Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments—Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Required:

For questions 1-9, assume that Sweeten Company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10-15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base.

8. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

9. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments—Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

10. What was the company’s plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)

11. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

12. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

13. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

Selected information from the adjusted trial balance of Warmers Inc. as of December 31, 2019, follows:

1. Insurance Expense: in proportion to the total of the furniture and fixtures (the gross assets before depreciation) and the ending inventory in the departments. These totals are as follows:

2. Rent Expense and Utilities Expense: on the basis of floor space occupied, as follows:

3. Office Salaries Expense, Other Office Expenses, and Depreciation Expense—Office Equipment: on the basis of the gross sales in each department.

4. Uncollectible Accounts Expense: on the basis of net sales in each department.

5. Depreciation Expense—Furniture and Fixtures: in proportion to cost of furniture and fixtures in each department. These costs are as follows.

Prepare a departmental income statement for the year ended December 31, 2019. The bases for allocating indirect expenses are given above.

Cost of Production Report

Arabica Highland Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.

2. Assuming that the July 1 work in process inventory includes $16,940 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. If required, round your answers to the nearest cent.

Please answer all parts.

1. Which of the following is true concerning a monopoly?

A single consumer can impact the market price

The firm is a price taker

The firm has significant market power

Many small firms sell the same good

2.Which of the following is an example of a monopoly?

A. One large firm supplies the entire product to the market

B. One firm supplies 60 percent of the product to the market and there are two other rival firms

C. Many firms supply the same product essentially, but each has significant brand loyalty

D. A few large firms supply the entire product to the market

3. Which list has market structures in the correct order from the most to the least market power?

Perfect competition, oligopoly, monopolistic competition, monopoly

Monopoly, monopolistic competition, oligopoly, perfect competition

Monopoly, oligopoly, monopolistic competition, perfect competition

Oligopoly, perfect competition, monopolistic competition, monopoly

 4.An industry in which two firms supply a particular product is:                   

             A. A duopoly.     

             B. A monopoly.                  

             C. Monopolistic competition.                       

             D. An oligopoly.

5. A perfectly competitive firm is a price taker because:  

            A. It has no control over the market price of its product.                 

            B. It has market power.                  

            C. Market demand is downward sloping.                 

            D. Its products are differentiated.

6. In which of the following industries is the firm referred to as a price taker?                      

A. Monopolistic competition

B. Monopoly

C. Perfect competition  

D. Oligopoly

7. A flat or horizontal demand curve for a firm indicates that:                      

A. The firm has no market power.            

B. The law of demand does not apply in the market.                        

C. Price equals average total cost.            

D. The firm is a monopoly.

8.The price of a good multiplied by the quantity sold equals:       

A. Total profit.                  

B. Total revenue.            

C. Marginal revenue.                     

D. Marginal cost.

9. A rightward shift in market supply curve could be caused by:  

A. An improvement in technology.                          

B. An increase in the market price.                          

C. An increase in wages.               

D. The expectation that the market price will fall in the future.

10. For a competitive firm, the marginal cost curve:         

A. Is the short-run supply curve.               

B. Shifts to the right when new firms enter the market.                 

C. Shifts upward when wages decrease.                

D. Is the short-run demand curve.

11. If the cost of production rises for all the firms in a perfectly competitive industry:

A. Each firm will supply less output at any given price.                    

B. Total revenue increases.                         

C. The marginal cost curve shifts downward.                      

D. Total profit increases.

12. The segment of the firm's marginal cost curve that:                  

A. lies above the average total cost is its supply curve.                    

B. is rising is equal to rising marginal physical product.   

C. Lies above the market price is equal to per unit profit.                               

D. lies above the average variable cost is its supply curve.

13.The market supply curve is calculated by:       

A. Summing the marginal cost curves of all firms.                              

B. Averaging the individual supply curves.                            

C. Summing the prices from individual supply curves.     

D. Averaging the individual marginal cost curves below ATC.

14. In a competitive market, in the long run, economic profits will cause:               

A. New firms to enter the market.                           

B. Existing firms to leave the market.                      

C. Supply to decrease.                  

D. Demand to decrease.

15. In a perfectly competitive industry, firms are likely to:                             

A. Exit when there are economic profits because they know the profits will not last.                         

B. Reduce the level of production when there are economic profits.                         

C. Enter when there are economic profits.

D. Enter when price is equal to the minimum average total cost.

Cost of Production Report

Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to the nearest cent.

