Archives: Solution Manual
978-1118548639 ch04 Part 3
Chapter 4 – Product Costing for Manufacturing Companies 4-21 SOLUTIONS TO PROBLEMS Problem 4-22 c. When Amazon provides shipping services for third-party sellers on its site, it is “selling” the shipping service to the third-party seller. In these cases, the […]
978-1118548639 ch04 Part 2
Chapter 4 – Product Costing for Manufacturing Companies 4-11 Exercise 4-9 Company 1 Company 2 Company 3 Company 4 Direct materials inventory, beginning $15,000 $25,000 $6,000 $165,000 + Purchases of direct materials 379,000 86,400 51,600 258,400 = Total direct materials […]
978-1118548639 ch04 Part 1
Chapter 4 – Product Costing for Manufacturing Companies 4-1 Product Costs and Job Order Costing Learning Objectives 1. Distinguish between product and period costs. (Unit 4.1) manufacturing overhead. (Unit 4.1) 3. Trace the flow of product costs through the inventory […]
978-1118548639 Chapter 4 Part 2
Solutions for Davis & Davis, Managerial Accounting, 2nd ed. T4-8 Exercise T4-8 a. Manufacturing Overhead …………………………………… 52,000 b. Work in Process Inventory (2,800 boxes × 3 DLH/box × $5.00/DLH) …………………… 42,000 Manufacturing Overhead …………………………… 42,000 To record applied fixed manufacturing […]
978-1118548639 Chapter 4 Part 1
Topic Focus 4 – Standard Costing T4-1 Standard Costing Learning Objectives control costs. 2. Calculate the fixed overhead volume variance. Summary of End of Chapter Material Difficulty: E = Easy, M = Moderate, D = Difficult Bloom: K = Knowledge, […]
978-1118548639 ch03 Part 6
Solutions for Davis & Davis, Managerial Accounting, 2nd ed. 3-48 SOLUTIONS TO CASES Case 3-42 a. Tiffany’s fixed expenses are a much higher percentage of sales than b. While Blue Nile’s gross margin percentage is 38.3 points below Tiffany’s, its […]
978-1118548639 ch03 Part 5
Chapter 3 – Cost-Volume-Profit Analysis and Pricing Decisions Problem 3-37 a. molded briefcase contribution margin: $40.00 – $27.40 = $12.60 3-41 leather briefcase contribution margin: $90.00 – $36.00 = $54.00 fixed expenses: $12,750,000 + $300,000 = $13,050,000 Let x = […]
978-1118548639 ch03 Part 4
Chapter 3 – Cost-Volume-Profit Analysis and Pricing Decisions 3-31 Problem 3-30, continued Total Per unit Sales $2,100,000 $21.00 Variable expenses 1,250,000 12.50 Contribution margin 850,000 $ 8.50 Fixed expenses 400,000 Operating income $ 450,000 c. new variable cost per unit: […]
978-1118548639 ch03 Part 3
3-21 Exercise 3-19 a. Basic lawn care CM = $40 – $22 = $18 per hour Deluxe lawn care CM = $60 – $28 = $32 per hour Sales mix = 1 deluxe hour for every 4 basic hours Let […]
978-1118548639 ch03 Part 2
Chapter 3 – Cost-Volume-Profit Analysis and Pricing Decisions 3-11 Exercise 3-8 a. $12x – $3x – $432,000a = $0 $9x = $432,000 x = 48,000 frisbees to breakeven 48,000 frisbees $12 = $576,000 breakeven sales $ b. $9x = […]
978-1118548639 ch03 Part 1
Chapter 3 – Cost-Volume-Profit Analysis and Pricing Decisions 3-1 Cost-Volume–Profit Analysis and Pricing Decisions Learning Objectives 1. Calculate the breakeven point in units and sales dollars. (Unit 3.1) 2. Calculate the level of activity required to meet a target income. […]
978-1118548639 Chapter 3 Part 2
Solutions for Davis & Davis, Managerial Accounting, 2nd ed. T3-10 SOLUTIONS TO PROBLEMS Problem T3-8 a. 2013 2014 2015 Variable costing Variable costs of production from income statement $2,028,000 Units sold 39,000 Unit product cost $52 $52 $52 Absorption […]
978-1118548639 Chapter 3 Part 1
Topic Focus 3 – Variable and Absorption Costing T3-1 Topic Focus: Variable and Absorption Costing Learning Objectives 1. Explain the difference between variable costing and absorption costing. 2. Calculate operating income under variable costing and absorption costing. Summary of End […]
