Archives: Solution Manual
978-1118742938 Chapter 3 Part 2
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 3.7 customers who have been complaining in his absence, would be good ideas. There are just too many danger signs here to let this situation go […]
978-1118742938 Chapter 3 Part 1
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 3.1 Chapter 3 COMPUTER CRIME, ETHICS, AND PRIVACY Discussion Questions 3-1. Most experts agree with the claim that the known cases of cybercrime are just the […]
978-1118742938 Chapter 2 Part 2
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 2.8 a. History of XBRL. In April 1998, Charles Hoffman, a CPA in Tacoma, WA, the website www.xbrl.org/history-print.aspx. The AICPA was active in supporting the development […]
978-1118742938 Chapter 2 Part 1
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 2.1 Chapter 2 ACCOUNTING ON THE INTERNET Discussion Questions 2-1. An intranet is an internal network created by an organization for the benefit of its employees. […]
978-1118742938 Chapter 15
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 15.1 Chapter 15 INFORMATION TECHNOLOGY AUDITING Discussion Questions 15-1. As noted in the text, an internal auditor is an individual working for the company being audited […]
978-1118742938 Chapter 14 Part 2
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 14.8 14-16. a. An edit test for a reasonable number of hours worked would guard against this problem. Requiring a supervisor to verify hours worked would […]
978-1118742938 Chapter 14 Part 1
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 14.1 Chapter 14 COMPUTER CONTROLS FOR ORGANIZATIONS AND ACCOUNTING INFORMATION SYSTEMS Discussion Questions 14-1. A security policy is a comprehensive plan that helps protect the organization […]
978-1118742938 Chapter 13 Part 2
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman 13-15. Weaknesses Recommended Improvements 1. Raw materials may be removed from the storeroom upon oral authorization from one of the production foremen. 1. Raw materials should be […]
978-1118742938 Chapter 13 Part 1
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 13.1 Chapter 13 INTRODUCTION TO INTERNAL CONTROL SYSTEMS Discussion Questions 13-1. The primary provisions for the 1992 COSO Report and the 2013 Report are outlined in […]
978-1118742938 Chapter 12 Part 2
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman Item Indicator Case example 1 Late payment of vendor invoices Current system did not provide a way to add or reduce vendor managed inventory based on shipments […]
978-1118742938 Chapter 12 Part 1
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 12-1 Chapter 12 INTEGRATED ACCOUNTING AND ENTERPRISE SOFTWARE Discussion Questions 12-1. Figure 12-1 of the text contains a list of the features provided by most integrated […]
978-1118742938 Chapter 11
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 11.1 Chapter 11 ACCOUNTING INFORMATION SYSTEMS AND BUSINESS PROCESSES: PART II Discussion Questions 11-1. Four data items that both payroll and personnel would use are: employee […]
978-1118742938 Chapter 10 Part 2
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 10.7 authorized purchase requisitions. When a new vendor is approved, the vendor information from the new vendor form is keyed online through a computer edit program […]
978-1118742938 Chapter 10 Part 1
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 10.1 Chapter 10 ACCOUNTING INFORMATION SYSTEMS AND BUSINESS PROCESSES: PART I Discussion Questions 10-1. Answers to this question will vary depending on the type of firm […]
978-1118742938 Chapter 1 Part 2
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 1.8 accessing needed data or generating ad-hoc reports, and (5) the potential for more-timely reports. Where club treasurers can use an existing personal computer for club […]
978-1118742938 Chapter 1 Part 1
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 1.1 Chapter 1 ACCOUNTING INFORMATION SYSTEMS AND THE ACCOUNTANT Discussion Questions 1-1. The answer to this question will vary with each university’s location. However, it is […]
978-1118548639 Chapter 9 Part 4
Chapter 9 – Capital Budgeting 9-27 SOLUTIONS TO C&C CONTINUING CASE Case 9-30 a. Cash Flow Timing Amount 12% PV Factor Present Value Sales revenue Years 1-9 625,000 5.3282 $3,330,125.00 Direct materials Years 1-9 (500,000) 5.3282 (2,664,100.00) Direct labor Years […]
978-1118548639 Chapter 9 Part 3
Chapter 9 – Capital Budgeting 9-21 Problem 9-25, continued c. No, Chester should not invest in CIM since the negative NPV and 6.31% internal rate of return indicate that the project does not earn the 12% required rate of return. […]
