Questions from Cost Accounting


Q: Wechsler Company produces three products: A130, B324, and C587

Wechsler Company produces three products: A130, B324, and C587. All three products use the same direct material, Brac. Unit data for the three products are: The demand for the products far exceeds th...

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Q: Gormley Precision Tools makes cutting tools for metalworking operations. It makes

Gormley Precision Tools makes cutting tools for metalworking operations. It makes two types of tools: A6, a regular cutting tool, and EX4, a high precision cutting tool. A6 is manufactured on a regula...

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Q: Washington Industries manufactures electronic testing equipment. Washington also installs the equipment

Washington Industries manufactures electronic testing equipment. Washington also installs the equipment at customers’ sites and ensures that it functions smoothly. Additional informa...

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Q: Suppose that the market for silk-screened T-shirts grew

Suppose that the market for silk-screened T-shirts grew by 10% during 2017. All increases in sales greater than 10% are the result of Gianni’s strategic actions. From exercise 21:...

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Q: Damon Furniture (DF) produces fiberglass doors in two processes:

Damon Furniture (DF) produces fiberglass doors in two processes: molding and finishing. DF is currently producing two models: Masoline and Aldernite. Production in the molding department is limited by...

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Q: Ainsley Corporation has four operating divisions. The budgeted revenues and expenses

Ainsley Corporation has four operating divisions. The budgeted revenues and expenses for each division for 2017 follows: Further analysis of costs reveals the following percentages of variable costs...

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Q: Nelson River Tours, a division of Old World Travel, offers

Nelson River Tours, a division of Old World Travel, offers two types of guided fishing tours, Beginner and Advanced. Operating income for each tour type in 2017 is as follows: The equipment has a zer...

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Q: Della Simpson, Inc., sells two popular brands of cookies:

Della Simpson, Inc., sells two popular brands of cookies: Della’s Delight and Bonny’s Bourbon. Della’s Delight goes through the Mixing and Baking...

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Q: As a result of the actions taken, quality has significantly improved

As a result of the actions taken, quality has significantly improved in 2017 while rework and unit costs of the Orlicon have decreased. Scott has reduced manufacturing capacity because capacity is no...

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Q: Suppose that during 2017, the market for DVD players grew 10

Suppose that during 2017, the market for DVD players grew 10%. All increases in market share (that is, sales increases greater than 10%) and decreases in the selling price of the Orlicon are the resul...

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