Questions from Cost Accounting

Q: For each of the following firms, determine whether it is more

For each of the following firms, determine whether it is more likely to use job order or process costing. This firm a. provides legal services. b. is a health-care clinic. c. manufactures shampoo. d....

Q: The law firm of Taub & Lawson, LLP, currently has

The law firm of Taub & Lawson, LLP, currently has four cases in process. Following is information related to those cases as of the end of March 2010: Taub & Lawson allocates overhead to cases...

Q: Mystic Inc. uses a job order costing system and applies overhead

Mystic Inc. uses a job order costing system and applies overhead to jobs at a predetermined rate of $4.25 per direct labor dollar. During April 2010, the company spent $29,600 on direct material and $...

Q: Tennessee Tack manufactures horse blankets. In 2010, fixed overhead was

Tennessee Tack manufactures horse blankets. In 2010, fixed overhead was applied to products at the rate of $8 per unit. Variable cost per unit remained constant throughout the year. In July 2010, inco...

Q: Rio Valde Co. uses a normal cost, job order costing

Rio Valde Co. uses a normal cost, job order costing system. In the Mixing Department, overhead is applied using machine hours; in Paving, overhead is applied using direct labor hours. In December 2009...

Q: Country Products manufactures quilt racks. Pine is introduced in Department 1

Country Products manufactures quilt racks. Pine is introduced in Department 1, where the raw material is cut and assembled. In Department 2, completed racks are stained and packaged for shipment. Depa...

Q: Routine maintenance services are provided by Latamore Industries to oil and gas

Routine maintenance services are provided by Latamore Industries to oil and gas firms in their production facilities. Although many of the client services are relatively unique, some services are repe...

Q: Weingold Inc. engages in routine and customer print jobs for customers

Weingold Inc. engages in routine and customer print jobs for customers. In November 2010, a client specified the use of one of the company’s standard papers for a large job, but asked for a high level...

Q: Harvey Inc. uses a standard cost system for labor. Standard

Harvey Inc. uses a standard cost system for labor. Standard costs for material cannot be used because customers require unique materials and all jobs are different sizes. One of the company’s jobs exp...

Q: Bonivo Inc. manufactures computers from commodity components to client specifications.

Bonivo Inc. manufactures computers from commodity components to client specifications. The company has historically tracked only the cost of components to computers, and computer selling prices, or bi...