Questions from Cost Accounting

Q: Sunny Day Juice Company produces oranges from various organic growers in Florida

Sunny Day Juice Company produces oranges from various organic growers in Florida. The juice is extracted from the oranges and the pulp and peel remain. Sunny Day considers the pulp and peel byproducts...

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

The Southern Oil Company buys crude vegetable oil. Refining this oil results in four products at the split off point: A, B, C, and D. Product C is fully processed by the split off point. Products A, B...

Q: The Chocolate Factory manufactures and distributes chocolate products. It purchases cocoa

The Chocolate Factory manufactures and distributes chocolate products. It purchases cocoa beans and processes them into two intermediate products: chocolate-powder liquor base and milk chocolate liquo...

Q: Sonimad Sawmill, Inc., (SSI) purchases logs from independent

Sonimad Sawmill, Inc., (SSI) purchases logs from independent timber contractors and processes the logs into three types of lumber products: Studs for residential buildings (walls, ceilings) Decorative...

Q: Elsie Dairy Products Corp. buys one input, full-cream

Elsie Dairy Products Corp. buys one input, full-cream milk, and refines it in a churning process. From each gallon of milk Elsie produces three cups of butter and nine cups of buttermilk. During May 2...

Q: Elsie has decided that buttermilk may sell better if it was marketed

Elsie has decided that buttermilk may sell better if it was marketed for baking and sold in pints. This would involve additional packaging at an incremental cost of $0.35 per pint. Each pint could be...

Q: Mat Place purchases old tires and recycles them to produce rubber floor

Mat Place purchases old tires and recycles them to produce rubber floor mats and car mats. The company washes, shreds, and molds the recycled tires into sheets. The floor and car mats are cut from the...

Q: The Mat Place’s accountant needs to record the information about the joint

The Mat Place’s accountant needs to record the information about the joint and byproducts in the general journal, but is not sure what the entries should be. The company has hired you as a consultant...

Q: Rochester Mining Company (RMC) mines coal, puts it through

Rochester Mining Company (RMC) mines coal, puts it through a one-step crushing process, and loads the bulk raw coal onto river barges for shipment to customers. RMC’s management is c...

Q: Renewal Resorts, Inc., operates health spas in Ft. Meyers

Renewal Resorts, Inc., operates health spas in Ft. Meyers, Florida, Scottsdale, Arizona, and Monterey, California. The Ft. Meyers spa was the company’s first, opened in 1986. The Sco...