Archives: Solution Manual
978-0133058789 Chapter 9 Part 2
9-41 (20-30 min.) Units Total Average Week Completed Cycle Time Cycle Time 1 564 14,108 25.0 2 544 14,592 26.8 3 553 15,152 27.4 4 571 16,598 29.1 5 547 17,104 31.3 6 552 16,673 30.2 The cycle time objective […]
978-0133058789 Chapter 9 Part 1
CHAPTER 9 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDA– MENTAL ASSIGN– MENT MATERIAL CRITICAL THINKING EXERCISES AND EXERCISES PROBLEMS CASES, EXCEL, COLLAB., & INTERNET EXERCISES LO1: Describe the relationship of management control systems to organizational goals. 28, 30, 36 50, […]
978-0133058789 Chapter 8 Part 3
8-49 (25-35 min.) This problem is complicated by the need to include an allowance for defective units in the standard costs. Note that some accountants object to standards that “accept defects” by allowing for defects in the standards. Direct Materials […]
978-0133058789 Chapter 8 Part 2
8-39 (20-25 min.) 1. Monetary amounts are in thousands of dollars. Actual Results Flexible- Sales at Actual Budget Flexible Activity Static Prices Variance Budget Variances Budget Millions of passenger miles 1,320 – 1,320 220 F 1,100* Revenue 434,280** 27,720 U […]
978-0133058789 Chapter 7 Part 3
EXHIBIT 7-42A HIGH DEFINITION LCD DIVISION Sales forecasts 50” Displays 42” Displays Sales mix 1 1.25 Month Sales change 1 1 1-Oct 3,200 3,200 4,000 2-Nov 2,400 2,400 3,000 3-Dec 5,600 5,600 7,000 4-Jan 3,200 3,200 4,000 5-Feb 3,200 3,200 […]
978-0133058789 Chapter 7 Part 2
Schedule 3, Selling and General Administrative Expenses: Total selling and general administrative expenses $84,600 Less fixed expenses 27,000 Total variable expenses for year (vary with sales) $57,600 October variable expenses: $57,600 × (October sales Year’s sales) = $57,600 × […]
978-0133058789 Chapter 7 Part 1
CHAPTER 7 Introduction to Budgets and Preparing the Master Budget COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDA- MENTAL ASSIGNMENT MATERIAL CRITICAL THINKING EXERCISES AND EXERCISES PROBLEMS CASES, EXCEL, COLLAB. & INTERNET EXERCISES LO1: Explain how budgets facilitate planning and coordination. […]
978-0133058789 Chapter 6 Part 3
6-55 (15 min.) 1. Incremental Revenue, $10 × 4,000 $40,000 Incremental Cost 30,000 Incremental Profit $10,000 Therefore, Western should process further. 2. a. The joint costs can increase by any amount, since they are sunk and irrelevant. Western should always […]
978-0133058789 Chapter 6 Part 2
6-38 (10 min.) 1. Answer (a): $6,000 ÷ 6,000 = $1.00 2. Answer (a): Product C is the only product that produces an incremental profit ($35,000 – $28,000) – $6,000 = $1,000. 6-39 (5-10 min.) 1. The only relevant item […]
978-0133058789 Chapter 6 Part 1
CHAPTER 6 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDA- MENTAL ASSIGN- MENT MATERIAL CRITICAL THINKING EXERCISES AND EXERCISES PROBLEMS CASES, EXCEL, COLLAB. & INTERNET EXERCISES LO1: Use a differential analysis to examine income effects across alternatives, and show that an […]
978-0133058789 Chapter 5 Part 3
5-53 (20 min.) Basic Marginal Total Number of flights per month 3,000 120 3,120 Available seats 300,000 12,000 312,000 Seats filled 156,000 2,400 158,400 Percent filled 52% 20% 51% Revenue $31,200,000 $240,000 $31,440,000 Variable expenses 21,840,000 120,000 21,960,000 Contribution margin […]
978-0133058789 Chapter 5 Part 2
5-37 (20 min.) 1. Total Total Variable Fixed Costs Costs $9 $150 Volume in Number Volume in Number of Lunches of Lunches Total Costs Variable Fixed Volume in Number of Lunches 2. There are correct ways and incorrect ways to […]
978-0133058789 Chapter 5 Part 1
