Managerial accounting aiou mba mcom 8508

1. CHECK FIGURES
FOR SELECTED EXERCISES, PROBLEMS AND CASES
COST ACCOUNTING, 14th
Edition, by Carter
EXERCISE,
PROBLEM,
or CASE
CHECK FIGURE
E2-2 (4) Total cost incurred, $828,000
E2-3 Operating loss, $(500,850)
E2-6 Factory overhead cost per blade, $300
E2-8 Factory overhead cost per machine, $1,500
E2-11 (4) Total variable cost, $20; (5) Total cost, $53,900
E2-12 Direct labor cost, $3,000
C2-1 (1) Percentage profit margin, 82.50%; (2) Percentage profit margin, 60%
C2-2 (3) Total cost, $2,800; (5) Total cost, $4,500
E3-1 Fixed cost, $260
E3-2 Variable cost, $.6936 per direct labor hour
E3-3 b = $60
E3-4 a = $356
E3-5 r = .92
E3-6 r2
= .882
E3-7 (2) b = $.384
E3-8 (2) r2
= .7753
E3-9 s'= $114.018
E3-10 s' = $62
P3-1 (1)(a) r2
= .8957
P3-2 (3) b = $.29141
P3-3 (3) a = $836.20
P3-4 (3) r2
= .91489
P3-5 (1) b = $.1015
P3-6 (2) r2
= .916
P3-7 (3) s' = $324
P3-8 (2) b = $.979213
E4-1 Cost of goods sold, $130
E4-2 Cost of goods sold, $310
E4-3 (1) Cost of goods manufactured. $386,000
E4-4 (1) Total overhead, $78,390; (2) Cost of goods manufactured, $282,060;
(3) Finished goods ending balance, $47,662
E4-7 Cost of goods manufactured, $1,050
E4-8 Cost of goods sold, $795,800
P4-1 (1) Cost of goods sold, $60
P4-2 (1) Cost of goods sold, $140
P4-3 (1) Cost of goods manufactured, $348,000
P4-5 (8) Payment of payroll, $259,000
P4-7 (3) Cash, $36,412
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2. CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter
E5-3 (1) Direct labor in finished goods, $14,000
E5-4 (3) Cost of goods manufactured, $184,800
P5-1 (1) Total cost put into process, $217,200; (3) Cost of goods sold, $219,600
P5-2 (3) Cost of goods manufactured, $28,630; (5) April gross profit, $10,375
P5-3 (7) Overapplied factory overhead, $(3,000)
P5-4 (1) Cost of goods sold, $76,030; (2) Income before income tax, $22,730
P5-5 (2) Cost of goods sold—adjusted, $40,000
P5-6 (3) Total, $51,306
P5-8 (4) Cash, $171,320; Work in Process, $46,075
E6-1 (1) Equivalent units for overhead, 23,000
E6-2 Cost transferred from Dept. X to Dept. Y, $300,000
E6-3 Work in process, ending inventory, $12,672
E6-4 Total average cost per equivalent unit, $8.00
E6-5 Cost transferred to Painting Dept., $155,000
E6-6 Equivalent units for labor and overhead, 2,300
E6-7 Work in process, ending inventory, $6,200
E6-8 Cost transferred to Bottling Dept., $15,600
E6-9 Equivalent units for overhead, 29,600
E6-10 Cost transferred to Assembly Dept., $84,935
E6-11 Work in process, ending inventory, $32,800
E6-12 Cost transferred to Finished Goods, $26,280
P6-1 Cost transferred from Cutting Dept. to Assembly Dept., $45,500
P6-2 Total average cost per equivalent unit, $4.10
P6-3 Assembly Dept. work in process, ending inventory, $85,656
P6-4 Equivalent units for overhead in the Blending Dept., 6,550
P6-5 Cost transferred from Blending Dept. to Finished Goods, $24,840
P6-6 Cost transferred from Cutting Dept to Assembly Dept., $128,350
P6-7 Fabrication Dept. work in process, ending inventory, $59,400
P6-8 Equivalent units for labor in the Mashing Dept., 2,940
E7-1 (1) Credit to scrap sales, $1,650
E7-2 Debit to Factory Overhead Control, $112
E7-3 Debit to Factory Overhead Control, $1,700
E7-4 Debit to Spoiled Goods Inventory, $10,000
E7-5 Debit to Factory Overhead Control, $700
E7-6 Cost of Goods Sold, $73,500
E7-7 Charge to Factory Overhead Control for spoilage, $3,725
E7-8 Cost transferred to Finished Goods, $102,600
E7-9 Total average cost per unit, $.50
E7-10 Charge to Factory Overhead Control for spoilage, $8,250
