Questions from Cost Accounting

Q: Sandy Lands Ltd carries an item of inventory in respect of which

Sandy Lands Ltd carries an item of inventory in respect of which the following data apply: fixed cost of ordering per batch ……………………………………………………. £10 expected steady quarterly volume of sales ………………...

Q: A company is considering the possibility of purchasing from a supplier a

A company is considering the possibility of purchasing from a supplier a component it now makes. The supplier will provide the components in the necessary quantities at a unit price of £9. Transportat...

Q: A company is reviewing the purchasing policy for one of its raw

A company is reviewing the purchasing policy for one of its raw materials as a result of a reduction in production requirement. The material, which is used evenly throughout the year, is used in only...

Q: Whirlygig plc manufactures and markets automatic dishwashing machines. Among the components

Whirlygig plc manufactures and markets automatic dishwashing machines. Among the components that it purchases each year from external suppliers for assembly into the finished article are window units,...

Q: Wagtail Ltd uses the ‘optimal batch size’ model (see below

Wagtail Ltd uses the ‘optimal batch size’ model (see below) to determine optimal levels of raw materials. Material B is consumed at a steady, known rate over the company’s planning horizon of one year...

Q: Mr Evans is a wholesaler who buys and sells a wide range

Mr Evans is a wholesaler who buys and sells a wide range of products, one of which is the Laker. Mr Evans sells 24 000 units of the Laker each year at a unit price of £20. Sales of the Laker normally...

Q: The following information relates to a manufacturing process for a period:

The following information relates to a manufacturing process for a period: Materials costs ……………………………………………………………………… £16 445 Labour and overhead costs ……………………………………………………… £28 596 10 000 units of...

Q: Present a table of production times showing the following columns for E

Present a table of production times showing the following columns for E. Condon Ltd, which produces up to 16 units while experiencing a 90 per cent learning curve, the first unit requiring 1000 hours...

Q: A company is planning to purchase 90 800 units of a particular

A company is planning to purchase 90 800 units of a particular item in the year ahead. The item is purchased in boxes, each containing ten units of the item, at a price of £200 per box. A safety stock...

Q: Capturing labour costs accurately includes capturing time worked on customer orders,

Capturing labour costs accurately includes capturing time worked on customer orders, jobs or projects. In some cases, this is a reasonably easy task – such as in a supervised factory setting. In some...