Questions from General Accounting

Q: Rivera Company has several processing departments. Costs charged to the Assembly

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2014 totaled $2,280,000 as follows. Production records show that 35,000 units were in beginni...

Q: Morse Company manufactures basketballs. Materials are added at the beginning of

Morse Company manufactures basketballs. Materials are added at the beginning of the production process and conversion costs are incurred uniformly. Production and cost data for the month of July 2014...

Q: Thakin Stairs Co. designs and builds factory-made premium wooden

Thakin Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways of v...

Q: Benton Corporation produces two grades of wine from grapes that it buys

Benton Corporation produces two grades of wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called CoolD...

Q: : Polk and Stoneman is a public accounting firm that offers two

Polk and Stoneman is a public accounting firm that offers two primary services, auditing and tax-return preparation. A controversy has developed between the partners of the two service lines as to who...

Q: Telly Savalas owns the Bonita Barber Shop. He employs four barbers

Telly Savalas owns the Bonita Barber Shop. He employs four barbers and pays each a base rate of $1,000 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addi...

Q: Peine Candle Supply makes candles. The sales mix (as a

Peine Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard tapered candles 50%, and large scented candles 20%...

Q: Dousmann Corp.’s sales slumped badly in 2014. For the

Dousmann Corp.’s sales slumped badly in 2014. For the first time in its history, it operated at a loss. The company’s income statement showed the following results...

Q: Mozena Corporation has collected the following information after its first year of

Mozena Corporation has collected the following information after its first year of sales. Sales were $1,500,000 on 100,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materia...

Q: Kaiser Industries carries no inventories. Its product is manufactured only when

Kaiser Industries carries no inventories. Its product is manufactured only when a customer’s order is received. It is then shipped immediately after it is made. For its fiscal year ended October 31, 2...