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978-1118096895 Appendix A Part 1
APPENDIX A Time Value of Money SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE A-1 (a) Interest = p X i X n I = $9,000 X .05 X 12 years I = $5,400 Accumulated amount = $9,000 + $5,400 = $14,400 […]
978-1118096895 Appendix A Part 2
BRIEF EXERCISE A–18 i = 5% ? $48,850 $48,850 $48,850 $48,850 $48,850 $48,850 0 1 2 3 4 9 10 Discount rate from Table 4 is 7.72173. Present value of 10 payments of $48,850 each discounted at 5% is therefore […]
978-1118096895 Chapter 1 Part 1
CHAPTER 1 Managerial Accounting ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems *1. Explain the distinguishing features of managerial accounting. 1, 2, 3 1 1 1 *2. Identify the three broad functions of […]
978-1118096895 Chapter 1 Part 2
DO IT! 1-3 FISHEL COMPANY Cost of Goods Manufactured Schedule For the Month Ended April 30 Work in process, April 1 ………………………….. $ 5,000 Direct materials ………………………………………. Raw materials, April 1 …………………………. $ 10,000 Raw materials purchases …………………….. 98,000 Total […]
978-1118096895 Chapter 1 Part 3
EXERCISE 1-14 (Continued) AIKMAN COMPANY Income Statement (Partial) For the Year Ended December 31, 2014 (b) Sales revenue ………………………………… $910,000 Cost of goods sold Finished goods, 1/1 …………………… $ 27,000 Cost of goods manufactured …….. 537,300 Cost of goods available […]
978-1118096895 Chapter 1 Part 4
PROBLEM 1-5A (Continued) (b) PHILLIPS COMPANY Income Statement For the Month Ended October 31, 2014 Sales revenue …………………………………………… $780,000 Cost of goods sold Finished goods inventory, October 1 …… $ 30,000 Cost of goods manufactured……………….. 577,800 Cost of goods available […]
978-1118096895 Chapter 1 Part 5
BYP 1-1 (Continued) (b) Name one special-purpose management accounting report that could be designed for each manager. Include the name of the report, the information it would contain, and how frequently it should be issued. Manager Name of report Information […]
978-1118096895 Chapter 1 Part 6
BYP 1-6 COMMUNICATION ACTIVITY Ms. Shelly Phillips President Phillips Company Dear Shelly: As you requested, I corrected the income statement for October from the information you gave me. The corrected statement is enclosed and it shows that you actually earned […]
978-1118096895 Chapter 10 Part 1
CHAPTER 10 Budgetary Control and Responsibility Accounting ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Describe the concept of budgetary control. 1, 2 1 2. Evaluate the usefulness of static budget reports. […]
978-1118096895 Chapter 10 Part 2
BRIEF EXERCISE 10-10 III A $300,000 ($2,000,000 X .15) increase in sales will increase contribution margin and controllable margin $210,000 ($300,000 X 70%). The new ROI is 30.2% ($1,510,000 ÷ $5,000,000). III A decrease in costs results in a corresponding […]
978-1118096895 Chapter 10 Part 3
EXERCISE 10-8 (a) RENSING GROOMERS Flexible Budget Activity level Direct labor hours 550 600 700 Variable costs: Grooming supplies ($5) $ 2,750 $ 3,000 $ 3,500 Direct labor ($14) 7,700 8,400 9,800 Overhead ($1) 550 600 700 Total variable costs […]
978-1118096895 Chapter 10 Part 4
EXERCISE 10-18 (Continued) (b) MEMO TO: Drs. Reese Dinkle and Anita Frizell FROM: Student SUBJECT: Deficiencies in the Current Responsibility Reporting System The current reporting system has the following deficiencies: 1. It does not clearly show both budgeted goals and […]
978-1118096895 Chapter 10 Part 5
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 10–41 PROBLEM 10-3A (Continued) (c) HILL COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2014 Difference Units Variable […]
978-1118096895 Chapter 10 Part 6
