The Kwanika Co

question 56

Essay

The Kwanika Co. operates in a just-in-time (JIT) manufacturing environment. During 2011, its first year of operations, Kwanika budgeted for 40,000 hours in the production of 100,000 units in its cell X-22. Material costs were $7 per unit. Cell X-22 conversion costs were budgeted for the year as follows:
During January, material for 8,400 units was purchased on account. There were 8,200 units manufactured and 8,000 were sold shipped to customers for $35 each. Journalize: (a) the material purchases; (b) the application of conversion costs; (c) the transfer from work in process to finished goods; and (d) the sales and associated cost of goods sold for the month of January.

Identify the conditions under which firms can gain from price discrimination.

Recognize the characteristics of competitive price-searcher markets and their differences from price-taker markets.

Analyze the effects of market competition on product variety, price, and profitability.

Comprehend the role of elasticity of demand in setting prices for different consumer groups.

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Definitions:

Business Cycle

The fluctuations in economic activity that an economy experiences over a period, typically seen in periods of expansion and contraction.

Strike Activity

Actions taken by workers, typically union members, where they refuse to work in order to protest against their employer's labor practices or to push for better conditions or pay.

Market Forces

Market forces are the economic factors affecting the supply and demand of goods and services in a market, influencing prices, production, and distribution in a capitalist economy.

Employer-Initiated

Actions or policies that are begun or implemented by an employer, often relating to workplace management, changes in operation, or employee relations.