Wild and Shaw, Managerial Accounting 8e Solutions Manual: Chapter 1
Chapter 1
Managerial Accounting Concepts
and Principles
N
QUICK STUDIES
U
Quick Study 1-1 (5 minutes)
1. Its primary users are company managers ............................... Managerial
R
2. Its information is often available only after an audit is complete .. Financial
3. Its primary focus is on the organization as a whole ............... Financial
SE
4. Its principles and practices are relatively flexible .................. Managerial
5. It focuses mainly on past results .............................................. Financial
Quick Study 1-2 (10 minutes)
D
1. Indirect cost
2. Direct cost
3. Indirect cost
O
4. Indirect cost
5. Direct cost
C
Quick Study 1-3 (10 minutes)
1. Direct materials
S
2. Factory overhead
3. Direct labor
4. Factory overhead
5. Factory overhead
6. Direct materials
1
Copyright © 2022 by McGraw Hill.
All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.
, Wild and Shaw, Managerial Accounting 8e Solutions Manual: Chapter 1
Quick Study 1-4 (10 minutes)
1. Product cost
2. Period cost
3. Product cost
4. Period cost
5. Product cost
6. Period cost
7. Period cost
N
8. Product cost
U
Quick Study 1-5 (10 minutes)
R
1. Prime cost
2. Conversion cost (Glue is an indirect material)
3. Both
SE
4. Conversion cost
5. Conversion cost
6. Prime cost
D
Quick Study 1-6 (10 minutes)
Ending work in process inventory is computed as:
O
Work in process inventory, beginning ..............................................
$ 26,000
Direct materials used ......................................................................
74,000
C
Direct labor used .............................................................................
55,000
Factory overhead ............................................................................
95,000
S
Total manufacturing costs .............................................................
224,000
Total cost of work in process .............................................................
250,000
Less cost of goods manufactured .....................................................
220,000
Work in process inventory, ending ....................................................
$ 30,000
2
Copyright © 2022 by McGraw Hill.
All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.
, Wild and Shaw, Managerial Accounting 8e Solutions Manual: Chapter 1
Quick Study 1-6 (continued)
Alternative calculation using T-account:
Work in Process Inventory
Beginning 26,000
Direct materials 74,000
Direct labor 55,000
Factory overhead 95,000
220,000 COGM
Ending 30,000
N
Quick Study 1-7 (10 minutes)
Cost of goods sold is computed as:
U
Finished goods inventory, beginning ................................................
$ 500
Cost of goods manufactured ..............................................................
4,000
R
Goods available for sale .....................................................................
4,500
Less finished goods inventory, ending .............................................
700
SE
Cost of goods sold ..............................................................................
$3,800
Quick Study 1-8 (10 minutes)
D
Finished goods inventory, beginning .........................................
$ 345,000
Cost of goods manufactured .......................................................
918,000
Goods available for sale ..............................................................
1,263,000
O
Less finished goods inventory, ending ......................................
283,000
$ 980,000
Cost of goods sold .......................................................................
C
Alternative calculation using T-account:
Finished Goods Inventory
S
Beginning 345,000
COGM 918,000
980,000 COGS
Ending 283,000
3
Copyright © 2022 by McGraw Hill.
All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.
, Wild and Shaw, Managerial Accounting 8e Solutions Manual: Chapter 1
Quick Study 1-9 (5 minutes)
Cost of goods sold is computed as:
Merchandise inventory, beginning ....................................................
$12,000
Cost of merchandise purchased ........................................................
85,000
Goods available for sale .....................................................................
97,000
Less merchandise inventory, ending ................................................
18,000
Cost of goods sold ..............................................................................
$79,000
N
Quick Study 1-10 (10 minutes)
U
(1) (2) (3)
Cost of merchandise purchased......... $181,000 $140,000 $289,000
R
Merchandise inventory, beginning ..... 106,000 21,000 28,000
Merchandise inventory, ending .......... 82,000 33,000 50,000
SE
Cost of goods sold ............................... 205,000 128,000 267,000
Calculations:
(1) $106,000 + Purchases - $205,000 = $82,000 Purchases = $181,000
D
(2) Beg. Inv. + $140,000 - $128,000 = $33,000 Beg. Inv. = $21,000
(3) $28,000 + $289,000 - $267,000 = End. Inv. End. Inv. = $50,000
O
C
S
4
Copyright © 2022 by McGraw Hill.
