Questions from Cost Management

Q: Evans, Inc., has a unit-based costing system.

Evans, Inc., has a unit-based costing system. Evans’s Miami plant produces 10 different electronic products. The demand for each product is about the same. Although they differ in complexity, each pro...

Q: Cortalo, Inc., manufactures riding lawn mowers. Cortalo uses JIT

Cortalo, Inc., manufactures riding lawn mowers. Cortalo uses JIT manufacturing and carries insignificant levels of inventory. Cortalo manufactures everything needed for the riding lawn mowers except f...

Q: Moss Manufacturing produces several types of bolts. The products are produced

Moss Manufacturing produces several types of bolts. The products are produced in batches according to customer order. Although there are a variety of bolts, they can be grouped into three product fami...

Q: Maxwell Company produces a variety of kitchen appliances, including cooking ranges

Maxwell Company produces a variety of kitchen appliances, including cooking ranges and dishwashers. Over the past several years, competition has intensified. In order to maintain—and...

Q: Pawnee Works makes machine parts for manufacturers of industrial equipment. Over

Pawnee Works makes machine parts for manufacturers of industrial equipment. Over the years, Pawnee has been a steady and reliable supplier of quality parts to medium- and small-machine manufacturers....

Q: Nico Parts, Inc., produces electronic products with short life cycles

Nico Parts, Inc., produces electronic products with short life cycles (of less than two years). Development has to be rapid, and the profitability of the products is tied strongly to the ability to fi...

Q: Jolene Askew, manager of Feagan Company, has committed her company

Jolene Askew, manager of Feagan Company, has committed her company to a strategically sound cost reduction program. Emphasizing life-cycle cost management is a major part of this effort. Jolene is con...

Q: Homer Manufacturing produces different models of 22-calibre rifles. The

Homer Manufacturing produces different models of 22-calibre rifles. The manufacturing costs assigned to its economy model rifle before and after installing JIT are given in the following table. Cell w...

Q: Mott Company recently implemented a JIT manufacturing system. After one year

Mott Company recently implemented a JIT manufacturing system. After one year of operation, Heidi Burrows, president of the company, wanted to compare product cost under the JIT system with product cos...

Q: Shalimar Company manufactures and sells industrial products. For next year,

Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: Quarter 1 $4,600,000 Quarter 2 5,100,000 Quarter 3 5,000,000 Quarter 4 7,600,000 In...