Archives: Solution Manual

Exercise 10-6 (continued) 2. Actual Hours of Input, at the Actual Rate Actual Hours of Input, at the Standard Rate Standard Hours Allowed for Output, at the Standard Rate (AH × AR) (AH × SR) (SH × SR) 750 hours […]

Chapter 10 Standard Costs and Variances Solutions to Questions 10-1 A quantity standard indicates how much of an input should be used to make a unit of output. A price standard indicates how much the input should cost. 10-2 Separating […]

Problem 10-13 (continued) 3. Both the labor efficiency and variable overhead efficiency variances are affected by inefficient use of labor time. Excess of actual over standard cost per unit ……. $0.08 U Less portion attributable to labor inefficiency: Labor efficiency […]

Exercise 9-10 (15 minutes) Lavage Rapide Flexible Budget For the Month Ended August 31 Actual cars washed (q) ……………………………. 8,800 Revenue ($4.90q) …………………………………… $43,120 Expenses: Cleaning supplies ($0.80q) …………………….. 7,040 Electricity ($1,200 + $0.15q) ………………….. 2,520 Maintenance ($0.20q) …………………………… 1,760 […]

Problem 9-19 (30 minutes) 1. Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget Pizzas (q1) ……………………………….. 1,240 1,240 1,200 Deliveries (q2) …………………………… 174 174 […]

Chapter 9 Flexible Budgets and Performance Analysis Solutions to Questions 9-1 A planning budget is prepared before the period begins and is valid for only the planned level of activity. It is sometimes referred to as a static planning budget […]

Problem 8-28 (continued) 3. Budgeted cash disbursements for selling and administrative expenses for next year: Quarter First Second Third Fourth Year Budgeted sales in dollars ………………. $300,000 $400,000 $500,000 $200,000 $1,400,000 Variable selling and administrative expense rate ……………………………. × 15% […]

Problem 8-19 (45 minutes) 1. Schedule of cash collections: Cash sales—May ……………………………………….. $ 60,000 Collections on account receivable: April 30 balance ………………………………………. 54,000 May sales (50% × ($200,000 – $60,000)) …….. 70,000 Total cash collections ………………………………….. $184,000 2. Schedule of […]

Exercise 8-8 (10 minutes) Gig Harbor Boating Budgeted Income Statement Sales (460 units × $1,950 per unit) …………………. $897,000 Cost of goods sold (460 units × $1,575 per unit) … 724,500 Gross margin ………………………………………………. 172,500 Selling and administrative expenses* ……………….. […]

Chapter 8 Master Budgeting Solutions to Questions 8-1 A budget is a detailed quantitative plan for the acquisition and use of financial and other resources over a given time period. Budgetary control involves using budgets to increase the likelihood that […]

Exercise 7-5 (15 minutes) Sales ($1,850 per standard model glider × 20 standard model gliders + $2,400 per custom designed glider × 3 custom designed gliders) ….. $44,200 Costs: Direct materials ($564 per standard model glider × 20 standard model […]

Chapter 7 Activity-Based Costing: A Tool to Aid Decision Making Solutions to Questions 7-1 Activity-based costing differs from traditional costing systems in a number of ways. In activity-based costing, nonmanufacturing as well as manufacturing costs may be assigned to products. […]

Problem 7-17 (45 minutes) 1. Under the traditional direct labor-hour based costing system, manufacturing overhead is applied to products using the predetermined overhead rate computed as follows: Estimated total manufacturing overhead cost Predetermined = overhead rate Estimated total direct labor […]

Case 6-30 (continued) Division Association Total Membership Magazine Subscriptions Books & Reports Continuing Education Sales: Membership dues………………………. $2,000,000 $1,600,000 $400,000 Non-member magazine subscriptions ………………………….. 75,000 75,000 Advertising ………………………………. 100,000 100,000 Reports and texts ……………………… 700,000 $700,000 Continuing education courses ………. […]

Problem 6-26 (continued) 3. Total Company West Central East Sales ………………………………. $2,000,000 100.0 $450,000 100 $800,000 100 $750,000 100 Variable expenses: Cost of goods sold …………… 819,400 41.0 162,900 36 280,000 35 376,500 50 Shipping expense ……………. 77,600 3.9 17,100 […]

Problem 6-18 (continued) 3. b. The absorption costing income statements appear below: Year 1 Year 2 Year 3 Sales ……………………………………………… $3,480,000 $2,900,000 $3,770,000 Cost of goods sold ……………………………. 3,120,000 2,440,000 3,620,000 Gross margin …………………………………… 360,000 460,000 150,000 Selling and administrative […]

Exercise 6-5 (10 minutes) 1. The companywide break-even point is computed as follows: Dollar sales for company to break even = Traceable fixed expenses + Common fixed expenses Overall CM ratio = $120,000 + $50,000 $240,000 ÷ $600,000 = $170,000 […]

