Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 18, Problem 18.28E

1.

To determine

To prepare: A journal entry.

2.

a.

To determine

To compute: The unit cost if rejection is attributable to exacting specification of this particular job also journalizes it.

Given information:

Mixed vegetable cost is $9.

Number of cases is 2100.

Spoilage realized is 840.

b.

To determine

To compute: The unit cost if rejection is categorized on the basis of production process and not for the specific job also journalizes it.

c.

To determine

To explain: Whether the unit cost in part a, and b above is same.

3.

a.

To determine

To compute: The unit cost of cases if additional cost were incurred because of existing specification of this job and journalize it also.

b.

To determine

To compute: The unit cost of cases if additional cost occurs regularly because of difficulty in season and journalize it also.

c.

To determine

To explain: Whether the unit cost is same in part a and b above.

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General Accounting Question
Niro Corp. is considering a new four-year expansion project that requires an initial fixed asset investment of $3.2 million. The fixed asset will be depreciated straight-line to zero over its four-year tax life, after which time it will be worthless. The project is estimated to generate $2,450,000 in annual sales, with costs of $620,000. If the tax rate is 30 percent, what is the OCF for the project?
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