Solution manual for managerial accounting tools for business decision making 10th edition

Managerial Accounting Tools for Business Decision Making
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SOLUTIONMANUAL ss




ManagerialAccountingToolsforBusinessDecisionMaking
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9th
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EditionbyJerryJ.Weygandt,PaulD.Kimmel
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Chapters1-14,Complete
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,TABLE OF CONTENTS ss ss




Chapter 1: Managerial Accounting Chap ss ss ss s s




ter 2: Job Order Costing
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Chapter 2A: Job Order Costing: Non- ss ss ss ss ss




Debit and Credit Approach Chapter 3: Process Costing
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Chapter 3A: Process Costing: Non- ss ss ss ss




Debit and Credit Approach Chapter 4: Activity-Based Costing
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Chapter 5: Cost-Volume-Profit ss ss




Chapter 6: Cost-Volume- ss ss




Profit Analysis: Additional Issues Chapter 7: Incremental Analysi
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s

Chapter 8: Pricing ss ss




Chapter 9: Budgetary Planning ss ss ss




Chapter 10: Budgetary Control and Responsibility Accounting C
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hapter 11: Standard Costs and Balanced Scorecard Chapter 1
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2: Planning for Capital Investments
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Chapter 13: Statement of Cash Flows Chass ss ss ss ss s s




pter 14: Financial Analysis
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, Managerial Accounting Tools for Business Decision Making ss ss ss ss ss ss




CHAPTER1 s




ManagerialAccounting s




Learning Objectives ss




1. Identify the features of managerial accounting and the functions of management.
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2. Describe the classes of manufacturing costs and the differences between product and period cos
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ts.

3. Demonstrate how to compute cost of goods manufactured and prepare financial statements for a ma
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nufacturer.

4. Discuss trends in managerial accounting.
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ANSWERS TOQUESTIONS ss s




1. (a) Not true. Managerial accounting is a field of accounting that provides economic and financial i
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nformation for managers and other internal users. ss ss ss ss ss ss



(b) Joe is incorrect. Managerial accounting applies to all types of businesses—
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service, merchandising, and manufacturing. s s ss ss


LO1 BT: C Difficulty: Easy TOT: 3 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost Management
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2. (a) Financial accounting is concerned primarily with external users such as stockholders, creditors,
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and regulators. In contrast, managerial accounting is concerned primarily with internal users
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such as officers and managers.
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(b) Financial statements are the end product of financial accounting. These statements are prepare
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d quarterly and annually. In managerial accounting, internal reports may be prepared as fre
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quently as needed. ss ss



(c) The purpose of financial accounting is to provide general-
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purpose information for external users. The purpose of managerial accounting is to provi
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de special-purpose information for specific internal decisions.
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LO1 BT: C Difficulty: Easy TOT: 5 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost Management
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3. Differences in the content of the reports are as follows: ss ss ss ss ss ss ss ss ss




ss Financial Managerial ss




• Pertains to business as a whole and ishighly ss ss ss ss ss ss ss s • Pertains to subunits of the business and ss ss ss ss ss ss s s



aggregated. s may be very detailed. ss ss ss



• Limited to accrual accounting and cost data. ss ss ss ss ss ss • Extends beyond accrual
• Generallyacceptedaccountingprinciples. s s s accounting system to any relevant data. ss ss ss ss ss




Copyright © 2021 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 9e, Solutions Manual
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, • Standard is relevance to decisions. ss ss ss ss




In financial accounting, financial statements are verified annually through an independent audit
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s by certified public accountants. There are no independent audits of internal reports prepared by
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managerialaccountants.
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LO1 BT: C Difficulty: Easy TOT: 5 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost Management
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4. Linda should know that the management of an organization performs three broad functions:
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(1) Planning requires management to look ahead and to establish objectives. ss ss ss ss ss ss ss ss ss



(2) Directing involves coordinating the diverse activities and human resources of a company to p ss ss ss ss ss ss ss ss ss ss ss ss s s



roduce a smooth-running operation. ss ss ss



(3) Controlling is the process of keeping the company’s activities on track. ss ss ss ss ss ss ss ss ss ss


LO1 BT: C Difficulty: Easy TOT: 3 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost Management
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5. Not true. Decision-making is not a separate management function. Rather, decision-
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making involves the exercise of good judgment in performing the three management functions
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explained in the answer to question four above. s s s s s s ss ss ss ss


LO1 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost Management
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6. Employees with line positions are directly involved in the company’s primary revenue generating
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soperating activities. Examples would include factory managers and supervisors, and the s s s s s s s s s s s s s s s s s s s s s s



vice president of operations. In contrast, employees with staff positions are not directly invol
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ved in revenue- s s s s



generating operating activities, but rather serve in a support capacity to line employees. Examples
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include employees in finance, legal, and human resources.
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LO1 BT: C Difficulty: Easy TOT: 3 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost Management
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Questions Chapter 1 (Continued) ss ss ss




7. The difference in balance sheets pertains to the presentation of inventories in the current asset
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s section. In a merchandising company, only inventory is shown. In a manufacturing company, three
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sinventory accounts are shown: finished goods, work in process, and raw materials.
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LO3 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost management
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8. Manufacturing costs are classified as either direct materials, direct labor, or manufacturing overhea ss ss ss ss ss ss ss ss ss ss ss s s



d.
LO2 BT: C Difficulty: Easy TOT: 1 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost management
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9. No, Melis not correct. The distinction betweendirect and indirect materials isbased ontwo criteria:
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(1) physical association and (2) the convenience of making the physical association. Materialsss ss s s ss ss ss s s ss ss ss ss s



swhich cannot beeasilyassociated with thefinishedproduct areconsidered indirect materials.
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LO2 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost management
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10. Product costs, or inventoriable costs, are costs that are a necessary and integral part of producing th
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e finished product, they are classified as manufacturing costs. Period costs are costs that are
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sidentified with a specific time period rather than with a salable product. These costs relate to
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s nonmanufacturing activities and therefore are not inventoriable costs, they are expensed as incur s s ss ss ss ss ss ss ss s s ss s s s s



red.
LO2 BT: K Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost management
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11. A merchandising company that uses the periodic inventory system reports beginning inventory, cost o
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f goods purchased, and ending inventory in the cost of goods section of the income statement. A ma
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nufacturing company reports beginning finished goods inventory, cost of goods manufactured, an
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d ending finished goods inventory in its determination of cost of goods sold.
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LO3 BT: C Difficulty: Easy TOT: 5 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost management
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12. (a)X = total cost of work in process.
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(b) X = cost of goods manufactured. ss ss ss ss ss


LO3 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Measurement, Analysis and Interpretation IMA: Cost management
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13. Raw materials inventory, beginning ......................................................................
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