CHAPTER 5 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDA– MENTAL ASSIGNMENT MATERIAL CRITICAL THINKING EXERCISES AND EXERCISES PROBLEMS CASES, EXCEL, COLLAB. & INTERNET EXERCISES LO1: Discriminate between relevant and irrelevant information for making decisions. 23,30,37,38 49,50,51,54, 57 66 LO2: Apply […]
978-0133058789 Chapter 4 Part 3
3. The activity-based costing system is generally more accurate because it better allocates costs on a cause/effect basis. The Produce Department uses all of the produce monitoring activity. The activity-based costing system recognizes this and allocates these costs to the […]
978-0133058789 Chapter 4 Part 2
Therefore, ABC produces the information used in ABM. If managers in companies with ABC systems do not use that information to aid decision making, they are sacrificing many (if not most) of the benefits of the investment in an ABC […]
978-0133058789 Chapter 4 Part 1
CHAPTER 4 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDA– MENTAL ASSIGN– MENT MATERIAL CRITICAL THINKING EXERCISES AND EXERCISES PROBLEMS CASES, EXCEL, COLLAB. & INTERNET EXERCISES LO1: Describe the purposes of cost management systems. 31, 34 50 LO2: Explain the relationship […]
978-0133058789 Chapter 3 Part 3
3-49 (35-50 min.) 1. The three graphs are as follows: $30 $40 $50 $60 $70 $80 7,500 7,600 7,700 7,800 7,900 8,000 Direct Labor Hours Support Costs ($000) $30 $40 $50 $60 $70 $80 2,000 2,200 2,400 2,600 2,800 3,000 […]
978-0133058789 Chapter 3 Part 2
Labor, $12, 14% Other Costs, $40, 45% Materials, $36, 41% Other Costs, $40, 63% Labor, $6, 9% Materials, $18, 28% Labor, $44, 44% Other Costs, $20, 20% Materials, $36, 36% Labor, $18, 32% Materials, $18, 32% Other Costs, $20, 36% […]
978-0133058789 Chapter 3 Part 1
CHAPTER 3 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDA- MENTAL ASSIGN- MENT MATERIAL CRITICAL THINKING EXERCISES AND EXERCISES PROBLEMS CASES, NIKE 10K, EXCEL, COLLAB., & INTERNET EXERCISES LO1: Explain management influences on cost behavior. 26, 33 39 52, 56 LO2: […]
978-0133058789 Chapter 2 Part 3
2-59 (15-25 min.) 1. Let N = number of hamburgers per month $1.25N = $.71N + $1,782 $.54N = $1,782 N = 3,300 per month, or 3,300 ÷ 30 = 110 per day 2. Multiply the answers in (1) by […]
978-0133058789 Chapter 2 Part 2
2-42 (15 min.) a b 1. 100% Full 50% Full Room revenue @ $54 $1,971,000 a $ 985,500 b Variable costs @ $9 328,500 164,250 Contribution margin 1,642,500 821,250 Fixed costs 900,000 900,000 Net income (loss) $ 742,500 $ (78,750) […]
978-0133058789 Chapter 2 Part 1
CHAPTER 2 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDA– MENTAL ASSIGN– MENT MATERIAL CRITICAL THINKING EXERCISES AND EXERCISES PROBLEMS CASES, NIKE 10K, EXCEL, COLLAB., & INTERNET EXERCISES LO1: Explain how cost drivers affect cost behavior. A1, B1 25, 26, 28, […]
978-0133058789 Chapter 17 Part 2
The consolidated balance sheet would be as follows: Assets = Liab.+Stockholders’ Equity Invest- Cash ment and Accounts Noncon- Stock- in Other Payable, trolling holders’ Alberta + Assets = etc. Interest + Equity Ace Mining’s accounts: Beginning of year 1,000 = […]
978-0133058789 Chapter 17 Part 1
CHAPTER 17 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDAMENTAL ASSIGNMENT MATERIAL ADDITIONAL ASSIGNMENT MATERIAL EXCEL, COLLAB., & INTERNET EXERCISES LO1: Contrast accounting for investments using the equity method and the market-value method. A1, B1, B3 25, 29, 36, 39, 41 […]
978-0133058789 Chapter 16 Part 2
16-52 (10-20 min.) DENALI ALE COMPANY Supporting Schedule to Statement of Cash Flows Reconciliation of Net Income to Net Cash Provided by Operating Activities For the Year Ended December 31, 20X1 (in thousands) Net income $239 Adjustments to reconcile net […]
978-0133058789 Chapter 16 Part 1
