Questions from Cost Accounting

Q: The Mahoney Company has prepared a sales budget of 45,000

The Mahoney Company has prepared a sales budget of 45,000 finished units for a three-month period. The company has an inventory of 16,000 units of finished goods on hand at December 31 and has a targe...

Q: Purity, Inc., bottles and distributes mineral water from the company’s

Purity, Inc., bottles and distributes mineral water from the company’s natural springs in northern Oregon. Purity markets two products: twelve-ounce disposable plastic bottles and four-gallon reusable...

Q: Xerxes Manufacturing Company manufactures blue rugs, using wool and dye as

Xerxes Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 36skeins of wool at a cost of $2 per skein and 0.8 gallons of dye at a cost of $...

Q: The Suzuki Co. in Japan has a division that manufactures two

The Suzuki Co. in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2013 is 900,000 units. Suzuki’s target ending inventory is 80,000 units, and its begin...

Q: Roletter Company makes and sells artistic frames for pictures of weddings,

Roletter Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Bob Anderson, the controller, is responsible for preparing Roletter’...

Q: The Chelsea store of Family Supermarket (FS), a chain of

The Chelsea store of Family Supermarket (FS), a chain of small neighborhood grocery stores, is preparing its activity-based budget for January 2011. FS has three product categories: soft drinks, fresh...

Q: As a new controller ,reply to this comment by a plant

As a new controller ,reply to this comment by a plant manager: “As I see it, our accountants may be needed to keep records for shareholders and Uncle Sam, but I don’t want them sticking their noses in...

Q: Family Supermarkets (FS) has a kaizen (continuous improvement)

Family Supermarkets (FS) has a kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2011. Each successive month, the budgeted cost-driver rate decreases by 0....

Q: Consider each of the following independent situations for Anderson Forklifts. Anderson

Consider each of the following independent situations for Anderson Forklifts. Anderson manufactures and sells forklifts. The company also contracts to service both its own and other brands of forklift...

Q: Game Guys is a retail store selling video games. Sales are

Game Guys is a retail store selling video games. Sales are uniform for most of the year, but pick up in June and December, both because new releases come out and because games are purchased in anticip...