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 10–51 PROBLEM 10-2B (Continued) (b) GONZALEZ COMPANY Assembly Department Manufacturing Overhead Budget Report (Flexible) For the Month Ended July 31, 2014 Difference […]
978-1118096895 Chapter 10 Part 7
BYP 10-1 DECISION-MAKING AT CURRENT DESIGNS (a) Current Designs Rotomolded Line Manufacturing Budget For the Year Ended December 31, 2013 4,000 kayaks Units to be produced Calculation Amount budgeted Costs: Variable costs Polyethylene powder 4,000 X 54 X $1.50 $ […]
978-1118096895 Chapter 10 Part 8
BYP 10-4 REAL-WORLD FOCUS (a) The company’s costs do not increase proportionately with the revenues increase in the third and fourth quarter because the behavior of the costs is primarily fixed. (b) Static budgeting seems to be most appropriate for […]
978-1118096895 Chapter 11 Part 1
CHAPTER 11 Standard Costs and Balanced Scorecard ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Distinguish between a standard and a budget. 1, 2 1 1 2. Identify the advantages of standard […]
978-1118096895 Chapter 11 Part 2
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 11–11 SOLUTIONS TO EXERCISES EXERCISE 11-1 (a) Direct materials: (2,000 X 3) X $5 = $30,000 Direct labor: (2,000 X 1/2) X […]
978-1118096895 Chapter 11 Part 3
EXERCISE 11-15 BURTE CORPORATION Variance Report – Purchasing Department For Week Ended January 9, 2014 Type of Materials Quantity Purchased Actual Price Standard Price Price Variance Explanation Rogue 11 Storm 17 Beast 29 25,000 lbs. 7,000 oz. 22,000 units. $5.20 […]
978-1118096895 Chapter 11 Part 4
PROBLEM 11-3A (Continued) (c) The materials price variance is more than 4% from standard. The actual price for materials of $4.15 is $.25 below the standard price of $4.40 or 5.7% ($.25 ÷ $4.40). The same result can be obtained […]
978-1118096895 Chapter 11 Part 5
PROBLEM 11-1B (a) Total materials variance: ( AQ X AP ) (20,000 X $5.95) $119,000 – – ( SQ X SP ) (19,400* X $6.00) $116,400 = $2,600 U *9,700 X 2 Materials price variance: ( AQ X AP ) […]
978-1118096895 Chapter 11 Part 6
*PROBLEM 11-7B Overhead controllable variance: Actual Overhead ($68,800 + $50,000) $118,800 – – Overhead Budgeted [($50,000 + (19,400* X $3.50)] $117,900 = $900 U Overhead volume variance: Fixed Overhead Rate 2.50/hr. X X Normal Capacity Hours (20,000 – – Standard […]
978-1118096895 Chapter 11 Part 7
BYP 11-4 REAL-WORLD FOCUS (a) Glassmaster is using standard costs because management states that a factor that contributed to improved margins (profit) was a favorable materials price variance. (b) The materials price variance experienced should not lead to changes in […]
978-1118096895 Chapter 12 Part 1
CHAPTER 12 Planning for Capital Investments ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Discuss capital budgeting evaluation, and explain inputs used in capital budgeting. 1 2. Describe the cash payback technique. […]
978-1118096895 Chapter 12 Part 2
DO IT! 12-4 Revenues ………………………………………………………….. $80,000 Less: Expenses (excluding depreciation) ……………….. $40,000 Depreciation ($120,000/4 years) …………………….. 30,000 70,000 Annual net income …………………………………………….. $ 10,000 Average investment = ($120,000 + 0)/2 = $60,000. Annual rate of return = $10,000/$60,000 = 16.7%. […]
978-1118096895 Chapter 12 Part 3
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 12–21 PROBLEM 12-2A (a) (1) Annual Net Income (2) Annual Cash Inflow Sales Expenses Drivers’ salaries Out-of-pocket expenses Depreciation Total expenses Net […]
978-1118096895 Chapter 12 Part 4
PROBLEM 12-3B (Continued) (3) Internal rate of return on Option B is 12%, as calculated below: Cash Flows X 12% Discount Factor = Present Value Present value of net annual cash inflows Present value of cost to rebuild Present value […]
978-1118096895 Chapter 12 Part 5
