Questions from Cost Accounting

Q: Keating & Associates is a law firm specializing in labor relations and

Keating & Associates is a law firm specializing in labor relations and employee-related work. It employs 25 professionals (5 partners and 20 associates) who work directly with its clients. The average...

Q: Keating has just completed a review of its job-costing system

Keating has just completed a review of its job-costing system. This review included a detailed analysis of how past jobs used the firm’s resources and interviews with personnel about...

Q: The Zaf Radiator Company uses a normal-costing system with a

The Zaf Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2011: Machine-hours dat...

Q: Gibson Manufacturing uses normal costing for its job-costing system,

Gibson Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost category (manufacturin...

Q: New Rise, Inc., produces porcelain figurines. The production is

New Rise, Inc., produces porcelain figurines. The production is semi-automated where the figurine is molded almost entirely by operator-less machines and then individually hand-painted. The overhead i...

Q: Parson Container Corporation is considering implementing a JIT production system. The

Parson Container Corporation is considering implementing a JIT production system. The new system would reduce current average inventory levels of $2,000,000 by 75%, but would require a much greater de...

Q: Needham Company uses normal costing in its job-costing system.

Needham Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Needham for 2011 are as follows: Additional information follows: a. Direc...

Q: Brady Company uses normal costing in its job-costing system.

Brady Company uses normal costing in its job-costing system. The company produces custom bikes for toddlers. The beginning balances (December 1) and ending balances (as of December 30) in their invent...

Q: Tamden, Inc., prints custom marketing materials. The business was

Tamden, Inc., prints custom marketing materials. The business was started January 1, 2010. The company uses a normal-costing system. It has two direct cost pools, materials and labor and one indirect...

Q: Kingston Company manufactures modular homes. The company has two main products

Kingston Company manufactures modular homes. The company has two main products that it sells commercially: a 1,000 square foot, one-bedroom model and a 1,500 square foot, two-bedroom model. The compan...