E7-11 (1) Work in process, ending inventory, $25,800
E7-12 Cost transferred to Bottling Dept., $18,300
P7-1 (1) Charge to Factory Overhead Control, $1,450
P7-2 (2) Sales revenue, $121,800
P7-3 (1) Charge to Factory Overhead Control, $2,000
P7-4
Charge to Factory Overhead Control for spoilage of Assembling Dept.,
$12,000
P7-5 Cost transferred from Mixing and Brewing Dept. to Canning Dept., $6,440
P7-6 Charge to Factory Overhead Control for spoilage of Fabricating Dept., $810
P7-7 Distillation Dept. work in process, ending inventory, $2,760
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4. CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter
P8-1 (2) Cost of goods sold, B, $808,200
P8-2 (1) May gross profit, T, $45,000
P8-3 (2) Gross profit for Alpha, $73,792
P8-4 (3) Gross profit for Jana, $50,000
P8-5 (2) Finished goods inventory, SPL-3, $178,160
P8-6 (1) Total cost accounted for, Process 3, $137,500; (3) Total unit cost, Process
2, $4.10
E9-2 Quantity to order for November delivery, 4,400 units
E9-3 (1) Quantity to order for March delivery, 5,800 units
E9-6 (2) Ordering and carrying costs, $1,510
E9-8 (4) Absolute maximum inventory, 6,000 units
E9-9 (3) Normal maximum inventory, 3,960 units
E9-11 (1) Jan. 27 inventory, $842
P9-3 (2) Normal maximum inventory, 4,300 units
P9-5 (1) March 31 inventory, $12,400
P9-6 (2) (b) Dec. 5 inventory, $3,900
P9-7 (1)(a) April 30 inventory, $7,805.60; (b) April 30 inventory, $7,700; (c) April
30 inventory, $6,800
C9-1 (1)(b) Optimum production run of desks, 2,000
E10-1 Expected annual savings, $40,500
E10-3 Expected annual savings, $2,200,000
E10-4 (1)(c) Per unit, $66.726
E10-10 (4) Difference, rounded to the nearest tenth of one percent, 0.9%
E10-11 (3) Difference, rounded to the nearest tenth of one percent, 0.1%
P10-1 (1) Expected annual savings, $720,000
P10-2 (1) Average lead time, 42 days
P10-3 (2) Cost of Goods Sold balance at June 30, $1,810,700
P10-4 (2) Cost of Goods Sold balance at May 31, $1,306,200
P10-5 (1) Estimated before-tax dollar savings, $37,500
P11-1 (1) Per-unit conversion cost for 40 units, $4.40
P11-2 (2) Incentive plan unit conversion cost, $13.55
P11-3 (1) Monday's unit labor cost, $.514
P11-4 (2) Conversion cost per unit, $.3685
P11-5 Underpayment, Emerson Efficiency System: Suggs, $35.60; Ward, $39.76
P11-6 (2) Group's total earnings for week, $1,380
P11-7 (1) Factory w orkers' share of bonus, $9,375
P11-8 (1) Direct labor hours per unit for the next order, 2.4192
P11-9 (2) Factory overhead charge for Employee #1071, $333.20
P11-
10 (3) Accrued Payroll, $2,640
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5. CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter
E12-1 (1) Fixed overhead, $1,750,000
E12-5 (2)(a) Factory overhead rate, $16.69
E12-7 (2) Underapplied factory overhead, $10,600
E12-8 Overapplied overhead, $(1,086)
E12-9 (2) Underapplied overhead, $461
E12-11 (3) Overapplied factory overhead, $(9,000)
P12-1 (2) Predetermined rate at practical capacity, $316.67 per machine hour (MH)
P12-3 (1) Total cost of Job 50, $156,750
P12-4 (3) Amount included in cost of goods sold for Job 1376, $91,700; (4) Cost
assigned to w ork in process account at end of year 20—, $205,800
P12-5 (1) Factory overhead rate, $.95; (5) Underapplied overhead, $2,450
P12-6 (2) Total actual factory overhead, $117,000
E13-3 (1) Job 437 Overhead, $30.18
E13-4 (1) Plantwide rate per direct labor hour, $.83
E13-6 Mixing Dept. rate, $3.00; Finishing Dept rate, $4.00
E13-7 (2) Plantwide rate per direct labor hour, $36.317
