Solution Manual For Managerial Accounting 8th Edition By John Wild, Ken Shaw, Barbara Chiappetta

Wild and Shaw, Managerial Accounting 8e Solutions Manual: Chapter 1




Chapter 1
Managerial Accounting Concepts
and Principles
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QUICK STUDIES
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Quick Study 1-1 (5 minutes)
1. Its primary users are company managers ............................... Managerial
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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
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4. Its principles and practices are relatively flexible .................. Managerial
5. It focuses mainly on past results .............................................. Financial


Quick Study 1-2 (10 minutes)
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1. Indirect cost
2. Direct cost
3. Indirect cost
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4. Indirect cost
5. Direct cost
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Quick Study 1-3 (10 minutes)
1. Direct materials
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2. Factory overhead
3. Direct labor
4. Factory overhead
5. Factory overhead
6. Direct materials




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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
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8. Product cost
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Quick Study 1-5 (10 minutes)
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1. Prime cost
2. Conversion cost (Glue is an indirect material)
3. Both
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4. Conversion cost
5. Conversion cost
6. Prime cost
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Quick Study 1-6 (10 minutes)
Ending work in process inventory is computed as:
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Work in process inventory, beginning ..............................................
$ 26,000

Direct materials used ......................................................................
74,000
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Direct labor used .............................................................................
55,000
Factory overhead ............................................................................
95,000
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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




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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
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Quick Study 1-7 (10 minutes)

Cost of goods sold is computed as:
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Finished goods inventory, beginning ................................................
$ 500
Cost of goods manufactured ..............................................................
4,000
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Goods available for sale .....................................................................
4,500
Less finished goods inventory, ending .............................................
700
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Cost of goods sold ..............................................................................
$3,800


Quick Study 1-8 (10 minutes)
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Finished goods inventory, beginning .........................................
$ 345,000
Cost of goods manufactured .......................................................
918,000
Goods available for sale ..............................................................
1,263,000
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Less finished goods inventory, ending ......................................
283,000
$ 980,000
Cost of goods sold .......................................................................
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Alternative calculation using T-account:
Finished Goods Inventory
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Beginning 345,000
COGM 918,000
980,000 COGS
Ending 283,000




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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
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Quick Study 1-10 (10 minutes)
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(1) (2) (3)
Cost of merchandise purchased......... $181,000 $140,000 $289,000
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Merchandise inventory, beginning ..... 106,000 21,000 28,000
Merchandise inventory, ending .......... 82,000 33,000 50,000
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Cost of goods sold ............................... 205,000 128,000 267,000

Calculations:
(1) $106,000 + Purchases - $205,000 = $82,000 Purchases = $181,000
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(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
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C
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Copyright © 2022 by McGraw Hill.
All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.