Questions from Cost Accounting


Q: Futuremart is an international retail store. They are considering implementing a

Futuremart is an international retail store. They are considering implementing a new business-to-business (B2B) information system for processing merchandise orders. The current system costs Futuremar...

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Q: Trevor Joseph employs two workers in his guitar-making business.

Trevor Joseph employs two workers in his guitar-making business. The first worker, George, has been making guitars for 20 years and is paid $30 per hour. The second worker, Earl, is less experienced a...

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Q: The Shirt Company produces cotton/polyester blend T-shirts to

The Shirt Company produces cotton/polyester blend T-shirts to supply a custom T-shirt customer. The company experienced a computer failure and some of the data were lost and could not be recovered. Th...

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Q: Cathy Jeffries operates Relaxing Day, a day spa with 15 employees

Cathy Jeffries operates Relaxing Day, a day spa with 15 employees. Jim Ryan has recently been hired by Jeffries as a controller. Relaxing Day’s previous accountant had done very litt...

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Q: Sunto Scientific manufactures GPS devices for a chain of retail stores.

Sunto Scientific manufactures GPS devices for a chain of retail stores. Its most popular model, the Magellan XS, is assembled in a dedicated facility in Savannah, Georgia. Sunto is keenly aware of the...

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Q: Chef Whiz manufactures premium food processors. The following are some manufacturing

Chef Whiz manufactures premium food processors. The following are some manufacturing overhead data for Chef Whiz for the year ended December 31, 2020: Budgeted number of output units: 588 Planned allo...

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Q: Bruno Limited manufactures padlocks for which they have established unit standard costs

Bruno Limited manufactures padlocks for which they have established unit standard costs as shown below: During July, 400 padlocks were manufactured at the costs shown below. There was no opening stock...

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Q: Delta Rubber Plastic Company Ltd manufactures rubber chairs and tables. The

Delta Rubber Plastic Company Ltd manufactures rubber chairs and tables. The company’s accountant, has prepared the overhead budget shown below: The company had a great year with the...

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Q: Consider the following two situations—cases A and B—independently

Consider the following two situations—cases A and B—independently. Data refer to operations for April 2020. For each situation, assume standard costing. Also assume...

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Q: Grant Manufacturing uses standard costing. It allocates manufacturing overhead (both

Grant Manufacturing uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DMLH). Grant develops it...

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