REAL WORLD EX 17-1 Entries for materials cost flows in a process cost system
Obj. 1,3
The Hershey Company manufactures chocolate confectionery products. The three largest
raw materials are cocoa, sugar, and dehydrated milk. These raw materials first go into the
Blending Department. The blended product is then sent to the Molding Department, where
the bars of candy are formed. The candy is then sent to the Packing Department, where the
bars are wrapped and boxed. The boxed candy is then sent to the distribution center, where
it is eventually sold to food brokers and retailers.

show the accounts debited and credited for each of the following business events:

a. materials used by blending department
b. transfer of blended product to the molding department
c. transfer of chocolate to the packing department
d. transfer of boxed chocolate to the distribution center
e. sale of boxed chocolate ​

The monthly demand equation for an electric utility company is estimated to be p equals 60 minus left parenthesis 10 superscript negative 5 baseline right parenthesis x, where p is measured in dollars and x is measured in thousands of killowatt-hours. the utility has fixed costs of $3 comma 000 comma 000 per month and variable costs of $32 per 1000 kilowatt-hours of electricity generated, so the cost function is upper c left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 32 x. (a) find the value of x and the corresponding price for 1000 kilowatt-hours that maximize the utility's profit. (b) suppose that the rising fuel costs increase the utility's variable costs from $32 to $38, so its new cost function is upper c 1 left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 38 x. should the utility pass all this increase of $6 per thousand kilowatt-hours on to the consumers?