Archives: Solution Manual
978-0078025587 Chapter 22 Solution Manual Part 3
Title: Exercise 22-12 QA_Ori: JASPER COMPANY Cash Receipts Budget For April, May, and June April May June Sales $525,000 $535,000 $560,000 Less ending accts. receivable (70%) 367,500 374,500 392,000 Title: Exercise 22-13 QA_Ori: KARIM CORP. Cash Budget For July, August, […]
978-0078025587 Chapter 22 Solution Manual Part 2
Title: Quick Study 22-25 QA_Ori: SCORA INC. Selling Expense Budget For January, February, and March January February March Budgeted sales (from QS 22-23) $60,000 $100,000 $80,000 Title: Quick Study 22-26 QA_Ori: MESSERS COMPANY Cash Budget For Month Ended February 28 […]
978-0078025587 Chapter 22 Solution Manual Part 1
Title: Question 1 QA_Ori: A budget helps managers control and monitor a business by 1) communicating plans to Title: Question 2 QA_Ori: Two common benchmarks used by managers to evaluate performance are: past performance and budgeted performance. Budgeted performance is […]
978-0078025587 Chapter 21 Solution Manual Part 5
Title: Problem 21-7B QA_Ori: 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 unit * To compute the contribution […]
978-0078025587 Chapter 21 Solution Manual Part 4
Kyo Company 0 20 40 60 80 100 $120 0 $50 $100 $150 $200 $250 Sales Dollars Total Costs Title: Problem 21-3B QA_Ori: Parts 1 and 2 The scatter diagram and its estimated line of cost behavior appear below. Sales […]
978-0078025587 Chapter 21 Solution Manual Part 3
Title: Problem 21-3A QA_Ori: Parts 1 and 2 The scatter diagram and its estimated line of cost behavior appear below. Part 2 – Calculation of variable and fixed costs Variable costs = $220,000 – $64,000 = $0.60 per dollar of […]
978-0078025587 Chapter 21 Solution Manual Part 2
Title: Exercise 21-7 QA_Ori: The scatter diagram and line of estimated cost behavior appear below. Selecting 0 and 2,400 units sold as the activity levels yields $2,500 as the estimate of fixed costs and the following estimate of variable costs […]
978-0078025587 Chapter 21 Solution Manual Part 1
Title: Question 1 QA_Ori: A variable cost is one that varies proportionately with the volume of activity. For Title: Question 2 QA_Ori: Variable costs per unit stay the same (remain constant) when output volume changes. This is because each unit […]
978-0078025587 Chapter 20 Solution Manual Part 12
Part 5: (Using weighted-average) Computation of gross profit for July Sales……………………………………………………………………………………….$ 625,000 Title: Reporting in Action 1 QA_Ori: These costs are part of getting the products that Polaris sells to its customers, costs to fulfill warranties to its customers, and […]
978-0078025587 Chapter 20 Solution Manual Part 11
Part 2 (Using weighted-average) MAJOR LEAGUE BAT CO. Process Cost Summary (Weighted Average) For Month Ended July 31 Costs Charged to Production Costs of beginning goods in process Direct materials…………………………………………………………. $ 2,660 Unit cost information Units to account for Units […]
978-0078025587 Chapter 20 Solution Manual Part 10
Title: Problem 20-8B QA_Ori: Part 1: Equivalent units with respect to direct materials and direct labor Direct Direct Equivalent units of production (EUP) Materials Labor Units to complete beginning goods in process Direct materials (2,000 x 0%)…………………………… 0 Part 2 […]
978-0078025587 Chapter 20 Solution Manual Part 9
Title: Problem 20-5B QA_Ori: Part 1 SWITCH CO. Process Cost Summary – Weighted Average Method For Month Ended January 31 Costs Charged to Production Costs of beginning goods in process Direct materials…………………………………………………………. $ 7,500 Unit cost information Units to account […]
978-0078025587 Chapter 20 Solution Manual Part 8
Title: Problem 20-3B QA_Ori: Part 1 a. May 31 Raw Materials Inventory……………………………………………221,120 b. May 31 Goods in Process Inventory………………………………………197,120 Raw Materials Inventory……………………………………… 197,120 Direct materials used in production. c. May 31 Factory Overhead…………………………………………………….40,560 Raw Materials Inventory……………………………………… 40,560 Indirect materials used. […]
