The average production cost for major movies is 58 million dollars and the standard deviation is 21 million dollars. Assume the production cost distribution is normal. Suppose that 7 randomly selected major movies are researched. Answer the following questions. Give your answers in millions of dollars, not dollars. Round all answers to 4 decimal places where possible.
What is the distribution of X? X ~ N ()
What is the distribution of ¯x? ¯x ~ N ()
For a single randomly selected movie, find the probability that this movie's production cost is between 52 and 55 million dollars.
For the group of 7 movies, find the probability that the average production cost is between 52 and 55 million dollars.
In: Statistics and Probability
The following is total monthly budgeted cost and activity
information for the four activity centers in the billing department
of Oregon Power Company:
| Activity Center |
Variable |
Fixed |
Cost Driver |
| Statement inquiry |
$79,200 |
$156,000 |
3,200 labor hours |
| Correspondence |
$9,639 |
$22,000 |
2,700 letters |
| Account billing |
$144,000 |
$77,000 |
2,400,000 lines |
| Payment verification |
$12,095 |
$80,000 |
20,500 accounts |
In September, actual total costs and activity were as follows:
| Activity Center |
Total Costs |
Driver Amount |
| Statement inquiry |
$234,023 |
3,140 labor hours |
| Correspondence |
$31,154 |
2,550 letters |
| Account billing |
$231,898 |
2,580,000 lines |
| Payment verification |
$92,876 |
20,630 accounts |
Required
Compute the flexible-budget variances for the following two
activity cost items (round unit costs to two decimal places and
enter favorable variances as positive numbers and unfavorable
variances as negative numbers):
Correspondence :
Statement inquiry :
In: Accounting
1. Tickets for the school play cost $5 for students and $8 for adults. On opening night, all 360 seats were filled, and the box office revenues were $2610. How many student and how many adult tickets were sold?
2. A $76,000 trust is to be invested in bonds paying 8%, CDs paying 7%, and mortgages paying 10%. The bond and CD investment must equal the mortgage investment. To earn a $6670 annual income from the investments, how much should the bank invest in bonds?
3. Suppose that Janine desires 46 grams of protein and 38 grams of dietary fiber daily. One serving of kidney beans has 8 grams of protein and 6 grams of dietary fiber. One serving of refried pinto beans has 6 grams of protein and 6 grams of dietary fiber. If a serving of kidney beans costs $0.45 and a serving of refried pinto beans costs $0.35, then how many servings of each should Janine eat to minimize cost and still meet her requirements?
In: Math
Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company
The following information is available for Shanika Company for 20Y6:
| Inventories | January 1 | December 31 |
| Materials | $344,300 | $420,050 |
| Work in process | 619,740 | 571,270 |
| Finished goods | 595,640 | 583,870 |
| Advertising expense | $285,210 | |
| Depreciation expense-office equipment | 40,320 | |
| Depreciation expense-factory equipment | 54,190 | |
| Direct labor | 646,880 | |
| Heat, light, and power-factory | 21,420 | |
| Indirect labor | 75,610 | |
| Materials purchased | 634,280 | |
| Office salaries expense | 221,370 | |
| Property taxes-factory | 17,640 | |
| Property taxes-headquarters building | 36,540 | |
| Rent expense-factory | 29,820 | |
| Sales | 2,969,750 | |
| Sales salaries expense | 364,600 | |
| Supplies-factory | 14,700 | |
| Miscellaneous costs-factory | 9,240 |
| Shanika Company | |||
| Statement of Cost of Goods Manufactured | |||
| For the Year Ended December 31, 20Y6 | |||
| $ | |||
| Direct materials: | |||
| $ | |||
| $ | |||
| $ | |||
| Factory overhead: | |||
| $ | |||
| Total factory overhead | |||
| Total manufacturing costs incurred | |||
| Total manufacturing costs | $ | ||
| Cost of goods manufactured | $ | ||
2. Prepare the income statement.
| Shanika Company | |||
| Income Statement | |||
| For the Year Ended December 31, 20Y6 | |||
| $ | |||
| Cost of goods sold: | |||
| $ | |||
| $ | |||
| $ | |||
| Operating expenses: | |||
| Administrative expenses: | |||
| $ | |||
| $ | |||
| Selling expenses: | |||
| $ | |||
| Total operating expenses | |||
| $ | |||
In: Accounting
What were the legislative attempts in the past 20 years to control the increasing cost of the Medicare program? Identify the name of the legislation and discuss its provisions aimed at controlling costs.
In: Nursing
Prepare a Statement of Cost of Goods Manufactured for Frank's Furniture for the year ending December 2019.
