The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account: June 1 Balance 25 units at $60 6 Sale 20 units 8 Purchase 20 units at $61 16 Sale 10 units 20 Purchase 20 units at $62 23 Sale 25 units 30 Purchase 15 units at $63 Calculate the cost of the ending inventory at June 30, using (a) the first-in, first-out (FIFO) method and (b) the last-in, first-out (LIFO) method. Identify the quantity, unit price, and total cost of each lot in the inventory. (a) First-In, First-Out (FIFO): June 1 units at $ $ June 8 units at $ Total $ (b) Last-In, First-Out (LIFO): units at $ $ units at $ units at $ Total $

The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:

Calculate the cost of the ending inventory at June 30, using (a) the first-in, first-out (FIFO) method and (b) the last-in, first-out (LIFO) method. Identify the quantity, unit price, and total cost of each lot in the inventory.

(a) First-In, First-Out (FIFO):

(b) Last-In, First-Out (LIFO):

Gandolph Game Company has established the following standards for the prime costs of one unit of its chief product, dartboards. Standard Cost Standard Quantity Standard Price or Rate Direct material $ 5.00 5.00 kilograms $ 1.00 per kilogram Direct labor 1.00 0.20 hour $ 5.00 per hour Total $ 6.00 During September, Gandolph purchased 195,000 kilograms of direct material at a total cost of $214,500. The total wages for September were $40,404, 75 percent of which were for direct labor. Gandolph manufactured 37,000 dartboards during September, using 177,600 kilograms of the direct material purchased in September and 7,770 direct-labor hours. Required: Compute the following variances for September. Please indicate whether each variance is favorable or unfavorable.

A perfectly competitive market exists for wheat. The inverse demand is P = 200 − Q where P is the price of wheat and Q is the total quantity of wheat. The private total cost for the unregulated market is C = 50 + 80Q + 0.5Q2 . The production of wheat creates an externality where the total external cost is E = 0.5Q2 .

(a) Solve for the unregulated competitive equilibrium of wheat and the socially optimal level of wheat.

(b) Derive the Pigouvian tax (per unit of output of wheat) that results in the social optimum.

(c) One big company, WheatsRUs, buys out all the farmers of wheat and becomes a monopolist. Using the same functional forms, solve for the unregulated monopoly equilibrium.

(d) Given the socially optimal level of wheat in (a), what is the optimal tax that should be placed on the monopolist?

**PLEASE MAKE SURE TO LIST ALL ANSWERS CLEARLY****

INCLUDE ALL ANSWERS

You must show the financial statement in all its parts including header, dollar signs and double line in the totals. Points will be subtracted from the exercises if these parts are not completed properly.

7-14 Complete the balance sheet and sales information in the table that follows for Isberg Industries using the following finanacial data:

Debt ratio: 50%

Quick ratio: 0.80x

Total assets turnover: 1.5x

Days sales outstanding: 36.0 days

Gross profit margin on sales: ( Sales - cost of goods sold) / Sales = 25%

inventory turnover ratio: 5.0x

Balance sheet:

Cash _______________ Accounts payable _____________

Accounts receivable _______________     Long - term debt $60,000

Fixed assets _______________ Common stock _____________

Total assets $ 300,000 Retained earnings $97,500

sales ______________ Total liabilities and equity _____________

Cost of goods sold _____________

Ford Corporation is pulling together its direct labor budget for the next two months. Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $7.80 per direct labor-hour. The production budget calls for producing 5,200 units in June and 5,700 units in July.

Required:

Prepare the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places.)

Maria consumes only two goods: pens and notebooks. Currently, pens cost $1 each and notebooks cost $3 each. Maria’s income is $15. The tables below show the total utility Maria receives from consuming various quantities of each of the goods. calculate the optimal consumption bundle for Maria. (Note: for full credit you must provide the correct quantities of pens and notebooks AND fill in as much of Table 3 as was necessary to arrive at your answer.)

