Solution manual for Managerial Accounting
8th edition
by john wild, ken shaw, barbara chiappetta
Verified Chapter's 1 - 13 | Complete
,TABLE OF CONTENTSj j j
Chapterj1:jManagerialjAccountingjConceptsjandjPrinciples
Chapterj2:jJobjOrderjCostingjandjAnalysis
Chapterj3:jProcessjCostingjandjAnalysis
Chapterj4:jActivity-BasedjCostingjandjAnalysis
Chapterj5:jCostjBehaviorjandjCost-Volume-ProfitjAnalysis
Chapterj6:jVariablejCostingjandjAnalysis
Chapterj7:jMasterjBudgetsjandjPlanning
Chapterj8:jFlexiblejBudgetsjandjStandardjCosts
Chapterj9:jPerformancejMeasurementjandjResponsibilityjAccounting
Chapterj10:jRelevantjCostsjforjManagerialjDecisions
Chapterj11:jCapitaljBudgetingjandjInvestmentjAnalysis
Chapterj12:jReportingjCashjFlows
Chapterj13:jAnalysisjofjFinancialjStatements
,Chapter1 j
Managerial AccountingConcepts and
j j j
Principles
j
QUICK STUDIES
j
QuickjStudyj1-1j(5jminutes)
1. Itsjprimaryjusersjarejcompanyjmanagersj.............................. Managerial
2. Itsjinformationjisjoftenjavailablejonlyjafterjanjauditjisjcompletej. Financial
3. Itsjprimaryjfocusjisjonjthejorganizationjasjajwholej.............. Financial
4. Itsjprinciplesjandjpracticesjarejrelativelyjflexiblej................. Managerial
5. Itjfocusesjmainlyjonjpastjresults............................................. Financial
QuickjStudyj1-2j(10jminutes)
1. Indirectjcost
2. Directjcost
3. Indirectjcost
4. Indirectjcost
5. Directjcost
QuickjStudyj1-3j(10jminutes)
1. Directjmaterials
2. Factoryjoverhead
3. Directjlabor
4. Factoryjoverhead
5. Factoryjoverhead
6. Directjmaterials
,QuickjStudyj1-4j(10jminutes)
1. Productjcost
2. Periodjcost
3. Productjcost
4. Periodjcost
5. Productjcost
6. Periodjcost
7. Periodjcost
8. Productjcost
QuickjStudyj1-5j(10jminutes)
1. Primejcost
2. Conversionjcostj(Gluejisjanjindirectjmaterial)
3. Both
4. Conversionjcost
5. Conversionjcost
6. Primejcost
QuickjStudyj1-6j(10jminutes)
Endingjworkjinjprocessjinventoryjisjcomputedjas:
Workjinjprocessjinventory,jbeginningj............... $j 26,000
Directjmaterialsjusedj....................................... 74,000
Directjlaborjusedj.............................................. 55,000
Factoryjoverheadj............................................. jj 95,000
Totaljmanufacturingjcostsj.............................. 224,000
j
Totaljcostjofjworkjinjprocessj.............................. 250,000
Lessjcostjofjgoodsjmanufacturedj...................... 220,000
j
Workjinjprocessjinventory,jendingj..................... $j30,000
,QuickjStudyj1-6j(continued)
AlternativejcalculationjusingjT-account:
WorkjinjProcessjInventory
Beginning 26,000
Directjmaterials 74,000
DirectjlaborjFacto 55,000
ryjoverhead 95,000
220,000 COGM
Ending 30,000
QuickjStudyj1-7j(10jminutes)
Costjofjgoodsjsoldjisjcomputedjas:
Finishedjgoodsjinventory,jbeginningj................. $ 500
Costjofjgoodsjmanufacturedj............................... j 4,000
Goodsjavailablejforjsalej...................................... 4,500
Lessjfinishedjgoodsjinventory,jendingj.............. 700
Costjofjgoodsjsoldj............................................... $3,800
QuickjStudyj1-8j(10jminutes)
Finishedjgoodsjinventory,jbeginningj................ $ 345,000
Costjofjgoodsjmanufacturedj.............................. 918,000
Goodsjavailablejforjsalej..................................... 1,263,000
Lessjfinishedjgoodsjinventory,jendingj............. 283,000
Costjofjgoodsjsoldj.............................................. $ 980,000
AlternativejcalculationjusingjT-account:
FinishedjGoodsjInventory
Beginning 345,000
COGM 918,000
980,000 COGS
Ending 283,000
,QuickjStudyj1-9j(5jminutes)
Costjofjgoodsjsoldjisjcomputedjas:
Merchandisejinventory,jbeginningj..................... $12,000
Costjofjmerchandisejpurchasedj......................... j 85,000
