Questions and Answers of Management And Cost Accounting 11th

Cornerstone Ltd carries an item of inventory to which the following data apply:fixed cost of ordering per batch ................................ £5expected steady quarterly volume of sales
A jewellery company makes rings (R) and necklaces (N).The resources available to the company have been analysed and two constraints have been identified:Labour time 3R + 2N ≤ 2,400 hoursMachine
The economic order quantity is the order quantity which results in:(a) The lowest cost of ordering inventory;(b) The highest discount from suppliers;(c) The lowest combined total costs of ordering
Cathedral City Services (CCS) is a not-for-profit organization offering two services in a midsized city. The services are “Elder Meals” and “Jobs 4U.” Elder Meals is a meals-on-wheels type
Forest Products, Inc. manufactures three products (FP-10, FP-20, and FP-40) from a single, joint input. None of the products can be sold without further processing. In November, joint product costs
Refer to the data in Exercise 14-37. Data in Exercise 14-37.Houghton Chemicals, which started operations one year ago, has two divisions: Alloys and Petro. Both divisions invest heavily in
Veach Division has total assets (net of accumulated depreciation) of $462,000 at the beginning of year 1. One of the assets is a machine that has a net book value of $42,000. Expected divisional
Lola Metals has two decentralized divisions, Stamping and Finishing. Finishing always has purchased certain units from Stamping at $36 per unit. Stamping plans to raise the price to $48 per unit, the
Grand Amusements, Inc. (GAI) has two operating divisions, Parks and Foods. The two divisions have a marketing agreement to provide incentives to customers. Parks Division offers vouchers good for
Durham Parts (DP) makes a variety of products. It is organized in two divisions, Eastern and Western. The managers for each division are paid, in part, based on the financial performance of their
Luce Original Baking Supplies (LOBS) sells equipment to homes and small businesses for baking. There are two distribution channels. Customers can shop and purchase at a retail outlet located near the
Rowe Tool and Die (RTD) produces metal fittings as a supplier to various manufacturing firms in the area. The following is the forecasted income statement for the next quarter, which is the typical
Couzen’s Company’s cost structure is dominated by variable costs with a contribution margin ratio of .25 and fixed costs of $450,000. Every dollar of sales contributes 25 cents toward fixed costs
Miami Training Support (MTS) produces materials for companies to use for training new hires as well as advanced training for employees who have been promoted to new positions. Most of the material
Nardin Outfitters has the capacity to produce 12,000 of its special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $900 per tent. The
What is a special order? What costs should be considered for a special order?
Parkview Fish Tacos sells tacos for $4.50 each. The cost of each taco follows: One of Parkview’s regular customers asked the company to fill a special order of tacos at a selling price of
What are predatory pricing, dumping, and price discrimination? What role would a cost accountant play in determining whether dumping or price discrimination has occurred?
Coram Audio makes wireless headphones. Each pair of headphones comes with a travel case. Since its founding, Coram has manufactured its own travel cases. Recently, Holmur Travel Gear (HTG), a local
Brandon Technology makes two models of a specialized sensor for the aerospace industry. The difference in the two models relates to the required accuracy of the sensor. The Standard model is
Florida Kitchens produces high-end cooking ranges. The costs to manufacture and market the ranges at the company’s volume of 3,000 units per quarter are shown in the following table: The
Nagle Devices produces medical instruments, primarily for hospital and medical office use. A new design for its best-selling hospital thermometer has the marketing team considering possibly entering
Platt Instruments produces and sells medical devices for both home and professional use. One line of products that has been consistently profitable for Platt is its range of sphygmomanometers (blood
Mcquade Equipment is considering a new product for the road construction industry. The analyst has collected some information about the product design, summarized as follows:The marketing group at
Lakeside Accessories manufactures computer backpacks, messenger bags, and other items for carrying electronics, documents, and so on. In developing a new bag for the newest release of laptops, the
Greenview Dairies produces a line of organic yogurts for sale at supermarkets and specialty markets in the Southeast. Economic conditions and changing tastes have resulted in slowing demand growth.
Sparta Fashions owns four clothing stores, where it sells a wide range of women’s fashions, from casual attire to formal wear. In addition, it rents formal wear and gowns for special occasions. At
Talbot Industries manufactures two models of wireless headset: TI-12 and TI-28. Each model requires time on a single machine. The machine has a monthly capacity of 540 hours. Total market demand for
Ontario Audio makes a popular satellite radio receiver for over-the-road trucks and other professional uses. The two major parts of the radio are the electronics (receiver, speaker, and so on) and
Senator Pet Foods makes a variety of canned and dried food for pets. The Center Street Manufacturing Campus is the site of the original Senator plant and is used solely for the production of its
Pierson Products manufactures furniture, primarily for institutional use, such as for furniture rental companies, college dorm rooms, and budget hotel and motel chains. The company’s Verne Valley
Ferdinand Construction (FC) manages the design and construction of hospitals. Ferdinand has developed several formulas that it uses to quote jobs. These include costs of basic construction but
Collingwood Contractors (CC) designs and builds new model homes for individual customers. CC has developed a reputation in the market for relatively upscale, unique designs with highend finishings.