E13-8 (2) Job No. 3752 total, $331
E13-13 (2) Job No. 345 total, $2,425
E13-14 (2) Job No. 103 total, $47,500
P13-1 (2) Overhead rates: Grinding Dept., $82.25 per machine hour; Smoothing Dept.,
$11.73 per direct labor hour; (3) Overhead rates: Grinding Dept., $84.05 per
machine hour; Smoothing Dept., $11.49 per direct labor hour
P13-2 (2) Cutting Dept., $2.30 per machine hour; Assembly Dept., $4.50 per direct
labor hour; Finishing Dept., $1.50 per direct labor hour
P13-3 Dept. 10 overhead rate per machine hour, $100.00
P13-4 Overhead rates per direct labor hour: (1) Molding Dept., $10.60; Assembly Dept.,
$2.46; (2) Molding Dept., $9.80; Assembly Dept., $2.66
P13-6 (1) Powerhouse = $30,000; Personnel = $40,000; Gen. Factory = $50,000
P13-7 (2) Factory overhead applied to Dept. 10, $8,928
P13-8 (2) Job No. 564 total, $3,350; (4)(b) Job No. 564 total, $4,175
E14-3 $2,000 overstatement
E14-4 $4,800 overstatement
E14-7 (1) Overhead cost allocated, $126; (2) Overhead cost allocated, $554
E14-9 (1) Overhead cost allocated, $140; (2) Overhead cost allocated, $740
P14-1 (3) Overhead rate, $57 per setup
P14-2 (3) Overhead rate, $1,020 per setup
P14-3 (1) Custom cost per unit, $1,900; (2) Standard cost per unit, $106.98
P14-4 (1) Fancy cost per unit $1,000; (2) Plain cost per unit , $87.34
P14-5 (1) Super cost per unit, $400; (2) Normal cost per unit, $34
P14-6 Large cost per unit: (1) $172; (2) $156.80
C14-1 #321 cost per unit: (1) $135; (2) $84.83
C14-2 #33 cost per unit: (1) $557.40; (2) $525.30; (4) $816.35
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6. CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter
E15-1 Total budgeted sales revenue, $1,136,040
E15-2 Budgeted Production for Flop, 21,500 units
E15-3 Budgeted Production for Moon Glow, 251,200 equivalent units
E15-4 (1) Budgeted Production for Low Band, 190 units
E15-5 (4) Materials purchase budget for Material A, $10,900
E15-6 (3) Total variable manufacturing cost for Tribolite, $89,100
E15-7 Budgeted purchases, $2,600,000
E15-8 Income before income tax, $190,000
E15-9 Operating income before taxes and interest, $1,617,000
P15-1 (4) Total budgeted labor, $2,147,000
P15-2 (1) January total DLH, 20,000
P15-3 (2) Total cost of budgeted purchases of Material 101, $255,840
P15-4 (1) 6-month total budgeted sales, 1,327,500 units
P15-5 (1) First quarter budgeted net income, $56,000
P15-6 (2) Budgeted billing rate for Vickers, $52.00
P15-7 Model 100, planned production, 12,100 units
P15-8 Predetermined overhead rate for Testing Dept., $11.00 per machine hour
P15-9 (1) Ending balance in retained earnings, $99,300
E16-1 January ending cash balance, $20,500
E16-2 May cash disbursements for materials purchases, $619,360
E16-3 July cash disbursements for purchases of Tee, $509,600
E16-4 Ending cash balance, $1,550
E16-5 (2) Critical path 1-2-5-6-7, 11 weeks
E16-6 Expected time for activity 1-2, 2.00 days
E16-7 (2) Slack time at event 3, 1 day
E16-8 (4) Slack time at event 2, 2 days
P16-1 (1) Budgeted cash disbursements for June, $323,279
P16-2 Cash to be borrowed in April, $122,000
P16-3 Cash balance at the end of 20B, $75,000
P16-4 Current financing required, $84,162
P16-5 (1) Total cash revenue, $709, 100
P16-6 (1) Total cash receipts during July, $4,580,000
P16-7 (2) Cost of operating on the first day, $1,600
P16-8 (3) Total normal cost, $17,100
P16-9 (1) Critical path A-B-E-H-K-L, 11 weeks
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7. CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter
E17-1 (2) Maintenance Dept. spending variance, $5,500 unfav.