CHAPTER 16 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDAMENTAL ASSIGNMENT MATERIAL ADDITIONAL ASSIGNMENT MATERIAL EXCEL, COLLAB., & INTERNET EXERCISES LO1: Recognize and define the main types of assets in the balance sheet of a corporation. A1, B1 37, 38, 42, […]
978-0133058789 Chapter 15 Part 2
15-38 (20-30 min.) Case 1 2 3 4 5 6 7 X $11,000 $3,000 $9,000 $14,000 $7,500 $ 8,000 $ 4,200 Y 6,000 7,000 2,000 3,900 Z 2,000 3,000 9,000 100 A 4,500 4,800 B 16,500 15,200 Computations: 1: X […]
978-0133058789 Chapter 15 Part 1
CHAPTER 15 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDAMENTAL ASSIGNMENT MATERIAL ADDITIONAL ASSIGNMENT MATERIAL EXCEL, COLLAB., & INTERNET EXERCISES LO1: Read and interpret the basic financial statements. 24, 25, 32, 38, 51 54 LO2: Analyze typical business transactions using the […]
978-0133058789 Chapter 14 Part 2
Copyright ©2014 Pearson Education, Inc., Publishing as Prentice Hall. 625 14-34 (10-15 min.) 1. Work in process – Assembly 73,600 2. Work in process — Assembly 59,000 Accrued payroll 59,000 Direct labor in February 3. Work in process — Assembly […]
978-0133058789 Chapter 14 Part 1
CHAPTER 14 COVERAGE OF LEARNING OBJECTIVES CASES, FUNDA- CRITICAL NIKE 10K, MENTAL THINKING EXCEL, ASSIGN-EXERCISES COLLAB. & MENT AND INTERNET LEARNING OBJECTIVE MATERIAL EXERCISES PROBLEMS EXERCISES LO1: Distinguish between A1,B1 15,16,18,20, 52, 54, 55 job-order costing and 29 process costing. […]
978-0133058789 Chapter 13 Part 3
13-63 (25-30 min.) 1. Total dollars and machine hours are in thousands: Year Base a Base b* Base c 20X1 $36,000 ÷ 2,500 $36,000 ÷ 2,637.5 $36,000 ÷ 3,000 = $14.40 = $13.65 = $12.00 20X2 $36,000 ÷ 2,850 $36,000 […]
978-0133058789 Chapter 13 Part 2
Copyright ©2014 Pearson Education, Inc., Publishing as Prentice Hall. 577 13-50 (15-20 min.) (Note that final dollar amounts are rounded to the nearest dollar.) 1. Overhead rate = ($277,800 + $103,200) ÷ 69,450 machine hours = $5.48596 per machine hour […]
978-0133058789 Chapter 13 Part 1
CHAPTER 13 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDA- MENTAL ASSIGN- MENT MATERIAL CRITICAL THINKING EXERCISES AND EXERCISES PROBLEMS CASES, NIKE 10K, EXCEL, COLLAB. & INTERNET EXERCISES LO1: Compute budgeted factory-overhead rates and apply factory overhead to production. A1,B2 33,34,38,39, […]
978-0133058789 Chapter 12 Part 3
Exhibit 12-47, Part 2 Model 1 Model 2 Model 3 Direct materials: Model 1: ¥4,000 × 80 boards ¥320,000 Model 2: ¥6,000 × 160 boards ¥960,000 Model 3: ¥8,000 × 300 boards ¥2,400,000 Material handling activity1: Model 1: ¥30.13245 × […]
978-0133058789 Chapter 12 Part 2
12-36 (10-15 min.) 1. None. The entire joint cost is allocated to the main product. 2. $40,000. The total inventory cost of the pulp is the separable cost, that is, the cost incurred after the split-off point. 3. Inventory cost […]
978-0133058789 Chapter 12 Part 1
CHAPTER 12 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDA- MENTAL ASSIGN- MENT MATERIAL CRITICAL THINKING EXERCISES, AND EXERCISES PROBLEMS CASES, NIKE 10K, EXCEL, COLLAB. & INTERNET EXERCISES LO1: Describe the general framework for cost allocation. A1, B1 37, 39, 44 […]
978-0133058789 Chapter 11 Part 3
2018 127,500 .4371 54,812 (24,244) 2019 264,900 .3704 50,893 26,649 2020 294,300 .3139 9,229 35,878 2. The payback time is just under four years as shown by the Cumulative Net Cash Flow column. Because the maximum allowable payback period is […]
978-0133058789 Chapter 11 Part 2
Copyright ©2014 Pearson Education, Inc., Publishing as Prentice Hall. 469 11-50 (30-40 min.) Answers are in Mexican pesos. 1. After-tax cash operating savings, .6 × 150,000 = 90,000 PV of cash operating savings, 90,000 × 3.1272 281,448 2. See Exhibit […]
