Archives: Solution Manual
978-1111971724 Solution Manual Ch.09 Kinney 9e SM_Final Part 4
Chapter 9 287 accessible website, in whole or in part. Miami Income Statements 2013 2014 Sales $ 600,000 $ 840,000 Less variable expensea (180,000) (252,000) Contribution marginb $ 420,000 $ 588,000 Less fixed expenses (300,000) (300,000) Net income before taxc […]
978-1111971724 Solution Manual Ch.09 Kinney 9e SM_Final Part 3
Chapter 9 281 42. a. Ducks Ducklings Sales $ 24.00 $12.00 Variable costs (12.00) (8.00) Contribution margin $ 12.00 $ 4.00 Mix × 1 × 5 Total contribution margin $ 12.00 $20.00 The average contribution margin ratio is $32 ÷ […]
978-1111971724 Solution Manual Ch.09 Kinney 9e SM_Final Part 2
Chapter 9 271 accessible website, in whole or in part. Racine Tire Co. Income Statement For the Month XXX Current Proposed Sales $60 (20,000; 23,000) $1,200,000 $1,380,000 Less variable expense $30 (20,000; 23,000) (600,000) (690,000) Contribution margin $ 600,000 $ […]
978-1111971724 Solution Manual Ch.09 Kinney 9e SM_Final Part 1
261 CHAPTER 9 BREAK-EVEN POINT AND COST-VOLUME-PROFIT ANALYSIS QUESTIONS 1. The variable costing income statement classifies costs by the way they react rela- tive to changes in volume. Variable costs are deducted from revenues to determine contribution margin and then […]
978-1111971724 Solution Manual Ch.08 Kinney 9e SM_Final Part 4
252 Chapter 8 accessible website, in whole or in part. Proof: Sales ($104.83 400,000) $ 41,932,000 CGS ($68.84 400,000) (27,536,000) Gross margin $ 14,396,000 Variable S&A ($41,932,000 0.08) (3,354,560) Fixed S&A ($2,600,000 1.075 0.20) (559,000) […]
978-1111971724 Solution Manual Ch.08 Kinney 9e SM_Final Part 3
Chapter 8 243 accessible website, in whole or in part. d. Mfg. OH January February March Total Production 6,220 5,640 7,520 19,380 Var. cost per unit $1.30 $1.30 $1.30 $1.30 Total var. mfg. cost $ 8,086 […]
978-1111971724 Solution Manual Ch.08 Kinney 9e SM_Final Part 2
Chapter 8 233 31. a. Balance at October 1 $ 632,500 Remainder of September billings (480,000) Remainder of August billings $ 152,500 % of August billings uncollected at end of September ÷ 0.25 August billings $ 610,000 b. Remainder of […]
978-1111971724 Solution Manual Ch.08 Kinney 9e SM_Final Part 1
223 CHAPTER 8 THE MASTER BUDGET QUESTIONS 1. Budgeting translates goals and objectives into the resources, activities, and ar- rangements needed to accomplish those goals and objectives. That information is extended to assign activities and allocate resources to departments and […]
978-1111971724 Solution Manual Ch.07 Kinney 9e SM_Final Part 5
216 Chapter 7 accessible website, in whole or in part. OH Budget for One Month Period OH and 15,000 (Under-) Charged Units of Output Overbudget Indirect labor $51,120 $52,500 $(1,380) Supplies—oil 9,900 7,500 2,400 Allocated support dept. VOH costs 9,600 […]
978-1111971724 Solution Manual Ch.07 Kinney 9e SM_Final Part 4
208 Chapter 7 accessible website, in whole or in part. FOH Spending Variance 100 Cost of Goods Sold 2,980 VOH Spending Variance 1,680 VOH Efficiency Variance 640 FOH Volume Variance 760 To close OH variances for March c. Managers generated […]
978-1111971724 Solution Manual Ch.07 Kinney 9e SM_Final Part 3
198 Chapter 7 accessible website, in whole or in part. Actual Var. Conv. Costs Budgeted Var. Conv. Costs at Actual MHs Applied Var. Conv. Costs $6.50 × 83,000 $6.50 × 86,100 $551,230 $539,500 $559,650 $11,730 U $20,150 F Var. Conv. […]
978-1111971724 Solution Manual Ch.07 Kinney 9e SM_Final Part 2
188 Chapter 7 accessible website, in whole or in part. Case A: Standard hours = 1,000 × 3.5 = 3,500 LRV = AQ (AP – SP) –$850 = 3,400 (AP – $7.25) –$850 = 3,400AP – $24,650 $23,800 = 3,400AP […]
978-1111971724 Solution Manual Ch.07 Kinney 9e SM_Final Part 1
