We have been using the same set of data (Data Set One) in the notes to illustrate production and costs. I have provided Data Set One in both tables below. When costs were calculated in the notes, fixed costs were $200. By using the term fixed costs economists are only referring to the fact that a firm must pay this expense no matter how much output it produces or sells. An example of a fixed cost could be the rent a small store pays on the space it rents. The rent will be the same for the duration of the lease, no matter if the store sells I item or 500 items. It is helpful to know what will happen to costs if the price of the variable or fixed resource changes.

Problem Two - Using the information in data set one, which I have included in the table below, recalculate total cost, fixed cost, variable cost, marginal cost, average total cost, average variable cost and average fixed costs if the price of the variable input (which is labor in this example) is not $50 but $55. I have created Table 2 for you to put your answers in. Assume that fixed costs remain at $230. When the price of a variable input changes which other costs will increase? Compare the costs you calculate for table two to the costs calculated in table one to find your answers.

TABLE TWO FOR ANSWERS TO PROBLEM TWO

We have been using the same set of data (Data Set One) in the notes to illustrate production and costs. I have provided Data Set One in both tables below. When costs were calculated in the notes, fixed costs were $200. By using the term fixed costs economists are only referring to the fact that a firm must pay this expense no matter how much output it produces or sells. An example of a fixed cost could be the rent a small store pays on the space it rents. The rent will be the same for the duration of the lease, no matter if the store sells I item or 500 items. It is helpful to know what will happen to costs if the price of the variable or fixed resource changes.

PROBLEM ONE - Using the information in data set one, which I have included in the table below, recalculate total cost, fixed cost, variable cost, marginal cost, average total cost, average variable cost and average fixed costs if the price of the fixed input (the small stores rent) is not $200 but $230. A new lease may have caused the rent to increase. I have created Table 1 for you to put your answers in. Assume the price of the variable input, labor, is still $50 per unit. When fixed costs change which other costs will increase? Compare the costs you calculate for table one to the costs calculated in the notes in chapter 7 to find the answer.

TABLE ONE FOR ANSWERS TO PROBLEM ONE

1. Kathy produces handbags and in a month she produced and sold 50 of them. On an average her cost of producing each handbag is $50. The market price of the handbag is $65. This will lead Kathy to earn a total revenue of

2. A firm Average Variable Cost of producing a box of pencil is $1 and it's Average Total Cost is $3 if 500 pencil boxes are produced. Based on this we can say that the firm's Total Fixed Cost is

3. Marginal Cost rises when the output increases. This is due to

4. MPL (Marginal Product of Labor) is

5. Maya produces custom printed shirts. Her material costs for each custom shirt is $5 and takes one hour to produce it. Alternatively she can also do a part-time job at a local grocery store which can give her $10 an hour. If she is able to sell each custom shirt for $30 then what would be her accounting profit?

FIFO Perpetual Inventory

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

Required:

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account.

3. Determine the gross profit from sales for the period.

5. Based upon the preceding data, would you expect the ending inventory using the A method of inventory costing based on the assumption that the most recent inventory costs should be charged against revenue.last-in, first-out method to be higher or lower?

47.

A perfectly competitive industry has 20 high-cost producers, each with a short-run supply curve given by Q_H = 10 P, and 20 low-cost producers, each with a short-run supply curve given by Q_L = 20 P. The industry demand curve is given by Q^d = 100,000 – 400 P.

At the market equilibrium price, each high-cost producer supplies ____ units and each low-cost producer supplies ____ units

46.

A firm's short-run total cost is given by TC = Q ³ - 6 Q ² +10 Q +8. What is the firm's shutdown price?
(Hint: first find the quantity, then find the price)

43. If a firm's Marginal Revenue (MR) exceeds it's Marginal Cost (MC) at the quantity being produced, the firm should _____ output because ______ .

42.

Which of the following characteristics relate(s) to perfect competition?

Need parts 1 and 2 of this, plus work showing how it was done. Thank you!