Goodsjavailablejforjsalej...................................... 97,000
Lessjmerchandisejinventory,jendingj................. j 18,000
Costjofjgoodsjsoldj............................................... $79,000
QuickjStudyj1-10j(10jminutes)
(1) (2) (3)
Costjofjmerchandisejpurchased......... $181,000 $140,000 $289,000
Merchandisej inventory,jbeginningj.... 106,000 21,000 28,000
Merchandisejinventory,jendingj.......... 82,000 33,000 50,000
Costjofjgoodsjsoldj............................... 205,000 128,000 267,000
Calculations:
(1) $106,000j+jPurchasesj-j$205,000j=j$82,000j Purchasesj=j$181,000
(2) Beg.jInv.j+j$140,000 -j$128,000j=j$33,000 Beg.jInv. =j$21,000
(3) $28,000 +j$289,000 -j$267,000j=jEnd.jInv.jEnd.jInv. =j$50,000
,QuickjStudyj1-11j(15jminutes)
REXjMANUFACTURING
IncomejStatement
ForjYearjEndedjDecemberj31
Sales.................................................................. $92,000
Costjofjgoodsjsold
Finishedjgoodsjinventory,jbeginningj......... $j19,000
Costjofjgoodsjmanufacturedj....................... jj 40,000
Goodsjavailablejforjsalej.............................. 59,000
Lessjfinishedjgoodsjinventory,jendingj...... jj 16,000
Costjofjgoodsjsoldj....................................... j 43,000
Grossjprofitj...................................................... 49,000
Sellingjexpenses.............................................. 12,000
Generaljandjadministrativejexpensesj........... j 14,000
Netjincome........................................................ $23,000
QuickjStudyj1-12j(10jminutes)
BINjMANUFACTURING
CurrentjAssetsjSectionjofjthejBalancejSheet
Decemberj31
Cashj........................................................ $22,000
Accountsjreceivable,jnetj...................... 12,000
Rawjmaterialsjinventoryj....................... 8,000
Workjinjprocessjinventory.................... 18,000
Finishedjgoodsjinventoryj..................... 22,000
Prepaidjinsurance.................................. 4,000
Totaljcurrentjassets............................... $86,000
,QuickjStudyj1-13j(10jminutes)
Rawjmaterialsjinventory,jbeginningj............................... $ 855
Rawjmaterialsjpurchasedj................................................ j 3,646
Rawjmaterialsjavailablejforjusej...................................... 4,501
Lessjrawjmaterialsjinventory,jending............................. 717
Directjmaterialsjusedj....................................................... $3,784
AlternativejcalculationjusingjT-account:
RawjMaterialsjInventory
Beginning 855
Purchased 3,646
3,784 Used
Ending 717
QuickjStudyj1-14j(15jminutes)
(1) (2) (3)
Directjmaterialsjusedj................ $j 8,000 $14,000 $32,000
Directjlaborjusedj....................... 4,000 13,000 18,000
Factoryjoverheadj...................... 5,000 23,000 22,000
Totaljmanufacturingjcosts ......... 17,000j 50,000 72,000
Calculations:
(1) $8,000 +j$4,000 + $5,000j=j$17,000
(2) $14,000 +jDirectjlaborj+j$23,000j=j$50,000jDLj=j$13,000
(3) Directjmaterialsj+j$18,000 +j$22,000j=j$72,000jDMj=j$32,000
,QuickjStudyj1-15j(15jminutes)
BartonjCompany
SchedulejofjCostjofjGoodsjManufactured
ForjYearjEndedjDecemberj31
Directjmaterialsj.................................................... $190,000
Directjlaborj .......................................................... 63,000
Factoryjoverheadj................................................. 24,000
Totaljmanufacturingjcostsj ................................. 277,000
Addjworkjinjprocessjinventory,jbeginning........ j 157,000
Totaljcostjofjworkjinjprocess.............................. 434,000
Lessjworkjinjprocessjinventory,jending............ j 142,000
Costjofjgoodsjmanufacturedj.............................. $292,000
Verificationjcalculationj(notjsubstitute)jusingjT-account:
WorkjinjProcessjInventory
Beginning 157,000