BYP 12-3 (Continued) (c) Using the original estimates, but a 9% discount rate, the net present value is calculated as follows: Cash Flows X 9% Discount Factor = Present Value Present value of net annual cash flows Present value of […]
978-1118096895 Chapter 13 Part 1
CHAPTER 13 Statement of Cash Flows ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems *1. Indicate the usefulness of the statement of cash flows. 1, 2, 6, 15 *2. Distinguish among operating, investing, […]
978-1118096895 Chapter 13 Part 2
*BRIEF EXERCISE 13-14 + Decrease in income taxes payable Cash payment for income taxes = Income tax expense – Increase in income taxes payable $112,000,000 = $360,000,000 – $248,000,000* *$525,000,000 – $277,000,000 = $248,000,000 (Increase in income taxes payable) *BRIEF […]
978-1118096895 Chapter 13 Part 3
*EXERCISE 13-11 Revenues ………………………………………………………… $195,000) Deduct: Increase in accounts receivable ………….. 60,000 Cash receipts from customers* ………………….. $135,000 Operating expenses …………………………………………. 78,000) Deduct: Increase in accounts payable ………………. 25,000 Cash payments for operating expenses** …… (53,000) Net cash provided by […]
978-1118096895 Chapter 13 Part 4
*PROBLEM 13-8A (Continued) (2) Cash payments to suppliers Cost of goods sold ……………………………………….. $175,000 Add: Increase in inventory ……………………………. 10,000 Cost of purchases ………………………………………… 185,000 Deduct: Increase in accounts payable …………… 14,000 Cash payments to suppliers ………………………….. $171,000 (3) Cash […]
978-1118096895 Chapter 13 Part 5
PROBLEM 13-5B ANNE DROID INC. Partial Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities Net income …………………………………………………. $115,000 Adjustments to reconcile net income to net cash provided by operating activities: Decrease in […]
978-1118096895 Chapter 13 Part 6
BYP 13-1 FINANCIAL REPORTING PROBLEM (a) Net cash provided by operating activities: 2010 $8,448 million 2009 $6,796 million (b) The increase in cash and cash equivalents for the year ended December 26, 2009 was $1,879 million, and the increase was […]
978-1118096895 Chapter 14 Part 1
CHAPTER 14 Financial Statement Analysis ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises Problems 1. Discuss the need for comparative analysis. 1, 2, 3, 5 1 2. Identify the tools of financial statement analysis. 2, 3, 5, […]
978-1118096895 Chapter 14 Part 2
BRIEF EXERCISE 14-6 (Continued) 1.40X = 560,000 X = 400,000 2013 Net income = $400,000 BRIEF EXERCISE 14-7 Comparing the percentages presented results in the following conclusions: The net income for Kemplar increased in 2013 because of the combination of […]
978-1118096895 Chapter 14 Part 3
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 14–21 EXERCISE 14-4 (a) HENDI CORPORATION Condensed Income Statements For the Years Ended December 31 Increase or (Decrease) During 2013 2014 2013 […]
978-1118096895 Chapter 14 Part 4
PROBLEM 14-3 (a) 2013 2014 (1) Profit margin. $32,000 $640,000 = 5.0% $42,000 $700,000 = 6.0% (2) Asset turnover. $640,000 $533,000 + $600,000 2 = 1.1 times $700,000 $600,000 + $640,000 2 […]
978-1118096895 Chapter 14 Part 5
PROBLEM 14-9 GOWER CORPORATION Income Statement For the Year Ended December 31, 2014 Net sales ……………………………………………………. $1,600,000 Cost of goods sold …………………………………….. 1,100,000 Gross profit ……………………………………………….. 500,000 Selling and administrative expenses …………… 160,000 Income from operations ……………………………… 340,000 Other revenues […]
978-1118096895 Chapter 2 Part 1
CHAPTER 2 Job Order Costing ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Explain the characteristics and purposes of cost accounting. 1, 2, 3, 4 2. Describe the flow of costs in […]
978-1118096895 Chapter 2 Part 2
