Questions from Cost Accounting

Q: The Marino Repair Shop repairs and services machine tools. A summary

The Marino Repair Shop repairs and services machine tools. A summary of its costs (by activity) for 2011 is as follows: Required: 1. Classify each cost as value-added, nonvalue-added, or in the gray...

Q: Calvert Associates prepares architectural drawings to conform to local structural-safety

Calvert Associates prepares architectural drawings to conform to local structural-safety codes. Its income statement for 2012 is as follows: Following is the percentage of time spent by professional...

Q: Snappy Tiles is a small distributor of marble tiles. Snappy identifies

Snappy Tiles is a small distributor of marble tiles. Snappy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details...

Q: Medical Instruments uses a manufacturing costing system with one direct-cost

Medical Instruments uses a manufacturing costing system with one direct-cost category (direct materials) and three indirect-cost categories: a. Setup, production order, and materials-handling costs th...

Q: John Blodgett is the managing partner of a business that has just

John Blodgett is the managing partner of a business that has just finished building a 60-room motel. Blodgett anticipates that he will rent these rooms for 15,000 nights next year (or 15,000 room-nigh...

Q: Road Warrior manufactures and sells a model of motorcycle, XR500.

Road Warrior manufactures and sells a model of motorcycle, XR500. In 2011, it reported the following: Required: 1. What was Road Warrior’s operating income on XR500 in 2011? What w...

Q: Grey Brothers Consulting has issued a report recommending changes for its newest

Grey Brothers Consulting has issued a report recommending changes for its newest manufacturing client, Energy Motors. Energy Motors currently manufactures a single product, which is sold and distribut...

Q: Gadzooks, Inc., develops and manufactures toys that it then sells

Gadzooks, Inc., develops and manufactures toys that it then sells through infomercials. Currently, the company is designing a toy robot that it intends to begin manufacturing and marketing next year....

Q: Ridgecrest Corporation manufactures corrugated cardboard boxes. It competes and plans to

Ridgecrest Corporation manufactures corrugated cardboard boxes. It competes and plans to grow by selling high-quality boxes at a low price and by delivering them to customers quickly after receiving c...

Q: An analysis of Ridgecrest’s operating-income changes between 2011 and 2012

An analysis of Ridgecrest’s operating-income changes between 2011 and 2012 shows the following: The industry market size for corrugated cardboard boxes did not grow in 2012, input...