Questions from Cost Accounting

Q: The Croydon division of CC Industries supplies the Hauser division with 100

The Croydon division of CC Industries supplies the Hauser division with 100,000 units per month of an infrared LED that Hauser uses in a remote control device it sells. The transfer price of the LED i...

Q: Letang Company has three divisions (R, S, and T

Letang Company has three divisions (R, S, and T), organized as decentralized profit centers. Division R produces the basic chemical Ranbax, in multiples of 1,000 pounds, and transfers it to divisions...

Q: Compost Systems, Inc. (CSI) operates a composting service

Compost Systems, Inc. (CSI) operates a composting service business and produces organic fertilizer that it sells to farmers in the Midwest. CSI operates with two divisions, collection and composting....

Q: Sierra Inc. consists of a semiconductor division and a process-

Sierra Inc. consists of a semiconductor division and a process-control division, each of which operates as an independent profit center. The semiconductor division employs craftsmen who produce two di...

Q: Nature’s Juice Corporation operates three divisions that process and bottle natural fruit

Nature’s Juice Corporation operates three divisions that process and bottle natural fruit juices. The historical-cost accounting system reports the following information for 2017: N...

Q: Appleton’s owns and operates a variety of casual dining restaurants in three

Appleton’s owns and operates a variety of casual dining restaurants in three cities: St. Louis, Memphis, and New Orleans. Each geographic market is considered a separate division. Th...

Q: Newmann, Inc. has divisions in the United States, France

Newmann, Inc. has divisions in the United States, France, and Australia. The U.S. division is the oldest and most established of the three and has a cost of capital of 6%. The French division was star...

Q: News Report Group has two major divisions: Print and Internet.

News Report Group has two major divisions: Print and Internet. Summary financial data (in millions) for 2016 and 2017 are as follows: The two division managers’ annual bonuses are b...

Q: Janet’s Bakery is thinking about replacing the convection oven with a new

Janet’s Bakery is thinking about replacing the convection oven with a new, more energy-efficient model. Information related to the old and new ovens follows: Ignore the effect of in...

Q: John Mendenhall seeks your advice on revising the existing bonus plan for

John Mendenhall seeks your advice on revising the existing bonus plan for division managers of News Report Group. Assume division managers do not like bearing risk. Mendenhall is considering three ide...