Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was $32,000. Its estimated residual value was $10,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,200 units in 2018 and 1,650 units in 2019.


Required:

1. Calculate depreciation expense for 2018 and 2019 using the straight-line method.
2. Calculate the depreciation expense for 2018 and 2019 using the units-of-production method.
3. Calculate depreciation expense for 2018 through 2022 using the double-declining balance method.

Periodic Inventory by Three Methods; Cost of Merchandise Sold

The units of an item available for sale during the year were as follows:

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

A report states that the cost of repairing a hybrid vehicle is falling even while typical repairs on conventional vehicles are getting more expensive. The most common hybrid​ repair, replacing the hybrid inverter​ assembly, had a mean repair cost of $3,927 in 2012. Industry experts suspect that the cost will continue to decrease given the increase in the number of technicians who have gained expertise on fixing​ gas-electric engines in recent months. Suppose a sample of 100 hybrid inverter assembly repairs completed in the last month was selected. The sample mean repair cost was $3,890 with the sample standard deviation of ​$300.

Complete parts​ (a) and​ (b) below.

a. Is there evidence that the population mean cost is less than $3,927​? ​(Use a 0.1 level of​ significance.)

Basie Ltd purchased a building at a cost of $1,200,000 on 30 June 2018. The building is depreciated on a straight-line basis over 10 years with zero residual value. Basie Ltd values the building using the Revaluation (Fair Value) Model. On 30 June 2019, Basie Ltd revalued the building to its fair value of $1,350,000.

a) Provide the journal entries to record the revaluation of the building on 30 June 2019. Show all workings necessary to determine your answer.

1a. A small diner serves sandwiches and beverages. Which of the following is a variable cost with respect to the number of customers?

a. Rent

b.Soda

c.New dishwasher

d.All of the above

1b. A firm manufactures luxury automobiles. Which of the following is a product cost?

a.CEO salary

b.Sales commissions

c.Advertising

d.Windshields

1c.Within the relevant range, variable costs can be expected to:

a.increase on a per unit basis as the activity level decreases.

a.remain constant in total as the activity level changes.

c.increase on a per unit basis as the activity level increases.

d.vary in total in direct proportion to changes in the activity level.

1d.Which of the following is true at a firm's break-even point?

a.Profit is zero

b.Total revenue equals total cost

c.Total contribution margin equals total fixed cost

d.All of the above

1e.A corporation has provided the following contribution format income statement

Sales (1,000)                                 $50,000
Variable expense       $32,500
Contribution margin              $17,500
Fixed expenses                             12,250
Net Operating Income            $ 5,250

The break-even point in unit sales is closest to:

a.0 units

b.895 units

c.650 units

d.700 units

1f.A company has the following information:

Income tax rate                        25%
Selling price per unit         $8.00
Variable cost per unit       $5.00
Total fixed costs      $100,000

The contribution margin per unit is:

a.$3.00

b.$2.00

c.$5.00

d.$8.00

Which of the following is an example of appraisal cost:

A.
Scrap

B.
Complaint adjustment

C.
Product/process design

D.
Product inspection and test

It's a multiple choice question

1) Which of the following would be considered an appraisal cost of quality?

A) training workers to perform their jobs

B) purchasing better tools for workers to perform their jobs

C) repairing an item under warranty

D) running a functional test on each item before it is boxed for shipment

2) A U.S. car company knowingly released cars for sale with defective fuel lines which caused the cars to spontaneously explode, resulting in multiple deaths. After the cause of failure was found to be deliberate negligence, the company subsequently suffered decreased market share, and a reduction in stock price. This company incurred:

A) an internal failure cost.

B) an ethical failure cost.

C) am external failure cost.

D) an appraisal cost.

3) Improving quality seems to be a strategic weapon in gaining market share. However, improving quality entails allocation of resources and effort. As greater effort is expended to stop defects before they occur, which one of the following costs increases?

A) prevention costs

B) appraisal costs

C) internal failure costs

D) external failure costs

4) Which one of the following statements is TRUE?

A) Appraisal costs decrease as quality level decreases.

B) Appraisal costs increase as the variation of output increases.

C) Appraisal costs increase as the variation of output decreases.

D) Appraisal costs stay the same regardless of quality level

5) When errors have been made while producing a product such that the item must be discarded, the resultant cost is called a(n):

A) warranty.

B) scrap cost.

C) rework cost.

D) external failure cost

Give examples of the COPQ (internal and external failure costs) and the cost of quality assurance (prevention and appraisal) costs, using relevant industry example(s) to illustrate your point(s).

Compare and contrast the supply chains for McDonald’s and for Toyota. Be detailed and specific.

A toy manufacturer's cost for producing q units of a game is given by C(q) = 1460 + 3.5q + 0.0006q². If the demand for the game is given by p = 8.6 − (1/440)q. How many games should be produced to maximize profit? (Round your answer to the nearest integer.)