Chapter 6 Variable Costing and Segment Reporting: Tools for Management Solutions to Questions 6-1 Absorption and variable costing differ in how they handle fixed manufacturing overhead. Under absorption costing, fixed manufacturing overhead is treated as a product cost and hence […]

Problem 5A-7 (45 minutes) 1. Cost of goods sold ………………. Variable Advertising expense ……………. Fixed Shipping expense ……………….. Mixed Salaries and commissions …….. Mixed Insurance expense ……………… Fixed Depreciation expense ………….. Fixed 2. Analysis of the mixed expenses: Units Shipping […]

Problem 5-25 (continued) Contribution margin that must be realized on outsourced units to earn target profit (a) …… $15,000 Contribution margin per unit from supplier (b) . $1.25 Unit sales needed from supplier to earn target profit (a) ÷ (b) […]

Exercise 5-18 (continued) 4. Margin of safety in dollar terms: Margin of safety = Total sales – Break-even sales in dollars = $450,000 – $360,000 = $90,000 Margin of safety in percentage terms: Margin of safety in dollars Margin of […]

Problem 5-31 (continued) 2. a. Line 3: Remain unchanged. Line 9: Have a steeper slope. Break-even point: Decrease. b. Line 3: Have a flatter slope. Line 9: Remain unchanged. Break-even point: Decrease. c. Line 3: Shift upward. Line 9: Remain […]

Exercise 5-4 (10 minutes) 1. The company’s contribution margin (CM) ratio is: Total sales ………………………. $200,000 Total variable expenses ……… 120,000 Total contribution margin (a) . $ 80,000 Total contribution margin (a) . $80,000 Total sales (b) ………………….. $200,000 CM […]

Chapter 5 Cost-Volume-Profit Relationships Solutions to Questions 5-1 The contribution margin (CM) ratio is the ratio of the total contribution margin to total sales revenue. It can also be expressed as the ratio of the contribution margin per unit to […]

Problem 4A-10 (continued) 3. and 4. Costs of Ending Work in Process Inventory and Units Transferred Out Materials Conversion Total Ending work in process inventory: Equivalent units …………………………………………………………… 20,000 8,000 Cost per equivalent unit ………………………………………………… $0.82 $1.48 Cost of ending […]

Case 4-20 (continued) 3. (continued) Computation of the Cost of Goods Sold: Transferred In Conversion Units completed and sold …………………. 200,000 200,000 Equivalent units in ending work in process inventory: Transferred in: 10,000 units x 100% complete ………. 10,000 Conversion: […]

Exercise 4-8 (30 minutes) Weighted-Average Method 1. Materials Conversion Units transferred to the next production department …………………………………………. 175,000 175,000 Equivalent units in ending work in process inventory: Materials: 10,000 units × 100% complete ….. 10,000 Conversion: 10,000 units × 30% […]

Chapter 4 Process Costing Solutions to Questions 4-1 A process costing system should be used in situations where a homogeneous product is produced on a continuous basis in large quantities. 4-2 Job-order and processing costing are similar in the following […]

Chapter 3 Job-Order Costing: Cost Flows and External Reporting Questions 3-1 The link that connects these two sched- ules is the cost of goods manufactured. It is cal- culated within a schedule of cost of goods manu- factured and then […]

0 Total manufacturing costs added to production …….. 920,000 Total manufacturing costs to account for …………….. 960,000 Deduct: Ending work in process inventory …………… 70,000 Cost of goods manufactured …………………………….. $890,000 Copyright 2021 © McGraw-Hill Education. All rights reserved. No […]

Appendix 3A Job-Order Costing: A Microsoft Excel-Based Approach Exercise 3A-1 (20 minutes) The transactions are recorded as follows: Transaction Cash Raw Materials Work in Process Finished Goods Manufacturing Overhead Retained Earnings a. $(56,000) $56,000 = b. $(40,000) $40,000 = c. […]

Problem 3-15 (continued) 4. Manufacturing Overhead ……………………… 5,000 Cost of Goods Sold ………………………… 5,000 Schedule of cost of goods sold: Beginning finished goods inventory ……… $ 60,000 Add: Cost of goods manufactured ……….. 770,000 Cost of goods available for sale […]

Case 2A-6 (continued) ALTERNATIVE SOLUTION: Most students will compute the manufacturing overhead cost per pound of the two coffees as shown above. However, the per pound cost can also be computed as shown below. This alternative approach provides additional insight […]

Problem 2A-4 (60 minutes) 1. a. When direct labor-hours are used to apply overhead cost to products, the company’s predetermined overhead rate would be: Manufacturing overhead cost Predetermined = overhead rate Direct labor-hours $1,800,000 = = $50 per DLH 36,000 […]