Consider the Business Application item “Data Analytics for Managing Operations and Forecasting Revenue.” How would using analytic techniques, including regression analysis, be similar for
You are in the middle of performing a cost study and are using statistical regression analysis to make some cost estimates. As you proceed, you realize that there could be errors in the accounting
Consider a bank that offers both online and branch access for customers. Based on the estimated costs of service through the two channels, the bank has decided it should motivate customers to use
Dickerson Consultants offers logistics advice for large retail firms. Dickerson classifies its consultants into three categories, based on their experience and skills. The three levels are partner,
Summit Corporation manufactures machines for the apparel industry. The production manager and cost analyst reviewed the accounts for the previous quarter and have provided an estimated breakdown of
Hemlock Nutritional Supplements (HNS) provides you with the following accounting records on manufacturing cost for the most recent month:Production was 60,000 units (cases). Fixed manufacturing
Hughes Payroll and Clerical Services (HPCS) provides payroll, bookkeeping, and other services to small businesses. HPCS financial records show the following costs for last quarter (QTR 1):HPCS
Fiske Corporation manufactures a popular regional brand of kitchen utensils. The design and variety have been fairly constant over the last three years. The managers at Fiske are planning for some
Waveney DIY Centers (WDC) operates a few dozen stores in the eastern United States. The stores are popular with home remodelers, contractors, and do-it-yourself customers. The managers at Waveney are
Belfast Export-Import Partners has a large staff of buyers and sales personnel who travel extensively on company business. The CFO is trying to manage travel costs for the sales staff and has
Point Products produces field hockey balls, which are packaged in cases. The balls are produced in a single plant. Because of the nature of the production process at Point Products, overhead includes
Fordson Bank operates a branch in a relatively small rural community. Fordson has a strong customer service focus and knows that branch visits can be important in fostering a reputation for good
Goulburn, Inc. produces parts for heavy equipment used in mining and construction. The plant that produces one part common to many vehicles is highly automated, so all labor is considered part of
Aurora Town Museum is a small town historical and cultural museum specializing in artifacts from early settlers and local residents. The town council is interested in understanding the costs of the
Winkleman Associates requires prospective recruits to take an examination that includes both computational and essay questions. It employs contract workers to grade the exams. Hiring of Winkleman
Fill in the missing items for the following inventories: Beginning balance..... Ending balance.. Transferred in.. Transferred
Fill in the missing items for the following inventories: Beginning balance.. Ending balance.. Transferred in ... Transferred out.. A $6,700 5,600 17,000 B $ 5,700 41,350 40,750 C $
How are job order, process, and operations costing the same? How are they different?
Fill in the missing items for the following inventories: Beginning balance. Ending balance.. Transferred in Transferred out... A $6,800 6,400 7,600 B $10,000 10,400 10,800 C $ 7,500 5,500 52,500
What is two-stage cost allocation?
Seville Chemicals produces a fuel additive. Operating data for January follow. RequiredCompute the cost per barrel of the additive produced in January. Materials .... Labor .... Manufacturing
Barrett eSellers is an online retail store offering a variety of products. As a part of its business model, it offers free returns. The returns are processed at the Returns Processing Facility (RPF)
In October, Seville Chemicals produced 22,500 barrels of the additive. Manufacturing overhead was $285,000 and the cost per barrel was $16.30. Materials costs were four times greater than labor
Duffield Lubricants produces oil-based machine lubricants. On December 1, it had no work-inprocess inventory. It starts production of 86,000 gallons of lubricant in December and completes 72,000
Cedargrove Cider processes and bottles apple cider for sale through retail and big box grocery outlets. It had no work in process on May 31 in its only inventory account. The company started 19,100
Bremen Fitness Products produces a sports drink. On October 1, it had no work-in-process inventory. It started production of 9,000 cases of the drink in October and shipped 7,800 cases to retailers.
Gullen Partners produces cleaning solvents. On September 1, it had no work-in-process inventory. It started production of 56,000 gallons of solvent in September and completed production of 47,000
Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow.Requireda. Compute the predetermined
Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and
Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for next quarter:Tacoma uses
Refer to the data in Exercise 6-38. Data from in Exercise 6-38Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and
Refer to the data in Exercise 6-38. Data from in Exercise 6-38.Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and
Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow.Requireda. Compute the
Spring Garden Vegetables (SGV) processes two brands of frozen vegetables, Valu-PAK and Gourmet. The two brands are processed in one factory using the same production process. The only difference
Refer to the information in Exercise 6-46 for Harmon Recycling Services (HRS). The company is considering using a two-stage cost allocation system and wants to assess the effects on reported product
Westover Travel offers travel packages using both air and ocean travel. Westover offers two packages, Tourist and Premier, that differ in the accommodations, class of travel, and so on. Westover has
Larned Recreational builds two models of dune buggies: Sport and Custom. Both models require the same assembly and finishing process and are assembled in the same factory. They differ in the quality
Piper Recreational Vehicles (PRV) modifies vans into recreational vehicles. PRV offers two models, the XC-2 and XC-6, which differ in the quality of the basic van and the workmanship and machining
Elmira Tool and Die makes machine tools to order. The following transactions occurred in October: 1. Issued $2,800 of supplies from the materials inventory.2. Purchased $42,000 of materials.3.
