Figures Check for HDFRI 13th Edition
Chapter 1. The Accountants Role in the Organization
1-16 a. Prod b. Dist c. Des d. R&D e. CS or Mark f. Des or R&D g. Mark
1-17 a. Des b. Mark c. CS d. R&D e. Mark f. Prod g. Mark h. Dist
1-18 a. Prod b. Dist c. Mark d. Mark e. Mark f. Prod g. Des h. CS
1-19 a. VC b. KSF (cost and quality) c. KSF (cost) d. SC
e. KSF (time)
1-20 a. Planning b. Control c. Control d. Planning e. Planning
1-21 a. OI b. MP.
c. I P&U d. IE&L e. MP f. MD g. OI
1-22 a. OI b. I P&U c. MP
d. IE&L e. MP f. OI g. MD
1-25 1. a. LP
b. DP
c. LP
d. DP
1-26 1. CB 2. B-T 3. Dif 4. CB 5. B-T 6. CB 7. B-T 8. Dif 9. B-T
1-27 1. Cont CFO CFO Cont CFO CFO Cont Cont
1-29 2.Unacceptable: (b) (c) and (f)
Gray to acceptable area: (a), (d), (e), (g)
1-30 2.Unacceptable: (a) (c) (d) and (e) Gray to acceptable area: (b), (f), (g)
h. Prod
Chapter 2. An Introduction to Cost Terms and Purposes
2-16 1. S, $1.7500 D, $1.3833 R, $0.9400
2-17 1. D/V, D/V, D or I/V, I/F or V, I/F, I/F, I/F and V, D/V, I/F, I/F, I/F, IF, I/F, I/F, I/F or V,
I/V, I/F. 2. Dep. M&M, BDM, MH, Mac., Mac.MP, MS
2-18 A. D/V B. I/F C. I/V D. I/F
E. D/V F. I/F G. D/V H. I/V
2-19 A. D/F B. I/F C. D/V D. D/F E. I/F F. I/V G. I/F H. D/V
2-20 A. D/V B. I/F C. D/F D. D/F E. D/V F. I/V G. D/V H. I/F
2-21 2. 100 mins; Plan A; 300 mins; Plan B; 500 mins; Plan C
2-22 1. VC=$130 FC per ton of capacity per day=$150,000 (0-100)
$300,000 (101-200); $450,000 (201-300) 3. (a) $196.67 (b) $211.82
2-23 1. 0 to 48,000 jaw breakers 2. FC=$12,600 VC=$0.10 per jaw breaker
3. RelR=48,000 to 96,000 FC=$13,200 VC=$0.09 per jaw breaker
2-24 1. a, a, c, a, d, a, d, a, e, b, d
2-25 1. 1. F 2. E 3. D 4. C 5. B 6. G 7. A
2-26 2. Total=$2,000; $20/attendee 3. Total=$3,600; $7.2/attendee
2-27 1. FC=$20,000 VC per flange=$1 (material) + $2(labor)
2. OI $(3,750) 3. OI $22,500.
2-28 3. a. inv b. inv c. per d. per e. inv f. per g. per h. per
2-29 1. $75 2. $230 3. $745 4. $150 5. $1,775 6. $75
2-30 a. $152,000 thousand b. $145,000 thousand
2-31 1. COGM=$136,000 thousand 2. OI=$47,000 thousand
2-32 OI=$50 million COGM=$645 million
2-33 4. DM used=$320/unit Dep=$80/unit 5. Total DM=$384 mil Total dep=$80 mil
2-34 OI=$28 million COGM=$204 million
2-35 1. Prime costs=$145 million, Conversion costs=$91 million
2. Total inv costs=$196 million Period costs=$90 million
4. DM used=$105 per unit Dep=$9 per unit 5. TDMC=$157,500,000
Total dep=$9,000,000 6. (a) $4 million (b) 6 million
2-36 1. (a) $1,941.60 (b) $62.40 (c) $138.00 (d) $2,142.00
2-37 1. $50,000 2. $28,000 3. $62,000
Cost Accounting 13e
Check Figures
2-38
2-40
1. $1,400
A. $20,700
2. 9,000 units 3. $4.80 per unit 4. $11,920
B. $1,300 C. $11,800 D. $6,500
Chapter 3. Cost-Volume-Profit Analysis
3-16 a. $2,000; $300; 75.0% b. $1,500; $1,800; 25.0%
c. $300; $0; 30.0% d. $900; $1,200; $300
3-17 1a. $1,000,000 1b. $200,000 2a. $2,800,000 2b. 400,000
3-18 1a. 489 1b. 712 2a. 432 2b. 628 3a. 1,158 3b. 1,685 4a. 917 4b. 1,334
3-19 Orig $200,000 1. $400,000 2. $0 3. $110,000 4. $290,000 5. $360,000
6. $40,000 7. $220,000 8. $510,000.