Directjmaterials 190,000
DirectjlaborjFacto 63,000
ryjoverhead 24,000
292,000 COGM
Ending 142,000
QuickjStudyj1-16j(10jminutes)
Rawjmaterialsjinventory,jbeginningj................ $ 6,000
Rawjmaterialsjpurchasedj................................. j 123,000
Rawjmaterialsjavailablejforjusej....................... 129,000
Lessjrawjmaterialsjinventory,jending.............. 7,000
Directjmaterialsjusedj........................................ $122,000
, QuickjStudyj1-17j(20jminutes)
PartjA
Directjmaterialsjused*......................................... $122,000
Directjlaborj ......................................................... 94,000
Factoryjoverheadj................................................ 39,000
Totaljmanufacturingjcostsj ................................ $255,000
*$6,000j+j$123,000j-j$7,000j=j$122,000jdirectjmaterialsjused
PartjB
SchedulejofjCostjofjGoodsjManufactured
Directjmaterials
Rawjmaterialsjinventory,jbeginning............... $ 6,000
Rawjmaterialsjpurchasesj ............................... 123,000
j
Rawjmaterialsjavailablejforjusej ..................... 129,000
Lessjrawjmaterialsjinventory,jendingj............ 7,000
Directjmaterialsjusedj ...................................... $122,000
Directjlaborj.......................................................... 94,000
Factoryjoverhead
Indirectjlabor..................................................... 20,000
Depreciationj expense—Factory...................... 15,000
Factoryjutilitiesj................................................. 4,000
Totaljfactoryjoverheadj..................................... 39,000
Totaljmanufacturingjcostsj ................................ 255,000
Addjworkjinjprocessjinventory,jbeginning....... 12,000
Totaljcostjofjworkjinjprocessj............................ 267,000
Lessjworkjinjprocessjinventory,jending........... 9,000
Costjofjgoodsjmanufacturedj............................. $258,000
8th edition
by john wild, ken shaw, barbara chiappetta
Verified Chapter's 1 - 13 | Complete
,TABLE OF CONTENTSj j j
Chapterj1:jManagerialjAccountingjConceptsjandjPrinciples
Chapterj2:jJobjOrderjCostingjandjAnalysis
Chapterj3:jProcessjCostingjandjAnalysis
Chapterj4:jActivity-BasedjCostingjandjAnalysis
Chapterj5:jCostjBehaviorjandjCost-Volume-ProfitjAnalysis
Chapterj6:jVariablejCostingjandjAnalysis
Chapterj7:jMasterjBudgetsjandjPlanning
Chapterj8:jFlexiblejBudgetsjandjStandardjCosts
Chapterj9:jPerformancejMeasurementjandjResponsibilityjAccounting
Chapterj10:jRelevantjCostsjforjManagerialjDecisions
Chapterj11:jCapitaljBudgetingjandjInvestmentjAnalysis
Chapterj12:jReportingjCashjFlows
Chapterj13:jAnalysisjofjFinancialjStatements
,Chapter1 j
Managerial AccountingConcepts and
j j j
Principles
j
QUICK STUDIES
j
QuickjStudyj1-1j(5jminutes)
1. Itsjprimaryjusersjarejcompanyjmanagersj.............................. Managerial
2. Itsjinformationjisjoftenjavailablejonlyjafterjanjauditjisjcompletej. Financial
3. Itsjprimaryjfocusjisjonjthejorganizationjasjajwholej.............. Financial
4. Itsjprinciplesjandjpracticesjarejrelativelyjflexiblej................. Managerial
5. Itjfocusesjmainlyjonjpastjresults............................................. Financial
QuickjStudyj1-2j(10jminutes)
1. Indirectjcost
2. Directjcost
3. Indirectjcost
4. Indirectjcost
5. Directjcost
QuickjStudyj1-3j(10jminutes)
1. Directjmaterials
2. Factoryjoverhead
3. Directjlabor
4. Factoryjoverhead
5. Factoryjoverhead
6. Directjmaterials
,QuickjStudyj1-4j(10jminutes)
1. Productjcost
2. Periodjcost
3. Productjcost
4. Periodjcost
5. Productjcost
6. Periodjcost
7. Periodjcost
8. Productjcost
QuickjStudyj1-5j(10jminutes)
1. Primejcost
2. Conversionjcostj(Gluejisjanjindirectjmaterial)
3. Both
4. Conversionjcost
5. Conversionjcost
6. Primejcost
QuickjStudyj1-6j(10jminutes)
