Pestiferous Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments:
Mixing, Refining, and Packaging.
On January 1, the first department, Mixing had no beginning inventory. During January, 46,000 fl. oz. of chemicals were started in production. Of these, 36,000 fl. oz. were completed, and 10,000 fl. oz. remained in the process. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly throughout the process.

At the end of January, the equivalent unit data for the Mixing Department were as follows:

UNITS Equivalent Units Equivalent Units
Units to be accounted for Direct Materials Costs Conversion Costs
Completed and transferred out 40,000 40,000 40,000
Ending work-in-process* 8,000 8,000 3,520
48,000 48,000 43,520
* Percent complete for conversion costs: 44%

In addition to the above, the cost per equivalent unit was $1.35 for direct materials and $5.30 for conversion costs.
Using this data, calculate the full cost of the ending WIP balance in the Mixing Department. The weighted-average method is used.

Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are $5 billion and that variable costs are equal to $17,000 per finished automobile. because more firms increase competition in the market, the market price falls as more firms enter an automobile market, or specifically, , where n represents the number of firms in a market. assume that the initial size of the u.s. and the european automobile markets are 300 million and 533 million people, respectively.a. calculate the equilibrium number of firms in the u.s. and european automobile markets without trade.b. what is the equilibrium price of automobiles in the united states and europe if the automobile industry is closed to foreign trade? c. now suppose that the united states decides on free trade in automobiles with europe. the trade agreement with the europeans adds 533 million consumers to the automobile market, in addition to the 300 million in the united states. how many automobile firms will there be in the united states and europe combined? what will be the new equilibrium price of automobiles? d. why are prices in the united states different in (c) and (b)? are consumers better off with free trade? in what ways?