SOLUTIONS TO EXERCISES EXERCISE 2-1 (a) Factory Labor …………………………………………………. 80,000 Factory Wages Payable ……………………………. 66,000 Employer Payroll Taxes Payable ………………. 8,000 Employer Fringe Benefits Payable ……………. 6,000 (b) Work in Process Inventory ($80,000 X 85%) ……… 68,000 Manufacturing Overhead …………………………………. […]
978-1118096895 Chapter 2 Part 3
PROBLEM 2-1A (Continued) (b)&(e) Job Cost Sheets Job No. 50 Date Direct Materials Direct Labor Manufacturing Overhead Beg. Jan. $20,000 10,000 $30,000 $12,000 5,000 $17,000 *$16,000* * 7,000* *$23,000* Cost of completed job Direct materials …………………………………………………….. $30,000 Direct labor …………………………………………………………… […]
978-1118096895 Chapter 2 Part 4
PROBLEM 2-1B (Continued) Finished Goods Inventory ………………………………. 84,000 Work in Process Inventory ($37,400 + $46,600) ………………………………. 84,000 (f) Accounts Receivable …………………………………….. 137,000 Sales Revenue ($63,000 + $74,000) …………… 137,000 Cost of Goods Sold ……………………………………….. 79,400 Finished Goods Inventory ($42,000 + […]
978-1118096895 Chapter 2 Part 5
BYP 2-3 MANAGERIAL ANALYSIS 1. (a) Work in Process Inventory ……………………….. 25,000 Raw Materials Inventory…………………….. 25,000 (b) If not corrected, the balance sheet is affected. Cash is understated and Raw Materials Inventory is overstated. 2. (a) Sales Bonus Expense ………………………………. […]
978-1118096895 Chapter 3 Part 1
CHAPTER 3 Process Costing ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems * 1. Understand who uses process cost systems. 1, 2, 20 1 1 * 2. Explain the similarities and differences between […]
978-1118096895 Chapter 3 Part 2
DO IT! 3-2 (Continued) Work in Process—Packaging …………………………………….. 21,000 Work in Process—Mixing ……………………………………. 21,000 (To record transfer of units to the Packaging Department) Finished Goods Inventory …………………………………………. 106,000 Work in Process—Packaging ……………………………… 106,000 (To record transfer of units to finished […]
978-1118096895 Chapter 3 Part 3
EXERCISE 3-12 To: David Skaros From: Student Re: Ending inventory The reason for any confusion related to your department’s ending inventory quantity stems from the fact that the quantity can be measured in two different ways, depending on what the […]
978-1118096895 Chapter 3 Part 4
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 3-31 PROBLEM 3-2A (a) Physical units Units to be accounted for Work in process, June 1 Started into production Total units Units […]
978-1118096895 Chapter 3 Part 5
*PROBLEM 3-7A (a) Bicycles (1) Equivalent units—Materials Physical Units Materials Added This Period Equivalent Units Work in process, March 1 Started and completed Work in process, March 31 Total 200 950 300 1,450 (1,250 – 300) * 0%* 100% 100% […]
978-1118096895 Chapter 3 Part 6
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 3-51 PROBLEM 3-4B (a) Equivalent Units Physical Units Materials Conversion Costs Units to be accounted for Work in process, October 1 Started […]
978-1118096895 Chapter 3 Part 7
3-60 Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) BYP 3-1 DECISION-MAKING AT CURRENT DESIGNS CURRENT DESIGNS Fabrication Department Production Cost Report For the Month Ended April 30, 2014 Equivalent […]
978-1118096895 Chapter 4 Part 1
CHAPTER 4 Activity-Based Costing ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems *1. Recognize the difference between traditional costing and activity-based costing. 1, 2, 3, 4, 5 1, 2 1 1, 2, 3, […]
978-1118096895 Chapter 4 Part 2
DO IT! 4-2 (Continued) (d) These computations show that the total overhead assigned to Product AD908 is more than two and a half times that assigned to BC113. On a per unit basis, the overhead assigned to AD908 is close […]
978-1118096895 Chapter 4 Part 3
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 4-21 EXERCISE 4-10 1. Number of engineering change orders; hours of designing 2. Number of orders processed 3. Number of parts in […]