E17-2 (3) Carpenter Shop idle capacity variance, $2,450 unfav.
E17-3 (2) Payroll Dept. spending variance, $(455) fav.
E17-4 (1) Total cost billed to Dept. A, $2,800
E17-5 (1) First quarter total billing to Cutting Dept., $5,400
E17-6 Total actual cost per mile, $.0059 under budget
E17-7 Total budgeted cost at 90% capacity, $34,090
E17-8 Total budgeted cost at 110% capacity, $27,500.00
E17-9 Total spending variance, $220 unfav.
E17-10 Idle capacity variance, $12,280 unfav.
P17-1 (2) Dept. A overhead, $2,191 underapplied
P17-2 (2) Planers overhead rate, $3.825 per DLH
P17-3 (2) Machining Dept. spending variance, $328 unfav.
P17-4 Total variable cost at 90% capacity, $102,645
P17-5 (2) Total spending variance, $689.00 unfav.
P17-6 (2) Idle capacity variance, $600.00 unfav.
E18-1 Materials quantity variance, $2,700 unfav.
E18-2 Materials purchase price variance, $(2,500) fav.
E18-3 (2) Materials price usage variance, $1,278 unfav.
E18-4 Labor efficiency variance, $500 unfav.
E18-5 (2) Labor rate variance, $93 unfav.
E18-6 Controllable variance, $20,500 unfav.
E18-7 Volume variance, $4,800 unfav.
E18-8 Variable efficiency variance, $2,320 unfav.
E18-9 Spending variance, $650 unfav.
E18-10 (2) Spending variance, $(5,000) fav.
E18-11 Materials mix variance, $(4,500) fav.
E18-12 (2) Materials yield variance, $540 unfav.
E18-13 Total controllable variance, $282 unfav.
E18-14 Idle capacity variance, $(800) fav.
E18-15 Fixed efficiency variance, $(500) fav.
P18-1 (2) Volume variance, $1,000 unfav.
P18-2 (1) Standard quantity allowed for Material A, 14,700 units
P18-3 (2) Labor efficiency variance, $2,300 unfav.
P18-4 (2) Materials quantity variance, $8,000 unfav.
P18-5 (2) Variable efficiency variance, $200 unfav.
P18-6 (3)(b) Labor efficiency variance for Lot 22, $(98) fav.
P18-7 Volume variance, $1,005 unfav.
P18-8 Total spending quantity variance, $690 unfav.
P18-9 Factory overhead efficiency variance, $3,150 unfav.
P18-10 Fixed efficiency variance, $20,000 unfav.
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8. CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter
E19-1 Materials quantity variance, $42 debit
E19-2 (3) Materials price usage variance (fifo inventory), $760 debit
E19-3 Labor efficiency variance, $1,140 debit
E19-4 Labor efficiency variance, $900 credit
E19-5 (3) Controllable variance, $8,700 credit
E19-6 (4) Controllable variance, $2,900 debit
E19-7 (3) Variable efficiency variance, $1,600 debit
E19-8 (3) Volume variance, $3,000 debit
E19-9 Adjusted end-of-year balance in Finished Goods Inventory, $181,400
E19-10 Total net variances charged to Work in Process, $237.50 debit
E19-11 Idle capacity variance, $2,040 debit
E19-12 Spending variance, $7,200 credit
P19-1 Labor efficiency variance, $400 debit
P19-2 Materials quantity variance, $3,000 debit
P19-3 Volume variance, $2,250 credit
P19-4 Net manufacturing variances, $90 fav.
