Archives: Solution Manual

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Planned contribution margin Effect of change in sales: Sales quantity factor1 Unit price factor2 Total effect of change in sales […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Planned contribution margin Effect of change in sales: Sales quantity factor1 Unit price factor2 Total effect of change in sales […]

An asterisk (*) will appear to the right of an incorrect entry. 1. S M L Total Sales Variable cost of goods sold Manufacturing margin Variable operating expenses Contribution margin Fixed costs: Manufacturing costs Operating expenses Total fixed costs Income […]

An asterisk (*) will appear to the right of an incorrect entry. 1. S M L Total Sales Variable cost of goods sold Manufacturing margin Variable operating expenses Contribution margin Fixed costs: Manufacturing costs Operating expenses Total fixed costs Income […]

An asterisk (*) will appear to the right of an incorrect entry. a. Sales (420,000 units) Cost of goods sold: Unit Cost ×Units Cost of goods manufactured Less ending inventory Cost of goods sold Gross profit Selling and administrative expenses […]

An asterisk (*) will appear to the right of an incorrect entry. a. Sales (96,000 units) Variable cost of goods sold: Variable cost of goods manufactured Less ending inventory (24,000 units) Variable cost of goods sold Manufacturing margin Variable selling […]

An asterisk (*) will appear to the right of an incorrect entry. a. – – = million (rounded) accounts Supporting calculations: Revenue per account (in millions): Total revenue (in millions) Total accounts (in millions)  Revenue per account (in millions) […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Expenses: Selling expenses Sales salaries and commissions Advertising Travel Miscellaneous […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Expenses: Selling expenses Sales salaries and commissions Advertising Travel Miscellaneous […]

An asterisk (*) will appear to the right of an incorrect entry. a. – – – – = Based on highest level: Total cost Units produced x Variable cost per unit Total variable cost Total fixed cost b. Based on […]

An asterisk (*) will appear to the right of an incorrect entry. UNITS Equivalent Units Whole Units of Production Units charged to production: Inventory in process, January 1 Received from Weaving Department Total units account for by the Cutting Department […]

An asterisk (*) will appear to the right of an incorrect entry. a. and b. Equivalent Percent Units of Complete Whole Units Production Units to be accounted for: Beginning work in process Units started during the period Total Units to […]

An asterisk (*) will appear to the right of an incorrect entry. The essay portion will not be graded. MEMO To: Production Manager The cost of production report was used to identify the cost per case for each of the […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. (a) UNITS Whole Units Direct Materials Conversion Units charged to production: […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Units in process at beginning of period Units placed in production during period Less units finished during […]

An asterisk (*) will appear to the right of an incorrect entry. UNITS Equivalent Units Whole Units of Production Units to account for during production: Inventory in process, May 1 Received from Milling Department Total units account for by the […]

An asterisk (*) will appear to the right of an incorrect entry. UNITS Equivalent Units Whole Units of Production Units to account for during production: Inventory in process, December 1 Received from materials storeroom Total units account for by the […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. and 2. Date Item Debit Credit Debit Credit Sept. 1 […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. and 2. Date Item Debit Credit Debit Credit Apr. 1 […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. UNITS Whole Units Direct Materials Conversion Units charged to production: […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. UNITS Whole Units Direct Materials Conversion Units charged to production: […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. UNITS Whole Units Direct Materials Conversion Units charged to production: Inventory in process, October 1 Received from materials […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. UNITS Whole Units Direct Materials Conversion Units charged to production: Inventory in process, May 1 Received from materials […]

An asterisk (*) will appear to the right of an incorrect entry. a. Revenues Gross profit Income from operations b. Materials inventory: Purchased materials Less: Materials used in production Materials inventory Work in process inventory: Materials used in production Direct […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Gross profit Selling expenses: Total selling expenses Income from operations Cost of goods sold supporting calculation: Manufacturing cost per unit: Direct materials: Leather Velvet (for interior) […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Gross profit Selling expenses: Total selling expenses Administrative expenses: Total operating expenses Income from operations Cost of goods sold supporting calculation: Manufacturing cost per unit (knife): […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Supporting calculations: May 1 Cost of Work in Direct Direct Factory Total Unit Units Goods Job. No. […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Supporting calculations: June 1 Cost of Work in Direct Direct Factory Total Unit Units Goods Job. No. […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. and 2. Customer Date Address Date Wanted Date Completed Item Job No. Amount Amount Amount meters at hours at Total […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. and 2. Customer Date Address Date Wanted Date Completed Item Job No. Amount Amount Amount meters at hours at Total […]

An asterisk (*) will appear to the right of an incorrect entry. 1. 2. Debit Credit a. Bal. Bal. b. 3. Schedule of unfinished jobs: Direct Direct Factory c. Materials Labor Overhead Total No. 104 No. 106 d. Balance of […]

