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Chapter 1 Introduction to Managerial Accounting Chapter 1 Introduction to Managerial Accounting Quick Check Answers: QC1-1. a QC1-3. b QC1-5. b QC1-7. d QC1-9. c QC1-2. d QC1-4. d QC1-6. c QC1-8. a QC1-10. d Short Exercises (5-10 min.) S1-1 […]

Managerial Accounting 4e Solutions Manual Problems (Group B) (45-60 min.) P1–27B Req. 1 Planning Directing Controlling Sales Increase Sales Setting competitive prices Examine sales reports Monitor sales numbers and prices from different products and locations over time. Investigate variances. Repairs […]

Chapter 10 Performance Evaluation Copyright © 2015 Pearson Education, Inc. 10-1 Chapter 10 Performance Evaluation Quick Check Answers: QC-1. d QC-3. c QC-5. b QC-7. a QC-9. c QC-2. b QC-4. c QC-6. d QC-8. b QC-10. d Short Exercises […]

Chapter 10 Performance Evaluation (15-20 min.) E10-37B Sweet Street Muffins Flexible Budget Performance Report – Sales and Operating Expenses For Year Ended December 31 Actual Flexible Budget Variance Flexible Budget Volume Variance Master Budget 8,400 cases 8,400 cases 7,900 cases […]

Copyright © 2015 Pearson Education, Inc. 10–37 (15-20 min.) P10-49B Req. 1 Precious Bubbles, Inc. Income Statement Performance Report Year Ended March 31 Actual results at actual prices Flexible budget variance Flexible budget for actual number of output units Volume […]

Chapter 11 Standard Costs and Variances Copyright © 2015 Pearson Education, Inc. 11-1 Chapter 11 Standard Costs and Variances Quick Check Answers: QC-1. a QC-3. a QC-5. c QC-7. d QC-9. a QC-2. b QC-4. d QC-6. b QC-8. c […]

Chapter 11 Standard Costs and Variances (10-15 min.) E11-39B Journal Entry DATE ACCOUNTS POST. REF. DEBIT CREDIT Raw Materials Inventory (1,060,000 x $1.30) 1,378,000 Direct Materials Price Variance 159,000 Accounts Payable (1,060,000 x $1.15) 1,219,000 Work in Process Inventory (160,000 […]

Chapter 11 Standard Costs and Variances Problems (Group B) (15-30 min.) P11-53B Req. 1 DM 2.0 yards X $8.5 per yard $17 Req. 2 $35,802 / 4,590 = $7.80 per yard Req. 3 Standard price per unit $ 8.50 Actual […]

Chapter 12 Capital Investment Decisions and the Time Value of Money Chapter 12 Capital Investment Decisions and the Time Value of Money Quick Check Answers: QC-1. b QC-3. a QC-5. a QC-7. a QC-9. c QC-2. b QC-4. b QC-6. […]

Copyright © 2015 Pearson Education, Inc. 12–21 (5-10 min.) E12-36B Payback period = Initial Investment Expected annual net cash inflow = $1,600,000 $320,000 = 5 years The payback occurs well before the plant must be replaced, so the payback method […]

Chapter 12 Capital Investment Decisions and the Time Value of Money (continued) P12-56A (Req. 1 continued) The internal rate of return is calculated as follows: Initial investment = Annuity PV factor (i = ?, n = ?) Amount of each […]

Chapter 13 Statement of Cash Flows Chapter 13 Statement of Cash Flows Quick Check Answers: QC-1. c QC-3. c QC-5. a QC-7. d QC-9. a QC-2. c QC-4. b QC-6. b QC-8. c QC-10. b Short Exercises (5-10 min.) S13-1 […]

Chapter 13 Statement of Cash Flows Copyright © 2015 Pearson Education, Inc. 13–19 (15-20 min.) E13-27B Majestic Event Corporation Statement of Cash Flows – Indirect Method For the year ended December 31 Cash flows from operating activities: Net Income $92,000 […]

Chapter 14 Financial Statement Analysis Chapter 14 Financial Statement Analysis Quick Check Answers: QC-1. c QC-3. d QC-5. a QC-7. b QC-9. b QC-2. a QC-4. a QC-6. d QC-8. c QC-10. d Short Exercises (5-10 min.) S14-1 Increase (Decrease) […]