978-1118096895 Chapter 4 Part 4
PROBLEM 4-3A (Continued) Total manufacturing cost per stairway under ABC: Direct materials ……………………………………………………………. $ 103,600 Direct labor ………………………………………………………………….. 112,000 Overhead …………………………………………………………………….. 67,950 Total cost of 250 stairs ………………………………………….. $ 283,550 Total cost per stairway ($283,550 ÷ 250) ………………………… $1,134.20 (d) […]
978-1118096895 Chapter 4 Part 5
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 4-41 PROBLEM 4-4B (a) Computation of unit costs—traditional costing Overhead cost per labor hour is $1,150,000 ÷ (30,000 + 20,000) =$23 Products […]
978-1118096895 Chapter 4 Part 6
BYP 4-3 (Continued) (d) Activity-based costing permits the company to identify its R&D costs by the activities that cause the costs; that is, ABC allows closer scrutiny of the causes for cost incurrences; hence, greater control. By charging in-house manufacturing […]
978-1118096895 Chapter 5 Part 1
CHAPTER 5 Cost-Volume-Profit ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Distinguish between variable and fixed costs. 1, 2, 3, 6 1 1 1, 2, 3, 4, 5, 6 1A, 6A 1B, […]
978-1118096895 Chapter 5 Part 2
DO IT! 5-4 (Continued) (b) Margin of safety = Actual sales – Break-even sales Actual sales = $800,000 – $550,000 $800,000 = 31.25% (c) Sales – Variable costs – Fixed costs = Net income $30Q – $18Q = $220,000 + […]
978-1118096895 Chapter 5 Part 3
EXERCISE 5-14 (a) Units sold in 2013 = $570,000 +$210,000 $150 –$90 = 13,000 units (b) Units needed in 2014 = $570,000 + $262,000 * $150 –$90 = 13,867 units (rounded) *$210,000 + $52,000 = $262,000 (c) $570,000 +$262,000 X […]
978-1118096895 Chapter 5 Part 4
PROBLEM 5-1B (a) Variable costs (per haircut) Fixed costs (per month) Barbers’ commission $3.00 Rent .60 Barber supplies .40 Total variable $4.00 Barbers’ salaries $7,500* Rent 700 Depreciation 400 Utilities 300 Advertising 100 Total fixed $9,000 *($1,500 X 3) + […]
978-1118096895 Chapter 5 Part 5
BYP 5-2 DECISION-MAKING ACROSS THE ORGANIZATION (a) (1) Capital-Intensive (2) Labor-Intensive Fixed manufacturing costs $2,524,000 Incremental selling expenses 502,000 Total fixed costs $3,026,000 Fixed manufacturing costs $1,550,000 Incremental selling expenses 502,000 Total fixed costs $2,052,000 Selling price $32.00 Variable costs […]
978-1118096895 Chapter 6 Part 1
CHAPTER 6 Cost-Volume-Profit Analysis: Additional Issues ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Describe the essential features of a cost-volume-profit income statement. 1, 2, 3, 4 1, 2, 3, 4, 5, […]
978-1118096895 Chapter 6 Part 2
BRIEF EXERCISE 6-15 Product 1 Product 2 Contribution margin per unit (a) Machine hours required (b) Contribution margin per unit of limited resource [(a) ÷ (b)] $ 42 .15 $280 $ 35 .10 $350 Product 2 has a higher contribution […]
978-1118096895 Chapter 6 Part 3
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 6-21 EXERCISE 6-8 (Continued) Sales Mix Percentage Total Break- even Sales in Dollars Sales Dollars Needed Per Product Mail pouches and small […]
978-1118096895 Chapter 6 Part 4
SOLUTIONS TO PROBLEMS PROBLEM 6-1A (a) Sales were $2,000,000 and variable expenses were $1,100,000, which means contribution margin was $900,000 and CM ratio was .45. Fixed ex- penses were $1,035,000. Therefore, the break-even point in dollars is: $1,035,000 = $2,300,000 […]
978-1118096895 Chapter 6 Part 5
PROBLEM 6-6A (Continued) The calculations indicate that at a sales level of $75 million, a percentage change in sales and contribution margin will result in 2.70 times that percentage change in operating income if Bonita continues to use sales agents. […]
978-1118096895 Chapter 6 Part 6
