Questions from Cost Accounting

Q: Ballantine Corporation has two operating departments: Eastern Department and Western Department

Ballantine Corporation has two operating departments: Eastern Department and Western Department. Each of the operating departments uses the services of the company’s two support depa...

Q: Garden Labs produces a drug used for the treatment of arthritis.

Garden Labs produces a drug used for the treatment of arthritis. The drug is produced in batches. Chemicals costing $50,000 are mixed and heated, then a unique separation process extracts the drug fro...

Q: The Chicago Oil Company buys crude vegetable oil. Refining this oil

The Chicago Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point: A, B, C, and D. Product C is fully processed by the splitoff point. Products A, B, a...

Q: The Rich and Creamy Edibles Factory manufactures and distributes chocolate products.

The Rich and Creamy Edibles Factory manufactures and distributes chocolate products. It purchases cocoa beans and processes them into two intermediate products: chocolate-powder liquor base and milk-c...

Q: Liverpool Sawmill, Inc. (LSI) purchases logs from independent

Liverpool Sawmill, Inc. (LSI) purchases logs from independent timber contractors and processes the logs into three types of lumber products: â–  Studs for residential buildings (walls...

Q: SW Flour Company buys 1 input of standard flour and refines it

SW Flour Company buys 1 input of standard flour and refines it using a special sifting process to 3 cups of baking flour and 9 cups of bread flour. In May 2017, SW bought 12,000 inputs of flour for $8...

Q: SW Flour Company has decided that their bread flour may sell better

SW Flour Company has decided that their bread flour may sell better if it was marketed for gourmet baking and sold with infused spices. This would involve additional cost for the spices of $0.80 per c...

Q: The Seattle Recycling Company (SRC) purchases old water and soda

The Seattle Recycling Company (SRC) purchases old water and soda bottles and recycles them to produce plastic covers for outdoor furniture. The company processes the bottles in a special piece of equi...

Q: Refer to Exercise 12-25. Required:

Refer to Exercise 12-25. Required: 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2017 based on actual...

Q: The accountant for SRC needs to record the information about the joint

The accountant for SRC needs to record the information about the joint and byproducts in the general journal, but is not sure what the entries should be. The company has hired you as a consultant to h...