Managerial Accounting 4e Solutions Manual Copyright © 2015 Pearson Education, Inc. 14–18 (5 min.) E14-32B a. People b. Planet c. People d. Planet e. People f. Profit g. Profit h. People i. Planet j. People Copyright © 2015 Pearson Education, […]

Chapter 15 Sustainability Chapter 15 Sustainability Quick Check Answers: QC-1. c QC-3. b QC-5. c QC-7. b QC-9. d QC-2. a QC-4. d QC-6. d QC-8. a QC-10. d Short Exercises (5 min.) S15-1 a. Attracting capital b. Reducing risks […]

Chapter 15 Sustainability Copyright © 2015 Pearson Education, Inc. 15–19 (10-15 min.) E15-27B Req. 1 # of tons cost per ton Monthly cost Annual (x 12 mos) Material cost of machine drool 180 $ 80 $ 14,400 $ 172,800 Disposal […]

Chapter 2 Building Blocks of Managerial Accounting Chapter 2 Building Blocks of Managerial Accounting Quick Check Questions Answers: QC2-1. c QC2-3. a QC2-5. c QC2-7. b QC2-9. a QC2-2. b QC2-4. c QC2-6. d QC2-8. c QC2-10. C Short Exercises […]

Chapter 2 Building Blocks of Managerial Accounting (15 min.) E2-31B Reqs. 1, 2, and 3 Req. 4 Total inventoriable product costs: Direct materials……………………………………..….… $ 69 Direct labor……………………………………… 8 Manufacturing overhead…………………………… 75 Total inventoriable product cost…………………. $152 Req. 5 The total […]

Chapter 2 Building Blocks of Managerial Accounting Copyright © 2015 Pearson Education, Inc. 2-35 (15-20 min.) P2-46A Req. 1 Monthly pizza volume 5,000 8,000 10,000 Total fixed costs $ 10,000 $ 10,000 $ 10,000 Total variable costs 7,250 11,600 14,500 […]

Chapter 3 Job Costing Chapter 3 Job Costing Quick Check Questions Answers: QC3-1. c QC3-3. a QC3-5. d QC3-7. b QC3-9. b QC3-2. b QC3-4. b QC3-6. d QC3-8. a QC3-10. b Short Exercises (5 min.) S3-1 a. An automobile […]

Chapter 3 Job Costing Job Cost Record Job Number: 1102 Customer: Wild Birds, Inc. Job description: 24 Model 3F (platform bird feeders) Date Started: Sep. 14 Date Completed: ________ Manufacturing Cost Information: Cost Summary Direct Materials Req. #1250 $221 Direct […]

Managerial Accounting 4e Solutions Manual (continued) P3-48A Req. 5 Steinborn Homes Gross Profit on Chalets Sold in May Chalet #13 Chalet #16 Sales revenue $99,000 $146,000 Cost of goods sold (64,460) (100,500) Gross profit $34,540 $ 45,500 The gross profit […]

Chapter 4 Activity-Based Costing, Lean Operations, and the Costs of Quality Chapter 4 Activity-Based Costing, Lean Operations, and the Costs of Quality Quick Check Answers: QC4-1. b QC4-3. b QC4-5. c QC4-7. b QC4-9. d QC4-2. c QC4-4. a QC4-6. […]

Chapter 4 Activity-Based Costing, Lean Operations, and the Costs of Quality (continued) E4–28B Req. 4 Overhead allocation based on departmental rates: Job 450 Job 455 Machining Department: Departmental allocation rate $41/ MH $41/ MH × Machine hours used by Job […]

Copyright © 2015 Pearson Education, Inc. 4-38 (20-30 min.) P4-42A Req. 1 Robotic Construction Toys Corp Predicted Quality Cost Savings Activity Predicted Reduction In Activity Units × Activity Cost Allocation Rate = Predicted Reduction In Activity Costs Inspection of incoming […]

Chapter 5 Process Costing Copyright © 2015 Pearson Education, Inc. 5-1 Chapter 5 Process Costing Quick Check Answers: QC-1. c QC-3. c QC-5. d QC-7. d QC-9. a QC-2. c QC-4. a QC-6. d QC-8. b QC-10. b (5-10 min.) […]