978-1118548639 Chapter 9 Part 2
Chapter 9 – Capital Budgeting Exercise 9-13 a. The minimum annual payments required would be the amount that 9-11 generates an internal rate of return of 16%. x $111,510 = PVA15, 16% x $111,510 = 5.5755 $111,510 = 5.5755x x […]
978-1118548639 Chapter 9 Part 1
Chapter 9 – Capital Budgeting 9-1 Capital Budgeting Learning Objectives 1. Identify the cash flows associated with capital budgeting decisions. (Unit 9.1) (Unit 9.2) 3. Use net present value to determine the acceptability of a project. (Unit 9.3) 4. Use […]
978-1118548639 Chapter 8 Part 5
Solutions for Davis & Davis, Managerial Accounting, 2nd ed. 8-40 SOLUTIONS TO CASES Case 8-32 b. Option 1 Option 2 Option 3 Registration fee revenuea $ 8,925 $ 0 $ 76,440 Expenses Meals 1,875 16,250 Conference materials 675 5,850 Direct […]
978-1118548639 Chapter 8 Part 4
Chapter 8 – Using Accounting Information to Make Managerial Decisions 8-31 Problem 8-27 a. Demand Hours per session Hours needed Math 120 .75 90 Writing 210 1.50 315 Science 100 .50 50 Total 455 b. Math Writing Science Sales price […]
978-1118548639 Chapter 8 Part 3
Chapter 8 – Using Accounting Information to Make Managerial Decisions Problem 8-21 a. The variable costs are the only relevant costs of the special order, so those amounts need to be calculated first. Total manufacturing overhead ($23/unit 400,000 units) […]
978-1118548639 Chapter 8 Part 2
Chapter 8 – Using Accounting Information to Make Managerial Decisions 8-11 Exercise 8-10 Make Buy Direct materials $ 5 Direct labor 12 Variable overhead 8 Avoidable fixed costs ($10 .4) 4 Relevant cost per unit to make $29 Cost […]
978-1118548639 Chapter 8 Part 1
Chapter 8 – Using Accounting Information to Make Managerial Decisions 8-1 Using Accounting Information to Make Managerial Decisions Learning Objectives 1. Identify relevant information for decision making. (Unit 8.1) 2. Determine the qualitative and quantitative impacts of special-order pricing. (Unit […]
978-1118548639 Chapter 7 Part 6
Chapter 7 – Activity-Based Costing and Activity-Based Management 7-47 Problem 7-29, continued Cost Pool Calculation Activity Rate Fabricating a $230,000 200,000 MH = $1.15/MH Assembly b $120,000 1,250 setups = $96.00/setup c. Balzene Cost Pool Calculation Overhead Fabricating (20,000 units […]
978-1118548639 Chapter 7 Part 5
Chapter 7 – Activity-Based Costing and Activity-Based Management 7-41 Problem 7-27, continued c. Profitability using current system Superior Deluxe Ultra Sales revenue $54,000,000 $86,400,000 $102,000,000 Direct materials 17,600,000 27,360,000 40,200,000 Direct labor 10,700,000 13,320,000 16,600,000 Overhead ($120 × total MH) […]
978-1118548639 Chapter 7 Part 4
Chapter 7 – Activity-Based Costing and Activity-Based Management 7-31 Problem 7-24, continued Second, allocate costs to each procedure Hip Knee Shoulder Operating room preparation 300a × $720 800 × $720 100 × $720 Operating room use 1,200b × $525 960 […]
978-1118548639 Chapter 7 Part 3
Chapter 7 – Activity-Based Costing and Activity-Based Management 7-21 Problem 7-20 $1,845,000 (25,000 DLH + 16,000 DLH) Tablets Books Direct Materials $3.00 $10.00 Direct Labor 4.00 8.00 Overhead 25,000 DLH 62,500 tablets × $45/DLH = 18.00 16,000 DLH 20,000 tablets […]
978-1118548639 Chapter 7 Part 2
Chapter 7 – Activity-Based Costing and Activity-Based Management 7-11 Exercise 7-8 a. Machine setup $200,000 ÷ 800 setups = $250/setup Inspection $120,000 ÷ 400 tests = $300/test Materials receiving $252,000 ÷ 1,800 POs = $140/PO b. Machine setups $ 23,000 […]
978-1118548639 Chapter 7 Part 1
Chapter 7 – Activity-Based Costing and Activity-Based Management 7-1 Activity-Based Costing and Activity-Based Management Learning Objectives (Unit 7.1) 2. Calculate activity-based product costs. (Unit 7.2) 3. Explain the difference between traditional product costs and activity-based product costs. (Unit 7.2) 4. […]
978-1118548639 Chapter 6 Part 6
6-48 Case 6-36 a. Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Unit sales 450,000 0 450,000 50,000 F 400,000 Sales revenue $3,555,000 $45,000 U $3,600,000a $400,000 F $3,200,000 Less variable product expenses Direct materials 865,000 […]
978-1118548639 Chapter 6 Part 5
6-41 b. Sara’s remarks imply that unfavorable variances are bad without knowing what might have caused those variances. This comment will cause Ken to take actions that produce favorable results in the short– run that could ultimately be bad for […]
978-1118548639 Chapter 6 Part 4
Chapter 6 – Performance Evaluation: Variance Analysis Problem 6-31 a. Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Unit sales 14,500 0 14,500 500 U 15,000 Sales revenue $2,972,500 $72,500 F $2,900,000a $100,000 U $3,000,000 Less […]
