Green Grow Inc. (GGI) manufactures lawn fertilizer. Because of the product’s very high quality, GGI often receives special orders from agricultural research groups. For each type of fertilizer sold, each bag is carefully filled to have the precise mix of components advertised for that type of fertilizer. GGI’s operating capacity is 34,000 one-hundred-pound bags per month, and it currently is selling 32,000 bags manufactured in 32 batches of 1,000 bags each. The firm just received a request for a special order of 8,000 one-hundred-pound bags of fertilizer for $210,000 from APAC, a research organization. The production costs would be the same, but there would be no variable selling costs. Delivery and other packaging and distribution services would cause a one-time $3,900 cost for GGI. The special order would be processed in two batches of 4,000 bags each. (No incremental batch-level costs are anticipated. Most of the batch-level costs in this case are short-term fixed costs, such as salaries and depreciation.) The following information is provided about GGI’s current operations:

No marketing costs would be associated with the special order. Because the order would be used in research and consistency is critical, APAC requires that GGI fill the entire order of 8,000 bags.

Assume that the $19.00 fixed manufacturing overhead cost per unit consists of facility-level costs ($16.00/unit at the 32,000-unit output level), with the remainder being set-up-related (i.e., batch-level) costs. Assume that the set-up related costs increase in total with the number of batches produced and that the facility-level fixed costs do not vary in total, either with the number of units produced or the number of batches produced during a period.

Part 1

Required:

1. What is the total fixed manufacturing overhead cost for the period? Break down (that is, decompose) this total cost into its component parts (i.e., batch-related overhead costs and facility-related fixed overhead costs).

2. Calculate the relevant unit and total cost of the special order, including the new information about batch-related costs. Assume, as before, the one-time delivery cost of $3,900.

Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process (Job 201) and one job completed but not yet sold (Job 200). Job 202 was started during January. Other select account balances follow (ignore any accounts that are not listed).

During January, the company had the following transactions:
(a) Purchased $60,000 worth of materials on account.

(b) Recorded materials issued to production as follows:

c) Recorded factory payroll costs from direct labor time tickets that revealed the following:

(d) Applied overhead to production at a rate of $28.00 per direct labor hour for 507 actual direct labor hours.
(e) Recorded the following actual manufacturing overhead costs:

(f) Completed Job 201 and transferred it to Finished Goods Inventory.

(g) Sold Job 200 for $50,800.

Required:
1. Post the preceding transactions to T-accounts. (Note: Capture the offsetting of debits and credits to other accounts such as Cash, Payables, Accumulated Depreciation, and so on in Miscellaneous Accounts.)

2. Compute the ending balance in the following accounts:

a.Raw Materials Inventory

b.Work in Process Inventory

c.Finished Goods Inventory

d.Cost of Goods Sold (unadjusted)e.Manufacturing Overhead

3. Compute the total cost of Jobs 201 and 202 at the end of January.

Green Grow Inc. (GGI) manufactures lawn fertilizer. Because of the product’s very high quality, GGI often receives special orders from agricultural research groups. For each type of fertilizer sold, each bag is carefully filled to have the precise mix of components advertised for that type of fertilizer. GGI’s operating capacity is 26,000 one-hundred-pound bags per month, and it currently is selling 24,000 bags manufactured in 24 batches of 1,000 bags each. The firm just received a request for a special order of 7,000 one-hundred-pound bags of fertilizer for $150,000 from APAC, a research organization. The production costs would be the same, but there would be no variable selling costs. Delivery and other packaging and distribution services would cause a one-time $2,500 cost for GGI. The special order would be processed in two batches of 3,500 bags each. (No incremental batch-level costs are anticipated. Most of the batch-level costs in this case are short-term fixed costs, such as salaries and depreciation.)

Sales and production cost data for 24,000 bags, per bag

Sales price$44

Variable manufacturing costs 16

Variable selling costs 5

Fixed manufacturing costs 15

Fixed marketing costs 6

No marketing costs would be associated with the special order. Because the order would be used in research and consistency is critical, APAC requires that GGI fill the entire order of 7,000 bags. Assume that the $15.00 fixed manufacturing overhead cost per unit consists of facility-level costs ($12.00/unit at the 24,000-unit output level), with the remainder being set-up-related (i.e., batch-level) costs. Assume that the set-up related costs increase in total with the number of batches produced and that the facility-level fixed costs do not vary in total, either with the number of units produced or the number of batches produced during a period.

