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.

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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

Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $94,500 were estimated. An analysis of estimated overhead costs reveals the following activities.

The cost driver volume for each product was as follows.

(c)

Write a memorandum to the president of Air United explaining the benefits of activity-based costing.

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

Fund balance:

Committed for encumbrances $400

Unassigned $800

Total fund balance $1,300

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

• Estimated that revenues for the year would be $13,400

• Appropriated $13,000 for operations.

• Ordered supplies estimated to cost $12,000. Of these, the county received (and paid) supplies that it had estimated would cost $11,300. Actual cost, however, was $11,800.

• Received (and paid) all goods that it had ordered in the previous year. Actual cost was only $380.

• Recognized actual revenues of $13,700 (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.

SV Company uses the weighted-average method of inventory costing [Which means that the stage of completion of beginning inventory is not important]

Beginning Work in Process inventory for September:

    Physical units                                                              5,000 units

    % complete for materials                                               70%
    % complete for conversion                                 25%

    Materials cost from August                                         $7,350
    Conversion cost from August                                    $3,125

   Production started and completed in September:

    Physical units                                                             40,000 units

   Ending Work in Process inventory for September:
           Physical units                                                       4,000 units

           % complete for materials                                      40%
          % complete for conversion                                 10%

New manufacturing costs for September:

    Materials                                                                 $96,975
    Conversion                        $79,470

Compute the total cost of all units that were completed and transferred to finished goods during September. Also, compute the total cost of the ending Work in Process inventory.