Questions from Cost Accounting

Q: Bill Dundee is the owner and operator of Western Bottling, a

Bill Dundee is the owner and operator of Western Bottling, a bulk soft-drink producer. A single production process yields two bulk soft drinks, Rainbow Dew (the main product) and Resi-Dew (the byprodu...

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

The Sunshine 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,...

Q: Consider the following scenario. Each day, a butcher buys a

Consider the following scenario. Each day, a butcher buys a 200-kilogram pig for $360. The pig can be processed to yield the following three products: Day 1 The butcher buys a pig. The $360 joint co...

Q: Amy James is a cost accountant and business analyst for Doorknob Design

Amy James is a cost accountant and business analyst for Doorknob Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct cost categories: direct materials and direct ma...

Q: West-Coast Oceanic Water (WOW) desalinates and bottles sea

West-Coast Oceanic Water (WOW) desalinates and bottles sea water. The desalinated water is in high demand from a large group of environmentally conscious people on the west coast of Canada. During Mar...

Q: Montreal Dairy Products Corp buys one input, full-cream milk

Montreal Dairy Products Corp buys one input, full-cream milk, and refines it in a churning process. From each gallon of milk, Montreal produces two cups (one pound) of butter and two quarts (eight cup...

Q: Montreal has decided that buttermilk might sell better if it were marketed

Montreal has decided that buttermilk might sell better if it were marketed for baking and sold in pints. This would involve additional packaging at an incremental cost of $0.25 per pint. Each pint cou...

Q: The Cumberland Mine is a small mine that extracts coal in central

The Cumberland Mine is a small mine that extracts coal in central Alberta. Each tonne of coal mined is 40% Grade A coal, 40% Grade B coal, and 20% coal tar. All output is sold immediately to a local u...

Q: Cumberland’s accountant needs to record the information about the joint products and

Cumberland’s accountant needs to record the information about the joint products and byproducts in the general journal, but is not sure what the entries should be. Cumberland Mines has hired you as a...

Q: Pulkits Silk Shirts (PSS) hand-makes blouses and sells

Pulkits Silk Shirts (PSS) hand-makes blouses and sells them to highend department stores. PSS buys bolts of silk for $300 each. Out of each bolt it gets 30 blouses, which it sells for $90 each. PSS’s...