Questions from Cost Accounting

Q: Horizon Press produces textbooks for college courses. The company recently hired

Horizon Press produces textbooks for college courses. The company recently hired a new editor, Billie White, to handle production and sales of books for an introduction to accounting course. Billie&ac...

Q: Zing Lager has just purchased the Chicago Brewery. The brewery is

Zing Lager has just purchased the Chicago Brewery. The brewery is 2 years old and uses absorption costing. It will “sell” its product to Zing Lager at $44 per barre...

Q: Simplex Inc. sells its product at $80 per unit with

Simplex Inc. sells its product at $80 per unit with a contribution margin of 40%. During 2016, Simplex sold 540,000 units of its product; its total fixed costs are $2,100,000. Required 1. Calculate t...

Q: Donaldson Corporation is a manufacturer of computer accessories. It uses absorption

Donaldson Corporation is a manufacturer of computer accessories. It uses absorption costing based on standard costs and reports the following data for 2020: There are no price, spending, or efficiency...

Q: Whistler, Inc., manufactures a specialized snowboard made for the advanced

Whistler, Inc., manufactures a specialized snowboard made for the advanced snowboarder. Whistler began 2020 with an inventory of 240 snow- boards. During the year, it produced 900 boards and sold 995...

Q: Gostkowski Company is about to enter the highly competitive personal electronics market

Gostkowski Company is about to enter the highly competitive personal electronics market with a new optical reader. In anticipation of future growth, the company has leased a large manufacturing facili...

Q: Kappa Electricals, a producer of energy-efficient compact fluorescent lamps

Kappa Electricals, a producer of energy-efficient compact fluorescent lamps (CFLs), expects that demand will increase markedly over the next decade. Due to the high fixed costs involved in the busines...

Q: If Kappa sells all 350,000 CFLs produced, what would

If Kappa sells all 350,000 CFLs produced, what would be the effect on operating income of using each type of capacity as a basis for calculating manufacturing cost per unit? 2. Compare the results of...

Q: The Beta Company started business on January 1, 2020. Beta

The Beta Company started business on January 1, 2020. Beta manufactures a specialty honey soda, which it sells directly to state-owned distributors in Abu Dhabi. Honey soda is produced and sold in six...

Q: Top Catering operates a chain of 10 hospitals in the Los Angeles

Top Catering operates a chain of 10 hospitals in the Los Angeles area. Its central food-catering facility, TopStuff, prepares and delivers meals to the hospitals. It has the capacity to deliver up to...