Archives: Solution Manual

1. In a centralized operation, all major planning and operating decisions are made by top management In a decentralized operation, managers of separate divisions or units are delegated operating 2. The department manager of a profit center has responsibility for […]

Part A Total Cost = (Variable Cost per Unit × Units of Production) + Fixed Cost At the high point: At the low point: $740 = ($0.20 × 1,200 units) + Fixed Cost $600 = ($0.20 × 500 units) + […]

CHAPTER 22 Performance Evaluation Using Variances from Standard Costs Prob. 22–3A (FIN MAN); Prob. 7–3A (MAN) (Concluded) Actual costs 30,300 Applied costs 30,100 ($16,800 + $13,500) [4,300 × ($4.00 + $3.00)] Balance (underapplied) 200 Alternative Computation of Overhead Variances Factory […]

CHAPTER 22 Performance Evaluation Using Variances from Standard Costs Ex. 22–15 (FIN MAN); Ex. 7–15 (MAN) a. Direct labor hours 9,000 10,000 11,000 b. Overhead applied at actual production: Actual hours………………………………………………………………………… … 9,000 × Overhead application rate*…………………………………………………… … $ 10.50 […]

PERFORMANCE EVALUATION USING VARIANCES 1. Standards are performance goals. Manufacturing companies normally use standard cost for each of the three following product costs: a. Direct materials 2. Reporting by the “principle of exceptions” is the reporting of only variances (or […]

CHAPTER 21 Budgeting Prob. 21–2B (FIN MAN); Prob. 6–2B (MAN) 1. Unit Sales Unit Selling Volume Price Total Sales King: Northern Domestic 610 $780 $ 475,800 2. King Prince Expected units to be sold 1,310 1,480 Plus desired inventory, February […]

CHAPTER 21 Budgeting Ex. 21–19 (FIN MAN); Ex. 6–19 (MAN) October November December Receipts from cash sales: September sales on account: Collected in October (Accounts Receivable balance) 35,000 October sales1 on account: Collected in October ($43,500 × 30%) 13,050 Collected […]

1. The three major objectives of budgeting are (1) to establish specific goals for future 2. If goals set by the budgets are viewed as unrealistic or unachievable, employees and managers may become discouraged and may not be committed to […]

CHAPTER 20 Variable Costing for Management Analysis Prob. 20–1B (FIN MAN); Prob. 5–1B (MAN) 1. Sales $2,150,000 Cost of goods sold: 2. Sales $2,150,000 Variable cost of goods sold: Variable cost of goods manufactured $1,536,000 Less inventory, July 31 (400 […]

CHAPTER 20 Variable Costing for Management Analysis Ex. 20–16 (FIN MAN); Ex. 5–16 (MAN) a. Filmed Entertainment Networks Publishing Revenues…………………………… … $11,784.0 $13,562.0 $6,328.0 b. The Filmed Entertainment and Networks segments sell an information or media product that has a […]

1. a. Under absorption costing, both variable and fixed manufacturing costs are included as a p art of the cost of the product manufactured. 2. Fixed factory overhead. 3. Included as part of the cost of product manufactured: (b), (d), […]

CHAPTER 19 Cost Behavior and Cost-Volume-Profit Analysis Prob. 19–3B (FIN MAN); Prob. 4–3B (MAN) *$150 unit selling price – $110 unit variable cost $1,100,000 $40 per unit $800,000 + $300,000 Sales (units) = 27,500 units == $40 per unit 3. […]

CHAPTER 19 Cost Behavior and Cost-Volume-Profit Analysis Prob. 19–2A (FIN MAN); Prob. 4–2A (MAN) 1. Variable Variable Total Cost Cost Percentage Cost Cost of goods sold……………… … $6,200,000 × 60% = $3,720,000 Selling expenses………………… … 3,400,000 ×75% = 2,550,000 2. […]

2. a. Variable costs b. Variable costs 3. Total fixed cost remains the same regardless of changes in the level of activity. Fixed cost per unit decreases as the activity level increases and increases as the activity level decreases. 4. […]

Prob. 18–3B (FINMAN); Prob. 3–3A (MAN) 1. Whole Direct UNITS Units Materials Conversion Units charged to production: Inventory in process, January 1 3,400 Received from Reaction Department 52,300 Total units accounted for by the DOVER CHEMICAL COMPANY Cost of Production […]

Prob. 18–2A (FINMAN); Prob. 3–2A (MAN) 1. Whole Direct UNITS Units Materials Conversion Units charged to production: Inventory in process, May 1 1,200 Received from materials storeroom 18,900 Total units accounted for by the ABICA COFFEE COMPANY Cost of Production […]

Ex. 18–15 (FINMAN); Ex. 3–15 (MAN) a. $23,064; determined as follows: Beginning work in process balance…………………………………………… … $ 20,856 Cost of beginning work in process completed during November………… … b. Cost of beginning work in process……………………………………………… $ 23,064 Cost of […]

1. a. An assembly-type industry using mass production methods, such as TV assembly, would use the process cost system because the products are somewhat standard and lose their 2. Since all goods produced in a process cost system are identical […]

