On January 1, 2017, James Airlines contracted with Sam Aircraft to construct an airplane to Jamess specifications at a cost of $2,500,000. During 2017, James paid Sam $400,000 on January 1, and another $450,000 on September 30. On January 1, 2017, James had borrowed $360,000 at 11% to partially finance the construction. The remaining amount was paid to Sam upon delivery of the airplane on June 30, 2018.

James has approximately $1,600,000 of additional debt outstanding at December 31, 2017 at an average interest cost of 12%. And at the end of December 2018, $ 345,000 of the construction loan and $1,500,000 of the additional debt was outstanding.

What is the total capitalized cost of the airplane under construction at the end of 2017?

What is the total capitalized cost of the completed airplane at the end of 2018?

Suppose a firm can sell its product for a price of $75 (no more, no less). Suppose that the marginal cost curve and average variable cost curves cross at $100 and a quantity of 10. Assume that fixed costs are $0. At a quantity of 10, total revenue would be: 750

At a quantity of 10, variable cost would be: ________ 0 or 1,000

Since fixed costs are $0, profit at 10 units of output would therefore be: ________ -250, 0 ,750

However, if the firm chose to produce nothing, total revenue would instead be: _________ 0, 750, 75

and variable cost would be: _______ 250, -750, 0

Therefore if the firm produces nothing profit would be -250 .

The BEST course of action for this firm would be to produce: ________Nothing because P < AVC or Produce 10 units of Output

A local microbrewery has total costs of production given by the equation C(Q) = 500 + 10Q + 5Q2. The market demand for beer is given by the equation Q = 105 – (1/2)P. The firm operates in a perfectly competitive market.

a. Write the equations showing the brewery's average total cost and average variable cost, average fixed cost, and marginal cost, each as a function of quantity (Q). b. What is the break-even price and break-even quantity for this firm in the short run? c. What is the shut-down price and shut-down quantity for this firm in the short run? d. If the market price of the output is $50, how many units will this firm produce? e. Given a market price of $50, how many firms are in this market?

1.

Sam's Smoothies hires workers to produce smoothies. The market for smoothies is perfectly competitive and the price of smoothies is $4. The labor market is competitive and the wage rate is $40 a day. That table shows the workers' total product schedule.

How many workers will Sam's Smoothies hire to maximize profit and how many smoothies a day will it produce?

2. A company's cost function is estimated as: C(Q) = 300 + 2Q + Q² . If it produces 300 units per day, then what will be its: (a) average (total) cost? (b) average Variable cost, and (c) Marginal cost?

Assume that the market for Coca-Cola in your area is perfectly competitive, with Demand P = 9 ? 0.3Q D and Supply P = 2 + 0.1Q S . Each firm that sells Coca-Cola is identical, with Total Cost T C = 3 + Q 2 , which gives Marginal Cost MC = 2Q.

1 Find the equilibrium price and quantity and graph the market.

2 Identify the consumer and producer surplus on the graph.

3 Graph the firm. Include the marginal revenue, marginal cost, and average total cost curves.

4 How much does each firm produce?

5 How much profit does each firm earn?

6 Identify the profit on the graph.

7 What is the shutdown price for the firm?

8 What is the long-run equilibrium price for the market?

Dog Bone Bakery, which bakes dog treats, makes a special biscuit for dogs. Each biscuit uses 0.75 cup of pure semolina flour. They buy 4,000 cups of flour at $0.55 per cup. They use 3,550 cups of flour to make 4,750 biscuits. The standard cost per cup of flour is $0.54.

A. What are the direct materials price variance, the direct materials quantity variances, and the total direct materials cost variance? Round your answers to two decimals. Enter all amounts as positive numbers.

B. What is the standard cost per biscuit for the semolina flour? Round your answer to four decimals.

$

A local microbrewery has total costs of production given by the equation C(Q) = 500 + 10Q + 5Q 2 . The market demand for beer is given by the equation Q = 105 – (1/2)P. The firm operates in a perfectly competitive market.

a. Write the equations showing the brewery's average total cost and average variable cost, average fixed cost, and marginal cost, each as a function of quantity (Q).

b. What is the break-even price and break-even quantity for this firm in the short run?

c. What is the shut-down price and shut-down quantity for this firm in the short run?

d. If the market price of the output is $50, how many units will this firm produce?

e. Given a market price of $50, how many firms are in this market?

Dog Bone Bakery, which bakes dog treats, makes a special biscuit for dogs. Each biscuit uses 0.70 cup of pure semolina flour. They buy 3,900 cups of flour at $0.50 per cup. They use 3,278 cups of flour to make 4,700 biscuits. The standard cost per cup of flour is $0.48.

A. What are the direct materials price variance, the direct materials quantity variances, and the total direct materials cost variance? Round your answers to two decimals. Enter all amounts as positive numbers.

B. What is the standard cost per biscuit for the semolina flour? Round your answer to four decimals.

On July 1, the start of its fiscal year, Victoria County reported the following balances ($ in thousands):

Fund balance:

Committed for encumbrances $500

Unassigned              900

Total fund balance      $1,400

During the year, the county ($ in thousands):

• Estimated that revenues for the year would be $13,500.

• Appropriated $14,000 for operations.

• Ordered supplies estimated to cost $13,000. Of these, the county received (and paid) supplies that it had estimated would cost $11,500. Actual cost, however, was $11,900.

• Received (and paid) all goods that it had ordered in the previous year. Actual cost was only $480.

• Recognized actual revenues of $13,800 (cash received).

REQUIREMENT：

（1）Record all journal entries including the closing entries.

（2）Show how the total fund balance (including the unassigned and committed portions) would be displayed at year-end.

An incorporation beginning inventory and purchases during the year ended December 31, 2016, were as follows:

Determine the cost of inventory on December 31, 2016, using the periodic inventory system and each of the following inventory costing methods:

a) First-in, First-out

b) Last in, First-out

c) Weighted Average Cost