An asterisk (*) will appear to the right of an incorrect entry. 1. 2. Debit Credit a. Bal. Bal. b. 3. Schedule of unfinished jobs: Direct Direct Factory c. Materials Labor Overhead Total No. 204 No. 206 d. Balance of […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Materials Receiving Requi- Report Unit -sition Number Quantity Price Number Quantity Unit Price Amount Date Quantity Unit Price Amount July […]

An asterisk (*) will appear to the right of an incorrect entry. a. Work in process inventory, May 1, 2014 Direct materials: Cost of direct materials used in production Direct labor Factory overhead: Total factory overhead Total manufacturing costs incurred […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Work in process inventory, January 1, 2014 Direct materials: Cost of direct materials used in production Direct labor Factory overhead: Total factory overhead Total manufacturing costs incurred […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Work in process inventory, January 1, 2014 Direct materials: Cost of direct materials used in production Direct labor Factory overhead: Total factory overhead Total manufacturing costs incurred […]

An asterisk (*) will appear to the right of an incorrect entry. 1. On Company Off Company Materials inventory, December 1 65,800$ 195,300$ Materials inventory, December 31 (a) 91,140 Materials purchased 282,800 (a) Cost of direct materials used in production […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Prius Company Volt Company Materials inventory, December 1 280,280$ 177,000$ Materials inventory, December 31 (a) 180,000 Materials purchased 712,800 342,000 Cost of direct materials used in production […]

CHAPTER 27 Cost Management for Just-in-Time Environments Prob. 27–4A (FIN MAN); Prob. 12–4A (MAN) (Concluded) 3. Percentages of total activity cost that are value- and non-value-added: 4. The department has 67% of its total costs as non-value-added. This is a […]

CHAPTER 27 Cost Management for Just-in-Time Environments Ex. 27–19 (FIN MAN); Ex. 12–19 (MAN) Pareto Chart of Quality Activities 120,000 140,000 27-21 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a […]

2. Move time and wait time in inventory are examples of non-value-added lead time. 3. A product-oriented layout can be designed to minimize materials movements and reduce (or eliminate) setup time. As a result, a product-oriented layout should have a […]

CHAPTER 26 Cost Allocation and Activity-Based Costing Prob. 26–6A (FIN MAN); Prob. 11–6A (MAN) (Concluded) 3. Procedure A Procedure B Procedure C Reimbursement (patient days × reimbursement rate)* $ 682,080 $1,319,500 $1,948,800 4. Procedure A requires more activity cost than […]

2. A single plantwide overhead rate will provide accurate product costing if products use p roduction department activity-base quantities in nearly the same ratio across departments. For example, if Product X used 2 hours of Department A and 4 hours […]

CHAPTER 25 Capital Investment Analysis Prob. 25–4B (FIN MAN); Prob. 10–4B (MAN) 1. a. After Hours: Annual net cash flow (at the end of each of 4 years)………………… … $ 320,000 Sun Fun: Annual net cash flow (at the end […]

CHAPTER 25 Capital Investment Analysis Prob. 25–3A (FIN MAN); Prob. 10–3A (MAN) (Concluded) $9,257,000 $7,000,000 3. The new maintenance yard has the largest present value index. Although route expansion has the largest net present value, it returns less present value […]

2. The principal limitations of the cash payback method are its failure to consider cash flows occurring after the payback period and its failure to use present value concepts. 3. The average rate of return is not based on cash […]

CHAPTER 24 Differential Analysis and Product Pricing Prob. 24–6A (FIN MAN); Prob. 9–6A (MAN) 1. High Good Regular Grade Grade Grade Selling price…………………………………………… … $280 $270 $250 2. The contribution margin per unit may give false signals when an organization […]

CHAPTER 24 Differential Analysis and Product Pricing Ex. 24–15 (FIN MAN); Ex. 9–15 (MAN) a. Differential Reject Accept Effect Order Order on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues $0 $1,840,000 $1,840,000 120,000 tires × $92 per tire 220,000 […]

CHAPTER 23 Performance Evaluation for Decentralized Operations Prob. 23–3B (FIN MAN); Prob. 8–3B (MAN) 1. Sales Cereal Division: $720,000 $12,000,000 $12,000,000 $6,000,000 ROI = 6% × 2.0 ROI = 12.0% = × ROI Snack Cake Division: $660,000 $6,600,000 $6,600,000 $4,400,000 […]

CHAPTER 23 Performance Evaluation for Decentralized Operations Prob. 23–1A (FIN MAN); Prob. 8–1A (MAN) 1. Over Under Budget Actual Budget Budget Customer service salaries $ 390,600 $ 500,040 $109,440 Insurance and property taxes 81,900 79,440 $ 2,460 2. The customer […]