Archives: Solution Manual
978-0078025587 Chapter 25 Solution Manual Part 2
Fundamental Accounting Principles, 21st Edition 1478 Exercise 25-11 (20 minutes) ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME Cost to buy new machine ………………………………………………………. $(115,000) Cash received to trade in old machine …………………………………..…………. 52,000 Reduction in variable manufacturing costs* ………………………….. […]
978-0078025587 Chapter 25 Solution Manual Part 1
Chapter 25 Capital Budgeting and Managerial Decisions QUESTIONS 1. Capital budgeting decisions require careful analysis because they are generally the most difficult and risky decisions that management faces. 2. Capital budgeting is the process of planning the acquisition or sale […]
978-0078025587 Chapter 25 Lecture Note
25-1 CAPITAL BUDGETING AND MANAGERIAL DECISIONS Related Assignment Materials Conceptual objectives: C1. Describe the importance of relevant costs for short-term decisions. 25-7 25–10 25-9 Analytical objectives: A1. Evaluate short-term managerial decisions using relevant costs. 11, 12, 13, 15 25-8, 25-9, […]
978-0078025587 Chapter 25 Excel
Student Name: Class: 115,000$ Correct! Net Net Cash Income Flow 1,840,000$ 1,840,000$ (480,000) (480,000) (672,000) (672,000) (336,000) (336,000) (115,000) (160,000) (160,000) 77,000 (23,100) (23,100) 53,900$ Correct! 168,900$ Correct! 2.84 years Correct! Income taxes Net income Net cash flow Part 3 […]
978-0078025587 Chapter 24 Solution Manual Part 4
Fundamental Accounting Principles, 21st Edition 1454 Problem 24-5B (60 minutes) Part 1 Process time …………………………………………………………………… 16.0 hours Inspection time ……………………………………………………………..… 3.5 hours Move time ……………………………………………………………………..… 9.0 hours Wait time ………………………………………………………………………… 21.5 hours Manufacturing cycle time ………………………………………………… 50.0 hours Part 2 […]
978-0078025587 Chapter 24 Solution Manual Part 3
©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or […]
978-0078025587 Chapter 24 Solution Manual Part 2
©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or […]
978-0078025587 Chapter 24 Solution Manual Part 1
Chapter 24 Performance Measurement and Responsibility Accounting QUESTIONS 1. Many companies are divided into departments when they become too large to be effectively managed as single units. This division into departments is often needed so that the responsibilities for the […]
978-0078025587 Chapter 24 Lecture Note
24-1 CHAPTER 24 PERFORMANCE MEASUREMENT AND RESPONSIBILITY ACCOUNTING © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, […]
978-0078025587 Chapter 24 Excel
Student Name: Class: Square Footage Rate Total 1,000 8.25$ 8,250$ «- Correct! 1,800 8.25 14,850$ «- Correct! Value- Usage Total Based Based Costs Costs Costs 18,000$ 18,000$ 27,000 27,000 9,000 9,000 3,000 3,000$ 3,000 3,000 6,000 6,000 66,000$ 54,000$ 12,000$ […]
978-0078025587 Chapter 23 Solution Manual Part 5
Problem 23-6BA (Continued) Part 3 Overhead Variances (a) Variable overhead Preliminary computations Actual variable overhead (given): Indirect materials ……………………………………………….. $10,000 Indirect labor …………………………………………………….. 16,000 Power …………………………………………………………..….. 4,500 Maintenance ………………………………………………….….. 3,000 Total …………………………………………………………….….. $33,500 Actual hours: 37,600 (given) Standard hours: 36,000 […]
978-0078025587 Chapter 23 Solution Manual Part 4
Fundamental Accounting Principles, 21st Edition 1390 $50,000 F (Spending variance) $10,000 F (Efficiency variance) $60,000 F (Total variable overhead variance) (b) Fixed Overhead Spending and Volume Variances Actual Overhead Budgeted Overhead Applied Overhead 252,000 x $7 $1,960,000 $2,016,000 $1,764,000 $56,000 […]
978-0078025587 Chapter 23 Solution Manual Part 3
