Questions from Cost Accounting

Q: The Bishop’s Falls Lumber Corporation harvests lumber and prepares it for sale

The Bishop’s Falls Lumber Corporation harvests lumber and prepares it for sale to wholesalers of lumber and wood products. The main product is finished lumber, which is sold to wholesale construction...

Q: Potato skins are generated as a by-product in making potato

Potato skins are generated as a by-product in making potato chips and frozen hash browns at Zeena Foods. The skins are sold to restaurants for use in appetizers. Processing and disposal costs associat...

Q: Hammatt Inc. provides a variety of services for commercial clients.

Hammatt Inc. provides a variety of services for commercial clients. Hammatt destroys any paper client records after seven years and the shredded paper is sold to a recycling company. The net realizabl...

Q: Diamond Jim’s makes and sells class rings for local schools. Operating

Diamond Jim’s makes and sells class rings for local schools. Operating information is as follows: Selling price per ring ………………………………………………….$600 Variable cost per ring Rings and stones ……………………...

Q: Michigan Timber uses a joint process to manufacture two grades of wood

Michigan Timber uses a joint process to manufacture two grades of wood: A and B. During October 2010, the company incurred $12,000,000 of joint production cost in producing 18,000,000 board feet of Gr...

Q: Cal-C-Yum produces milk and sour cream from a

Cal-C-Yum produces milk and sour cream from a joint process. During June, the company produced 120,000 quarts of milk and 160,000 pints of sour cream (there are two pints in a quart). Sales value at s...

Q: FINS produces three products from its fish farm: fish, fish

FINS produces three products from its fish farm: fish, fish oil, and fish meal. During July 2010, FINS produced the following average quantities of each product from each pound (16 ounces) of fish pro...

Q: MediaForum has three operating groups: Games, News, and Documentaries

MediaForum has three operating groups: Games, News, and Documentaries. In May, the company incurred $24,000,000 of joint cost for facilities and administration. May revenues and separate production co...

Q: Keiffer Production manufactures three joint products in a single process. The

Keiffer Production manufactures three joint products in a single process. The following information is available for August 2010: Allocate the joint cost of $558,000 to the production based on the a....

Q: All-A-Buzz makes three products from a joint production

All-A-Buzz makes three products from a joint production process using honey. Joint cost for the process in 2010 is $123,200. Each container of honey butter, jam, and syrup, respectively, contains 16...