Endingjworkjinjprocessjinventoryjisjcomputedjas:
Workjinjprocessjinventory,jbeginningj............... $j 26,000
Directjmaterialsjusedj....................................... 74,000
Directjlaborjusedj.............................................. 55,000
Factoryjoverheadj............................................. jj 95,000
Totaljmanufacturingjcostsj.............................. 224,000
j
Totaljcostjofjworkjinjprocessj.............................. 250,000
Lessjcostjofjgoodsjmanufacturedj...................... 220,000
j
Workjinjprocessjinventory,jendingj..................... $j30,000
,QuickjStudyj1-6j(continued)
AlternativejcalculationjusingjT-account:
WorkjinjProcessjInventory
Beginning 26,000
Directjmaterials 74,000
DirectjlaborjFacto 55,000
ryjoverhead 95,000
220,000 COGM
Ending 30,000
QuickjStudyj1-7j(10jminutes)
Costjofjgoodsjsoldjisjcomputedjas:
Finishedjgoodsjinventory,jbeginningj................. $ 500
Costjofjgoodsjmanufacturedj............................... j 4,000
Goodsjavailablejforjsalej...................................... 4,500
Lessjfinishedjgoodsjinventory,jendingj.............. 700
Costjofjgoodsjsoldj............................................... $3,800
QuickjStudyj1-8j(10jminutes)
Finishedjgoodsjinventory,jbeginningj................ $ 345,000
Costjofjgoodsjmanufacturedj.............................. 918,000
Goodsjavailablejforjsalej..................................... 1,263,000
Lessjfinishedjgoodsjinventory,jendingj............. 283,000
Costjofjgoodsjsoldj.............................................. $ 980,000
AlternativejcalculationjusingjT-account:
FinishedjGoodsjInventory
Beginning 345,000
COGM 918,000
980,000 COGS
Ending 283,000
,QuickjStudyj1-9j(5jminutes)
Costjofjgoodsjsoldjisjcomputedjas:
Merchandisejinventory,jbeginningj..................... $12,000
Costjofjmerchandisejpurchasedj......................... j 85,000
Goodsjavailablejforjsalej...................................... 97,000
Lessjmerchandisejinventory,jendingj................. j 18,000
Costjofjgoodsjsoldj............................................... $79,000
QuickjStudyj1-10j(10jminutes)
(1) (2) (3)
Costjofjmerchandisejpurchased......... $181,000 $140,000 $289,000
Merchandisej inventory,jbeginningj.... 106,000 21,000 28,000
Merchandisejinventory,jendingj.......... 82,000 33,000 50,000
Costjofjgoodsjsoldj............................... 205,000 128,000 267,000
Calculations:
(1) $106,000j+jPurchasesj-j$205,000j=j$82,000j Purchasesj=j$181,000
(2) Beg.jInv.j+j$140,000 -j$128,000j=j$33,000 Beg.jInv. =j$21,000
(3) $28,000 +j$289,000 -j$267,000j=jEnd.jInv.jEnd.jInv. =j$50,000
,QuickjStudyj1-11j(15jminutes)
REXjMANUFACTURING
IncomejStatement
ForjYearjEndedjDecemberj31
Sales.................................................................. $92,000
Costjofjgoodsjsold
Finishedjgoodsjinventory,jbeginningj......... $j19,000
Costjofjgoodsjmanufacturedj....................... jj 40,000
Goodsjavailablejforjsalej.............................. 59,000
Lessjfinishedjgoodsjinventory,jendingj...... jj 16,000
Costjofjgoodsjsoldj....................................... j 43,000
Grossjprofitj...................................................... 49,000
Sellingjexpenses.............................................. 12,000
Generaljandjadministrativejexpensesj........... j 14,000
Netjincome........................................................ $23,000
QuickjStudyj1-12j(10jminutes)
BINjMANUFACTURING
CurrentjAssetsjSectionjofjthejBalancejSheet
Decemberj31
Cashj........................................................ $22,000
Accountsjreceivable,jnetj...................... 12,000
Rawjmaterialsjinventoryj....................... 8,000
Workjinjprocessjinventory.................... 18,000
Finishedjgoodsjinventoryj..................... 22,000