978-0078025587 Chapter 20 Solution Manual Part 7
Title: Problem 20-9A QA_Ori: Part 1 DENGO CO. Process Cost Summary – FIFO Method For Month Ended October 31 Costs Charged to Production Costs of beginning goods in process Direct materials………………………………………………………….$ 9,900 Costs incurred this period Direct materials…………………………………………………………. 248,400 Direct […]
978-0078025587 Chapter 20 Solution Manual Part 6
Title: Problem 20-6A QA_Ori: Part 1 TAMAR CO. Process Cost Summary – FIFO Method For Month Ended May 31 Costs charged to Production Costs of beginning goods in process Direct materials………………………………………………………….$ 19,800 Unit cost information Units to account for Units […]
978-0078025587 Chapter 20 Solution Manual Part 5
Part 2 ELLIOTT COMPANY Process Cost Summary – Weighted Average Method For Month Ended March 31 Costs Charged to Production Costs of beginning goods in process Unit cost information Units to account for Units accounted for Beginning goods in process…………………………………2,000 […]
978-0078025587 Chapter 20 Solution Manual Part 4
Title: Exercise 20-22 QA_Ori: HI-TEST COMPANY Process Cost Summary (Weighted-Average Method) For Month Ended September 30 Costs Charged to Production Costs of beginning work in process Direct materials……………………………………………………………….$ 45,000 Unit Cost Information Units to Account For Units Accounted For Beginning […]
978-0078025587 Chapter 20 Solution Manual Part 3
Title: Exercise 20-15 QA_Ori: ASHAD COMPANY Process Cost Summary – Weighted Average Method For Month Ended July 31 Costs Charged to Production Unit Cost Information Units to Account For Units Accounted For Beginning goods in process…………………. 2,000 Completed & transferred […]
978-0078025587 Chapter 20 Solution Manual Part 2
Title: Exercise 20-7 QA_Ori: a. Purchased raw materials on credit at a cost of $52,000. b. Used direct materials costing $42,000 in production. QA_Edit: a. Purchased raw materials on credit at a cost of $52,000. b. Used direct materials costing […]
978-0078025587 Chapter 20 Solution Manual Part 1
Title: Question 1 QA_Ori: 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 Title: Question 2 QA_Ori: The main focus in […]
978-0078025587 Chapter 19 Solution Manual Part 6
Title: Reporting in Action 1 QA_Ori: We would anticipate that at least two types of costs will increase as a percent of sales with Polaris’s growth in domestic sales. The first type is broadly QA_Edit: Title: Reporting in Action 2 […]
978-0078025587 Chapter 19 Solution Manual Part 5
Title: Problem 19-3B QA_Ori: Part 1 JOB COST SHEETS Job No. 487 Materials…………………….$30,000 Job No. 488 Materials…………………….$20,000 Labor………………………… 7,000 Overhead…………………… 14,000 Total cost……………………$41,000 Job No. 489 Materials…………………….$12,000 Labor………………………… 25,000 Overhead…………………… 50,000 Total cost……………………$87,000 Job No. 490 Materials…………………….$14,000 Labor………………………… 26,000 Overhead…………………… […]
978-0078025587 Chapter 19 Solution Manual Part 4
Title: Problem 19-5A QA_Ori: JOB COST SHEET Customer’s Name Worldwide Company Job No. 102 Direct Materials Direct Labor Overhead Costs Applied Date Requisition Number Amount Time Ticket Number Amount Date Rate Amount #35 33,750 #1-10 90,000 May — 80% 72,000 […]
978-0078025587 Chapter 19 Solution Manual Part 3
Title: Problem 19-1A QA_Ori: Part 1 Total manufacturing costs and the costs assigned to each job 306 307 308 April Total From March Direct materials……………………$ 29,000 $ 35,000 Direct labor…………………………. 20,000 18,000 *Equals 50% of direct labor cost. Part 2 […]
978-0078025587 Chapter 19 Solution Manual Part 2
Title: Exercise 19-8 QA_Ori: 1. Raw Materials Inventory……………………………………………210,000 Cash………………………………………………………………… 210,000 To record materials purchases. Title: Exercise 19-9 QA_Ori: 1. Factory Payroll………………………………………………………..345,000 Cash………………………………………………………………… 345,000 To record factory payroll. 2. Goods in Process Inventory………………………………………265,000 Factory Payroll………………………………………………….. 265,000 To assign direct labor to […]
978-0078025587 Chapter 19 Solution Manual Part 1