P19-5 Net income, $1,741,700
P19-6 (1) Volume variance, $12,000 debit
P19-7 (1) Labor efficiency variance, $1,400 credit
P19-8 (3) Work in Process adjusted to actual cost, $15,150
P19-9 Overhead efficiency variance, $500 debit
P19-
10
Spending variance, $520 credit
E20-1 Operating income, $412,000
E20-2 (1) Cost of goods sold at standard under absorption costing, $6,500,000
E20-3 (2) Operating income under direct costing, $96,000
E20-4 Break-even point, $10,000
E20-5 (1) Break-even point, 13,000 units
E20-6 Margin of safety, $500,000
E20-7 (1) Break-even point, $15,000
E20-8 (1) Break-even point, $50,000
E20-9 Fixed cost, $1,190,000
E20-10 Break-even point, $1,500,000
E20-11 (2) Required sales, $1,275,000
E20-12 (1) Sales price to break-even, $6.50
E20-13 Break-even point, $140,000 and 7,000 units
P20-1 Operating income, $100,000
P20-2 (2) Operating income under direct costing, $296,000
P20-3 (1) Operating income under absorption costing, $191,000
P20-4 (2) First quarter operating income under direct costing, $22,600
P20-5 (1) Break-even point with capital-intensive manufacturing, 210,000 units
P20-6 (2) Units to be sold at $40 each to produce required profit, 4,500
P20-7 Sales to produce required profit, 12,324 units of B2 plus 18,486 units of B4
P20-8 (1) sales to break-even, 40,000 tape recorders plus 80,000 calculators
P20-9 (1) (a) Sales to break-even, 500 units
P20-
10
(2) Break-even point, $1,000,000
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9. CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter
E21-1 Differential profit from accepting new business, $1,595
E21-2 (1) Differential cost, $250,000
E21-3 Differential profit from sale, $45,000
E21-4 Savings from manufacturing part, $5,000
E21-5 Savings from purchasing pistons, $6,000
E21-6 (1) Gross contribution margin from Tift, $14,000
E21-7 Net contribution margin, $.70 per unit
E21-8 (1) Minimum bid price, $.008 per dose
E21-9 Average daily franchise fee collections, $52,500
E21-10 Annual savings with new AZ-17 process, $125,333
E21-11 Marking board contribution margin when using automated assembly, $19.90
E21-12 Maximum contribution margin, $900
E21-13 Maximum contribution margin, $2,600
E21-14 Minimum cost, $17
E21-15 Minimum cost, $8,200
P21-1 (1) Increment to pretax profit, $432,000
P21-2 (1) Increase in net income by accepting bid, $27,900
P21-3 (1) (c) Differential cost if level production is used, $88,785
P21-4 Group I total production costs, $32,050
P21-5 (1) Differential cost of special order, $34,750
P21-6 Total operating income with additional capacity, $65,855
P21-7 (1) Sales required to recover fixed overhead and regional promotion costs,
160,000 units
P21-8 Annual cost savings with discount quantity plan, $41,850
P21-9 (1) Net revenue with plain paper and bulk mail, $1,083,600
P21-
10
(1) Net local market contribution, $310,000
E22-1 Excess cash inflows over outflows, $200,000
E22-2 Excess cash inflows over outflows, $116,000
E22-3 Total price-level adjusted pretax cash inflows, $128,795
E22-4 Excess of pretax cash inflows over outflow s, $524,070
E22-5 Excess of net after-tax cash inflow s over outflow s, $360,000
E22-6 Excess of net after-tax cash inflow s over outflow s, $114,000
E22-7 Excess of net after-tax cash inflow s over outflow s, $60,000
P22-1 Excess of inflation-adjusted net after-tax cash inflows over outflow s, $47,278
P22-2 Excess of net after-tax cash inflow s over outflow s, $7,560
P22-3 (1) Total after-tax cash inflows from making product, $3,868,000
P22-4 Excess of inflation-adjusted net after-tax cash inflows over outflow s, $347,940