All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.
Chapter 1
Managerial Accounting Concepts
and Principles
N
QUICK STUDIES
U
Quick Study 1-1 (5 minutes)
1. Its primary users are company managers ............................... Managerial
R
2. Its information is often available only after an audit is complete .. Financial
3. Its primary focus is on the organization as a whole ............... Financial
SE
4. Its principles and practices are relatively flexible .................. Managerial
5. It focuses mainly on past results .............................................. Financial
Quick Study 1-2 (10 minutes)
D
1. Indirect cost
2. Direct cost
3. Indirect cost
O
4. Indirect cost
5. Direct cost
C
Quick Study 1-3 (10 minutes)
1. Direct materials
S
2. Factory overhead
3. Direct labor
4. Factory overhead
5. Factory overhead
6. Direct materials
1
Copyright © 2022 by McGraw Hill.
All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.
, Wild and Shaw, Managerial Accounting 8e Solutions Manual: Chapter 1
Quick Study 1-4 (10 minutes)
1. Product cost
2. Period cost
3. Product cost
4. Period cost
5. Product cost
6. Period cost
7. Period cost
N
8. Product cost
U
Quick Study 1-5 (10 minutes)
R
1. Prime cost
2. Conversion cost (Glue is an indirect material)
3. Both
SE
4. Conversion cost
5. Conversion cost
6. Prime cost
D
Quick Study 1-6 (10 minutes)
Ending work in process inventory is computed as:
O
Work in process inventory, beginning ..............................................
$ 26,000
Direct materials used ......................................................................
74,000
C
Direct labor used .............................................................................
55,000
Factory overhead ............................................................................
95,000
S
Total manufacturing costs .............................................................
224,000
Total cost of work in process .............................................................
250,000
Less cost of goods manufactured .....................................................
220,000
Work in process inventory, ending ....................................................
$ 30,000
2
Copyright © 2022 by McGraw Hill.
All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.
, Wild and Shaw, Managerial Accounting 8e Solutions Manual: Chapter 1
Quick Study 1-6 (continued)
Alternative calculation using T-account:
Work in Process Inventory
Beginning 26,000
Direct materials 74,000
Direct labor 55,000
Factory overhead 95,000
220,000 COGM
Ending 30,000
N
Quick Study 1-7 (10 minutes)
Cost of goods sold is computed as:
U
Finished goods inventory, beginning ................................................
$ 500
Cost of goods manufactured ..............................................................
4,000
R
Goods available for sale .....................................................................
4,500
Less finished goods inventory, ending .............................................
700
SE
Cost of goods sold ..............................................................................
$3,800
Quick Study 1-8 (10 minutes)
D
Finished goods inventory, beginning .........................................
$ 345,000
Cost of goods manufactured .......................................................
918,000
Goods available for sale ..............................................................
1,263,000
O
Less finished goods inventory, ending ......................................
283,000
$ 980,000
Cost of goods sold .......................................................................
C
Alternative calculation using T-account:
Finished Goods Inventory
S
Beginning 345,000
COGM 918,000
980,000 COGS
Ending 283,000
3
Copyright © 2022 by McGraw Hill.
All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.
, Wild and Shaw, Managerial Accounting 8e Solutions Manual: Chapter 1
Quick Study 1-9 (5 minutes)
Cost of goods sold is computed as:
Merchandise inventory, beginning ....................................................
$12,000
Cost of merchandise purchased ........................................................
85,000
Goods available for sale .....................................................................
97,000
Less merchandise inventory, ending ................................................
18,000
Cost of goods sold ..............................................................................
$79,000
N
Quick Study 1-10 (10 minutes)
U
(1) (2) (3)
Cost of merchandise purchased......... $181,000 $140,000 $289,000
R
Merchandise inventory, beginning ..... 106,000 21,000 28,000
Merchandise inventory, ending .......... 82,000 33,000 50,000
SE
Cost of goods sold ............................... 205,000 128,000 267,000
Calculations:
(1) $106,000 + Purchases - $205,000 = $82,000 Purchases = $181,000
D
(2) Beg. Inv. + $140,000 - $128,000 = $33,000 Beg. Inv. = $21,000
(3) $28,000 + $289,000 - $267,000 = End. Inv. End. Inv. = $50,000
O
C
S
4
Copyright © 2022 by McGraw Hill.
All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.