PROBLEM 6-2B (Continued) (2) Contribution margin ratio = $314,000 ÷ $1,000,000 = .314 (3) Break-even point in dollars = $431,000 ÷ .314 = $1,372,611 (rounded) The break-even point in dollars declined from $1,690,000 to $1,372,611. This means that overall the […]
978-1118096895 Chapter 6 Part 7
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 6-61 *PROBLEM 6-7B (Continued) FAB COMPANY Income Statement For the Year Ended December 31, 2014 Variable Costing Sales (500,000 yards X $2.50) […]
978-1118096895 Chapter 6 Part 8
BYP 6-3 (Continued) (e) In order to solve for the sales level where net income would be equal under either approach, set the two CVP equations equal to each other and solve for sales: Sales – ((1 – .75) X […]
978-1118096895 Chapter 7 Part 1
CHAPTER 7 Incremental Analysis ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Identify the steps in management’s decision- making process. 1, 2 1 1 2. Describe the concept of incremental analysis. 3, […]
978-1118096895 Chapter 7 Part 2
EXERCISE 7-3 (a) Reject Order Accept Order Net Income Increase (Decrease) Revenues (15,000 X $7.60) Cost of goods sold Operating expenses Net income $0 0 0 $0 $114,000 78,000 30,000 $ 6,000 (1) (2) ($114,000) ( (78,000) ( (30,000) ($ […]
978-1118096895 Chapter 7 Part 3
EXERCISE 7-17 (Continued) Company profit with Products C and E: C E Total Units sold 9,900* 10,000 Sales revenue $940,500 $1,150,000 $2,090,500 Less: Variable costs 495,000 400,000 895,000 Contribution margin $445,500 $ 750,000 1,195,500 Less: Fixed costs 638,000 Net income […]
978-1118096895 Chapter 7 Part 4
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 7-31 PROBLEM 7-1B (a) Reject Order Accept Order Net Income Increase (Decrease) Revenues (10,000 X $30) Cost of goods sold Selling and […]
978-1118096895 Chapter 7 Part 5
BYP 7-1 (Continued) Situation #2 (a) Current designs should not replace the Rotomold oven based on the following calculations: Retain Oven Replace Oven Net Income Increase (Decrease) Variable manufacturing costs $110,500* $ 97,500** $ 13,000 New oven cost 0 250,000 […]
978-1118096895 Chapter 7 Part 6
BYP 7-5 REAL-WORLD FOCUS (a) The types of outsourcing services that the company provides assis- tance on are: Information technology outsourcing, finance and accounting, human re- source outsourcing, business process outsourcing, procurement, and call centers. (b) Insourcing means to take […]
978-1118096895 Chapter 8 Part 1
CHAPTER 8 Pricing ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Compute a target cost when the market determines a product price. 1, 2 1 1 1, 2, 3 2. Compute a […]
978-1118096895 Chapter 8 Part 2
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 8-11 EXERCISE 8-3 (Continued) (c) The highest acceptable cost would be the target cost. The target cost is $80 as shown below: […]
978-1118096895 Chapter 8 Part 3
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 8-21 *EXERCISE 8-18 (a) Cost per unit: Per Unit Direct materials ……………………………………………………………….. Direct labor ……………………………………………………………………… Variable manufacturing overhead …………………………………….. Fixed manufacturing overhead […]
978-1118096895 Chapter 8 Part 4
*PROBLEM 8-7A (a) Absorption-cost pricing: Computation of unit manufacturing cost and target selling price Direct materials ………………………………………………………………. $ 20.00 Direct labor …………………………………………………………………….. 40.00 Variable manufacturing overhead ……………………………………. 10.00 Fixed manufacturing overhead ($1,200,000 ÷ 80,000) ………… 15.00 Unit manufacturing cost …………………………………………… […]
978-1118096895 Chapter 8 Part 5
PROBLEM 8-5B (a) The minimum transfer price is based on the variable cost of units transferred internally, plus the opportunity cost of units sold externally. The variable cost of internal sales would be $0.14 ($0.18 – $0.04). The opportunity cost […]
978-1118096895 Chapter 8 Part 6
