Questions from Cost Accounting

Q: Best Bakery is considering the purchase of a new delivery truck to

Best Bakery is considering the purchase of a new delivery truck to replace an existing unit. The truck would cost $45,000 and would have a life of 7 years with no salvage value. The existing truck cou...

Q: Pneu Shoe Company manufactures various types of athletic shoes. Several types

Pneu Shoe Company manufactures various types of athletic shoes. Several types require a built-in air pump. Presently, the company makes all air pumps it requires. However, management is evaluating an...

Q: Shelly’s Tax Services prepares tax returns for individuals and small businesses.

Shelly’s Tax Services prepares tax returns for individuals and small businesses. The firm employs four tax professionals. Currently, all tax returns are prepared on a manual basis. The firm’s owner, S...

Q: Pete’s Paving provides custom paving of sidewalks and driveways. One of

Pete’s Paving provides custom paving of sidewalks and driveways. One of the most labor-intensive aspects of the paving operation is preparing and mixing materials. Sharon Guillon, corporate engineer,...

Q: The owner of Bolt’s Cold Storage is considering a $195,

The owner of Bolt’s Cold Storage is considering a $195,000 installation of a new refrigerated storage room. The storage room has an expected life of 20 years with no salvage value. The storage room is...

Q: Forester Fashions is considering the purchase of computerized clothes-designing software

Forester Fashions is considering the purchase of computerized clothes-designing software. The software is expected to cost $320,000, have a useful life of 5 years, and have no salvage value at the end...

Q: In its first year of operations, Utah Utility Trailers incurred the

In its first year of operations, Utah Utility Trailers incurred the following costs: Variable production cost …………………………………………$ 2,800 per unit Variable selling and administrative cost ……………………….200 pe...

Q: Casper Karts manufactures a three-wheeled shopping cart that sells for

Casper Karts manufactures a three-wheeled shopping cart that sells for $60. Variable manufacturing and variable selling cost are, respectively, $35 and $10 per unit. Annual fixed cost is $975,000. a....

Q: Beantown Baseball Company makes baseballs that sell for $13.00

Beantown Baseball Company makes baseballs that sell for $13.00 per two-pack. Current annual production and sales are 960,000 baseballs. Costs for each baseball are as follows: Direct material ……………………...

Q: Aqua Gear, in business since 2008, makes swimwear for professional

Aqua Gear, in business since 2008, makes swimwear for professional athletes. Analysis of the firm’s financial records for the current year reveals the following: Average swimsuit selling price ………………...