Title: Question 1 QA_Ori: Factory overhead is not identified with specific units (jobs) or batches (job lots). Therefore, to assign costs, estimates of the relation between factory overhead cost and job Title: Question 2 QA_Ori: Several other factors (allocation bases) […]
978-0078025587 Chapter 18 Solution Manual Part 6
Title: Ethics Challenge 1 QA_Ori: Raw materials are part of inventory and should be capitalized (set up as assets). Their costs are subsequently reported as part of cost of goods Title: Ethics Challenge 2 QA_Ori: The challenge is how to […]
978-0078025587 Chapter 18 Solution Manual Part 5
Title: Problem 18-7B QA_Ori: Part 1 ELEGANT FURNITURE Manufacturing Statement For Year Ended December 31, 2013 Direct materials Raw materials inventory, December 31, 2012………….. $ 40,375 Direct labor…………………………………………………………….. 562,500 Factory overhead Depreciation expense—Factory equipment……………… 35,400 Factory supervision………………………………………………. 121,500 Factory supplies […]
978-0078025587 Chapter 18 Solution Manual Part 4
Part 2 DE LEON COMPANY Income Statement For Year Ended December 31, 2013 Sales…………………………………………………………………….. $4,525,000 167,350 Cost of goods manufactured…………………………………… 1,935,65 0 Goods available for sale…………………………………………2,103,000 Less finished goods inventory, December 31, 2013………… 136,49 0 Cost of goods sold………………………………………………… 1,966,510 […]
978-0078025587 Chapter 18 Solution Manual Part 3
Title: Exercise 18-15 QA_Ori: a. b. If customers rate any of the factors on the survey as anything other than “very satisfied,” managers should investigate the reasons for the customer’s lack of satisfaction. The survey itself does not identify the […]
978-0078025587 Chapter 18 Solution Manual Part 2
Title: Exercise 18-5 QA_Ori: 1. Cost by Behavior Cost by Traceability Product Cost Variable Fixed Direct Indirect 1. Leather cover for soccer balls…………….. X X 2. Annual flat fee paid for office security…………………………………………. X X 2. Most fixed costs are […]
978-0078025587 Chapter 18 Solution Manual Part 1
Title: Question 1 QA_Ori: The managerial accountant plays an important role in preparing the information necessary for effective planning and control decisions. One example is the budget, which Title: Question 2 QA_Ori: Financial Accounting Managerial Accounting (a) Users and decision […]
978-0078025587 Chapter 17 Solution Manual Part 5
Title: Serial Problem 2 QA_Ori: Current ratio = $105,209 / $875 = 120.2 Acid-test ratio = $100,205 / $875 = 114.5 QA_Edit: Title: Serial Problem 3 QA_Ori: Debt ratio = $875 / $129,909 = 0.7% Equity ratio = $129,034/$129,909 = […]
978-0078025587 Chapter 17 Solution Manual Part 4
Title: Problem 17-2B QA_Ori: Part 1 TRIPOLY COMPANY Income Statement Trends For Years Ended December 31, 2014-2008 2014 2013 2012 2011 2010 2009 2008 Sales……………………………….. 65.1% 70.9% 73.3% 79.1% 86.0% 89.5% 100.0% TRIPOLY COMPANY Balance Sheet Trends December 31, 2014-2008 […]
978-0078025587 Chapter 17 Solution Manual Part 3
Title: Problem 17-2A QA_Ori: Part 1 HAROUN COMPANY Income Statement Trends For Years Ended December 31, 2014-2008 2014 2013 2012 2011 2010 2009 2008 Sales……………………………….. 182.5% 161.2% 147.6% 136.2% 127.8% 119.6% 100.0% HAROUN COMPANY Balance Sheet Trends December 31, 2014-2008 […]
978-0078025587 Chapter 17 Solution Manual Part 2
Title: Exercise 17-7 QA_Ori: Simon Company Common-Size Comparative Balance Sheets December 31, 2012-2014 At December 31 2014 2013*2012 Assets Cash………………………………………………………….. 6.1% 8.0% 10.0% Liabilities and Equity Accounts payable………………………………………… 24.8% 16.9% 13.6% Long-term notes payable secured by mortgages on plant assets […]
978-0078025587 Chapter 17 Solution Manual Part 1
Title: Question 1 QA_Ori: Financial reporting includes the entire process of preparing and issuing financial Title: Question 2 QA_Ori: With comparative statements, financial statement items for two or more successive accounting periods are placed side by side on a single […]
978-0078025587 Chapter 16 Solution Manual Part 7