Chapter 5 Process Costing (continued) E5-31A Req. 2 Cambria Winery Fermenting Department Flow of Physical Units and Computation of Equivalent Units Flow of Physical Units Equivalent Units Direct Materials Conversion Costs Units to account for: Beginning work in process, March […]

Copyright © 2015 Pearson Education, Inc. 5-41 (30-45 min.) P5-48A Req. 1 Direct materials added Conversion costs added evenly throughout the process Start 45% 100% Complete 15,700 units completed and transferred out 5,200 units incomplete (ending work in process inventory) […]

Chapter 5 Process Costing (continued) P5-54B Colorado Furniture Company Sawing Department Cost per Equivalent Unit Month Ended September 30 Cost per Equivalent Unit: Direct Materials Conversion Costs Total Beginning work in process, Sept. 1 $ 0 $ 0 $ 0 […]

Chapter 6 Cost Behavior Copyright © 2015 Pearson Education, Inc. 6-1 Chapter 6 Cost Behavior Quick Check Answers: QC-1. a QC-3. c QC-5. d QC-7. c QC-9. b QC-2. b QC-4. d QC-6. b QC-8. c QC-10. c Short Exercises […]

Copyright © 2015 Pearson Education, Inc. 6-21 (15-20 min.) E6-38A Req. 1 Wilson’s operating income under variable costing will be lower than its operating income under absorption costing. This situation is because under absorption costing, some of the fixed MOH […]

Chapter 6 Cost Behavior (continued) P6-60A Req. 5 Cost Activity Variable cost: High pt. $579,000 32,000 Nov Low pt. $420,000 20,000 Sep Difference $159,000 12,000 Change in cost / change in volume = variable cost $159,000 / 12,000 = $13.25 […]

Chapter 7 Cost-Volume-Profit Analysis Copyright © 2015 Pearson Education, Inc. 7-1 Chapter 7 Cost-Volume-Profit Analysis Quick Check Answers: QC-1. d QC-3. b QC-5. a QC-7. b QC-9. c QC-2. c QC-4. c QC-6. c QC-8. b QC-10. d (5-10 min.) […]

Chapter 7 Cost-Volume-Profit Analysis (continued) E7-30A bWeighted-average Total sales mix contribution margin Total sales mix units contribution = margin per unit $110 = $455 + X 10 $1,100 = $455 + X X = $645 cContribution × 3 = $645 […]

Chapter 7 Cost-Volume-Profit Analysis (15 min.) E7-53B Req. 1 Contribution margin ratio = 1.00 − 0.40 = 0.60 Breakeven sales in dollars = Fixed expenses + Operating income Contribution margin ratio = $7,500 + $0 0.60 = $12,500 Target sales […]

Copyright © 2015 Pearson Education, Inc. 7-56 (30-45 min.) P7-64B Req. 1 Cost-Volume-Profit Analysis Companies Q, R, S, T COMPANY Q R S T Target sales $757,500 $445,000 $162,500 $1,000,000 Less: Variable expenses 242,400 178,000 32,500 360,000 Less: Fixed expenses […]

Chapter 8 Relevant Costs for Short-Term Decisions Copyright © 2015 Pearson Education, Inc. 8-1 Chapter 8 Relevant Costs for Short-Term Decisions Quick Check Answers: QC-1. c QC-3. d QC-5. a QC-7. b QC– 9. b QC-2. c QC-4. b QC-6. […]

Chapter 8 Relevant Costs for Short-Term Decisions (10 min.) E8–34B Req. 1 Decision: Do not discontinue DVDs. It is incorrect to conclude that discontinuing DVDs would add $24,000 to operating income. If the company discontinues the DVDs product line, it […]

Chapter 8 Relevant Costs for Short-Term Decisions Problems (Group B) (15-20 min.) P8-48B Req. 1 Sailor Products Incremental Analysis of Special Sales Order Revenues from special order ( 5,500 vests × $4 each) $ 22,000 Less expenses associated with order: […]

Chapter 9 The Master Budget Copyright © 2015 Pearson Education, Inc. 9-1 Chapter 9 The Master Budget Quick Check Answers: QC-1. c QC-3. a QC-5. b QC-7. a QC-9. a QC-2. d QC-4. d QC-6. d QC-8. b QC-10. b […]

