Questions from Cost Accounting

Q: Open Doors, Inc., produces two types of doors, interior

Open Doors, Inc., produces two types of doors, interior and exterior. The company’s simple costing system has two direct cost categories (materials and labor) and one indirect cost p...

Q: Family Supermarkets (FS) operates at capacity and decides to apply

Family Supermarkets (FS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities and their act...

Q: Ramirez Wholesalers operates at capacity and sells furniture items to four department

Ramirez Wholesalers operates at capacity and sells furniture items to four department-store chains (customers). Mr. Ramirez commented, “We apply ABC to determine product-line profita...

Q: Idaho Potatoes (IP) operates at capacity and processes potatoes into

Idaho Potatoes (IP) operates at capacity and processes potatoes into potato cuts at its highly automated Pocatello plant. It sells potatoes to the retail consumer market and to the institutional marke...

Q: The job costing system at Smith’s Custom Framing has five indirect cost

The job costing system at Smith’s Custom Framing has five indirect cost pools (purchasing, material handling, machine maintenance, product inspection, and packaging). The company is...

Q: A given cost may be allocated for one or more purposes.

A given cost may be allocated for one or more purposes. List four purposes.

Q: National Savings Bank (NSB) is examining the profitability of its

National Savings Bank (NSB) is examining the profitability of its Premier Account, a combined savings and checking account. Depositors receive a 7% annual interest rate on their average deposit. NSB e...

Q: In 2011, Rouse & Sons, a small environmental-testing

In 2011, Rouse & Sons, a small environmental-testing firm, performed 12,200 radon tests for $290 each and 16,400 lead tests for $240 each. Because newer homes are being built with lead-free pipes, lea...

Q: The Mendez Company expects sales in 2012 of 200,000 units

The Mendez Company expects sales in 2012 of 200,000 units of serving trays. Mendez’s beginning inventory for 2012 is 15,000 trays and its target ending inventory is 25,000trays. Compute the number of...

Q: Inglenook Co. produces wine. The company expects to produce 2

Inglenook Co. produces wine. The company expects to produce 2,500,000two-liter bottles of Chablis in 2012. Inglenook purchases empty glass bottles from an outside vendor. Its target ending inventory o...