Questions from Cost Accounting

Q: Ron Williams recently took over as the controller of Johnson Brothers Manufacturing

Ron Williams recently took over as the controller of Johnson Brothers Manufacturing. Last month, the previous controller left the company with little notice and left the accounting records in disarray...

Q: Denver Office Equipment manufactures and sells metal shelving. It began operations

Denver Office Equipment manufactures and sells metal shelving. It began operations on January 1, 2011. Costs incurred for 2011 are as follows (V stands for variable; F stands for fixed): Variable ma...

Q: What criteria might be used to guide cost-allocation decisions?

What criteria might be used to guide cost-allocation decisions? Which are the dominant criteria?

Q: Garrett Manufacturing sold 410,000 units of its product for $

Garrett Manufacturing sold 410,000 units of its product for $68 per unit in 2011. Variable cost per unit is $60 and total fixed costs are $1,640,000. Required: 1. Calculate (a) contribution margin an...

Q: Scott Hewitt, the new Plant Manager of Old World Manufacturing Plant

Scott Hewitt, the new Plant Manager of Old World Manufacturing Plant Number 7, has just reviewed a draft of his year-end financial statements. Hewitt receives a year-end bonus of 10% of the plant’s op...

Q: The following data are for Montgomery Retail Outlet Stores. The account

The following data are for Montgomery Retail Outlet Stores. The account balances (in thousands) are for 2011. Required: 1. Compute(a)the cost of goods purchased and (b)the cost of goods sold. 2. Pre...

Q: Marston Corporation manufactures pharmaceutical products that are sold through a network of

Marston Corporation manufactures pharmaceutical products that are sold through a network of external sales agents. The agents are paid a commission of 18% of revenues. Marston is considering replacing...

Q: Lifetime Escapes generates average revenue of $5,000 per person

Lifetime Escapes generates average revenue of $5,000 per person on its five-day package tours to wildlife parks in Kenya. The variable costs per person are as follows: Annual fixed costs total $520,...

Q: Pure Water Products produces two types of water filters. One attaches

Pure Water Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-cum-filter that only purifies water mean...

Q: Snow Leopard Daycare provides daycare for children Mondays through Fridays. Its

Snow Leopard Daycare provides daycare for children Mondays through Fridays. Its monthly variable costs per child are as follows: Lunch and snacks ……………………………………………………………$150 Educational supplies …………...