178 CHAPTER 7 STANDARD COSTING AND VARIANCE ANALYSIS QUESTIONS 1. The three primary uses of a standard cost system are to (1) assign per unit costs to production to value inventory, (2) control overhead spending, and (3) measure and evaluate […]
978-1111971724 Solution Manual Ch.06 Kinney 9e SM_Final Part 5
172 Chapter 6 Cost of Goods Sold 59,500 Direct Material Variance 11,000 Conversion Cost Variance 48,500 64. a. Units Material Labor Overhead BI 14,800 Units started 385,000 Units to account for 399,800 BI completed 14,800 0 8,880 4,440 Units S&C […]
978-1111971724 Solution Manual Ch.06 Kinney 9e SM_Final Part 4
166 Chapter 6 accessible website, in whole or in part. Cost Data: Total Trans. In Material Conversion Cost in BI $ 173,413 $ 166,420 $ 0 $ 6,993 Current costs 3,457,760 2,828,000 383,640 246,120 Total to acct. for $3,631,173 $2,994,420 […]
978-1111971724 Solution Manual Ch.06 Kinney 9e SM_Final Part 3
156 Chapter 6 49. a. Gallons transferred out 242,000 Gallons in ending WIP 23,500 Total gallons to account for 265,500 Gallons in beginning WIP (36,000) Gallons started 229,500 b. Material Labor Overhead Beginning WIP Inventory 36,000 36,000 36,000 Started & […]
978-1111971724 Solution Manual Ch.06 Kinney 9e SM_Final Part 2
146 Chapter 6 c. Cost of goods transferred out $10,413,000 Ending WIP 707,625 Total cost to account for $11,120,625 32. a. BI cost $ 458,482.00 Cost to complete: DM (42,600 × 20% × $10.74) $ 91,504.80 DL (42,600 × 55% […]
978-1111971724 Solution Manual Ch.06 Kinney 9e SM_Final Part 1
136 accessible website, in whole or in part. CHAPTER 6 PROCESS COSTING QUESTIONS 1. A company that produces homogeneous goods in mass quantities is likely to use a process costing system. The company can either have a single department or […]
978-1111971724 Solution Manual Ch.05 Kinney 9e SM_Final Part 4
130 Chapter 5 accessible website, in whole or in part. b. Raw Material Precast Overhead—P Construction Overhead—C 1,150,000 1,150,000 500,000 150,000 25,000 26,895 1,485,000 1,000,000 5,000 98,750 60,000 221,595 425,000 36,320 18,650 175,000 5,000 5,000 225,000 54,050 43,850 Bal. 60,000 […]
978-1111971724 Solution Manual Ch.05 Kinney 9e SM_Final Part 3
124 Chapter 5 accessible website, in whole or in part. Direct Labor (Est. $670,000) Overhead (Est. $402,000) Date Source Cost Date Source Cost 2013 July 31 Summary of time sheets for direct labor 2013 July 31 Journal entry of 7/31/13 […]
978-1111971724 Solution Manual Ch.05 Kinney 9e SM_Final Part 2
114 Chapter 5 28. a. Some of the companies that have been found to engage in this practice are Fam- ily Dollar, Pep Boys, Taco Bell, Toys-R-Us, and Walmart. b. It is easier to doctor the records now than in […]
978-1111971724 Solution Manual Ch.05 Kinney 9e SM_Final Part 1
104 CHAPTER 5 JOB ORDER COSTING QUESTIONS 1. The two choices for cost accumulation are the job order and process costing sys- tems. A company should use job order costing when it is necessary and possible to trace costs to […]
978-1111971724 Solution Manual Ch.04 Kinney 9e SM_Final Part 4
96 Chapter 4 accessible website, in whole or in part. company might have chosen not to enter the market because it would have felt that it could not compete with the competition on this product. e. A non-value-added (NVA) activity […]
978-1111971724 Solution Manual Ch.04 Kinney 9e SM_Final Part 3
Chapter 4 87 accessible website, in whole or in part. e. Product A Product B Indirect labor Department 1 ($307,000) (Total ILHs for A = 2,500 + 5,000 + 252 = 7,752) (Total ILHs for B = 2,400 + 10,000 […]
978-1111971724 Solution Manual Ch.04 Kinney 9e SM_Final Part 2
Chapter 4 77 b. Contracts: 21,000 $0.54 $11,340 Regulation: 27 $506 13,662 Court: 315 $230 72,450 Total $97,452 c. The rates will be used to bill other departments for the costs incurred in the le- gal department. […]