Title: Taking It to the Net 1 QA_Ori: Mendocino Brewing Company uses the indirect method to construct the consolidated statement of cash flows. Title: Taking It to the Net 2 QA_Ori: The largest reconciling item is for depreciation and amortization […]
978-0078025587 Chapter 16 Solution Manual Part 6
Title: Problem 16-5BA QA_Ori: SATU COMPANY Statement of Cash Flows For Year Ended December 31, 2013 Cash flows from operating activities Net income……………………………………………………………. $202,767 Adjustments to reconcile net income to net cash provided by operating activities Cash flows from investing […]
978-0078025587 Chapter 16 Solution Manual Part 5
Title: Problem 16-1B QA_Ori: Part 1 GAZELLE CORPORATION Statement of Cash Flows For Year Ended December 31, 2013 Cash flows from operating activities Net income……………………………………………………………………..$158,100 Adjustments to reconcile net income to net cash provided by operating activities Cash flows from […]
978-0078025587 Chapter 16 Solution Manual Part 4
Title: Problem 16-1A QA_Ori: Part 1 FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2013 Cash flows from operating activities Net income……………………………………………………………………..$114,975 Adjustments to reconcile net income to net Cash flows from investing activities Cash received from […]
978-0078025587 Chapter 16 Solution Manual Part 3
Title: Exercise 16-11B QA_Ori: IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2013 Cash flows from operating activities Cash received from customers (Note 1)…………… $664,000 Cash paid for merchandise (Note 2)………………… (393,300) (See notes on […]
978-0078025587 Chapter 16 Solution Manual Part 2
Title: Quick Study 16-18 QA_Ori: 2. IFRS and US GAAP differ on the classification of the following cash flows as operating, investing or financing: Cash flow source U.S. GAAP IFRS _ a. Interest paid Operating Financing or Operating b. Dividends […]
978-0078025587 Chapter 16 Solution Manual Part 1
Title: Question 1 QA_Ori: The purpose of the cash flow statement is to report all major cash receipts (inflows) and cash payments (outflows) during a period. It helps users to answer questions such as: How does a company obtain its […]
978-0078025587 Chapter 15 Solution Manual Part 5
Title: Problem 15-6B QA_Ori: Part 1 2013 May 26 Accounts Receivable—Fuji 60,450 Sales 60,450 (6,500,000 yen x $0.0093/yen) June 1 Cash 64,800 Sales 64,800 July 25 Cash* 59,800 Foreign Exchange Loss 650 Accounts Receivable—Fuji 60,450 *(6,500,000 yen x $0.0092/yen) Oct. […]
978-0078025587 Chapter 15 Solution Manual Part 4
Title: Problem 15-1B QA_Ori: Part 1 2013 Mar. 10 Short-Term Investments—Trading (AOL) 143,505 May 7 Short-Term Investments—Trading (MTV) 184,105 Cash 184,105 Purchased MTV shares [(5,000 x $36.25) + $2,855]. Sept. 1 Short-Term Investments—Trading (UPS) 69,950 Cash 69,950 Purchased UPS shares […]
978-0078025587 Chapter 15 Solution Manual Part 3
Title: Problem 15-3A QA_Ori: Part 1 2013 Jan. 20 Long-Term Investments—AFS (J&J) 20,740 Feb. 9 Long-Term Investments—AFS (Sony) 55,665 Cash 55,665 Purchased Sony shares [(1,200 x $46.20) + $225]. June 12 Long-Term Investments—AFS (Mattel) 40,695 Cash 40,695 Purchased Mattel shares […]
978-0078025587 Chapter 15 Solution Manual Part 2
Title: Exercise 15-8 QA_Ori: 2013 (a) Feb. 15 Short-Term Investments—HTM (A.G.) 160,000 (b) Mar. 22 Long-Term Investments—AFS (Fran) 35,850 Cash 35,850 Purchased 700 shares of Fran common stock ([700 x $51] + $150). (c) May 15 Cash 164,000 Short-Term Investments—HTM […]
978-0078025587 Chapter 15 Solution Manual Part 1
Title: question 1 QA_Ori: To be classified as current assets, investments must be (i) capable of being converted into cash quickly and (ii) management must intend to sell the investments as Title: question 2 QA_Ori: Short-term investments in trading securities […]
978-0078025587 Chapter 14 Solution Manual Part 5
Title: Problem 14-7B QA_Ori: Part 1 2013 Jan. 1 Cash 198,494 Part 2 Thirty payments of $7,200*$ 216,000 Par value at maturity 240,000 Total repaid 456,000 Less amount borrowed (198,494) Total bond interest expense $ 257,506 *$240,000 x 0.06 x […]