Use the Following to Answer Questions

question 161

Multiple Choice

Use the following to answer questions:
Scenario: The Market for Good X:
The market for good X can be depicted with the following demand and supply equations:
Demand: P = 50 - 0.5Q
Supply: P = 0.33Q
where P is price per unit and Q represents quantity in units. Policy makers plan on imposing a $1 per unit tax on this good.
-(Scenario: The Market for Good X) Look at the scenario The Market for Good X. The tax revenue collected by government from a $1 per unit tax will be:

• A) $1.00.
• B) $58.80.
• C) $60.00.
• D) $60.50.

Compute and apply manufacturing overhead using a predetermined overhead rate.

Identify and categorize different types of manufacturing inventory on financial statements.

Understand the impact of errors on financial statements and how to correct them.

Prepare journal entries for transactions specific to the manufacturing environment, including the adjustments for overapplied or underapplied overhead.

---

Definitions:

Cumulative

Refers to an amount that has increased over time by adding successive increments, often used in context of dividends or data.

Non-Cumulative

Refers to dividends or other types of distributions that, if not paid by a company in a given period, are not required to be paid at all.

Dividend Yield

The ratio that indicates how much dividends a company issues each year in relation to the price of its shares.

Par Value

Par value is the nominal or face value of a bond, share, or other financial instrument, set at the time of issue.