A perfectly competitive firm's short-run supply curve is:

A. its marginal cost curve above the AVC curve
B. its marginal cost curve below the marginal revenue curve
C. horizontal at the market price
D. its total cost curve above the AVC
E. its marginal revenue curve below the ATC curve

$527,000

$50,000

$503,000

$540,000

In February, one of the processing departments at Whisenhunt Corporation had beginning work in process inventory of $35,000 and ending work in process inventory of $11,000. During the month, the cost of units transferred out from the department was $410,000. In the department's cost reconciliation report for February, the total cost to be accounted for would be:

Compute the April cost of goods sold using moving average method, and LIFO method.

"What's the big fuss about learning three different methods of cost allocation for joint products? The total cost doesn't change, and the real question that needs answering is whether to further process joint products or sell right away. Besides, our firm uses JIT inventory, so there aren't any ending inventories to cost." Required: Comment on these ideas.

Kansas Supplies is a manufacturer of plastic parts that uses the weighted-average process costing method to account for costs of production. It produces parts in three separate departments: Molding, Assembling, and Packaging. The following information was obtained for the Assembling Department for the month of April.

Work in process on April 1 had 112,000 units made up of the following:

During April, 512,000 units were transferred in from the Molding Department at a cost of $721,920. The Assembling Department added the following costs:

Assembling finished 412,000 units and transferred them to the Packaging Department.

At April 30, 212,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at April 30 was as follows:

Required:

a. Prepare a production cost report using FIFO.(Round "Cost per equivalent unit" to 2 decimal places.)

   KANSAS SUPPLIES
​    Assembling Department
​ Production Cost Report- FIFO
Flow of Production Units    Compute Equivalent Units

Costs    Details

   DETAILS

Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows:

The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $15.75 per direct labor-hour was based on a cost formula that estimated $630,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year:

1. Raw materials were purchased on account, $646,000.
2. Raw materials use in production, $608,000. All of of the raw materials were used as direct materials.
3. The following costs were accrued for employee services: direct labor, $580,000; indirect labor, $150,000; selling and administrative salaries, $317,000.
4. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $376,000.
5. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $480,000.
6. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.
7. Jobs costing $1,765,050 to manufacture according to their job cost sheets were completed during the year.
8. Jobs were sold on account to customers during the year for a total of $2,970,000. The jobs cost $1,775,050 to manufacture according to their job cost sheets.

rev: 09_28_2018_QC_CS-140681

Required:

5. What is the total manufacturing cost added to Work in Process during the year?

6. What is the journal entry to record the transfer of completed jobs that is referred to in item g above?

7. What is the ending balance in Work in Process?

8. What is the total amount of actual manufacturing overhead cost incurred during the year?

9. Is manufacturing overhead underapplied or overapplied for the year? By how much?

10. What is the cost of goods available for sale during the year?

11. What is the journal entry to record the cost of goods sold referred to in item h above?

12. What is the ending balance in Finished Goods?

13. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year?

14. What is the gross margin for the year?

15. What is the net operating income for the year?

Problem 4-18 Interpreting a Report-Weighted-Average Method [LO4-2, LO4-3, LO4-4]

Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted-average method in its process costing system.

A hastily prepared report for the Mixing Department for April appears below:

Management would like some additional information about Cooperative San José’s operations.

Required:

1. What were the Mixing Department's equivalent units of production for materials and conversion for April?

2. What were the Mixing Department's cost per equivalent unit for materials and conversion for April? The beginning inventory consisted of the following costs: materials, $18,920; and conversion cost, $8,712. The costs added during the month consisted of: materials, $84,950; and conversion cost, $41,987.

3. How many of the units transferred out of the Mixing Department in April were started and completed during that month?

4. The manager of the Mixing Department stated, “Materials prices jumped from about $1.95 per unit in March to $2.45 per unit in April, but due to good cost control I was able to hold our materials cost to less than $2.45 per unit for the month.” Should this manager be rewarded for good cost control?

A firm faces the demand curve P=80 - Q. What is the output level that maximizes
total revenue? Its total cost curve is given by C = 50 + 0.2Q² . Set up the profit function
π=f (Q) and find the output level that will maximize its profit.

Suppose that the government subsidizes employment. That is, the government pays the firm s dollars for each hour of labor the firm hires. In a graph that illustrates total revenue and total cost, illustrate the e§ect this subsidy has on the proÖt maximizing level of labor hired. Does it increase or decrease the labor?