Questions from Cost Accounting

Q: Tappan, Inc., manufactures one product and accounts for costs using

Tappan, Inc., manufactures one product and accounts for costs using a job cost system. You have obtained the following information from the corporation’s books and records for the year ended December...

Q: Kim’s Asphalt does driveway and parking lot resurfacing work for large commercial

Kim’s Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential clients. An inventory of materials and equipment is on hand at...

Q: What is the difference between product costs and period costs?

What is the difference between product costs and period costs?

Q: It is your first day at a new job and you talk

It is your first day at a new job and you talk about the themes of cost system design. One of your new colleagues asks, “If different cost information is used for different purposes, does that mean we...

Q: Old Port Shipyards does work for both the U.S.

Old Port Shipyards does work for both the U.S. Navy and private shipping companies. Old Port’s major business is renovating ships, which it does at one of two company dry docks refer...

Q: The following balances are from the accounts of Hill Components:

The following balances are from the accounts of Hill Components: Direct materials used during the year amount to $59,800, and the cost of goods sold for the year was $68,900. Required Find the foll...

Q: Mark Corporation estimates its manufacturing overhead to be $90,000

Mark Corporation estimates its manufacturing overhead to be $90,000 and its direct labor costs to be $200,000 for year 1. The actual direct labor costs were $50,000 for Job 301, $75,000 for Job 302, a...

Q: “Cost allocation is arbitrary, so there is nothing gained by

“Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that we know are direct.” Do you agree? Why?

Q: Refer to the information in Exercise 7-25. Prepare an

Refer to the information in Exercise 7-25. Prepare an entry to allocate the under- or overapplied overhead. Overhead applied in each of the inventory accounts is as follows: Work-in-process inventory...

Q: Aspen Company estimates its manufacturing overhead to be $625,000

Aspen Company estimates its manufacturing overhead to be $625,000 and its direct labor costs to be $500,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2,...