Problem 23-4A (45 minutes) Part 1 PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2013 Flexible Actual Budget Results Variances* Sales (18,000 units) …………………….. $3,600,000 $3,648,000 $48,000 F Variable costs Direct materials ………………………… 1,170,000 1,185,000 15,000 U […]
978-0078025587 Chapter 23 Solution Manual Part 2
Fundamental Accounting Principles, 21st Edition 1360 Exercise 23-6 (20 minutes) 1. Predetermined overhead rate computations Expected volume ……………………………………………………………. 75% Expected total overhead …………………………………………………. $2,100,000 Expected hours ……………………………………………………………… 375,000 hrs. Variable cost per hour ($1,500,000/ 375,000) ……………………. $4.00 Fixed cost per […]
978-0078025587 Chapter 23 Solution Manual Part 1
Chapter 23 Flexible Budgets and Standard Costs QUESTIONS 1. Fixed budget performance reports have limited usefulness because they do not reflect differences in revenues and variable costs that can occur simply because actual volume is different from budgeted volume. This […]
978-0078025587 Chapter 23 Lecture Note Part 2
23–10 Chapter Outline Appendix 23A I. Expanded Overhead Variances A. Computing Overhead Cost Variances⎯assume predetermined rate is based on relation between standard overhead and standard labor hours. 1. Framework uses classifications of overhead costs as either variable or fixed 2. […]
978-0078025587 Chapter 23 Lecture Note Part 1
23-1 CHAPTER 23 FLEXIBLE BUDGETS AND STANDARD COSTS Related Assignment Materials Student Learning Objectives Discussion Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Define standard costs and explain how standard cost information is useful for management by […]
978-0078025587 Chapter 23 Excel
Student Name: Class: Units Cost Total 1,615,000 $4.10 $6,621,500 1,620,000 $4.00 6,480,000 $141,500 U Correct! Yes! Units Price Total 1,615,000 $4.10 $6,621,500 1,615,000 $4.00 6,460,000 $161,500 U Correct! Yes! 1,615,000 $4.00 $6,460,000 1,620,000 $4.00 6,480,000 $20,000 F Correct! Yes! $161,500 […]
978-0078025587 Chapter 22 Solution Manual Part 6
Fundamental Accounting Principles, 21st Edition 1334 Problem 22-7B (continued) Part 6 NABAR MANUFACTURING Selling Expense Budgets July, August, and September 2013 July August Sept. Total Budgeted sales ………………………….. $357,000 $323,000 $340,000 Sales commission percent ………….….. x 10% x 10% x […]
978-0078025587 Chapter 22 Solution Manual Part 5
Problem 22-3B (Continued) Part 4 Cash payments on product purchases (for March and April) From purchases in Total % Paid March April February ……………………………..…. $261,600 70% $183,120 March ……………………………………. 227,400 30 68,220 ………………………………….…. 70 $159,180 April ………………………………………. 230,400 30 _______ […]
978-0078025587 Chapter 22 Solution Manual Part 4
Fundamental Accounting Principles, 21st Edition 1308 Problem 22-5A (Continued) Part 6 DIMSDALE SPORTS CO. Cash Budgets January, February, and March 2014 January February March Beginning cash balance …………………………….…. $ 36,000 $ 30,100 $210,300 Cash receipts from customers (note A)……………. 221,250 […]
978-0078025587 Chapter 22 Solution Manual Part 3
Exercise 22-19 (10 minutes) MANNER COMPANY Direct Labor Budget For July, August, and September July August Sept. Budgeted production (units) ……………….… 620 680 540 Labor requirements per unit (hours) ……… x 2 x 2 x 2 Total labor hours needed […]
978-0078025587 Chapter 22 Solution Manual Part 2
Fundamental Accounting Principles, 21st Edition 1278 Exercise 22-2 (concluded) Notes: concluded (5) August beginning inventory Total required (4 above) 355,500 Less budgeted purchases (308,250) August beginning inventory 47,250 (6) August Beginning Inventory = July Ending Inventory (7) July required units […]
978-0078025587 Chapter 22 Solution Manual Part 1
