1. Consider the cost function: C = 60 + 20Q + 30Q^2 with MC = 20 +60Q (here Q denotes output) Part A) Write down the expression for the average cost. Part B) What is the output elasticity of the total cost at output level of Q = 1 ? Part C) At an output of 1, does the cost function exhibit economies of scale, diseconomies o
BrainMass Solutions Available for Instant Download
Why is the budget a far more important document in both governments and not-for-profits than in businesses?
See attached file for full problem description. ____ 4. Shaulter Corporation uses a process cost accounting system. Given the following data, compute the number of units transferred out during the current period. Beginning Work in Process 12,000 units (1/2 complete) Ending Work in Process 15,000 units (1/3 complete)
See attached file for full problem description. Question 2 Jay Manufacturing's sales slumped badly in 2006 due to so many people purchasing gifts online. The company's income statement showed the following results from selling 500,000 units of product: Net sales, $2,000,000; total costs and expenses, $2,500,000; and net lo
Prepare a complete statement of cash flows; report its operating activities using the direct method. Forten Company, a merchandiser, recently completed its calendar-year 2008 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchase
1. Zeta Company sells men's sports coat. The average sales price is $475 the average cost per code is $225. Fixed costs are $4,220,000. If Zeta sells 25,000 coats, the contribution margin will be: a. $7,655,000 b. $5,625,000 c. $2,030,000 d. $6,250,000 5. The following information was drawn from th
A. STONES Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost Miles Driven Total Cost January 8,000 $ 15,850 March 8,500 $ 16,800 February 7,500 14,900 April 8,200
The controller for Canandaigua Vineyards, Inc. has predicted the following costs at various levels of wine output. (See attached) The company's marketing manager has predicted the following prices for the firm's fine wines at various levels of sales. (See attached) 1. Calculate the unit costs of wine production and s
1.) Which of the following costs typically include both fixed and variable components? (a) Direct materials (b) Direct labor (c) Factory overhead (d) None of the above 2.) Mitchell Company has total current assets of $45,000 including inventory of $10,000, and current liabilities of $21,000. The company's working capita
The current credit terms: net 1/30 net 50. Half of our current customers take the cash discount and pay on the 30th day, whereas the other half pass the discount and pay on the 50th day. The tax rate and pre-tax required rate of return of our company are 30% and 12%, respectively. Now my proposed new credit policy: To tigh
For each of the following unrelated transactions, list the accounts that will be debited and credited. (a) Borrowed cash from the bank. (b) Provided services on account. (c) Paid cash for office supplies. (d) Collected cash due on accounts receivable. (e) Paid cash dividends to stockholders.
King Company has two departments, assembly and finishing. Consider the following data for the Assembly Department: Units Percent Direct Direct Complete Material Labor Overhead Total Beginn
JPB Group is a consulting firm specializing in mergers and acquisitions. In addition to the three partners, the firm employs nine consultants who work directly with clients. The average budgeted compensation for the twelve professionals is $130,000. Each consultant is budgeted at 1,600 billable hours per year. All professional l
Alpha Company makes three joint products: products A, B, and C. For each batch, the materials cost is $8,000, direct labor cost is $2,000, and manufacturing overhead is $5,000. From each batch, the company makes 2,000 pounds of A, 1,200 pounds of B, and 800 pounds of C. (a) What are the total joint costs for each batch of the
The following income statement was prepared by Edwards Company for 2007: Sales $100,000 Cost of goods sold $58,500 Gross margin $41,500 Selling and administrative expense $25,000 Interest expense $3,000 Total operating expenses $28,000 Income before taxes $13,500 Income tax expense $4,050 Net income
The following information is available for K Co. for 2005. Inventory 1/1/05 130,000 Inventory 12/31/05 120,000 Cost of Goods Sold, 2005 450,000 Accounts Payable 1/1/05 70,000 Accounts Payable 12/31/05 92,000 (A) What amount of cash was paid for the purchase of merchandise? (B) How will the amount computed in (a) be
Please help answer the following problems. Provide detailed solutions. On Jan 1 2005, J Company purchased equipment for 95,000. J co. paid 2,000 to have the machine installed. The equipment is expected to have a 5 year useful life and a salvage of 7,000. A.) Compute the depreciation expense for 2005 and 2006 using straigh
In the first year of operations, 2008, RRS recognized 220,000 of service revenue on account. The ending accounts receivable balance was 45,000. RRS estimates that 3% of sales on account will not be collected. Assume there were no other transactions affecting accounts receivable. A.) What amount of cash was collected in 2008?
1.) Poxahatche Products provided the following selected information about its consumer products devision for 2007: Desired ROI=10% Net Income=$150,000 Residual Income=$50,000 Based on this information, the division's investment amount was: A.) $700,000 B.) $1,000,000 C.) $4,000,000 D.) $20,000,000 2.) Picard Com
I am having difficulty with this problem. You have the following data: return on equity = 15% earnings before taxes = $30,000 total asset turnover = .80 profit margin = 4.5% tax rate = 35% What is the return on assets?
Can you talk about or discuss factors that may have motivated defendants to commit fraud within Adelphia Communcations?
Calculate the break-even for a Widget company given the following information: Sales Price Variable Cost per unit Fixed Costs Widgets $800 $550 $77,000 Problem 2 Based upon the information needed in problem 1, how many widgets must be produced to earn a profit of $50,000?
Elegance Company makes fine jewelry that it sells to department stores throughout the United States. Elegance is trying to decide which of two bracelets to manufacture. Elegance has a labor contract that prohibits the company from laying off workers freely. Cost data pertaining to the two choices follow.
Dester Manufacturing Company makes a product that it sells for $50 per unit. The company incurs variable manufacturing costs of $20 per unit. Variable selling expenses are $5 per unit, annual fixed manufacturing costs are $187,000, and fixed selling and administrative costs are $113,000 per year. Determine the break even po
Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system. She forecasts that 400 payments a day will be made to lock boxes with an average payment size of $2,000. The bank's charge for operating the lock boxes is $.40 a check. The interest rate is .015 percent per day. 1. If the
A manufacturer makes a single product. When comparing this year's income statement with last year's, why is net income different for the same level of sales: Cost have not changed at all, but income has. What was done right this year? The statements, both prepared using absorption costing, look like this:
Pamello, Inc, an engineering consulting firm, uses the cash method of accounting. Compute the amount of Pamello's current year deductions for the five transactions. See attached file for full problem description.
Given summary information about Allen's 2006 income tax return, what is the amount of AMT adjustments related to itemized deductions? What is the AMT liability for 2006? See attached file for full problem description.
I need to identify at least on recent FASB position/proposal/pronouncement which would be of particular interest to the Cola industry, specifically Pepsi or Coca-Cola. I don't need a great deal of information, only to get me started so I may further research. Thank you.
In the Scott Fane opinion, Justice O'Connor alluded to "incremental commercialization" within professions. Identify examples of incremental commercialization within the public accounting profession in recent years. How, if at all, has an increasing emphasis on the commercial aspects of public accounting affected the profession?