Part 1 Required: 1. What is the total fixed manufacturing overhead cost for the period? Break down (that is, decompose) this total cost into its component parts (i.e., batch-related overhead costs and facility-related fixed overhead costs).

2. Calculate the relevant unit and total cost of the special order, including the new information about batch-related costs. Assume, as before, the one-time delivery cost of $2,500.

Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $600,000, and factory payroll cost in April is $390,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $29,000; factory rent, $34,000; factory utilities, $21,000; and factory equipment depreciation, $61,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $670,000 cash in April. Costs of the three jobs worked on in April follow.

Required:
1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31).

2. Prepare journal entries for the month of April to record the below transactions. (Hint, there are 13 steps)

Materials purchases (on credit).

Direct materials used in production.

Direct labor paid and assigned to Work in Process Inventory.

Indirect labor paid and assigned to Factory Overhead.

Overhead costs applied to Work in Process Inventory.

Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)

Transfer of Jobs 306 and 307 to Finished Goods Inventory.

Cost of goods sold for Job 306.

Revenue from the sale of Job 306.

Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

Green Grow Inc. (GGI) manufactures lawn fertilizer. Because of the product’s very high quality, GGI often receives special orders from agricultural research groups. For each type of fertilizer sold, each bag is carefully filled to have the precise mix of components advertised for that type of fertilizer. GGI’s operating capacity is 39,000 one-hundred-pound bags per month, and it currently is selling 37,000 bags manufactured in 37 batches of 1,000 bags each. The firm just received a request for a special order of 7,000 one-hundred-pound bags of fertilizer for $280,000 from APAC, a research organization. The production costs would be the same, but there would be no variable selling costs. Delivery and other packaging and distribution services would cause a one-time $4,800 cost for GGI. The special order would be processed in two batches of 3,500 bags each. (No incremental batch-level costs are anticipated. Most of the batch-level costs in this case are short-term fixed costs, such as salaries and depreciation.) The following information is provided about GGI’s current operations:

No marketing costs would be associated with the special order. Because the order would be used in research and consistency is critical, APAC requires that GGI fill the entire order of 7,000 bags.

Assume that the $10.00 fixed manufacturing overhead cost per unit consists of facility-level costs ($7.00/unit at the 37,000-unit output level), with the remainder being set-up-related (i.e., batch-level) costs. Assume that the set-up related costs increase in total with the number of batches produced and that the facility-level fixed costs do not vary in total, either with the number of units produced or the number of batches produced during a period.

Required:

1. What is the total fixed manufacturing overhead cost for the period? Break down (that is, decompose) this total cost into its component parts (i.e., batch-related overhead costs and facility-related fixed overhead costs).

2. Calculate the relevant unit and total cost of the special order, including the new information about batch-related costs. Assume, as before, the one-time delivery cost of $4,800.

Assume a monopolist faces a market demand curve P= 200 -4Q and has the short-run total cost function C= 480 + 40Q. What are the profit-maximizing price, quantity and profits? Graph the marginal revenue, marginal cost, and demand curves, and show the area that represents deadweight loss on the graph.

a. Pleasethoroughlyexplainthedeterminantsoftheelasticityofresource demand.
i. Discuss the following:
1. Ease of resource substitutability 2. Elasticity of product demand
3. Ratio of resource cost to total cost
b. Please explain how a firm would determine the optimal combination of resources required to produce a given level of output.
i. Discuss / explain.

XYZ used an investment bank to do IPO. In IPO, XYZ sold 1 million shares at $68 each. The investment bank charged 7% spread. At the end of the 1st day of trading, XYZ stock price closed at $80. Calculate the total cost of IPO. That is, what is the sum of direct and indirect cost?

XYZ used an investment bank to do IPO. In IPO, XYZ sold 1 million shares at $60 each. The investment bank charged 7% spread. At the end of the 1st day of trading, XYZ stock price closed at $79. Calculate the total cost of IPO. That is, what is the sum of direct and indirect cost?

XYZ used an investment bank to do IPO. In IPO, XYZ sold 1 million shares at $66.52 each. The investment bank charged 7% spread. At the end of the 1st day of trading, XYZ stock price closed at $72.63. Calculate the total cost of IPO. That is, what is the sum of direct and indirect cost?