978-1111971724 Solution Manual Ch.04 Kinney 9e SM_Final Part 1
67 CHAPTER 4 ACTIVITY-BASED MANAGEMENT AND ACTIVITY-BASED COSTING QUESTIONS 1. Activity–based management is a management model that associates an organization’s activities with the value customers derive from the organization’s products. Efficien– cy and effectiveness are achieved by reducing the level […]
978-1111971724 Solution Manual Ch.03 Kinney 9e SM_Final Part 3
Chapter 3 59 accessible website, in whole or in part. 43. a. MHs Total Cost = Variable Cost + Fixed Cost High activity 2,700 $13,160 $8,640 $4,520 Low activity (1,400) (9,000) 4,480 4,520 Differences 1,300 $ 4,160 Variable rate = […]
978-1111971724 Solution Manual Ch.03 Kinney 9e SM_Final Part 2
Chapter 3 51 accessible website, in whole or in part. 32. a. Budgeted fixed overhead = $0.40 100,000 = $40,000 b. Actual (and budgeted) fixed overhead $40,000 Applied fixed overhead (45,000 $0.40) 18,000 Underapplied fixed overhead (absorption) $22,000 […]
978-1111971724 Solution Manual Ch.03 Kinney 9e SM_Final Part 1
41 CHAPTER 3 PREDETERMINED OVERHEAD RATES, FLEXIBLE BUDGETS, AND ABSORPTION/VARIABLE COSTING QUESTIONS 1. Although both variable and mixed costs change in total with activity measure changes, the difference is that variable costs change in direct proportion to such ac- tivity […]
978-1111971724 Solution Manual Ch.02 Kinney 9e SM_Final Part 3
32 Chapter 2 accessible website, in whole or in part. d. Gross profit = 0.35 $1,431,000 = $500,850 S&A expenses = Gross profit – Net income = $500,850 – $125,000 = $375,850 e. Raw Material Inventory 555,000 Accounts Payable […]
978-1111971724 Solution Manual Ch.02 Kinney 9e SM_Final Part 2
Chapter 2 23 34. a. Targé Co. Cost of Goods Sold Schedule For the Month Ended March 31, 2013 Beginning FG inventory (given) $ 125,000 Cost of goods manufactured 2,537,500 Cost of goods available for sale $2,662,500 Ending FG inventory […]
978-1111971724 Solution Manual Ch.02 Kinney 9e SM_Final Part 1
13 CHAPTER 2 COST TERMINOLOGY AND COST BEHAVIORS QUESTIONS 1. The term cost is used to refer to so many different concepts that an adjective must be attached to identify which particular type of cost is being discussed. For example, […]
978-1111971724 Solution Manual Ch.01 Kinney 9e SM_Final Part 2
Chapter 1 7 accessible website, in whole or in part. People skills Medium Sales skills Low Communication skills High Analytical skills High Ability to synthesize High Creative ability Medium Initiative Medium Computer skills Very high The primary change in the […]
978-1111971724 Solution Manual Ch.01 Kinney 9e SM_Final Part 1
1 CHAPTER 1 INTRODUCTION TO COST ACCOUNTING QUESTIONS 1. Management accounting stresses the informational needs of internal users over those of external users (the focus of financial accounting). Because of this perspective, management accounting provides information in a format that […]
978-1111971724 Kinney 9e_Excel_18-47_IE Excel
Problem 18-47 Name: Insert your answers in the gray-shaded cells or choose from drop-down list. If an answer is incorrect, the word “wrong” will appear. a. Year of Life Cycle Units Price Revenue Year 1 100,000 2.50$ 250,000$ Year 2 […]
978-1111971724 Kinney 9e_Excel_18-33_IE Excel
Exercise 18-33 Name: Insert your answers into the gray-shaded cells or select from drop-down list. If an answer is incorrect, the word “wrong” will appear. Did Promotional Products complete the 180 units by 5 P.M.? Output 1-2 2-3 3-4 4-5 […]
978-1111971724 Kinney 9e_Excel_18-26_IE Excel
Exercise 18-26 Name: Insert your answers into the gray-shaded cells or select from the drop-down lists. If an answer is incorrect, the word “wrong” will appear. a. 302,000 302,000 608,000 608,000 600,000 600,000 900,000 900,000 894,000 894,000 8,000 8,000 1,490,000 […]
