Questions from Cost Accounting

Q: CompTech Solution purchases one model of computer at a wholesale cost of

CompTech Solution purchases one model of computer at a wholesale cost of $400 per unit and resells it to end consumers. The annual demand for the company’s product is 500,000 units. Ordering costs are...

Q: The KateSteel Corporation is an automotive supplier that uses automatic turning machines

The KateSteel Corporation is an automotive supplier that uses automatic turning machines to manufacture precision parts from steel bars. KateSteel’s inventory of raw steel averages $...

Q: ClearPic Television Co. outsources the production of picture-tubes for

ClearPic Television Co. outsources the production of picture-tubes for the televisions it manufactures. It is currently deciding whether to use sup- plier X or supplier Y. Due to differences in the pr...

Q: Smart Jeans Ltd. orders high-quality denim fabric from two

Smart Jeans Ltd. orders high-quality denim fabric from two different suppliers: Shine Fabrics and Soft Cotton. Smart would like to use only one of the suppliers in the future. Due to variations in qua...

Q: The Grand Meter Corporation manufactures electrical meters. For August, there

The Grand Meter Corporation manufactures electrical meters. For August, there were no beginning inventories of direct materials and no beginning or ending work in process. Grand Meter uses a JIT produ...

Q: Assume the same facts for the Grand Meter Corporation as in Problem

Assume the same facts for the Grand Meter Corporation as in Problem 21-37, except that now assume the second trigger point for it is the sale, rather than the completion of finished goods: ■ Purchase...

Q: Assume the same facts for the Grand Meter Corporation as in Problem

Assume the same facts for the Grand Meter Corporation as in Problem 21-37, except that now assume there are only two trigger points for making entries in the accounting system: ■ Completion of good fi...

Q: For each of the following, state whether job costing or process

For each of the following, state whether job costing or process costing would be most appropriate.

Q: Steadfast Security Devices (SSD) has introduced a just-in

Steadfast Security Devices (SSD) has introduced a just-in-time production process and is considering the adoption of lean accounting principles to support its new production philosophy. The company ha...

Q: Perez Containers Corporation is considering implementing a JIT production system. The

Perez Containers Corporation is considering implementing a JIT production system. The new system would reduce current average inventory levels of $4,000,000 by 75%, but it would require a much greater...