8-50 Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) BYP 8-3 (Continued) Computation of selling price (45,000 units) Basic Deluxe Premium Variable cost per unit Fixed cost per unit Total […]
978-1118096895 Chapter 9 Part 1
CHAPTER 9 Budgetary Planning ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Indicate the benefits of budgeting. 1, 2, 4 1 2. State the essentials of effective budgeting. 3, 5, 6, 7, […]
978-1118096895 Chapter 9 Part 2
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 9-11 DO IT! 9-3 ASH CREEK COMPANY Sales Budget For the Year Ending December 31, 2014 Quarter 1 2 3 4 Year […]
978-1118096895 Chapter 9 Part 3
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 9-21 EXERCISE 9-9 (Continued) DONNEGAL COMPANY Direct Labor Budget For the Quarter Ending March 31, 2014 Jan Feb Mar Total Production in […]
978-1118096895 Chapter 9 Part 4
EXERCISE 9-20 (a) GRAND STORES Merchandise Purchases Budget For the Month Ending June 30, 2014 Budgeted cost of goods sold ($500,000 X 75%) ……………… $375,000 Add: Desired ending merchandise inventory ($600,000 X 75% X 30%) ……………………………………………. 135,000 Total ……………………………………………………………………………. 510,000 […]
978-1118096895 Chapter 9 Part 5
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 9-41 PROBLEM 9-4A (Continued) (b) COLTER COMPANY Cash Budget For the Two Months Ending February 28, 2014 January February Beginning cash balance […]
978-1118096895 Chapter 9 Part 6
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 9-51 PROBLEM 9-2B (Continued) (e) URBINA INC. Budgeted Income Statement For the Year Ending December 31, 2014 LN 35 LN 40 Total […]
978-1118096895 Chapter 9 Part 7
BYP 9-1 (Continued) CREATIVE DESIGNS Selling and Administrative Expense Budget For the Year Ending December 31, 2013 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Expected unit sales 1,000 1,500 750 750 4,000 Variable selling and administrative costs at […]
978-1118096895 Chapter 9 Part 8
BYP 9-6 COMMUNICATION ACTIVITY Date 2014 Mrs. Megan Parcells, CEO Life Protection Products Dear Mrs. Parcells: Allow me to congratulate you on the success of your new venture! The growth in sales you have experienced is phenomenal. You have managed […]
Appendix A Add the present value of the principal amount to the present
APPENDIX A TIME VALUE OF MONEY SUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 3. 2 K 5. 4 K […]
Chapter 1 At1 Instructions Classify The Following Manufacturing Costs And
Achievement Test 1: Chapters 1-2 Name _________________________ Managerial Accounting, 6e Instructor ______________________ Section # _______ Date _________ Part I II III IV Total Points 30 20 22 28 100 Score PART I — MULTIPLE CHOICE (30 points) Instructions: Designate the […]
Chapter 1 The balanced scorecard is now used by many companies
CHAPTER 1 MANAGERIAL ACCOUNTING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 C 9. 2 K 17. 4 C 25. […]
Chapter 12 The profitability index is a tool for comparing
CHAPTER 12 PLANNING FOR CAPITAL INVESTMENTS SUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 6. 2 C 11. 4 C […]
Chapter 13 For external reporting, a company must prepare either an income
CHAPTER 13 STATEMENT OF CASH FLOWS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. 2 K 17. 2 […]
Chapter 14 if an item has a negative amount in the base year
CHAPTER 14 FINANCIAL STATEMENT ANALYSIS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 C 9. 3 K 17. 4 K […]
Chapter 2 Companies use this rate to assign overhead costs to work in
JOB ORDER COSTING CHAPTER 2 1. 1 K 8. 2 K 15. 2 K 22. 4 C 29. 6 C 2. 1 C 9. 2 C 16. 2 K 23. 4 K 30. 6 C 3. 1 C 10. 2 […]
Chapter 2 Which one of the following is a product-level activity