Chapter 9 The Master Budget (25−30 min.) E9-31A Games Corporation Budgeted Balance Sheet March 31 ASSETS Current Assets: Casha $ 6,400 Accounts receivable 3,175 Inventory 16,185 $25,760 Plant assets: Furniture and fixtures 34,300 Accumulated depreciation ($29,830 + $900) (30,730) 3,570 […]

Copyright © 2015 Pearson Education, Inc. 9-41 (20 min.) E9-52B Reilly Adventures Cash Budget February and March February March Beginning cash balance $ 16,300 $ 20,000 Cash collections 90,000 80,200 Cash from sale of plant assets 0 2,200 Cash available […]

Chapter 9 The Master Budget (continued) P9-60B Req. 9 Budgeted Manufacturing Cost per Unit Direct materials cost per unit $6.00 Direct labor cost per unit 0.45 Variable manufacturing overhead costs 1.10 Fixed MOH 0.70 Cost of manufacturing each unit $8.25 […]

The Stemple Corporation data for the current year: What would a horizontal analysis report with respect to current assets show? A) Inventory turnover of 7.11 times B) Current ratio of 1.24 C) A 22% increase in current assets D) Current […]

Sophia’s Delivery Service charges a $55 service fee. The variable cost per service run is $22. The company’s fixed expenses amount to $6,200. If the operating income equals fixed expenses, what is the breakeven point in sales revenue for Sophia’s […]

1) The Bedford Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. Inventory and prepaid expenses account for $30,000 of the current year’s current assets. Average inventory for the […]

1) Total assets is the denominator in the formula managers use to compute ROI. 2) The direct labor efficiency variance tells managers how much of the total labor variance is due to using a greater or lesser amount of time […]

The balance sheet for Bostick Corporation follows: Operating income during the period was $13,650, while cash dividends paid were $3,770. The total sources of cash at Bostick Corporation during the year was A) $39,070. B) $32,320. C) $13,800. D) $46,120. […]

1) The manager at Tom’s Taxidermy expects to sell 800 units at $30 each unit. In order for the manager to breakeven, the manager must sell 400 units. What is the margin of safety in dollars? A) $12,000 B) $14,000 […]

1) Extensive Business Reporting Language (XBRL) will be required of both public and private companies. 2) An investment center is generally a large division of a corporation. Answer: TRUE 3) Managerial accountants must comply with Generally Accepted Accounting Principles (GAAP) […]

Yummy-Tummy Foods has the following information about its standards and production activity for November: How much are the standard overhead costs allocated to actual production? A) $170,400 B) $142,000 C) $85,000 D) $57,500 The following information relates to Woolf Unlimited […]

The managerial accountant at the Holiday Musical Academy is required to complete the statement of cash flows. The managerial accountant is required to determine the amount of money the company used to purchase property, plant, and equipment (PP&E) during the […]

1) A company uses the direct method to prepare the statement of cash flows. It presents the following data on its financial statements: *Relates solely to the acquisition of inventory What will appear in the operating activities section related to […]

1) In a company that uses the direct method to prepare the statement of cash flows, the amount of cash it pays in interest expense is computed as A) the change in interest payable plus interest expense. B) the change […]

1) A company uses the direct method to prepare the statement of cash flows. It presents the following data on its financial statements: *Relates solely to the acquisition of inventory Which of the following is correct about salaries payable in […]

Smithson Corporation had the following selected balance sheet changes for the past year: The company’s operating income during the year was $35,000. What is the net cash provided by operating activities during last year on the statement of cash flows […]

1) Nixon’s Diner bakes pies in large batches. One batch of pies has the following standard costs and amounts: Nixon’s Diner baked 425 batches of pies in the most recent month. Actual costs and usage levels were as follows: Required: […]

1) Crossroads Packaging Co. has budgeted the following amounts for its next fiscal year: To maintain the original breakeven sales in units if fixed expenses were to increase by 10%, the selling price per unit would have to be A) […]

Which of the following is the operating income an investment center generates before subtracting common fixed costs that are allocated to the center? A) Sales volume variance B) Segment margin C) Return on investment (ROI) D) Return on assets (ROA) […]

In a company that uses the direct method to prepare the statement of cash flows, the amount of cash it pays in interest expense is computed as A) the change in interest payable plus interest expense. B) the change in […]

The following information relates to Woolf Unlimited for the past two years. What is the inventory turnover for the current year? A) 2.30 times B) 0.78 times C) 13.00 times D) 2.20 times Which of the following roles in an […]

