Questions from Cost Accounting

Q: Benson Company was franchised on January 1, 2011. At the

Benson Company was franchised on January 1, 2011. At the end of its third year of operations, December 31, 2013, management requested a study to determine what effect different materials inventory cos...

Q: Mystic Manufacturing Company maintains the following accounts in the general ledger:

Mystic Manufacturing Company maintains the following accounts in the general ledger: Materials, Work in Process, Factory Overhead, and Accounts Payable. On June 1, the materials account had a debit ba...

Q: RDI Company uses backflush costing to account for its manufacturing costs.

RDI Company uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to...

Q: A machine shop manufactures a stainless steel part that is used in

A machine shop manufactures a stainless steel part that is used in an assembled product. Materials charged to a particular job amounted to $600. At the point of final inspection, it was discovered tha...

Q: Venus, Inc., manufactures tennis clothing. During the month,

Venus, Inc., manufactures tennis clothing. During the month, the company cut and assembled 8,000 skirts. One hundred of the skirts did not meet specifications and were considered ‘‘seconds.’’ Seconds...

Q: Marcia Young earns $25 per hour for up to 400 units

Marcia Young earns $25 per hour for up to 400 units of production per day. If she produces more than 400 units per day, she will receive an additional piece rate of $0.50 per unit. Assume that her hou...

Q: David Mfg. Company manufactures an integrated transistor circuit board for repeat

David Mfg. Company manufactures an integrated transistor circuit board for repeat customers but also accepts special orders for the same product. Job No. MS1 incurred the following unit costs for 1,00...

Q: Aztec Company expects daily usage of 500 pounds of material Inca,

Aztec Company expects daily usage of 500 pounds of material Inca, an anticipated lead time of seven days, and a desired safety stock of 2,500 pounds. a. Determine the order point. b. Determine the num...

Q: Patriot Company predicts that it will use 360,000 gallons of

Patriot Company predicts that it will use 360,000 gallons of material during the year. The material is expected to cost $5 per gallon. Patriot anticipates that it will cost $72 to place each order. Th...

Q: Match the materials control form in the left column with the person

Match the materials control form in the left column with the person responsible for its preparation in the right column. (A selection may be used more than once.) a. Purchase requisition 1. Product...