Questions from General Accounting


Q: Dalton Inc. produces and sells three products. Unit data concerning

Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. The company has 2,000 hours of labor available to build inventory in anticipation of the company&acir...

See Answer

Q: Billings Company manufactures and sells two products. Relevant per unit data

Billings Company manufactures and sells two products. Relevant per unit data concerning each product follow. Instructions: (a) Compute the contribution margin per machine hour for each product. (b)...

See Answer

Q: The CVP income statements shown below are available for Armstrong Company and

The CVP income statements shown below are available for Armstrong Company and Contador Company. Instructions: (a) Compute the degree of operating leverage for each company and interpret your results...

See Answer

Q: Arquitectos Interiores of Juarez, Mexico, is contemplating a major change

Arquitectos Interiores of Juarez, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmen. Alfonso Jiminez, Arquitectos&aci...

See Answer

Q: An investment banker is analyzing two companies that specialize in the production

An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Traditional Yams uses a labor-intensive approach, and Auto-Yams uses a mechanized system. CV...

See Answer

Q: Finney Inc. has conducted an analysis of overhead costs related to

Finney Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing system (volume-based) and an activity-based costing system. Here are its results...

See Answer

Q: Langdon Company produced 9,000 units during the past year,

Langdon Company produced 9,000 units during the past year, but only 8,200 of the units were sold. The following additional information is also available. Direct materials used ……………………………………………………. $...

See Answer

Q: Creative Crates Co. produces wooden crates used for shipping products by

Creative Crates Co. produces wooden crates used for shipping products by oceanliner. In 2014, Creative incurred the following costs. Wood used in crate production ……………………………………………………. $54,000 Nails...

See Answer

Q: In the month of June, Jose Hebert’s Beauty Salon gave 4

In the month of June, Jose Hebert’s Beauty Salon gave 4,000 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,800 and variable costs were 75% of sal...

See Answer

Q: Comfi Airways, Inc., a small two-plane passenger airline

Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. Both planes seat 10 passengers each, and they fly commuters from Comfi...

See Answer