Questions from Cost Accounting

Q: Marcia Miller is division controller and Tom Maloney is division manager of

Marcia Miller is division controller and Tom Maloney is division manager of the Ramses Shoe Company. Miller has line responsibility to Maloney, but she also has staff responsibility to the company con...

Q: The Wood Spirits Company produces two products—turpentine and methanol (

The Wood Spirits Company produces two products—turpentine and methanol (wood alcohol)—by a joint process. Joint costs amount to $120,000 per batch of output. Each batch totals 10,000 gallons: 25% meth...

Q: The Evrett Company operates a simple chemical process to convert a single

The Evrett Company operates a simple chemical process to convert a single material into three separate items, referred to here as X, Y, and Z. All three end products are separated simultaneously at a...

Q: Sinclair Oil & Gas, a large energy conglomerate, jointly processes

Sinclair Oil & Gas, a large energy conglomerate, jointly processes purchased hydrocarbons to generate three non saleable intermediate products: ICR8, ING4, and XGE3. These intermediate products ar...

Q: .Instant Foods produces two types of microwavable products—beef-

.Instant Foods produces two types of microwavable products—beef-flavored ramen and shrimp-flavored ramen. The two products share common inputs such as noodle and spices. The producti...

Q: Iowa Soy Products (ISP) buys soy beans and processes them

Iowa Soy Products (ISP) buys soy beans and processes them into other soy products. Each ton of soy beans that ISP purchases for $300 can be converted for an additional $200 into 500 pounds of soy meal...

Q: Tasty, Inc., is a producer of potato chips. A

Tasty, Inc., is a producer of potato chips. A single production process at Tasty, Inc., yields potato chips as the main product and a byproduct that can also be sold as a snack. Both products are full...

Q: Royston, Inc., is a large food processing company. It

Royston, Inc., is a large food processing company. It processes 150,000 pounds of peanuts in the peanuts department at a cost of $180,000 to yield 12,000pounds of product A, 65,000 pounds of product B...

Q: Nihon, Inc., is a manufacturer of digital cameras. It

Nihon, Inc., is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2012, the company incurred $750,000 on direct materials and $798,000 on conversion costs, fo...

Q: Refer to requirement 2 of Exercise 17-16.

Refer to requirement 2 of Exercise 17-16. Required: Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. Also prepare a journal entry to transfer out th...