Prob. 17–2A (FIN MAN); Prob. 2–2A (MAN) 1. a. Materials 39,300 Accounts Payable b. Work in Process 66,380 Factory Overhead 6,940 Materials Computation of cost of jobs finished: Direct Direct Factory Job Materials Labor Overhead Total No. 201… … $3,950 […]

1. a. Job order cost system and process cost system. 2. Job order costing is used by firms that sell custom goods and services to customers. The job order system is frequently associated with firms that will produce a product […]

Prob. 16–5A (FIN MAN); Prob. 1–5A (MAN) (Concluded) 2. Sales $2,574,000 Cost of goods sold: Finished goods inventory, January 1, 2014 $ 507,000 Cost of goods manufactured 1,262,816 THE LUCILLE CORPORATION Income Statement For the Year Ended December 31, 2014 […]

1. Financial accounting and managerial accounting are different in several ways. Financial accounting information is reported in statements that are useful to persons or groups outside of a company. These statements objectively report the results of past operations for fixed […]

An asterisk (*) will appear to the right of an incorrect entry. Current Assets – Current Liabilities = Calculated Value 1. Working capital: Ratio Numerator ÷ Denominator = Calculated Value 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover […]

An asterisk (*) will appear to the right of an incorrect entry. Current Assets – Current Liabilities = Calculated Value 1. Working capital: Ratio Numerator ÷ Denominator = Calculated Value 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. Working Capital = Current Assets –Current Liabilities = Working Capital = b. Current Assets Current Liabilities Current Ratio = Quick Assets Current Liabilities Quick Ratio = […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. Working Capital = Current Assets –Current Liabilities = Working Capital = b. Current Assets Current Liabilities Current Ratio = Quick Assets Current Liabilities Quick Ratio = […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Amount Percent Amount Percent Sales 1,325,000$ 1,200,000$ Sales returns and allowances 25,000 20,000 Net sales 1,300,000$ 1,180,000$ Cost of goods […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Amount Percent Amount Percent Sales 922,500$ 820,000$ Sales returns and allowances 22,500 20,000 Net sales 900,000$ 800,000$ Cost of goods […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2014 2013 Amount Amount Amount Percent Sales 936,000$ 720,000$ Sales returns and allowances 26,000 20,000 Net sales 910,000$ 700,000$ Cost […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2014 2013 Amount Amount Amount Percent Sales 1,092,500$ 950,000$ Sales returns and allowances 57,500 50,000 Net sales 1,035,000$ 900,000$ Cost […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. 2014 2013 Amount Amount Amount Percent Sales 840,000$ 600,000$ Cost of goods sold 724,500 525,000 Gross profit 115,500$ 75,000$ Selling […]

An asterisk (*) will appear to the right of an incorrect entry. Amount Percent Amount Percent Current assets Property, plant, and equipment Intangible assets Total assets Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equity 2013 [Key […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Revenues: Admissions 139,125$ 163,087$ Event-related revenue 156,691 178,805 NASCAR broadcasting revenue 178,722 173,803 Other operating revenue 27,705 34,827 Total revenue […]

CHAPTER 15 Financial Statement Analysis Prob. 15–1B 1. 2014 2013 Amount Percent Sales $936,000 $720,000 $216,000 30.0% 2. The profitability has significantly improved from 2013 to 2014. Net sales have increased by 30% over the 2013 base year. However, the […]

CHAPTER 15 Financial Statement Analysis Ex. 15–14 Hasbro: $2,477,806 = 1.5 $1,615,420 a. Ratio of Liabilities to Stockholders’ Equity = Total Liabilities Total Stockholders’ Equity 15-21 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, […]

1. Horizontal analysis is the percentage analysis of increases and decreases in corresponding statements. The percent change in the cash balances at the end of the preceding year from the 2. Comparative statements provide information as to changes between dates […]

Exercise 14(13)-17 Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Net income Adjustments to reconcile net income to […]

Exercise 14(13)-16 Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Net income Adjustments to reconcile net income to […]

An asterisk (*) will appear to the right of an incorrect entry. Cash flows from operating activities: Cash received from customers Deduct: Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Less: […]

An asterisk (*) will appear to the right of an incorrect entry. Cash flows from operating activities: Cash received from customers Deduct: Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Less: […]

An asterisk (*) will appear to the right of an incorrect entry. Cash flows from operating activities: Cash received from customers Deduct: Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Less: […]

An asterisk (*) will appear to the right of an incorrect entry. Cash flows from operating activities: Cash received from customers Deduct: Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Less: […]

Problem 14(13)-3B Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

Problem 14(13)-3A Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

Problem 14(13)-2B Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

Problem 14(13)-2A Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

Problem 14(13)-1B Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

Problem 14(13)-1A Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

CHAPTER 14 Statement of Cash Flows Prob. 14–1A (Concluded) (Optional) Balance Balance Account Title Dec. 31, 2013 Dec. 31, 2014 Cash 439,440 (m) 29,880 469,320 Accounts receivable (net) 156,720 (l) 14,160 170,880 Inventories 462,840 (k) 18,480 481,320 Investments 180,000 (j) […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. 2014 Dec. 31 Fair Value Cost (Dec 31, 2014) Dust Devil, Inc. Gale Co. Whirlwind Co. Total […]