Advertising Expense - $ 22250
Depreciation expense – Office Equip - 10,440
Depreciation expense – Selling Equip - 12,125
Depreciation expense – Factory Equip. - 37,400
Direct Labor - 564,500
Factory supervision - 123,400
Factory supplies used (indirect materials) - 8,060
Factory utilities - 39,500
Inventories:
Raw Materials, Dec 31, 2018 - 42,375
Raw Materials, Dec 31, 2019 - 72,430
Goods-in-Process, Dec 31, 2018 - 14,500
Goods-in-Process, Dec 31, 2019 - 16,100
Finished Goods, Dec 31, 2018 - 179,200
Finished Goods, Dec 31, 2019 - 143,750
Income taxes expense - 138,700
Indirect labor - 61,000
Misc. Production costs - 10,440
Office salaries expense - 72,875
Raw materials purchased - 896,375
Rent expense – office space - 25,625
Rent expense – selling space - 29,000
Rent expense – factory building - 95,500
Maintenance expense - factory - 32,375
Sales - 5,002,000
Sales Discounts - 59,375
Sales salaries expense - 297,300
| FRANK'S FURNITURE | ||
| Manufacturing Statement | ||
| For the year ended December 31, 2019 | ||
| Direct Materials | ||
| Raw materials inventory, December 31, 2018 | ||
| Raw materials purchased | ||
| Raw materials available for use | ||
| Less raw materials inventory, December 31, 2019 | ||
| Direct materials used | ||
| Direct Labor | ||
| Factory Overhead | ||
| Depreciation expense - Factory Equipment | ||
| Factory Supervision | ||
| Factory Supplies used | ||
| Factory Utilities | ||
| Indirect Labor | ||
| Miscellaneous production costs | ||
| Rent expense - Factory building | ||
| Misc. Factory maintenance | ||
| Total factory overhead costs | ||
| Total manufacturing costs | ||
| Goods-in-Process Inventory, December 31, 2018 | ||
| Total cost of goods in process | ||
| Less Goods-in-Process Inventory, December 31, 2019 | ||
| Cost of Goods Manufactured | ||
Thank you!
In: Accounting
Discuss when the cost of debt is different than the interest rate paid on debt and why it is different. Discuss how to calculate the cost of debt when it is different than the interest rate paid on debt.
In: Accounting
2. Calculate the value of a periodic inventory using the four cost methods:
Assume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25 each. During the month, three new purchases were made. The first purchase consisted of 700 units costing $8.50 each, the second purchase had 800 units costing $9.00 each, and the third purchase had 600 units costing $9.50 each.
Units Cost per Unit
Beg. inventory, January 1 500 @ $8.25
First purchase 700 @ $8.50
Second purchase 800 @ $9.00
Third purchase 600 @ $9.50
Total 2,600
At the end of the month, ending inventory shows 700 units.
Compute the following for each of the methods:
1. Cost of goods sold
2. The cost of ending inventory
a. Specific identification: Of the units sold, 300 were from the beginning inventory, 600 from the first purchase, 700 from the second purchase, and 300 from the third purchase. (Show your work)
b. First-in, first-out (FIFO): (Show your work)
|
Cost of Ending Inventory |
Number of Units x |
Unit Cost = |
Total Cost |
c. Weighted-average: (Show your work)
|
Cost of Goods Sold |
Number of Units x |
Unit Cost = |
Total Cost |
|
Cost of Ending Inventory |
Number of Units x |
Unit Cost = |
Total Cost |
d. Last-in, first-out (LIFO): (Show your work)
|
Cost of Ending Inventory |
Number of Units x |
Unit Cost = |
Total Cost |
In: Accounting
Nona Sports is considering the purchase of new production equipment. The equipment will cost $135,000. It has an expected useful of life of 5 years, but will require refurbishing at the end of 3 years. The refurbishment will cost $5,000. The estimated salvage value at the end of the useful life is $10,000. The increased annual net income from the equipment is projected to be $40,000. Using a hurdle rate of 12%, calculate the NPV for the equipment.
*If you get 101426.1, 11307 , or 11230 those are all incorrect*
Nona Sports can acquire a new machine for $43,500. The machine should generate new cash inflows of $15,000 per year for 4 years. No salvage value is projected. Calculate the IRR for the investment to 4 decimal places. Set your calculator to END.
*need to be percentage 14% is incorrect*
Nona Pizza Company is considering the purchase of a new pizza oven. The oven will cost $5,000. It will have zero residual value at the end of its useful life of 5 years. The energy efficient oven is projected to generate annual cost savings of $1,800 per year. Calculate the NPV of the pizza oven investment using a 10% hurdle rate.
*1823.42 is incorrect*
In: Accounting
Sirius has decided to acquire a new equipment at a cost of $748,000. The equipment has an expected life of 6 years and will be depreciated using 5-year MACRS with rates of .20, .32, .192, .1152, .1152, and .0576 (note that 5-year MACRS depreciation actually takes place over 6 years). There is no actual salvage value. Travis Capital has offered to lease the equipment to Sirius for $153,000 a year for 6 years, with lease payment at the end of each year. Sirius has a cost of equity of 11 percent, a pre-tax cost of debt of 7 percent, and a marginal tax rate of 25 percent. Should Sirius lease or buy?
In: Accounting