Questions from Cost Accounting

Q: Creative Solutions designs Web pages for clients in the education sector.

Creative Solutions designs Web pages for clients in the education sector. The company’s job-costing system has a single direct cost category (Web-designing labor) and a single indirect cost pool compo...

Q: Castle Lager has just purchased the Jacksonville Brewery. The brewery is

Castle Lager has just purchased the Jacksonville Brewery. The brewery is two years old and uses absorption costing. It will “sell” its product to Castle Lager at $4...

Q: Magic Me is a manufacturer of magic kits. It uses absorption

Magic Me is a manufacturer of magic kits. It uses absorption costing based on standard costs and reports the following data for 2017: There is no price, spending, or efficiency variances. Actual oper...

Q: LLAP Company manufactures a specialized hoverboard. LLAP began 2017 with an

LLAP Company manufactures a specialized hoverboard. LLAP began 2017 with an inventory of 240 hoverboards. During the year, it produced 1,200 boards and sold 1,300 for $800 each. Fixed production costs...

Q: Market.com is about to enter the highly competitive personal electronics

Market.com is about to enter the highly competitive personal electronics market with a new type of tablet. In anticipation of future growth, the company has leased a large manufacturing facility and h...

Q: Planet Light First (PLF), a producer of energy-efficient

Planet Light First (PLF), a producer of energy-efficient light bulbs, expects that demand will increase markedly over the next decade. Due to the high fixed costs involved in the business, PLF has dec...

Q: Planet Light First (PLF), a producer of energy-efficient

Planet Light First (PLF), a producer of energy-efficient light bulbs, expects that demand will increase markedly over the next decade. Due to the high fixed costs involved in the business, PLF has dec...

Q: The Iron City Company started business on January 1, 2017.

The Iron City Company started business on January 1, 2017. Iron City manufactures a specialty honey beer, which it sells directly to state-owned distributors in Pennsylvania. Honey beer is produced an...

Q: Meals To Go operates a chain of 10 hospitals in the Los

Meals To Go operates a chain of 10 hospitals in the Los Angeles area. Its central food-catering facility, Mealman, prepares and delivers meals to the hospitals. It has the capacity to deliver up to 1,...

Q: In 2018, only 876,000 Mealman meals were produced and

In 2018, only 876,000 Mealman meals were produced and sold to the hospitals. Wright suspects that hospital controllers had systematically inflated their 2018 meal estimates. Required: 1. Recall that...