Feedback

2. Assuming that the July 1 work in process inventory includes $119,400 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. If required, round your answers to two decimal places.

Show Work please

Cost of Production Report

Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.

2. Assuming that the July 1 work in process inventory includes $9,000 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and July. If required, round your answers to the nearest cent.

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments—Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March): Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing overhead $ 12,000 $ 16,200 $ 28,200 Estimated variable manufacturing overhead per machine-hour $ 2.20 $ 3.00 Job P Job Q Direct materials $ 21,000 $ 12,000 Direct labor cost $ 27,400 $ 10,700 Actual machine-hours used: Molding 2,500 1,600 Fabrication 1,400 1,700 Total 3,900 3,300 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.

5. What was the total manufacturing cost assigned to Job Q?

6. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

7. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

8. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

9. What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your answers to 2 decimal places.)

10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

12. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations.)

13. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

14. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

15. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

7. A newer theory of the corporation, based upon finance, is that the organization behaves in a way that is designed to maximize

1. number of jobs in their communities
2. profit (earnings)
3. total operating revenue from sales
4. market share
5. shareholder wealth maximization

8. Recent surveys of hundreds of CEOs have noted that most said the primary goal of their firm was to maximize

1. profit (earnings)
2. bonuses to senior managers
3. the well-being of a broad list of stakeholders including customers and the community
4. the financial value of the company (number of shares x share price)

9. An example of the “principal agent” problem is

1. hiring and listening to an expert who knows less than some current employees of the firm
2. outside experts are likely to disagree from one to another over any major decision
3. outside experts may be more interested in their own income than the company they are hired to serve
4. a contracting officer who tells hired experts in advance what conclusion their study should reach

10. An implicit cost often overlooked in Total Quality Management is

1. while mangers may do so, not all employees view the well-being of the organization as the same as their own well-being as highly related
2. recommending employees complete the job satisfactorily by putting in more of their own time is free to the firm but has an opportunity cost to the employees
3. many customers are swayed by lower price rather than higher quality
4. the “wow” factor and brand image imply that getting the product to market quickly is more important than solving minor quality problems.
5. Senior managers are likely to expect bonuses if the total quality management initiative works

11. The out of pocket costs of a firm are ________.

1. Sunk costs
2. Marginal costs
3. Explicit costs
4. Social costs

12. Under perfect competition, price is determined by the interaction of total demand and ________.

1. Total supply
2. Total cost
3. Total utility
4. Total production

Starcups Coffee Company is launching a new sustainability initiative that would reward customers for purchasing a reusable cup. During the cup promotion, customers would pay an extra $1.00 for the reusable cup and would receive a 20% discount each time they return with the cup to buy a cup of coffee.

Each week Starcups serves 41,000 customers who purchase an average of 2.00 cups of coffee per week (82,000 cups total). Starcups’s contribution margin income statement for a typical week is shown below:

Assume the new cup promotion is expected to impact sales volume, revenue, fixed, and variable costs as follows:

• Starcups estimates that 25% of its current customers (10,250) will participate in the promotion. The remainder of its existing customer base (30,750) will continue to buy an average of 2.00 cups of coffee per week.
• Starcups expected to attract 5,100 new customers to participate in the promotion.
• Customers who participate in the promotion will pay an additional $1.00 for the reusable cup. They will then receive a 20% discount on repeat visits when they bring back their reusable cup.
• The additional variable cost of purchasing the reusable cup is $1.60. The variable cost savings of the paper cup is $.30.
• Starcups expects that customers who participate in the reusable cup promotion will visit an average of 5 times per week, including the first purchase of the reusable cup.
• Starcups will spend a total of $11,000 per week advertising the reusable cup promotion.

Required:
1. Prepare a contribution margin income statement to predict how the reusable cup promotion will impact weekly net operating income.



2. Compute the difference in total revenue, total variable costs, total contribution margin, total fixed costs, and total operating income before and after the promotion.

1. Consider a farmer that grows hazelnuts using the production q = AL^2/3 , where q is the amount of

hazelnuts produced in a year (in tonnes), L represents the number of labor hours employed on the farm during the year, and A is the size of orchard which is fixed. The annual winter pruning of the orchard cost $1000, and is already paid by the farmer. The hourly wage rate paid for labor is $12.

1. Derive the equation for the marginal product of labor.
2. Does the production function exhibit diminishing returns to labor? Explain.
3. Derive variable cost (VC), fixed cost (FC), and total cost (C) functions.
4. Derive the average cost, average variable cost, and average fixed cost functions.