Questions from Cost Accounting

Q: Calista London, after spending 20 years working for a large engineering

Calista London, after spending 20 years working for a large engineering firm, has decided to start her own business. She has designed a product to remove jar lids with minimal physical effort. London...

Q: Salem Corp. contracted for a specialized production machine from Quindo Industries

Salem Corp. contracted for a specialized production machine from Quindo Industries, a tool company. The contract specified a price equal to “production cost plus 15% of production cost.” A sales execu...

Q: Nottaway Flooring produces custom-made floor tiles. The company’s Raw

Nottaway Flooring produces custom-made floor tiles. The company’s Raw Material Inventory account contains both direct and indirect materials. Until the end of April 2010, the company worked solely on...

Q: Croftmark Co. began operations on May 1, 2010. Its

Croftmark Co. began operations on May 1, 2010. Its Work in Process Inventory account on May 31 appeared as follows: The company applies overhead on the basis of direct labor cost. Only one job was sti...

Q: The following costs were incurred in February 2010 by Container Corp.,

The following costs were incurred in February 2010 by Container Corp., which produces customized steel storage bins: The balance in Work in Process Inventory on February 1 was $16,800, which consisted...

Q: Blaine Corp. makes floats for Mardi Gras in New Orleans.

Blaine Corp. makes floats for Mardi Gras in New Orleans. The company’s fiscal year ends on March 31. On January 1, 2010, the company’s WIP Inventory account appeare...

Q: On September 25, 2010, a hurricane destroyed the work in

On September 25, 2010, a hurricane destroyed the work in process inventory of Biloxi Corporation. At that time, the company was in the process of manufacturing two custom jobs (B325 and Q428). Althoug...

Q: You have applied for a cost accounting position with Chelsea Containers.

You have applied for a cost accounting position with Chelsea Containers. The company controller has asked all candidates to take a quiz to demonstrate their knowledge of job order costing. Chelsea&aci...

Q: Porta Light manufactures a highquality LED flashlight for home/office use

Porta Light manufactures a highquality LED flashlight for home/office use. Data pertaining to the company’s 2010 operations are as follows: Production for the year …………………………………………………45,000 units Sale...

Q: All jobs at Frankfurt Inc., which uses a job order costing

All jobs at Frankfurt Inc., which uses a job order costing system, go through two departments (Fabrication and Assembly). Overhead is applied to jobs based on machine hours in Fabrication and on labor...