Selected information from the Iowa Instruments accounting records for April follows: Additional information for April follows:∙ The labor wage rate was $30 per hour.∙ During the month,
Barker Products is a job shop. The following events occurred in September: 1. Purchased $13,000 of materials.2. Issued $14,500 in direct materials to the production department.3. Purchased
What are two different ways of treating the difference between applied overhead and actual overhead at the end of the accounting period?
Refer to the information in Exercise 7-34. The amount of overhead applied in each of the inventory accounts at the end of Year 1 is as follows. RequiredPrepare an entry to allocate the over- or
In computing the predetermined overhead rate, the cost accountant must determine the period over which to estimate the overhead and the allocation base (direct labor-hours, for example). Why are
Consider the Business Application “Fraudulent Reporting of Project Completion to Improve Financial Performance.” Would a solution to the problem of misreporting in the case of projects be solved
Jason’s Custom Tooling (JCT) uses a job order cost system and applies overhead using a predetermined overhead rate based on direct labor costs. The following debits (credits) appeared in
Sturgis Manufacturing produces one model of precision tool and accounts for costs using a job cost system. Information from the most recent fiscal year indicates the following. ∙ Total
Wanda Instrumentation produces navigational equipment for ships, aircraft (both staffed and drones), and land vehicles. The parts are produced to specification by their customers. Depending on the
Antoine Machining estimated its manufacturing overhead to be $279,000 and its direct materials costs to be $450,000 in Year 1. Three of the jobs that Antoine Machining worked on in Year 1 had actual
Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates that direct labor costs will amount to $750,000. During March, Linzee worked on four jobs
Fulton Construction is a general contractor for large construction projects. The budget costs and the time to reach a particular percentage of completion (in months) follow. Also shown are the actual
Refer to the information in Exercise 7-36.Data in Exercise 7-36. Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates its
Sorrento Products uses a job costing accounting system for its manufacturing costs. A predetermined overhead rate based on machine-hours is used to apply overhead to individual jobs. An estimate of
Louisiana Metals uses a job costing system. The company applies manufacturing overhead using a predetermined rate based on direct labor cost. The following debits (credits) appeared in the
In October, Temptations Event Planners (TEP) planned events for two clients. TEP worked 140 hours for Ward Corporation and 240 hours for Girardin Industries. TEP bills clients at the rate of $350 per
Farnsworth Executive Coaching (FEC) offers services to firms in advising executives on improving productivity and leadership. For August, FEC worked 660 hours for Grace Corporation and 390 hours for
Queenston Professional Support (QPS) provides professional services (IT, payroll and billing, and so on) to firms requiring temporary help in those areas. QPS bills clients for its various services
Jerome Shipyards does work for both the U.S. Navy and private shipping companies. Jerome’s major business is renovating ships, which it does at one of two company dry docks referred to by the names
Highway 1 Manufacturing (H1M) produces several, related products in multiple factories. At one facility, which produces only a single product, managers are debating whether to use a predetermined
Edwin Parts, a job shop, recorded the following transactions in May:1. Purchased $87,200 in materials on account.2. Issued $3,650 in supplies from the materials inventory to the production
Kenmore Fabrication estimated that direct labor cost for the year would be $640,000. The company also estimated that fixed overhead would be $480,000 and variable overhead would be 35 percent of
Kingsley Products estimated that direct labor for the year would be 64,000 hours. The company also estimated that the fixed overhead cost for the year would be $160,000. They further estimated the
Rutland Business Services (RBS) provides miscellaneous consulting and services to local businesses. In August, RBS worked for three clients. It worked 270 hours for Selden Contracting, 170 hours for
Shirley Processing, Inc. (SPI) makes adhesive tape and uses a FIFO process costing system. The following information shows the physical flow of units and costs for the month of March:Requireda.
Buelow, LLP, is a consulting firm that helps organizations become more efficient. A supervisor on two consulting jobs discusses an issue that arose recently. One of the consulting jobs is for a large
Radford Products adds materials at the beginning of the process in Department A. The following information on physical units for Department A for the month of January is available.Requireda. Compute
Spokane, Inc. is a manufacturing company that produces parts both for inventory and to custom specifications. Parts produced for inventory are sold at prices determined in the market. Custom parts

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