Chapter 22 Master Budgets and Planning QUESTIONS 1. A budget helps managers control and monitor a business by 1) communicating plans to employees, 2) coordinating the activities of different parts of the organization, and 3) providing a basis for deciding […]
978-0078025587 Chapter 22 Lecture Note
22-1 CHAPTER 22 MASTER BUDGETS AND PLANNING © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, […]
978-0078025587 Chapter 22 Excel
Student Name: Class: March April May 25,000 32,000 35,000 30% 30% 30% 7,500 9,600 10,500 15,000 25,000 32,000 22,500 34,600 42,500 (20,000) (7,500) (9,600) 2,500 27,100 32,900 Correct! Correct! Correct! March April May 90,000 95,000 90,000 30% 30% 30% 27,000 […]
978-0078025587 Chapter 21 Solution Manual Part 4
Fundamental Accounting Principles, 21st Edition 1254 Problem 21-7B (50 minutes) Part 1 BREAK–EVEN ANALYSIS ASSUMING USE OF SAME MATERIALS Step 1: Compute break-even in composite units—Use equation in Exhibit 21.27 Break-even in composite units = Fixed costs/Contribution margin per composite […]
978-0078025587 Chapter 21 Solution Manual Part 3
©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or […]
978-0078025587 Chapter 21 Solution Manual Part 2
©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or […]
978-0078025587 Chapter 21 Solution Manual Part 1
Chapter 21 Cost-Volume-Profit Analysis QUESTIONS 1. A variable cost is one that varies proportionately with the volume of activity. For example, direct materials and direct labor (when the workers are paid for completed units) are treated as variable costs with […]
978-0078025587 Chapter 21 Lecture Note
21–1 CHAPTER 21 COST-VOLUME-PROFIT ANALYSIS © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted […]
978-0078025587 Chapter 21 Excel
Student Name: Class: 270,000$ «- Correct! 60$ «- Correct! 4,500 «- Correct! 270,000$ «- Correct! 30.00% «- Correct! 900,000$ «- Correct! 900,000$ «- Correct! 630,000 «- Correct! 270,000$ «- Correct! 270,000 «- Correct! $0 «- Correct! Problem 21-02A McGraw-Hill/Irwin Instructor […]
978-0078025587 Chapter 20 Solution Manual Part 6
Fundamental Accounting Principles, 21st Edition 1204 Comprehensive Problem (Continued) (Using FIFO) Cost per EUP Direct Materials Direct Labor Factory Overhead Costs incurred this period ……………… $ 52,440 $ 202,250 $ 101,125 ÷ EUP ……………………………………………. ÷ 14,000 ÷ 10,450 ÷ 10,450 […]
978-0078025587 Chapter 20 Solution Manual Part 5
Problem 20-8B (Concluded) Part 4 MEMORANDUM TO: FROM: DATE: RE: Percentage of Completion Error Analysis If the units in ending inventory are 75% complete instead of 25% with respect to labor, the number of equivalent units in ending inventory with […]
978-0078025587 Chapter 20 Solution Manual Part 4
Fundamental Accounting Principles, 21st Edition 1178 Problem 20-1B (Continued) d. June 30 Factory Payroll ………………………………………….…………. 400,000 Cash ………………………………………………………. 400,000 Incurred payroll cost. e. June 30 Goods in Process Inventory ……………………….…. 350,000 Factory Payroll …………………………………….…………. 350,000 Used direct labor. f. June […]
978-0078025587 Chapter 20 Solution Manual Part 3
Problem 20-3A (Concluded) Equivalent units of production Direct Materials Direct Labor Factory Overhead Units completed & transferred out …. 17,000 EUP 17,000 EUP 17,000 EUP Units of ending goods in process Direct materials (5,000 x 100%) …….. 5,000 EUP Direct […]
978-0078025587 Chapter 20 Solution Manual Part 2
Fundamental Accounting Principles, 21st Edition 1148 Exercise 20-14 (Concluded) (1) Beginning goods in process $ 17,250 Direct materials $ ? Direct labor 47,250 Factory overhead 51,300 Total costs added ? Total costs in process $242,400 $17,250 + [Total costs added] […]
978-0078025587 Chapter 20 Solution Manual Part 1