978-1118548639 ch02 Part 3
2-20 Problem 2-23 a. Passengers: Variable cost = $25,459 $22,225 2,430 2,136 = $11 per passenger Fixed cost = $25,459 – ($11 × 2,430) = ($1,271) Fuel expense = ($11 × passengers) – $1,271 Passenger miles: Variable cost […]
978-1118548639 ch02 Part 2
Chapter 2 – Cost Behavior and Cost Estimation 2-11 Exercise 2-9 $290 $100 700 200 b. Fixed cost using the low point = $100 – ($0.38 × 200) = $24 c. Total cost = ($0.38 × MH) + […]
978-1118548639 ch02 Part 1
Chapter 2 – Cost Behavior and Cost Estimation 2-1 Cost Behavior and Cost Estimation Learning Objectives unit cost. (Unit 2.1) 2. Estimate a cost equation from a set of cost data and predict future total cost from that equation. (Unit […]
978-1118548639 Chapter 2 Part 2
T2-8 Exercise T2-7 a. Work backwards from the cost per equivalent unit to determine units completed and transferred out: Materials Conversion Beginning inventory $5,900 $15,000 Added to production 47,300 65,000 Total materials cost $53,200 $80,000 Materials cost per EU […]
978-1118548639 Chapter 2 Part 1
Topic Focus 2 – Focus on Process Costing T2-1 Focus on Process Costing Learning Objectives 1. Identify the kinds of companies that use process costing systems. system. 3. Calculate and explain equivalent units of production. 4. Assign costs to completed […]
978-1118548639 Chapter 13 Part 3
Chapter 13 – Statement of Cash Flows 13–21 Problem 13-26 Student answers will vary. Cash flows from operating activities The company has not been able to generate cash from operations in any of the three years reported. Cash flows […]
978-1118548639 Chapter 13 Part 2
Chapter 13 – Statement of Cash Flows 13–11 Exercise 13-10 Cash flows from financing activities Loan proceeds $150,000a Common stock cash dividends paid (15,000) Loan repayment (50,000) Net cash provided (used) by financing activities $85,000 Note: Declaration of preferred dividends […]
978-1118548639 Chapter 13 Part 1
Chapter 13 – Statement of Cash Flows 13-1 Statement of Cash Flows Learning Objectives 1. Categorize cash activities as operating, investing, or financing. (Unit 13.1) 2. Calculate cash flows provided (used) by operating activities using the indirect method. (Unit 13.2) […]
978-1118548639 Chapter 12 Part 4
Chapter 12 – Financial Statement Analysyis 12–29 Case 12-24, continued 2013 2012 $ change % change Assets Cash $997,734 $1,156,835 $(159,101) (13.8%) Accounts receivable, net 760,643 759,033 1,610 0.2% Inventory 376,897 418,633 (41,736) (10.0%) Prepaid expenses 277,226 302,649 (25,423) (8.4%) […]
978-1118548639 Chapter 12 Part 3
Chapter 12 – Financial Statement Analysyis 12–21 Case 12-22, continued 2013 2012 2011 Assets Cash 3.6% 3.1% 2.9% Accounts receivable, net 14.1% 15.5% 13.2% Inventory 6.7% 9.9% 7.8% Prepaid expenses 1.2% 1.2% 0.6% Total current assets 25.6% 29.7% 24.5% Property […]
978-1118548639 Chapter 12 Part 2
Chapter 12 – Financial Statement Analysyis Exercise 12–10 12–11 a. Gross margin = $4,565,600/$10,177,200 = 44.9% b. ( ) $997,570 + ($300,300 × (1–30%)) Return on assets = =11.1% $10,561,900 + $11,224,270 /2 c. Return on common stockholder’s equity = […]
978-1118548639 Chapter 12 Part 1
Chapter 12 – Financial Statement Analysyis 12-1 Financial Statement Analysis Learning Objectives company’s performance. (Unit 12.1) 2. Prepare a common-size balance sheet and income statement and use them to analyze a company’s performance. (Unit 12.2) 3. Calculate and interpret basic […]
978-1118548639 Chapter 11 Part 3
Chapter 11 – Performance Evaluations Revisited: A Balanced Approach 11–19 Problem 11–18 Activity a. Manufacturing time b. Value–added time Materials moved to production floor 25 – Production in station 1 35 35 Materials moved to station 2 5 – Wait […]
