Questions from Cost Accounting

Q: Batwings makes one-size-fits-most capes. Each

Batwings makes one-size-fits-most capes. Each cape goes through the same conversion process, but three types of fabric (Dacron, denim, and cotton) are available. The company uses a standard costing sy...

Q: Pat Koontz makes necklaces from glass beads, metal beads, and

Pat Koontz makes necklaces from glass beads, metal beads, and natural beads. After reading about hybrid costing, she realized that the different types of necklaces did not cost the same amount of mone...

Q: Green Shade manufactures insulated windows. The firm’s repair and maintenance (

Green Shade manufactures insulated windows. The firm’s repair and maintenance (R&M) cost is mixed and varies most directly with machine hours worked. The following data have been...

Q: Oehkle Inc. produces paint in a process in which spoilage occurs

Oehkle Inc. produces paint in a process in which spoilage occurs continually. Spoilage of 2 percent or fewer of the gallons of raw material placed into production is considered normal. The following o...

Q: Hebert Industries uses a weighted average process costing system. Management has

Hebert Industries uses a weighted average process costing system. Management has specified that the normal loss from shrinkage cannot exceed 3 percent of the units started in a period. All raw materia...

Q: In manufacturing its products, Trevano Corp. adds all direct material

In manufacturing its products, Trevano Corp. adds all direct material at the beginning of the production process. The company’s direct labor and overhead are considered to be continuously at the same...

Q: O’Malley Corp. uses a weighted average process costing system. Material

O’Malley Corp. uses a weighted average process costing system. Material is added at the beginning of the production process and overhead is applied on the basis of direct labor. O’Malley’s records ind...

Q: For each of the following situations, use the weighted average method

For each of the following situations, use the weighted average method to determine the equivalent units of production for labor and overhead, assuming that they are continuously at the same percentage...

Q: Assume that Trevano Corp. in Exercise 15 uses the FIFO method

Assume that Trevano Corp. in Exercise 15 uses the FIFO method of process costing. a. What proportion of work needs to be performed on the beginning inventory units to complete them? b. What are the eq...

Q: Assume that O’Malley Corp. in Exercise 16 uses the FIFO method

Assume that O’Malley Corp. in Exercise 16 uses the FIFO method of process costing. a. What are the equivalent units of production for direct material? b. What are the equivalent units of production fo...