Prepaidjinsurance.................................. 4,000
Totaljcurrentjassets............................... $86,000
,QuickjStudyj1-13j(10jminutes)
Rawjmaterialsjinventory,jbeginningj............................... $ 855
Rawjmaterialsjpurchasedj................................................ j 3,646
Rawjmaterialsjavailablejforjusej...................................... 4,501
Lessjrawjmaterialsjinventory,jending............................. 717
Directjmaterialsjusedj....................................................... $3,784
AlternativejcalculationjusingjT-account:
RawjMaterialsjInventory
Beginning 855
Purchased 3,646
3,784 Used
Ending 717
QuickjStudyj1-14j(15jminutes)
(1) (2) (3)
Directjmaterialsjusedj................ $j 8,000 $14,000 $32,000
Directjlaborjusedj....................... 4,000 13,000 18,000
Factoryjoverheadj...................... 5,000 23,000 22,000
Totaljmanufacturingjcosts ......... 17,000j 50,000 72,000
Calculations:
(1) $8,000 +j$4,000 + $5,000j=j$17,000
(2) $14,000 +jDirectjlaborj+j$23,000j=j$50,000jDLj=j$13,000
(3) Directjmaterialsj+j$18,000 +j$22,000j=j$72,000jDMj=j$32,000
,QuickjStudyj1-15j(15jminutes)
BartonjCompany
SchedulejofjCostjofjGoodsjManufactured
ForjYearjEndedjDecemberj31
Directjmaterialsj.................................................... $190,000
Directjlaborj .......................................................... 63,000
Factoryjoverheadj................................................. 24,000
Totaljmanufacturingjcostsj ................................. 277,000
Addjworkjinjprocessjinventory,jbeginning........ j 157,000
Totaljcostjofjworkjinjprocess.............................. 434,000
Lessjworkjinjprocessjinventory,jending............ j 142,000
Costjofjgoodsjmanufacturedj.............................. $292,000
Verificationjcalculationj(notjsubstitute)jusingjT-account:
WorkjinjProcessjInventory
Beginning 157,000
Directjmaterials 190,000
DirectjlaborjFacto 63,000
ryjoverhead 24,000
292,000 COGM
Ending 142,000
QuickjStudyj1-16j(10jminutes)
Rawjmaterialsjinventory,jbeginningj................ $ 6,000
Rawjmaterialsjpurchasedj................................. j 123,000
Rawjmaterialsjavailablejforjusej....................... 129,000
Lessjrawjmaterialsjinventory,jending.............. 7,000
Directjmaterialsjusedj........................................ $122,000
, QuickjStudyj1-17j(20jminutes)
PartjA
Directjmaterialsjused*......................................... $122,000
Directjlaborj ......................................................... 94,000
Factoryjoverheadj................................................ 39,000
Totaljmanufacturingjcostsj ................................ $255,000
*$6,000j+j$123,000j-j$7,000j=j$122,000jdirectjmaterialsjused
PartjB
SchedulejofjCostjofjGoodsjManufactured
Directjmaterials
Rawjmaterialsjinventory,jbeginning............... $ 6,000
Rawjmaterialsjpurchasesj ............................... 123,000
j
Rawjmaterialsjavailablejforjusej ..................... 129,000
Lessjrawjmaterialsjinventory,jendingj............ 7,000
Directjmaterialsjusedj ...................................... $122,000
Directjlaborj.......................................................... 94,000
Factoryjoverhead
Indirectjlabor..................................................... 20,000
Depreciationj expense—Factory...................... 15,000
Factoryjutilitiesj................................................. 4,000
Totaljfactoryjoverheadj..................................... 39,000
Totaljmanufacturingjcostsj ................................ 255,000
Addjworkjinjprocessjinventory,jbeginning....... 12,000
Totaljcostjofjworkjinjprocessj............................ 267,000
Lessjworkjinjprocessjinventory,jending........... 9,000
Costjofjgoodsjmanufacturedj............................. $258,000