978-1118548639 Chapter 11 Part 2
Chapter 11 – Performance Evaluations Revisited: A Balanced Approach 11–11 Exercise 11-7 Student answers will vary; however, here are some measures they may provide. Average training hours per employee: Creative teams must develop skills in new methods and technologies to […]
978-1118548639 Chapter 11 Part 1
Chapter 11 – Performance Evaluations Revisited: A Balanced Approach 11-1 Performance Evaluation Revisited: A Balanced Approach Learning Objectives 1. Identify the desirable characteristics of performance measures. (Unit 11.1) 2. Explain how to use a balanced scorecard to improve an organization’s […]
978-1118548639 Chapter 10 Part 4
Solutions for Davis & Davis, Managerial Accounting, 2nd ed. 10–30 Problem 10-29, continued EVA Archer Barrett Corvell $2,940,000a $2,240,000b $1,064,000c 2,220,000d 1,540,000e 614,000f $ 720,000 $ 700,000 $ 450,000 a$4,200,000 × (1 – 30%) b$3,200,000 × (1 – 30%) c$1,520,000 […]
978-1118548639 Chapter 10 Part 3
Chapter 10 – Decentralization and Performance Evaluation 10–21 Exercise 10–20 a. Playground Pool Gym Return on Investment $3,500 $25,000 = 14% $4,800 $40,000 = 12% $2,700 $15,000 = 18% Residual Income $3,500 – .14($25,000) = $0 $4,800 – .14($40,000) = […]
978-1118548639 Chapter 10 Part 2
Chapter 10 – Decentralization and Performance Evaluation 10–11 Exercise 10-6 a. Hunting Camping Fishing Total Sales revenue $1,250,000 $3,600,000 $2,380,000 $7,230,000 Less variable expenses Cost of goods sold 850,000 2,340,000 1,904,000 5,094,000 Operating expenses 170,000 576,000 238,000 984,000 Contribution margin […]
978-1118548639 Chapter 10 Part 1
Chapter 10 – Decentralization and Performance Evaluation 10-1 Decentralization and Performance Evaluation Learning Objectives 10.1) 2. Prepare a segment margin income statement and evaluate a segment’s financial performance. (Unit 10.2) 3. Evaluate an operating segment or project using return on […]
978-1118548639 ch01
Chapter 1 – Accounting as a Tool for Management 1-1 Accounting as a Tool for Management Learning Objectives 1. Define managerial accounting. (Unit 1.1) 2. Describe the differences between managerial and financial accounting. (Unit 1.1) 3. List and describe the […]
978-1118548639 Chapter 1
Focus Unit 1 – Focus on C&C Sports F1-1 Managerial Accounting Context: C&C Sports Learning Objectives 1. Describe the business environment of C&C Sports. SOLUTIONS TO GUIDED UNIT PREPARATION 1. C&C Sports has chosen to remain a domestic producer of […]
978-1118334324 Chapter 9 Solution Manual Part 7
BYP 9-5 (Continued) (1) its earnings are generating more cash than the earnings of Pinson Company, and (2) depreciation expense has no effect on cash. Cash generated by operations can be arrived at by adding depreciation expense to net income. […]
978-1118334324 Chapter 9 Solution Manual Part 6
Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only) 9-51 COMPREHENSIVE PROBLEM (Continued) (b) HASSELLHOUF COMPANY Trial Balance December 31, 2015 Debits Credits Cash ………………………………………………………….. Accounts Receivable ………………………………….. Notes Receivable ……………………………………….. […]
978-1118334324 Chapter 9 Solution Manual Part 5
PROBLEM 9-4B Year Depreciation Expense Accumulated Depreciation 2013 2014 2015 2016 2017 2018 2019 $45,000(a) 45,000 36,000(b) 36,000 36,000 48,500(c) 48,500 $ 45,000 90,000 126,000 162,000 198,000 246,500 295,000 (a) $300,000 – $30,000 6 years = $45,000 (b) Book value […]
978-1118334324 Chapter 9 Solution Manual Part 4
PROBLEM 9-5A (Continued) Cost $500,000 Accum. depreciation— equipment 500,000 ($500,000 X 1/10 X 10) Book value $ 0 (b) Dec. 31 Depreciation Expense ………………… 570,000 Accumulated Depreciation— Buildings ………………………… 570,000 ($28,500,000 X 1/50) 31 Depreciation Expense ………………… 4,800,000 Accumulated Depreciation— […]
