Questions from Cost Management

Q: Video-Forward, Inc., designs and manufactures wearable video cameras

Video-Forward, Inc., designs and manufactures wearable video cameras. Models A-1, A-2, and A-3 are lightweight video cameras that can be used on arms and headbands. Models A-4 and A-5 have larger memo...

Q: Tiger Drug Store carries a variety of health and beauty aids,

Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins for the first six months of the year is presented below. The owner...

Q: Gunnison Company had the following equivalent units schedule and cost information for

Gunnison Company had the following equivalent units schedule and cost information for its Sewing Department for the month of December: Required: 1. Calculate the unit cost for December, using the FIFO...

Q: Rosita Flores owns Rosita’s Mexican Restaurant in Tempe, Arizona. Rosita’s

Rosita Flores owns Rosita’s Mexican Restaurant in Tempe, Arizona. Rosita’s is an affordable restaurant near campus and several hotels. Rosita accepts cash and checks. Checks are deposited immediately....

Q: Rosita thinks that it may be time to refuse to accept checks

Rosita thinks that it may be time to refuse to accept checks and to start accepting credit cards. She is negotiating with VISA/MasterCard and American Express, and she would start the new policy on Ap...

Q: LeeAnn Ortiz owns a retail store that sells new and used sporting

LeeAnn Ortiz owns a retail store that sells new and used sporting equipment. LeeAnn has requested a cash budget for October. After examining the records of the company, you find the following: a. Cash...

Q: Historically, Ragman Company has had no significant bad debt experience with

Historically, Ragman Company has had no significant bad debt experience with its customers. Cash sales have accounted for 20 percent of total sales, and payments for credit sales have been received as...

Q: Del Spencer is the owner and founder of Del Spencer’s Men’s Clothing

Del Spencer is the owner and founder of Del Spencer’s Men’s Clothing Store. Del Spencer’s has its own house charge accounts and has found from past experience that 10 percent of its sales are for cash...

Q: Del Spencer’s purchases clothing evenly throughout the month. All purchases are

Del Spencer’s purchases clothing evenly throughout the month. All purchases are on account. On the first of every month, Jana Spencer, Del’s wife, pays for all of the previous month’s purchases. Terms...

Q: Ingles Corporation is a manufacturer of tables sold to schools, restaurants

Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Ingles, but the table legs are purchased from an outside...