Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the Grinding Department. The Work in Process T-account for the Grinding Department for May is given below:

The May 1 work in process inventory consisted of 131,000 pounds with $279,030 in materials cost and $172,920 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 30% complete with respect to conversion. During May, 240,000 pounds were started into production. The May 31 inventory consisted of 113,000 pounds that were 100% complete with respect to materials and 60% complete with respect to conversion. The company uses the weighted-average method in its process costing system.

Compute the Grinding Department's equivalent units of production for materials and conversion in May.

Compute the Grinding Department's costs per equivalent unit for materials and conversion for May. (Round your answers to 2 decimal places.)

Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total for May. (Round your intermediate calculations to 2 decimal places.)

Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for May. (Round your intermediate calculations to 2 decimal places.)

7.

In 2017, the Trump Administration reduced corporate taxes and got rid of dozens of unnecessary government regulations on business. (Everything said up to this point is true). What logically should happen next to the economy?         

Multiple Choice

• Business firms should see their costs go down

• Business firms should be able to create more jobs

• Business firms should see more profit potential

• All of the statements are true and correct

8.

When government regulators wants a monopoly to earn “a fair rate of return,” then they will allow the price to be set at what point?

Multiple Choice

• Where Price = Average Total Cost

• Where Price = Average Total Cost

• Where Price is just equal to the equilibrium point

• Where Price = Marginal Cost

11.

Why does government typically put sales taxes on inelastic goods such as liquor and cigarettes rather than on elastic goods?

Multiple Choice

• There is a better chance at collecting more tax revenues from these items.

• All statements are true

• Consumers can’t easily stop using these types of inelastic goods

• Inelastic goods tend to be price insensitive

12.

Constant returns to scale on the Long-Run Average Total Cost Curve means what?

Multiple Choice

• The Long-Run Average Cost Curve is shifting down

• The business is operating at the low-end flat range of the Long Run Average Total Cost curve and your costs are not rising as you increase production.

• You are getting a fixed rate of return on your financial investments

• The Long-Run Average Cost Curve is shifting up

Snowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows:

Expected activity for each product follows:

Assume that before shifting to activity-based costing, Snowden Industries allocated all overhead costs based on direct labor hours. Direct labor data pertaining to the two decoders follow:

Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC.

Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC. (Round intermediate calculations and final answers to 2 decimal places.)

Suppose that Dom began a landscaping business in 2020. In that year, he adopted the last-in first-out (LIFO) inventory-flow method for his business inventory of shrubbery by using it for the year on his tax return.

In 2019, he purchased the following four batches of shrubs (total cost per batch below).

   Shrubs         Purchase Date        Direct Cost         Other Inventoriable Costs      Total Cost
      200               July 21                 $ 2,000              $ 200                                $ 2,200

      150              August 15              $ 2,000              $ 100                                $ 2,100
      100             October 30              $ 2,200              $ 400                                $ 2,600
      140            November 10            $ 2,700              $ 100                                $ 2,800

In 2020, Dom sold 200 shrubs. In 2021, Dom purchased three more batches of shrubs at the following total cost per batch below. Just before year end in 2021, he also sold 50 shrubs:

                       Shrubs             Purchase Date               Total Cost
                        100                 Early spring                   $ 2,400
                        125                    Summer                      $ 2,500
                        100                        Fall                         $ 2,600

a.     (10 points) What cost of goods sold and ending inventory would Dom record if he elects to use the LIFO method in 2020?

b.    (10 points) What will be his cost of goods sold and ending inventory in 2021 under the LIFO method?

c.     (10 points) How would you answer (a) change if Dom had initially selected the first-in, first-out (FIFO) method instead of LIFO?

d.    (10 points) How would you answer (b) change if Dom had initially selected the first-in, first-out (FIFO) method instead of LIFO?

Baird Manufacturing Company was started on January 1, 2018, when it acquired $81,000 cash by issuing common stock. Baird immediately purchased office furniture and manufacturing equipment costing $9,800 and $24,900, respectively. The office furniture had an 8-year useful life and a zero salvage value. The manufacturing equipment had a $3,300 salvage value and an expected useful life of three years. The company paid $11,500 for salaries of administrative personnel and $15,800 for wages to production personnel. Finally, the company paid $16,360 for raw materials that were used to make inventory. All inventory was started and completed during the year. Baird completed production on 4,800 units of product and sold 3,880 units at a price of $15 each in 2018. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.) Required Determine the total product cost and the average cost per unit of the inventory produced in 2018. (Round "Average cost per unit" to 2 decimal places.) Determine the amount of cost of goods sold that would appear on the 2018 income statement. (Do not round intermediate calculations.) Determine the amount of the ending inventory balance that would appear on the December 31, 2018, balance sheet. (Do not round intermediate calculations.) Determine the amount of net income that would appear on the 2018 income statement. Determine the amount of retained earnings that would appear on the December 31, 2018, balance sheet. Determine the amount of total assets that would appear on the December 31, 2018, balance sheet. a. total product cost? average cost per unit? b. cost of good sold? c. ending inventory? d. net income? e. retained earning? f. total asset?

Exercise 2-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4]

[The following information applies to the questions displayed below.]

Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year:

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs:

Delph had no underapplied or overapplied manufacturing overhead during the year.

Exercise 2-15 Part 1

Required:

1. Assume Delph uses a plantwide predetermined overhead rate based on machine-hours.

c. If Delph establishes bid prices that are 140% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200?

d. What is Delph’s cost of goods sold for the year?

Exercise 2-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4]

[The following information applies to the questions displayed below.]

Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year:

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs:

Delph had no underapplied or overapplied manufacturing overhead during the year.

Exercise 2-15 Part 1

Required:

1. Assume Delph uses a plantwide predetermined overhead rate based on machine-hours.

c. If Delph establishes bid prices that are 140% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200?

d. What is Delph’s cost of goods sold for the year?

Exercise 14-15 Schedule of cost of goods manufactured and cost of goods sold LO P1, P2

Beck Manufacturing reports the information below for 2017.

Required:
1. Prepare the schedule of cost of goods manufactured for the year.
2. Compute cost of goods sold for the year.

Part 1

Part 2