978-0133058789 Chapter 11 Part 1
CHAPTER 11 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDA- MENTAL ASSIGN– MENT MATERIAL CRITICAL THINKING EXERCISES AND EXERCISES PROBLEMS CASES, EXCEL, COLLAB., & INTERNET EXERCISES LO1: Describe capital budgeting decisions and use the net present value (NPV) method to make […]
978-0133058789 Chapter 10 Part 3
The company is $6 better off with the contribution of $24 from selling lumber rather than $18 from selling the chair. Another way to view this problem is that, if the lumber can be sold for $72, using it to […]
978-0133058789 Chapter 10 Part 2
Copyright ©2014 Pearson Education, Inc., Publishing as Prentice Hall. 428 10-38 (25 min.) 1. The two separate components highlight certain features of profitability that are not revealed by the single calculation. a. The importance of capital turnover as a key […]
978-0133058789 Chapter 10 Part 1
CHAPTER 10 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDA– MENTAL ASSIGN– MENT MATERIAL CRITICAL THINKING EXERCISES AND EXERCISES PROBLEMS CASES, EXCEL, COLLAB., & INTERNET EXERCISES LO1: Define decentralization and identify its expected benefits and costs. A2, A4, B4 25, 26 […]
978-0133058789 Chapter 1 Part 2
14 1-39 (15-20 min.) This problem can form the basis of an introductory discussion of the entire field of management accounting. Text Exhibit 1-1 provides more details. 1. The focus of management accounting is on helping internal users make better […]
978-0133058789 Chapter 1 Part 1
1 CHAPTER 1 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDA- MENTAL ASSIGN- MENT MATERIAL CRITICAL THINKING EXERCISES AND EXERCISES PROBLEMS CASES, EXCEL, COLLAB., & INTERNET EXERCISES LO1: Explain why accounting is essential for decision makers and managers. 30, 31 52, […]
978-0132984669 Chapter 9 Part 3
Scott, Financial Accounting Theory, 7th Edition Instructor’s Solutions Manual Chapter 9 356 Copyright © 2015 Pearson Canada Inc. payoff amount, and the less precise is net income (or other accounting– based variable)) as a performance measure. A riskier performance measure […]
978-0132984669 Chapter 9 Part 2
Scott, Financial Accounting Theory, 7th Edition Instructor’s Solutions Manual Chapter 9 341 b. Your recommended profit share of .0291 yields Henry: 9882.11 20471.29411.11 = −+= 12 28235.63.00587.177.0 256.463.02917.0 2600,10291.3.0000,100291.7.0)( 1 ≈ −×+×= −−= − ×+×=aEU m Note: Difference due to […]
978-0132984669 Chapter 9 Part 1
Scott, Financial Accounting Theory, 7th Edition Instructor’s Solutions Manual Chapter 9 321 CHAPTER 9 AN ANALYSIS OF CONFLICT 9.1 Overview 9.2 Agency Theory 9.2.1 Introduction 9.2.2 Agency Contracts between Owner and Manager 9.3 Manager’s Information Advantage 9.3.1 Earnings Management 9.3.2 […]
978-0132984669 Chapter 8 Part 2
Scott, Financial Accounting Theory, 7th Edition Instructor’s Solutions Manual Chapter 8 303 Copyright © 2015 Pearson Canada Inc. lower per share earnings and dividends to investors that ESOs create. We conclude that relevance of Black/Scholes as a measure is high. […]
978-0132984669 Chapter 8 Part 1
Scott, Financial Accounting Theory, 7th Edition Instructor’s Solutions Manual Chapter 8 285 CHAPTER 8 THE EFFICIENT CONTRACTING APPROACH TO DECISION USEFULNESS 8.1 Overview 8.2 What is Efficient Contract Theory? 8.3 Sources of Efficient Contracting Demand for Financial Accounting Information 8.3.1 […]
978-0132984669 Chapter 7 Part 3
Scott, Financial Accounting Theory, 7th Edition Instructor’s Solutions Manual Chapter 7 271 Copyright © 2015 Pearson Canada Inc. b. The upfront payment is a liability of Country G, since under the contract it Additional Problems 7A-1. While ceiling tests for […]