Questions from Cost Accounting

Q: Beth Bledsoe joined Baker Brothers, Inc. as controller in October

Beth Bledsoe joined Baker Brothers, Inc. as controller in October 2019. Baker Brothers manufactures and installs custom kitchen countertops. The company uses a normal-costing sys- tem with two direct-...

Q: Eware Ltd, a bakery, records the following trans- actions

Eware Ltd, a bakery, records the following trans- actions in its books for the month of August. a. Raw materials of $182,000 were purchased on credit. b. The total of stores requisitions for direct ma...

Q: Bradley Associates is a recently formed law partnership. Emmit Harrington,

Bradley Associates is a recently formed law partnership. Emmit Harrington, the managing partner of Bradley Associates, has just finished a tense phone call with Martin Omar, president of Campa Coal. O...

Q: Harrington asks his assistant to collect details on those costs included in

Harrington asks his assistant to collect details on those costs included in the $25,000 indirect-cost pool that can be traced to each individual job. After analysis, Bradley is able to reclassify $15,...

Q: Bradley has two classifications of professional staff: partners and associates.

Bradley has two classifications of professional staff: partners and associates. Harrington asks his assistant to examine the relative use of partners and associates on the recent Campa Coal and St. Ed...

Q: Marshall’s Devices uses activity-based costing to allocate overhead costs to

Marshall’s Devices uses activity-based costing to allocate overhead costs to customer orders for pricing purposes. Many customer orders are won through competitive bidding. Direct ma...

Q: Yahama Ltd makes several spare parts for motorbikes including Suzuka and Yahama

Yahama Ltd makes several spare parts for motorbikes including Suzuka and Yahama parts. The company has recently switched from the traditional absorption costing to the activity-based costing system. T...

Q: Essential College Supplies (ECS) is a store on the campus

Essential College Supplies (ECS) is a store on the campus on a large Midwestern university. The store has both an apparel section (t-shirts with the school logo) and a convenience section. ECS reports...

Q: Pharmassist, Inc., a distributor of special pharmaceutical products, operates

Pharmassist, Inc., a distributor of special pharmaceutical products, operates at capacity and has three main market segments: a. General supermarket chains b. Drugstore chains c. Mom-and-pop single-st...

Q: Shades & Hues (S&H) is a designer of

Shades & Hues (S&H) is a designer of high-quality curtains and bedsheets. Each design is made in small batches. Each spring, S&H comes out with new designs for the curtains and for the bed...