Questions from Cost Accounting

Q: For the past two years, Worldwide Cell Phones (WCP)

For the past two years, Worldwide Cell Phones (WCP) has been working to improve the quality of its phones. Data for 2016 and 2017 follows (in thousands of phones): Required: 1. For each year, 2016 an...

Q: Turnkey Manufacturing evaluates the performance of its production managers based on a

Turnkey Manufacturing evaluates the performance of its production managers based on a variety of factors, including cost, quality, and cycle time. The following are nonfinancial measures for quality a...

Q: Best Trim, a manufacturer of lawn mowers, predicts that it

Best Trim, a manufacturer of lawn mowers, predicts that it will purchase 204,000 spark plugs next year. Best Trim estimates that 17,000 spark plugs will be required each month. A supplier quotes a pri...

Q: Wonder Line (WL) operates a megastore featuring sports merchandise.

Wonder Line (WL) operates a megastore featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. It is now considering inventory decisions for its Los Angeles Galaxy socc...

Q: Sportsman Textiles (ST) manufactures the Galaxy jerseys that Wonder Line

Sportsman Textiles (ST) manufactures the Galaxy jerseys that Wonder Line (WL) sells to its customers. ST has recently installed computer software that enables its customers to conduct “one-stop” purch...

Q: The Fabric World sells fabrics to a wide range of industrial and

The Fabric World sells fabrics to a wide range of industrial and consumer users. One of the products it carries is denim cloth, used in the manufacture of jeans and carrying bags. The supplier for the...

Q: Sk8 Company produces skateboards and purchases 20,000 units of a

Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant car...

Q: Alpha Company’s annual demand for its only product, XT-590

Alpha Company’s annual demand for its only product, XT-590, is 10,000 units. Alpha is currently analyzing possible combinations of relevant carrying cost per unit per year and relevant ordering cost p...

Q: The Knot manufactures men’s neckwear at its Spartanburg plant. The Knot

The Knot manufactures men’s neckwear at its Spartanburg plant. The Knot is considering implementing a JIT production system. The following are the estimated costs and benefits of JIT production: a. A...

Q: Grand Devices Corporation assembles handheld computers that have scaled-down capabilities

Grand Devices Corporation assembles handheld computers that have scaled-down capabilities of laptop computers. Each handheld computer takes 6 hours to assemble. Grand Devices uses a JIT production sys...