978-1118334324 Chapter 9 Solution Manual Part 3
EXERCISE 9-10 (Continued) (c) Cash ………………………………………………………………… 11,000 Accumulated Depreciation—Equipment ……………… 36,000 Loss on Disposal of Plant Assets ………………………. 18,000 Equipment ………………………………………………….. 65,000 (d) Depreciation Expense [($65,000 – $5,000) ÷ 5 X 9/12] …………………………. 9,000 Accumulated Depreciation—Equipment ……….. 9,000 Cash ………………………………………………………………… […]
978-1118334324 Chapter 9 Solution Manual Part 2
BRIEF EXERCISE 9-9 (Continued) Cost of equipment $41,000 Less accumulated depreciation 37,000 Book value at date of disposal 4,000 Proceeds from disposal 0 Loss on disposal $ 4,000 BRIEF EXERCISE 9-10 (a) Depreciation Expense ……………………………………….. 5,250 Accumulated Depreciation— Equipment ……………………………………………… […]
978-1118334324 Chapter 9 Solution Manual Part 1
CHAPTER 9 Plant Assets, Natural Resources, and Intangible Assets ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Describe how the historical cost principle applies to plant assets. 1, 2, 3 1, 2 […]
978-1118334324 Chapter 9 Lecture Note Part 3
b. A loss results when the book value is greater than the fair value of the asset given up. 3. Gains on exchange of plant assets are recognized by crediting Gain on Disposal of Plant Assets. a. The cost of […]
978-1118334324 Chapter 9 Lecture Note Part 2
D. Factors in Computing Depreciation/Depreciation Methods. 1. The computation of depreciation expense is based on three factors: a. Cost. b. Useful life is an estimate of the expected productive life of the asset for its owner. Useful life may be […]
978-1118334324 Chapter 9 Lecture Note Part 1
CHAPTER 9 PLANT ASSETS, NATURAL RESOURCES, AND INTANGIBLE ASSETS LEARNING OBJECTIVES 1. DESCRIBE HOW THE HISTORICAL COST PRINCIPLE APPLIES TO PLANT ASSETS. 2. EXPLAIN THE CONCEPT OF DEPRECIATION AND HOW TO COMPUTE IT. 3. DISTINGUISH BETWEEN REVENUE AND CAPITAL EXPENDITURES, […]
978-1118334324 Chapter 8 Solution Manual Part 6
BYP 8-5 (Continued) Finally, the decision hinges on: (1) the accuracy of the estimate of investment earnings, (2) the expected trend in credit sales, and (3) the effect the new policy will have on sales. Nonfinancial factors include the effects […]
978-1118334324 Chapter 8 Solution Manual Part 5
COMPREHENSIVE PROBLEM SOLUTION (Continued) WINTER COMPANY Retained Earnings Statement For the Month Ending January 31, 2015 Retained Earnings, January 1 ……………………………………. $12,730 Add: Net income ………………………………………………………. 3,093 Retained Earnings, January 31 ………………………………….. $15,823 WINTER COMPANY Balance Sheet January 31, 2015 […]
978-1118334324 Chapter 8 Solution Manual Part 4
Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only) 8-31 PROBLEM 8-3B (a) Dec. 31 Bad Debt Expense ……………………………… 31,970 Allowance for Doubtful Accounts ($47,970 – $16,000) ………………….. 31,970 (a) & […]
978-1118334324 Chapter 8 Solution Manual Part 3
PROBLEM 8-1A (Continued) (c) Balance before adjustment [see (b)] ……………………………… $ 19,000 Balance needed …………………………………………………………… 115,000 Adjustment required …………………………………………………….. $ 96,000 The journal entry would therefore be as follows: Bad Debt Expense ……………………………………. 96,000 Allowance for Doubtful Accounts ………. 96,000 […]
978-1118334324 Chapter 8 Solution Manual Part 2
SOLUTIONS FOR DO IT! REVIEW EXERCISES DO IT! 8-1 The following entry should be prepared to increase the balance in the Allowance for Doubtful Accounts from $6,100 credit to $15,500 credit (5% X $310,000): Bad Debt Expense …………………………………………….. 9,400 Allowance […]
978-1118334324 Chapter 8 Solution Manual Part 1
CHAPTER 8 Accounting for Receivables ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Identify the different types of receivables. 1, 2 1 2. Explain how companies recognize accounts receivable. 3 2 1, […]