#of Notebooks Total Utility # of Pens Total Utility

0    0 0 0

1    75 1 40

2    135 2 60

3      185 3 75   

4 230     4 87

5 . 270 5 97

6 300 6 105

7 320 7 111

1) Suppose two firms operate a duopoly-cartel. They decide they do not trust each other enough to form a cartel and act like a monopoly. They agree acting only in their self-interest is harms them both. By compromising, the price they sell their product as will be

Select one:

a. equal to the monopoly price

b. less than the monopoly price

c. equal to the perfectly competitive market price

d. more than the monopoly price

2) When total revenue is greater than total variable cost, a firm in a competitive market will

Select one:

a. shut down if average revenue exceeds marginal cost

b. shut down

c. continue to operate at a loss

d. continue to operate as long as average revenue exceeds average fixed cost

3) Profit-maximising firms enter a competitive market when:

Select one:

a. total revenue for existing firms in the market exceeds their total fixed costs

b. price exceeds average total cost for existing firms in the market

c. total revenue for existing firms in the market exceeds their total variable costs

d. average revenue is less than average total cost for existing firms in the market

4) Suppose a competitive market experiences an increase in demand. This induces an increase in producer costs. Which of the following is most likely to occur?

Select one:

a. The condition of free entry into the market will be violated

b. The long-run market supply curve will be upward sloping

c. Some firms will not be price-takers

d. Producer profits must fall in the long run

5) An important difference between natural monopolies and other forms of monopoly, is they are

Select one:

a. unable to make a profit without a government subsidy

b. not subject to regulations by the government

c. typically unconcerned about competition eroding their monopoly position

d. not subject to barriers to entry

6) Suppose a monopoly changes changes its pricing strategy. It now uses a price-discrimination strategy. This will cause

Select one:

a. the consumer surplus to increase

b. the output sold to increase

c. the deadweight loss to increase

d. the profit to decrease

7) Economic losses in a monopolistically competitive market are

Select one:

a. only possible of collusion between firms cannot be maintained

b. a signal to some incumbent firms to exit the market

c. a signal for new firms to enter the market

d. are never possible in the short run

8) The only way a cartel is able to maintain its market power is if:

Select one:

a. the government uses competition laws to break-up the cartel

b. the product has an inelastic demand curve

c. the product has a horizontal demand curve

d. all the cartel members continue to cooperate

9) What is the monopolist's profit under the following conditions?

• The profit-maximising price charged for the goods is $60
• Marginal cost and marginal revenue intersect at an output of 30
• The marginal cost at at output of 30 is $40 and the average cost is $45

Select one:

a. $1350

b. $1800

c. $1200

d. $450

10)

Suppose a Government agency is undertaking a cost-benefit analysis on a new toll road. Which of the following costs or benefits would be the hardest to estimate?

Select one:

a. The cost of adding cycle lanes to the road.

b. The reduction in road deaths generated by the improved road design

c. The labour costs of building the road

d. The reduction in fuel spending by trucking companies using the road

11)

Suppose a farmer decides to convert their sheep farm to a vineyard to grow grapes. The amount of money the farmer could have earned by sheep farming instead is called

Select one:

a. an accounting cost

b. an explicit cost

c. an implicit cost

d. a variable cost

12)

Tamati owns a car-detailing business. In summer demand for detailing is highest. Tamati hires students to help him detail cars in summer. If Tamati works by himself he can detail 20 cars in a week. If he hires one worker, the two of them will detail 35 cars over a week. A second worker increases that to 47 cars. The third worker increases that to 57 cars. The fourth worker increases the total to 65 cars.

The marginal product of the first worker is

Select one:

a. 8 cars per week

b. 15 cars per week

c. 12 cars per week

d. 10 cars per week

Waterway Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020.

Prior to October 2020, the company had been profitable every month. The company’s president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows.

1. Inventory balances at the beginning and end of October were:

2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities.

Prepare a schedule of cost of goods manufactured for October 2020.

Prepare a correct income statement for October 2020.