Questions from Managerial Accounting

Q: Information for SpongeFun Products is provided in P8.36B.

Information for SpongeFun Products is provided in P8.36B. Calculate the product cost and prepare an income statement under normal costing. Instructions a. Assume the company uses normal costing and u...

Q: Zaki Metal Company produces the steel wire that is used for the

Zaki Metal Company produces the steel wire that is used for the production of paper clips. In 2020, the first year of operations, Zaki produced 60,000 km of wire and sold 50,000 km. In 2021, the produ...

Q: Harrison Pumps is a division of Liverpool Controls Corporation. The division

Harrison Pumps is a division of Liverpool Controls Corporation. The division manufactures and sells a pump that is used in a wide variety of applications. During the coming year, it expects to sell 60...

Q: Large Orange Company produces basketballs. It incurred the following costs during

Large Orange Company produces basketballs. It incurred the following costs during the year: Calculate product costs under variable costing. Direct materials ……………………………. $14,400 Direct labour …………………...

Q: Allerdyce Corporation Ltd. (ACL) prepares external financial statements using

Allerdyce Corporation Ltd. (ACL) prepares external financial statements using absorption costing and internal financial statements using variable costing. You have the following information for the op...

Q: The vice-president of Abscorp Ltd. is not happy.

The vice-president of Abscorp Ltd. is not happy. Sales have been rising steadily, but profits have been falling. In September 2020, Abscorp had record sales, but the lowest profits ever. The results f...

Q: Boat Refit Inc. produces and sells custom parts for powerboats.

Boat Refit Inc. produces and sells custom parts for powerboats. The company uses a costing system based on actual costs. Selected accounting and production information for fiscal 2020 is as follows: C...

Q: Wingfoot Co. began operations on July 1, 2019. By

Wingfoot Co. began operations on July 1, 2019. By the end of its first fiscal year, ended June 30, 2020, Wingfoot had sold 10,000 wingers. Selected data on operations for the year ended June 30, 2020,...

Q: Portland Optics, Inc., specializes in manufacturing lenses for large telescope

Portland Optics, Inc., specializes in manufacturing lenses for large telescope cameras used in space exploration. Since the specifications for the lenses are determined by the customer and vary consid...

Q: ComfortCraft manufactures swivel seats for customized vans. It currently manufactures 20

ComfortCraft manufactures swivel seats for customized vans. It currently manufactures 20,000 seats per year, which it sells for $680 per seat. It incurs variable costs of $340 per seat and fixed costs...