Achievement Test 2: Chapters 3-4 Name _________________________ Managerial Accounting, 6e Instructor ______________________ Section # _______ Date _________ Part I II III IV V Total Points 30 10 25 20 15 100 Score PART I — MULTIPLE CHOICE (30 points) Instructions: […]
Chapter 3 Nova Supreme has a weighted-average unit contribution margin
Achievement Test 3: Chapters 5-6 Name _________________________ Managerial Accounting, 6e Instructor ______________________ Section # _______ Date _________ Part I II III IV V VI Total Points 28 10 12 14 24 12 100 Score PART I — MULTIPLE CHOICE (28 […]
Chapter 3 The system transfers the costs of completed work to Finished
CHAPTER 3 PROCESS COSTING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. 4 K 17. 6 K 25. […]
Chapter 4 Joint Costs Are All Costs Incurred Prior
Achievement Test 4: Chapters 7-8 Name _________________________ Managerial Accounting, 6e Instructor ______________________ Section # _______ Date _________ Part I II III IV V Total Points 20 10 26 20 24 100 Score PART I — MULTIPLE CHOICE (20 points) Instructions: […]
Chapter 4 Know How Companies Identify And Use Cost
CHAPTER 4 ACTIVITY-BASED COSTING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 7. 4 C 13. 5 K 19. […]
Chapter 5 List The Five Components Cost volume profit Analysis The
CHAPTER 5 COST-VOLUME-PROFIT SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. 2 C 17. 4 K 25. 6 […]
Chapter 5 Which of the following is false with regard to budgetary planning
Achievement Test 5: Chapters 9-10 Name _________________________ Managerial Accounting, 6e Instructor ______________________ Section # _______ Date _________ Part I II III IV Total Points 26 32 22 20 100 Score PART I — MULTIPLE CHOICE (26 points) Instructions: Designate the […]
Chapter 6 Understand how operating leverage affects profitability
CHAPTER 6 COST-VOLUME-PROFIT ANALYSIS: ADDITIONAL ISSUES SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 7. 3 K 13. 4 […]
Chapter 6 Which method does not consider time value of money
Achievement Test 6: Chapters 11-12 Name _________________________ Managerial Accounting, 6e Instructor ______________________ Section # _______ Date _________ Part I II III IV V Total Points 30 10 30 20 10 100 Score PART I — MULTIPLE CHOICE (30 points) Instructions: […]
Chapter 7 Asset Turnover Receivables Turnover Price earnings
Achievement Test 7: Chapters 13-14 Name _________________________ Managerial Accounting, 6e Instructor ______________________ Section # _______ Date _________ Part I II III IV V Total Points 28 27 10 10 25 100 Score PART I — MULTIPLE CHOICE (28 points) Instructions: […]
Chapter 7 Identify The Steps Managements Decision making Process Managements
INCREMENTAL ANALYSIS CHAPTER 7 1. 1 K 7. 2 C 13. 4 C 19. 6 C 25. 7 C 2. 2 K 8. 3 C 14. 4 K 20. 6 C sg26. 1 K 3. 2 C 9. 3 C […]
Chapter 8 Calculate The Appropriate Transfer Price And Indicate
CHAPTER 8 PRICING SUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 C 6. 2 C 11. 3 K 16. 4 K […]
Chapter 9 Identify The Benefits Budgeting The Primary Advantages
CHAPTER 9 BUDGETARY PLANNING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. 2 C 17. 3 K 25. […]
Comprehensive Exams How much is the cost assigned to the units in the ending work
COMPREHENSIVE EXAMINATION A (Chapters 1 – 4) Approximate Problem Topic Points Minutes A – I Multiple Choice …………………………………….. 20 20 A – II Cost of Goods Manufactured and Sold …….. 20 15 A – III Job Order Cost Accounting …………………….. […]
Final Exam Remark Enterprises uses a process cost accounting system
Final Exam: Chapters 1-14 Name _________________________ Managerial Accounting, 6e Instructor ______________________ Section # _______ Date _________ Part I II III IV V Total Points 60 18 19 14 14 125 Score PART I — MULTIPLE CHOICE (60 points) Instructions: Designate […]