Questions from Cost Accounting

Q: Beans Unlimited sells specialty coffees in 1-kilogram packages. Fixed

Beans Unlimited sells specialty coffees in 1-kilogram packages. Fixed costs are budgeted at $730,000 per year. For the upcoming year, revenues are forecasted to be $3,240,000 (selling price is $36 per...

Q: Charles Rothman is an importer of silver cuff bracelets from Mexico.

Charles Rothman is an importer of silver cuff bracelets from Mexico. He has a three-month agreement with the local coffee shop, Dellano’s, to set up a booth to exhibit the jewellery. Rothman is under...

Q: Saunders’ Electronics had the following results for the year just ended:

Saunders’ Electronics had the following results for the year just ended: Jeff Saunders, the owner of the store, is unhappy with the operating results. An analysis of other operat...

Q: Durdon Snowboards sells two models of snowboards: the Men’s Dominator and

Durdon Snowboards sells two models of snowboards: the Men’s Dominator and the Ladies’ Luxury. Information on the two models of snowboards follows: Durdonâ&...

Q: An auditor for Canada Revenue Agency is trying to reconstruct some partially

An auditor for Canada Revenue Agency is trying to reconstruct some partially destroyed records of two taxpayers. For each case in the accompanying list, find the unknowns designated by capital letters...

Q: XKY Manufacturing has recently opened a plant in Costa Melon in order

XKY Manufacturing has recently opened a plant in Costa Melon in order to take advantage of certain tax benefits. In order to qualify for these tax benefits, the company’s direct manufacturing labour c...

Q: Kamal Diamond is the owner of the Galaxy chain of four-

Kamal Diamond is the owner of the Galaxy chain of four-star prestige hotels. These hotels are in Chicago, London, Los Angeles, Montreal, New York, Seattle, Tokyo, and Vancouver. Diamond is currently s...

Q: Sam Nash is the head of new product development of Forever Young

Sam Nash is the head of new product development of Forever Young (FY). Nash is currently considering Enhance, which would be FY’s next major product in its beauty/cosmetics line and its estimated unit...

Q: (J. Watson) Pearson Ltd. uses a normal job

(J. Watson) Pearson Ltd. uses a normal job-costing system and applies overhead on the basis of direct labour-hours. At the beginning of the year, the company estimated that total overhead costs for th...

Q: Michael Scott books tours for new bands, and arranges to print

Michael Scott books tours for new bands, and arranges to print T-shirts and produce demo CDs to sell on the tour. Scott’s agency uses a normal costing system with two direct cost poo...