Questions from Cost Accounting

Q: The Brady Corporation sells 375,000 V262 valves to the automobile

The Brady Corporation sells 375,000 V262 valves to the automobile and truck industry. Brady has a capacity of 210,000 machine-hours and can produce two valves per machine-hour. V262’s contribution mar...

Q: The Brightlight Corporation uses multicolored molding to make plastic lamps. The

The Brightlight Corporation uses multicolored molding to make plastic lamps. The molding operation has a capacity of 150,000 units per year. The demand for lamps is very strong. Brightlight will be ab...

Q: The IVplast Corporation uses an injection molding ma- chine to make

The IVplast Corporation uses an injection molding ma- chine to make a plastic product, Z39, after receiving firm orders from its customers. IVplast estimates that it will receive 40 orders for Z39 dur...

Q: IVplast is still de- bating whether it should introduce Y28.

IVplast is still de- bating whether it should introduce Y28. The following table provides information on selling prices, variable costs, and inventory carrying costs for Z39 and Y28: Required Using t...

Q: American Electronics manufactures 200,000 55-inch 4K TVs each

American Electronics manufactures 200,000 55-inch 4K TVs each year. The variable and fixed costs of rework and repair for the TVs are as follows: American Electronics’ 55-inch 4K TVs...

Q: Outmark Corporation manufactures computer processors for leading com- puter makers.

Outmark Corporation manufactures computer processors for leading com- puter makers. Joe Agent is the management accountant for one of Outmark’s largest manufacturing plants. His bonu...

Q: The Belkin Company has three product lines of coffee mugs—A

The Belkin Company has three product lines of coffee mugs—A, B, and C—with contribution margins of $7, $5, and $4, respectively. The president foresees sales of 240,000 units in the coming period, con...

Q: FootLove Shoe Co. produces and sells excellent quality walking shoes.

FootLove Shoe Co. produces and sells excellent quality walking shoes. After production, these shoes are distributed to 30 warehouses around the country. Each warehouse services approximately 120 store...

Q: Phillips Corporation is a major manufacturer of food processors. It purchases

Phillips Corporation is a major manufacturer of food processors. It purchases motors from Viking Corporation. Annual demand is 52,000 motors per year or 1,000 motors per week. The ordering cost is $36...

Q: Gadgets Galore Corp. produces J-Pods, music players that

Gadgets Galore Corp. produces J-Pods, music players that can download thousands of songs. Gadgets Galore forecasts that demand in 2020 will be 22,800 J-Pods. The variable production cost of each J-Pod...