The following transactions occurred in June at Fast Wheels, Inc., a custom bicycle manufacturer:
1. Purchased $2,000 of materials.
2. Issued $100 of supplies from the materials inventory.
3. Purchased $2,500 of materials.
4. Paid for the materials purchased in transaction (1).
5. Issued $3,000 in direct materials to the production department.
6. Incurred direct labor costs of $2,500, which were credited to Wages Payable.
7. Paid $2,150 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing
shop.
8. Applied overhead on the basis of 125 percent of direct labor costs.
9. Recognized depreciation on manufacturing property, plant, and equipment of $500.
The following balances appeared in the accounts of Fast Wheels for June:
Beginning Ending
Materials Inventory $ 900 ?
Work-in-Process Inventory 1,650 ?
Finished Goods Inventory 6,500 $ 3,650
Cost of Goods Sold 7,300
Required
a. Prepare journal entries to record the transactions.
b. Prepare T-accounts to show the ow of costs during the period from Materials Inventory through Cost of Goods Sold.

Which of the following is most likely to lead to a general decrease in wages? a. elastic demand b. public goods c. an economic recovery d. immigration 2b2t

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

The production manager of rordan corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st quarter 2nd quarter 3rd quarter 4th quarter units to be produced 10,800 8,500 7,100 11,200 each unit requires 0.25 direct labor-hours, and direct laborers are paid $20.00 per hour. required: 1. prepare the company’s direct labor budget for the upcoming fiscal year. assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. 2. prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,500 hours of work each quarter. if the number of required direct labor-hours is less than this number, the workers are paid for 2,500 hours anyway. any hours worked in excess of 2,500 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.