P22-5 (2) Excess of inflation-adjusted net after-tax cash inflows over outflows,
$23,984
P22-6 Excess of inflation-adjusted net after-tax cash inflows over outflow s, $151,952
P22-7 (1) Excess cost of CIM system over after-tax savings, $359,652
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10. CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter
E23-1 Weighted average cost of capital, 11.90%
E23-2 Weighted average cost of capital before bond retirement and sale-leaseback,
8.3%
E23-3 (1) Payback period, 3.636 years
E23-4 (2) Net present value of investment, $4,840
E23-5 (2) Present value index, 8.1%
E23-6 Present value of tax savings, $2,439
E23-7 (2) Net present value of investment, $5,998
E23-8 Net present value of investment, $31,731
E23-9 Internal rate of return, 12.76%
E23-
10
(2) Project A internal rate of return, 19.87%
P23-1 (2) Weighted average cost of capital, 9.33%
P23-2 Estimated land value, $552,791
P23-3 (2) Project 1 internal rate of return, 15.67%
P23-4 (2) Accounting rate of return on original investment, 13.9%
P23-5 (5) Machine 1, internal rate of return, 18.6%
P23-6 (2) Accounting rate of return on average investment, 20.58%
P23-7 (4) Net present value index, .249
P23-8 (3) Net present value of investment, $175,163
P23-9 Net present value of purchase alternative, $727,129
P23-
10
Net present value of lease alternative, $14,000
24-1 (2) Standard deviation, $24,000
E24-2 (2) Coefficient of variation, .114
E24-3 Expected value of unit cost, $13.40
E24-4 Expected value of purchasing 180,000 units, $32,500
E24-5 (2) Expected value of perfect information, $1,800
E24-6 Posterior probability of 40,000 unit demand, .25
E24-7 Expected value of moving, $40,000
E24-8 Expected value of making sub-assembly, $26,000
E24-9 Expected value of bidding on Parcel A, $120,000
E24-
10
(1) Standard deviation, 7,496 units
E24-
11
Expected net present value, $1,775
E24-
12
Variance of net present value, $822,539
E24-
13
Standard deviation of net present value, $3,791
E24-
14
Variance of the total net present value of the investment, $49,994,656
E24-
15
(2) Probability that the NPV will be positive, .88493
P24-1 (2) Expected annual pretax advantage, $2,743,250
P24-2 Plan 3 estimated total cost, $347,160
P24-3 Maximum amount to pay for quality control program, $440,000
P24-4 (1) Expected value of ordering 400 shirts, $1,480
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11. P24-5 (1) Posterior probability of demand for 2,000 sq. ft. houses, .3125
P24-6 (2) Decrease in costs from accepting printer's offer, $3,331
P24-7 Expected value of not testing, $900
P24-8 Expected value of selecting a $5.25 sales price, $387,000
P24-9 Expected value of Strategy 2, $1,000,000
P24-
10
(2) Expected net present value, $16,895
P24-
11
(3) Standard deviation of expected NPV, $107,308
P24-
12
(2) Standard deviation of total NPV, $2,554
P24-
13
Weighted score for new technology, 90.0
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12. CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter
E25-1 (3) Rate of return on capital employed, .20
E25-2 (3) Recreational products rate of return on capital employed, .300
E25-4 (1) Increased income from outside sales, $600,000
E25-5 Savings if Blade Division manufactures blades, $2,500
P25-1 (1) Rate of return on capital employed for Springy, 20%
P25-2 (3) Cost savings by using units from Compressor Division, $312,500
P25-3 (1) $10 advantage to Clarkson
P25-4 (1) Opportunity cost of shifting production to Economy model, $540
P25-5 (1) Difference for Cole Division in favor of Wales Company contract, $25,000
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