CASE 2 – COST OF PRODUCTION SUMMARY: WEIGHTED AVERAGE AND FIFO METHODS

The Company uses a single department production process. Materials are added at the start of the production process and labor and overhead are added as indicated. For January 2020, the Company records have the following information:

UNITS:
Beginning WIP:                                                                                                          10,000 units

100% complete for materials, 50% complete for labor; 3% complete for overhead

Units started in process                                                                                              50,000 units

Units completed                                                                                                         49,000 units

Ending WIP:                                                                                                               11,000 units

100% complete for materials, 60% complete for labor; 20% complete for overhead

PRODUCTION COSTS:

Work in Process, Beginning of the Month:
Materials                                         $ 22,000
Labor                                                  18,000
Overhead                                            11,000             51,000

Current Month Costs:
Materials                                         $ 320,000
Labor                                                  180,160
Overhead                                            152,840           653,000

                                    Total Costs:                       $   704,000

REQUIRED:

1. Prepare a Cost of Production Summary using the weighted average method (calculations for equivalent units of production, cost per equivalent unit of production, total cost for units completed and WIP, ending). Prepare your calculations for Materials, Labor, and Overhead separately.

Prepare the appropriate journal entries at month end.

2. Prepare a Cost of Production Summary using the FIFO method (calculations for equivalent units of production, cost per equivalent unit of production, total cost for WIP, beginning, units started and completed and WIP, ending). Prepare your calculations for Materials, Labor, and Overhead separately.

Prepare the appropriate journal entries at month end.

You need to present your work in an excel spreadsheet and you need to create your own formatting (templates).

As a direct result of your committee's work, quality significantly improved during the latest year while costs and rework decreased. Titan Computer Company also reduced manufacturing capacity because of lowered rework support needs. Sales of AllPad have increased in tandem with a decrease in unit price (following the intent to increase market share). Information about the current period (2016) and prior period (2015) follows. Type of Data 2015 2016 Units of AIIPad produced and sold 800 900 Selling price $450 $430 Pounds of direct material used 3,200 3,300 Direct material cost per pound $35 $35 Manufacturing capacity in units 12,000 11,000 Total conversion costs $1,800,000 $1,650,000 Conversion cost per unit of capacity $150 $150 Selling and customer service capacity customers 90 customers Total selling and customer service costs $495,000 $495,000 Selling and customer service capacity cost and customer $500 $550 Assuming Titan had 70 customers in 2015 and 80 customers in 2016, 1. calculate the operating income of Titan for 2015 and 2016; Particulars 2015 2016 Revenue; 800*450;900*430 360,000 387,000 Direct Material Cost 3200*35;3300*35 112,000 115,500 Conversion Cost 1,800,000 1,650,000 Selling and Customer Service cost 495,000 495,000 Total Cost 2,407,000 2,260,500 Profit/Loss (2,047,000) (1,873,500) Hence, the operating loss for 2015 is $2,047,000 and 2016 is 1,873,500 2) calculate the growth, price recovery, and productivity components that explain the change in operating income from 2015 and 2016; and comment on your answer. What do these components indicate?

I need help with #2

1. 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 4,100 cups of flour at $0.50 per cup. They use 3,277.5 cups of flour to make 4,700 biscuits. The standard cost per cup of flour is $0.49.

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.

***Need help with Total Direct Materials Cost Variance***

2.

Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 2 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 14,000 units. The standard cost for labor allowed for the output was $105,000, and there was an unfavorable direct labor time variance of $5,550.

A. What was the standard cost per hour? Round your answer to two decimal places.

Standard cost $3.75 per hour

B. How many actual hours were worked? (Need help with answer)

Actual hours

C. If the workers were paid $3.85 per hour, what was the direct labor rate variance? Round your answer to two decimal places. Enter the amount as positive number. (Need help with answer)

We have been using the same set of data (Data Set One) in the notes to illustrate production and costs. I have provided Data Set One in both tables below. When costs were calculated in the notes, fixed costs were $200. By using the term fixed costs economists are only referring to the fact that a firm must pay this expense no matter how much output it produces or sells. An example of a fixed cost could be the rent a small store pays on the space it rents. The rent will be the same for the duration of the lease, no matter if the store sells I item or 500 items. It is helpful to know what will happen to costs if the price of the variable or fixed resource changes.

PROBLEM ONE - Using the information in data set one, which I have included in the table below, recalculate total cost, fixed cost, variable cost, marginal cost, average total cost, average variable cost and average fixed costs if the price of the fixed input (the small stores rent) is not $200 but $230. A new lease may have caused the rent to increase. I have created Table 1 for you to put your answers in. Assume the price of the variable input, labor, is still $50 per unit. When fixed costs change which other costs will increase? Compare the costs you calculate for table one to the costs calculated in the notes in chapter 7 to find the answer.

TABLE ONE FOR ANSWERS TO PROBLEM ONE