantity at which marginal cost equals ________ and then use the _________ curve to determine the price that is consistent with this particular quantity.

A. average total cost; demand

B. average variable cost; demand

C. average total cost; supply

D. marginal revenue; demand

E. marginal revenue; supply

The type of market structure most likely to be allocatively efficient is

pure monopoly.

monopolistic competition.

a purely price discriminating auction.

Which of the following changes will not affect the market supply or the market demand in a purely competitive industry?

a change in the number of firms

a change in the number of buyers

a change in fixed costs

a change in marginal costs

The prices of raw materials increase in a purely competitive industry. This change will result in a(n)

decrease (downward shift) in the average total cost curve for firms in the industry.

increase (rightward shift) in the short-run supply curve for firms in the industry.

increase (upward shift) in the marginal cost curve for firms in the industry.

decrease (downward shift) in the marginal revenue curve for firms in the industry.

As long as its total revenues are greater than its total costs, a firm will earn positive economic profits.

True

False

A purely competitive firm is producing at the point where its marginal cost equals the price of its product. If the firm increases its output, then total revenue will

decrease and profits will decrease.

decrease and profits will increase.

increase and profits will decrease.

increase and profits will increase.

28.All of the following are types of barriers to entry in a Monopoly market except for:

a.government franchising of a firm

b.differentiation among firms

c.control over an input

d.an existing patent

29. A Monopoly can continue to make a profit or a loss in the long run.

a.True

b.False

30. Laws that prevent monopolies from forming are called ___________ laws.

a.anti-trust

b.anti-firm

c.anti-profit

d.anti-revenue

31.Monopolistic competition is a market structure where many producers of identical products compete with one another

a.True

b.False

32.What gives the monopolistically competitive firm some degree of monopoly power?

a.differentiated products

b.identical products

c.high long-run economic profits

d.zero long-run economic profits

33. Which of the following is often the result of free entry by other firms into monopolistic competition?

a.Losses are often magnified in the long run.

b.Losses increase while profits decrease in the long run.

c.Profits often increase in the long run.

d.Profits are often eliminated in the long run.

34. If total revenue is greater than total costs at q*, the firm is generating total economic profits.

a.True

b.False