Questions from Cost Accounting

Q: Slopes, Inc., manufactures and sells snowboards. Slopes manufactures a

Slopes, Inc., manufactures and sells snowboards. Slopes manufactures a single model, the Pipex. In the summer of 2011, Slopes’ management accountant gathered the following data to pr...

Q: Retail outlets purchase snowboards from Slopes, Inc., throughout the year

Retail outlets purchase snowboards from Slopes, Inc., throughout the year. However, in anticipation of late summer and early fall purchases, outlets ramp up inventories from May through August. Outlet...

Q: On December 1, 2011, the Itami Wholesale Co. is

On December 1, 2011, the Itami Wholesale Co. is attempting to project cash receipts and disbursements through January 31, 2012. On this latter date, a note will be payable in the amount of $100,000. T...

Q: Follete Inc. operates at capacity and makes plastic combs and hairbrushes

Follete Inc. operates at capacity and makes plastic combs and hairbrushes. Although the combs and brushes are a matching set, they are sold individually and so the sales mix is not 1:1. Follette Inc....

Q: Delma Company manufactures a variety of products in a variety of departments

Delma Company manufactures a variety of products in a variety of departments, and evaluates departments and departmental managers by comparing actual cost and output relative to the budget. Department...

Q: Jag Meerkat owns three upscale hair salons: Hair Suite I,

Jag Meerkat owns three upscale hair salons: Hair Suite I, II, and III. Each of the salons has a manager and 10 stylists who rent space in the salons as independent contractors and who pay a fee of 10%...

Q: Tuscany Statuary manufactures bust statues of famous historical figures. All statues

Tuscany Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static bu...

Q: Stevie McQueen has run Lightning Car Detailing for the past 10 years

Stevie McQueen has run Lightning Car Detailing for the past 10 years. His static budget and actual results for June 2011 are provided next. Stevie has one employee who has been with him for all 10 yea...

Q: Snark Corporation manufactures a product called the snark, which it sells

Snark Corporation manufactures a product called the snark, which it sells to merchandising firms such as Snark Republic (SR), Snarks-R-Us (SRU), Neiman Snark-us (NS), Snark Buy (SB), Snark-Mart (SM),...

Q: Styles, Inc., manufactures a full line of well-known

Styles, Inc., manufactures a full line of well-known sunglasses frames and lenses. Styles uses a standard costing system to set attainable standards for direct materials, labor, and overhead costs. St...