Solution Manual for Financial & Managerial Accounting, 8th Edition (Wild & Shaw)

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SOLUTION MANUAL
Financial and Managerial Accounting, 8th Edition

by John J. Wild & Ken W. Shaw

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Chapter 1
Managerial Accounting Concepts
and Principles

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


Quick Study 1-2 (10 minutes)
1. Indirect cost
2. Direct cost
3. Indirect cost
4. Indirect cost
5. Direct cost

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

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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
8. Product cost



Quick Study 1-5 (10 minutes)

1. Prime cost
2. Conversion cost (Glue is an indirect material)
3. Both
4. Conversion cost
5. Conversion cost
6. Prime cost



Quick Study 1-6 (10 minutes)
Ending work in process inventory is computed as:
Work in process inventory, beginning ............... $ 26,000

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



Quick Study 1-7 (10 minutes)

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


Quick Study 1-8 (10 minutes)
Finished goods inventory, beginning ................ $ 345,000
Cost of goods manufactured .............................. 918,000
Goods available for sale ..................................... 1,263,000
Less finished goods inventory, ending ............. 283,000
Cost of goods sold .............................................. $ 980,000


Alternative calculation using T-account:
Finished Goods Inventory
Beginning 345,000
COGM 918,000
980,000 COGS
Ending 283,000