Exercise 2-5 (10 minutes) 1 and 2. The total direct labor-hours required in Finishing for Job 700: Finishing Direct labor cost (a) ………………………………. $128 Direct labor wage rate per hour (b) …………… $16 Total direct labor hours (a) ÷ (b) […]

Problem 2-17 (20 minutes) 1. The predetermined plantwide overhead rate is computed as follows: Estimated manufacturing overhead (a) ……. $1,400,000 Estimated total direct labor-hours (b) ……… 80,000 DLHs Predetermined overhead rate (a) ÷ (b) ……. $17.50 per DLH The overhead […]

Chapter 2 Job-Order Costing: Calculating Unit Product Costs Questions 2-1 Job-order costing is used in situations where many different products, each with individ- ual and unique features, are produced each pe- riod. 2-2 In absorption costing, all manufacturing costs, both […]

Problem 1-19 (continued) The fixed selling expense shown above ($30,000) is computed as follows: Contribution margin (a) ……………………… $60,000 Net operating income (b) ……………………. $18,000 Total fixed costs (a) ‒ (b) ……………………. $42,000 Total fixed costs (a) …………………………… $42,000 Fixed […]

Chapter 1 Managerial Accounting and Cost Concepts Questions 1-1 The three major types of product costs in a manufacturing company are direct materials, direct labor, and manufacturing overhead. 1-2 a. Direct materials are an integral part of a finished product […]

Exercise 1-8 (continued) 3. Direct materials ……………………………………. $ 7.00 Direct labor …………………………………………. 4.00 Variable manufacturing overhead …………….. 1.50 Variable manufacturing cost per unit ………… $12.50 Variable manufacturing cost per unit (a) ……. $12.50 Number of units produced (b) …………………. 22,000 […]

Year Ref Posted Acct# – Name Description Debits Credits 2022 101 X 1010 – Cash 7-a 245,000 2022 101 X 1220 – Customer Accounts Receivable 7-a 117,100 2022 101 X 1235 – Due from Other Funds 7-a 7,400 2022 101 […]

Year Ref Posted Acct# – Name Description Debits Credits 2022 101 X 1010 – Cash 2-b 342,223 2022 101 X 1030 – Taxes Receivable-Delinquent 2-b 391,756 2022 101 X 1040 – Interest and Penalties Receivable on Taxes 2-b 37,718 2022 […]

Year Ref Poste dAcct# – Name Descriptio nDebits Credits 2023 104 X 1030 – Taxes Receivable-Delinquent 4a-6 378,000 2023 104 X 1040 – Interest and Penalties Receivable on Taxes 4a-6 22,860 2023 104 X 1045 – Sales Taxes Receivable 4a-6 […]

Year Ref Account Description Debits Credits Balance Dr(Cr) Cash 2022 101 6a 950,000 950,000 2023 104 6b-3 500,000 450,000 2023 104 6b-4 50,225 500,225 2023 104 6b-5 706,030 1,206,255 2023 107 6b-9 75,000 1,197,505 2023 108 6b-10 8,000 1,205,505 2023 […]

For use with McGraw Hill Accounting for Governmental & Nonprofit Entities 19th Edition By Jacqueline L. Reck, Suzanne L. Lowensohn, and Daniel G. Neely Journals & Ledgers City of Bingham Full Version Computerized Cumulative Problem © 2022 by McGraw Hill. […]

For use with McGraw Hill Accounting for Governmental & Nonprofit Entities 19th Edition By Jacqueline L. Reck, Suzanne L. Lowensohn, and Daniel G. Neely Instructions City of Smithville Full Version Computerized Cumulative Problem © 2022 by McGraw Hill. This is […]

20 instructor prefers to have files submitted electronically, in which case you will submit the .pdf versions of your trial balance.] Before closing the City of Smithville it is recommended that you save a backup copy of your work to […]

For use with McGraw Hill Accounting for Governmental & Nonprofit Entities 19th Edition By Jacqueline L. Reck, Suzanne L. Lowensohn, and Daniel G. Neely Instructions City of Bingham Full Version Computerized Cumulative Problem © 2022 by McGraw Hill. This is […]

20 10. [Para. 5a-10] The contractor submitted a billing for $3,000,000. This amount was recorded as a contract payable. Required: Record this transaction in both the City Hall Annex Construction Fund and governmental activities general journals. 11. [Para. 5a-11] The […]

Chapter 17 – Accounting and Reporting for the Federal Government 17–17 Ch. 17, Solutions, Exercise 17-18, a. (Cont’d) SAVE OUR RESOURCES COMMISSION Debits Credits BUDGETARY ACCOUNTS EXPENDED AUTHORITY⎯2023 $ 4,500,000 ALLOTMENTS⎯2023 100,000 UNDELIVERED ORDERS⎯2023 310,000 TOTAL AMOUNTS GIVEN -0- 4,910,000 […]