Chapter 20 Process Cost Accounting QUESTIONS 1. The main deciding factor in choosing between a job order costing system or a process costing system is the type of product or service. Examples where a process costing system is likely appropriate […]
978-0078025587 Chapter 20 Lecture Note
20-1 CHAPTER 20 PROCESS COST ACCOUNTING © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or […]
978-0078025587 Chapter 20 Excel
Student Name: Class: Part 1 (a) and (b) Direct Direct Materials Labor 700,000 700,000 180,000 54,000 880,000 754,000 Correct! Correct! Direct Direct Materials Labor 420,000$ 139,000$ Cost per equivalent unit of production Costs of beginning goods in process 2,220,000 3,254,000 […]
978-0078025587 Chapter 2 Solution Manual Part 5
Serial Problem, Success Systems (Continued) Part 2 General Ledger accounts Cash Acct. No. 101 Date Explanation PR Debit Credit Balance Oct. 1 55,000 55,000 2 3,300 51,700 5 2,220 49,480 8 1,420 48,060 15 4,800 52,860 17 805 52,055 20 […]
978-0078025587 Chapter 2 Solution Manual Part 4
Problem 2-3B (90 minutes) Part 1 Sept. 1 Cash …………………………………………………. 101 38,000 Office Equipment ………………………………. 163 15,000 H. Humble, Capital ……………………… 301 53,000 Owner invested in the business. 2 Prepaid Rent …………………………………….. 131 9,000 Cash ………………………………………….. 101 9,000 Prepaid twelve […]
978-0078025587 Chapter 2 Solution Manual Part 3
Problem 2-3A (Continued) Accounts Payable Acct. No. 201 Date Explanation PR Debit Credit Balance April 3 G1 11,600 11,600 13 G1 11,600 0 29 G1 600 600 K. Tanner, Capital Acct. No. 301 Date Explanation PR Debit Credit Balance April […]
978-0078025587 Chapter 2 Solution Manual Part 2
Exercise 2-17 (15 minutes) (a) (b) (c) (d) Answers $(28,000) $42,000 $73,000 $(45,000) Computations: Equity, Dec. 31, 2012 ………….. $ 0 $ 0 $ 0 $ 0 Owner’s investments …..…….. 110,000 42,000 87,000 210,000 Owner’s withdrawals ………….. (28,000) (47,000) (10,000) […]
978-0078025587 Chapter 2 Solution Manual Part 1
Chapter 2 Analyzing and Recording Transactions QUESTIONS 1. a. Common asset accounts: cash, accounts receivable, notes receivable, prepaid expenses (rent, insurance, etc.), office supplies, store supplies, equipment, building, and land. b. Common liability accounts: accounts payable, notes payable, and unearned […]
978-0078025587 Chapter 2 Lecture Note
2-1 CHAPTER 2 ANALYZING AND RECORDING TRANSACTIONS © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, […]
978-0078025587 Chapter 2 Excel
Student Name: Class: Date Explanation Debit Credit Mar 1 150,000 22,000 172,000 «- Correct! 6,000 «- Correct! 33,000 Office Equipment 1,200 4,200 «- Correct! 64,000 Cash 4,000 «- Correct! 97,500 Accounts Receivable 7,500 «- Correct! 12 4,200 Accounts Payable 4,200 […]
978-0078025587 Chapter 19 Solution Manual Part 4
1120 Fundamental Accounting Principles, 21st Edition Problem 19-4B (35 minutes) Part 1 a. Predetermined overhead rate = = = 50% Estimated overhead costs $750,000 $750,000 b. Overhead costs charged to jobs Direct Applied Job No. Labor Overhead (50%) 625 ………………………………………………………. […]
978-0078025587 Chapter 19 Solution Manual Part 3
Problem 19-5A (Continued) GENERAL JOURNAL a. Raw Materials Inventory ……………………………………….. 78,700 Accounts Payable ………………………………………..….. 78,700 To record materials purchases ($62,500+$16,200). d. Factory Payroll ………………………………………………….….. 174,250 Cash ……………………………………………………………….. 174,250 To record factory payroll. Factory Overhead ……………………………………………..….. 102,000 Cash ……………………………………………………………….. 102,000 To […]
978-0078025587 Chapter 19 Solution Manual Part 2
1092 Fundamental Accounting Principles, 21st Edition Exercise 19-18 (35 minutes) 1. Estimated cost of the architectural job Labor type Estimated hours Hourly rate Total cost Architects ………………………….. 150 $300 $ 45,000 Staff ………………………….. 300 75 22,500 Clerical ……………………….…. 500 20 […]