978-1118548639 Chapter 6 Part 3
Chapter 6 – Performance Evaluation: Variance Analysis 6-21 Exercise 6-26 Direct materials price variance AQ × AP AQ × SP 500,000 lbs. purchased × $?/lb. 500,000 lbs. purchased × $6/lb. $2,750,000 $3,000,000 $250,000 F Direct materials quantity variance AQ × […]
978-1118548639 Chapter 6 Part 2
Chapter 6 – Performance Evaluation: Variance Analysis 6-11 Exercise 6-9 AQ × SP SQ × SP 535,000 ft. × $0.23/ft. (63,000 cables × 8.5 ft.) × $0.23/ft. 535,500 ft. × $0.23/ft. $123,050 $123,165 $115 F Direct materials quantity variance Exercise […]
978-1118548639 Chapter 6 Part 1
Chapter 6 – Performance Evaluation: Variance Analysis 6-1 Performance Evaluation: Variance Analysis Learning Objectives 1. Prepare a flexible budget and explain its use in evaluating performance. (Unit 6.1) 2. Calculate the direct materials price and quantity variances. (Unit 6.2) 3. […]
978-1118548639 ch05 Part 9
Chapter 5 – Planning and Forecasting 5-77 5-40, continued Inventory Purchases Budget July August September Quarter October Budgeted unit sales 4,500 4,700 4,600 13,800 4,600 + Budgeted ending inventorya 1,175 1,150 1,150 1,150 = Total materials required 5,675 5,850 5,750 […]
978-1118548639 ch05 Part 8
Chapter 5 – Planning and Forecasting 5-39, continued d. Changes from base case in 5-38: Sales price increased to $10.20; 2% cash discount; cash collection pattern changed Affected budget components sales budget, selling and administrative expense budget, cash receipts budget, […]
978-1118548639 ch05 Part 7
Chapter 5 – Planning and Forecasting 5-61 5-39b, continued Ending Inventory and Cost of Goods Sold Budget Raw Materials Beginning balance $5,200 Purchases of raw materials 196,384 Less: Ending raw materials inventory (20,700 lbs. $0.32) 6,624 Raw materials used $194,960 […]
978-1118548639 ch05 Part 6
Chapter 5 – Planning and Forecasting Case 5-39 a. Changes from base case in 5-38: decrease price, increase advertising, increase units sold Affected budget components All budgets affected Net income impact Income increases by $5,544 ($81,326 – $75,782) Balance sheet […]
978-1118548639 ch05 Part 5
Chapter 5 – Planning and Forecasting 5-41 b. Negative behaviors may be mitigated if Kate will: clearly communicate her reasons for changing the standards to the employees. c. Tightening the standards may result in positive behaviors by: motivating […]
978-1118548639 ch05 Part 4
Chapter 5 – Planning and Forecasting 5-31 5-31 continued c. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Budgeted production 440 460 360 570 1,830 × Standard necks per guitar × 1.2 × 1.2 × 1.2 × 1.2 × […]
978-1118548639 ch05 Part 3
Chapter 5 – Planning and Forecasting 5-21 Exercise 5-23 January February March Total Cash Receipts Uncollectible Accounts Receivable December credit sales $ 58,500 $ 58,500 January salesa $300,000 × 70% 210,000 210,000 $300,000 × 26% $78,000 78,000 $300,000 × 4% […]
978-1118548639 ch05 Part 2
Chapter 5 – Planning and Forecasting 5-11 Exercise 5-9 January February March Quarter Commission $15,000 $29,250 $26,250 $70,500 Bad debt expense 12,000 23,400 21,000 56,400 Depreciation 10,000 10,000 10,000 30,000 Sales staff salaries 25,000 25,000 25,000 75,000 Advertising 1,000 1,000 […]
978-1118548639 ch05 Part 1
Chapter 5 – Planning and Forecasting 5-1 Planning and Forecasting Learning Objectives process. (Unit 5.1) 2. Calculate the standard cost of a product. (Unit 5.2) 3. Prepare the operating budget and describe the relationships among its components. (Unit 5.3) 4. […]
978-1118548639 Chapter 5 Part 2
T5-8 Exercise T5-7 a. Of the two customers, Holmes Holographics is most likely an unprofitable customer. Holmes consumes resources at a higher level than Morgan Light and Sound. Addtionally, many of the resources that Holmes consumes are labor-intensive. b. Brown […]
978-1118548639 Chapter 5 Part 1
Focus Unit 5 – Focus on Customer Profitability T5-1 Focus on Customer Profitability Learning Objectives 1. Use activity-based costing techniques to measure customer profitability. 2. Identify alternatives for managing unprofitable customer accounts. Summary of End of Chapter Material Difficulty: E […]
978-1118548639 ch04 Part 5
4-38 Problem 4-30, continued g. Direct Materials $ 75,000 Direct Labor (300 DLH × $14.50/DLH) 4,350 Manufacturing Overhead ($75,000 × 70%) 52,500 Total Cost of Job 3827 $131,850 Markup ($131,850 × 80%) 105,480 Sales Price $237,330 h. Predetermined overhead rate […]
978-1118548639 ch04 Part 4
Chapter 4 – Product Costing for Manufacturing Companies 4-31 Problem 4-27, continued e. CC723 CH291 DS444 Total job cost $1,237,400 $510,000 $460,000 Units produced ÷ 20,000 ÷ 15,000 ÷ 5,000 Cost per unit $61.87 $34.00 $92.00 December Cost of Goods […]