1) The following information relates to The Roberta Corporation. Required: a.What is the acid-test ratio for the current year? b.What is the inventory turnover for the current year? c.What is days’ sales in receivables for the current year? d.What is […]

1) Which of the following organizations has developed the G4 Guidelines? A) Global Reporting Initiative (GRI) B) International Accounting Standards Board (IASB) C) Carbon Disclosure Project (CDP) D) International Organization for Standardization (ISO) 2) To follow is selected information about […]

A company uses the direct method to prepare the statement of cash flows. It presents the following amounts on its financial statements: *Relates solely to the acquisition of inventory Which of the following is correct about the accounts receivable in […]

In a company that uses the direct method to prepare the statement of cash flows, the amount of cash it pays to employees is computed as A) salary expense plus the ending balance salaries payable. B) salary expense plus the […]

Mr. Lite is an entrepreneur that builds and manages organic vegetables in the United States. Mr. Lite recently developed a sustainability strategy to build a large greenhouse and warehouse in a recessed area in North Carolina. The greenhouse is expected […]

1) Review the following individual accounting system components that contain the skills and capabilities of individuals in Chart A and review the accounting system components that contain the skills and capabilities of individuals in Chart B. Which of the following […]

1) The following is information about the units produced and the total manufacturing costs for Rose’s Rug Company for the past six months. Rose’s Rug Company uses the high-low method to estimate its costs. Answer the following questions: a.What is […]

1) People’s Public Power is an electric utility company. The new CEO is interested in implementing new projects that will not only benefit the environment, but will also benefit the company through cost savings. One of the proposed projects is […]

Revenue center performance reports are reports that list the variances between actual sales and budgeted sales. Because the number of units produced was greater than anticipated, production capacity was used less efficiently than anticipated, resulting in an unfavorable volume variance. […]

1) Which of the following cost of quality categories represent the cost incurred to provide “warranty repair on a juicer?” A) Prevention costs B) Appraisal costs C) External failure costs D) Internal failure costs 2) Sydney’s Barbecue manufactures barbecue equipment […]

1) The new employee at Cork Manufacturing reported to work and the employee reviewed the following information that was audited by the CPA: Which of the following describes the role of the new employee? A) Managerial Accountant B) Financial Accountant […]

The Nichols Corporation data for the current year: What would a horizontal analysis report with respect to net sales revenue? A) There is a sales return of $10.23. B) There was an increase of 18.00% in net sales revenue. C) […]

1) Businesses are now viewing sustainability and social responsibility as opportunities for innovation and business development. 2) An example of management by exception occurs when a manager investigates a large variance in a performance report to assign responsibility. Answer: TRUE […]

Freud’s theory was the first to stress the influence of __________ on development. A)observational learning B)rewards and punishment C)cultural norms D)the early parent-child relationship In middle childhood, children’s anxieties are directed toward new concerns, such as a fear of A)the […]

An internal request to transfer raw materials requires personnel to complete a A) materials requisition document. B) bill of materials document. C) purchase order document. D) labor time record document. Steeplechase Building Specialties manufactures metal stud to accommodate commercial framing […]

The manager at East Coast Manufacturing organizes costs to prepare the Costs of Quality report. The manger compiled the following data: What of the following cost is the total cost of quality the manager should use to report the costs […]

Selected information about The Staccato Company for the current year and prior year is given below. The current year’s selling and general expenses percentage (as would be found on a vertical analysis of the income statement for the current year) […]

The manager at a service company does not prepare a cash budget. Total assets is the denominator in the formula managers use to compute ROI. Answer: TRUE Decentralized companies often struggle to achieve goal congruence in an organization. Answer: TRUE […]

1) All of the following are advantages of using standard costs and variances except A) standard costs have benchmarks managers use to judge actual costs. B) standard costs and benchmarks are useful tools that mangers use as a basis in […]

Use the following information to do a horizontal analysis of Marcus Corporation’s income statement for the current year and prior year: What is the percentage change in net income? A) 78.00% B) -22.00% C) 16.73% D) 35.59% The Nichols Corporation […]

1) Use the following information to do a horizontal analysis of Marcus Corporation’s income statement for the current year and prior year: What is the dollar change in gross profit? A) $22,000 B) $(4,840) C) $179,400 D) $25,800 2) Which […]