978-1111971724 Kinney 9e_Excel_18-23_IE Excel
Exercise 18-23 Name: Insert your answers into the gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. Changes needed to costs: Estimated first-year costs per unit 145$ Target cost per unit 15 Amount that costs need to […]
978-1111971724 Kinney 9e_Excel_17-51_IE Excel
Problem 17-51 Name: Insert your answers in the gray-shaded cells. Enter amounts to be subtracted as negatives. If an answer is incorrect, the word “wrong” will appear. a. Unit price for regular channel sales 260$ Less unit price for scrap […]
978-1111971724 Kinney 9e_Excel_17-46_IE Excel
Problem 17-46 Name: Insert your answers into the gray-shaded cells or select from a drop-down list. Enter answers as formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. a. Model Motor Wiring Housing All Other Blender […]
978-1111971724 Kinney 9e_Excel_17-38_IE Excel
Exercise 17-38 Name: Insert your answers into the gray-shaded cells in column G. If an answer is incorrect, the word “wrong” will appear. a. Defective units reworked 595 Cost per unit to rework 18 10,710$ b. Defective units 720 Less […]
978-1111971724 Kinney 9e_Excel_17-19_IE Excel
Exercise 17-19 Name: Enter the data in columns C and E below. When you have entered all data points, the scattergraph to the right and below will be correct. Observation Number Number of Slices of Pepperoni 136 235 341 433 […]
978-1111971724 Kinney 9e_Excel_16-37_IE Excel
Problem 16-37 Name: Insert your answers in the gray-shaded cells or select from drop-down list. Enter formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. a. Actual Appropriation Excess Expenditure Variable 370,500$ 400,000$ 29,500$ Fixed 1,630,000 […]
978-1111971724 Kinney 9e_Excel_16-25_IE Excel
Exercise 16-25 Name: Insert your answers in the gray-shaded cells or select from drop-down list. Enter formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. a. Variable Cost Analysis Actual variable costs 900,000$ Flexible budget: Actual […]
978-1111971724 Kinney 9e_Excel_16-24_IE Excel
Exercise 16-24 Name: Insert your answers in the gray-shaded cells or select from drop-down list. Enter formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. a. Rate Variance Actual payroll for month 38,950$ Actual hours worked […]
978-1111971724 Kinney 9e_Excel_16-23_IE Excel
Exercise 16-23 Name: Insert your answers in the gray-shaded cells or select from drop-down list. If an answer is incorrect, the word “wrong” will appear. Rate Variance Payroll for week 2,780$ Regular hours worked 120 x Regular pay rate $20 […]
978-1111971724 Kinney 9e_Excel_15-49_IE Excel
Problem 15-49 Name: Insert your answers in the gray-shaded cells or select from the drop-down list. If an answer is incorrect, the word “wrong” will appear. a. Point in Time Description Cash Flows x Discount Factor = Present Value 0 […]
978-1111971724 Kinney 9e_Excel_15-47_IE Excel
Problem 15-47 Name: Insert your answers in the gray-shaded cells or select from the drop-down list. If an answer is incorrect, the word “wrong” will appear. a. Point in Time Description Cash Flows xPV Factor = 0 Initial outlay (5,000,000)$ […]
978-1111971724 Kinney 9e_Excel_15-24_IE Excel
Exercise 15-24 Name: Insert your answers in the gray-shaded cells or select from the drop-down list. If an answer is incorrect, the word “wrong” will appear. a. Point in Time Description Cash Flows xPV Factor =Present Value 0 Initial outlay […]
978-1111971724 Kinney 9e_Excel_15-23_IE Excel
Exercise 15-23 Name: Insert your answers in the gray-shaded cells or select from the drop-down list. If an answer is incorrect, the word “wrong” will appear. Point in Time Cash Flows xPV Factor =Present Value 0 (1,800,000)$ 1.0000 (1,800,000)$ 1 […]