3-20 1.(a) $100,000 (b) $2,250,000 2. $(100,000) 3. $110,000 4. $190,000
5. 4,950,000 6. 3,680,000
3-21 1. 40 cars
2. 70 cars
3-22 1. $1,000,000 2.(a) 93,750 (b) 125,000 3. $189,000
3-23 2. (a) 252,708 (b) 397,112 3. BE decreases to (a) 213,415 (b) 176,768
3-24 CM% = 40% 2. SP = $25 3. MS = $500,000
3-25 1. (a) 34 (b) 0 2.100 carpets or $50,000 3.(a)Q>100 (b) Q<100 4.(a)1.5 (b)1.0
3-26 1. (a) SI, 500,000 TH, 300,000 US, 1,200,000
(b) SI, $16,000,000 TH, $9,600,000 US, $38,400,000
2. SI, $3,900,000 TH, $7,500,000 US, ($4,000,000)
3-27 1. 134,616 2. $6,800,000 3. (a) 140,000 (b) 120,690
3-28 1.(a) $300,000 (b) $312,000 2. 18,000 3. 20,000 frames; 1,000 shipments
3-29 1. Can purchase 6,000 acres 2. Can purchase 6,500 acres 3. decrease by $6,000,000
3-30 1. $210,000 2. 42% 3. Incremental OI=$32,000
3-31 2. 40%; BE 7,500 units; BE $75,000 revenues 3. 2,500 units 4. NI $1,400
3-32 1. CS: 300,000; $13,000,000 700,000; $29,000,000
PAS: 300,000; $14,000,000 700,000; $26,000,000
FAS: 300,000; $16,000,000 700,000; $24,000,000
2. CS: $20,600,000; PAS: $19,700,000; FAS: $19,800,000
3-33 1. 1,200 2. $5,800,000 3. $20
3-34 1. 14 2. 40 3. $50
3-35 1. 150,000 2. $280,000 3. $12,800,000
3-36 1. $54,000 2. 12,000 3. $60,750 4. $325,000 5. $525,000 6. $12,500
3-37 1. $5,000 2. $7,000 3. $10,000 4. $14,000.
3-38 1. (a) 40,000 (b) $1,200,000 2. $(45,000) 3.(a) 42,000 (b) $1,260,000
4. (a) 41,380 (b) $1,241,400 5. $87,000
3-39 1. 54,000 pairs 3. (a) 58,000 units (b) 58,667 units 4. OI $67,200
3-40 1. Fixed BE = 250 Royalty BE = zero 2. 0-500 Royalty; >500 Fixed
3. 0-500 Royalty; >500 Fixed 4. Fixed EOI = $7,000 Royalty EOI = $6,000
3-41 1. 20 2. 30 3. 22 4. 34.
3-42 1. (a) 500 (b) 2,500 2. Alternative 1: NI=$241,200
3-43 1. Agents: 37%; $17,000,000; 2.89 Own sales force: 45%; $18,600,000; 3.51
3. $29,250,000
3-44 1. 150,000 2. $340,000; $85,000 3. $65,000; 159,380
3-45 1. F: 6,000; $480,000 P: 9,000; $810,000 2. F: 6,400; $512,000 P: 9,600; $864,000
3. 4,903 bundles
Cost Accounting 13e
Check Figures
3-46
3-47
3-48
3-49
1. 160,000 2. (a) 200,000 (b) 100,000
3. OI=$120,000 BE bundles 18,120 BE standard = 163,638 units
1. OI $(4,000) 2. OI $500
1. $5,400,000 2. $4,500,000 3. $240,000
1. P: 73,500; M: 47,200 2. $3,628,800 3. P: 120,000; M: 72,000; OI = $4,094,400
Chapter 4. Job Costing
4-16 Job costing
aceghklnopqsu
Process costing b d f i j m r t
4-17 1. B 180% A 190% 2. A $127,000 N $124,000 3. N underallocated $145,000
4-18 1. B $50 A $42 2a. L $187,726 M $219,514 2b. L $180,526 M $211,434
4-19 1. $20 per mh 2. $3,900,000 3. overallocated $40,000
4-20 1. M $36 A 180% 2. $99,000 3. M $120,000 under; A $(260,000) over
4-21 1. 260% 2. 400% 3. $32,400; $36,000
4-22 1. (a) $25,900 using BOHR 165% (b) $26,800 using BOHR 180%
(c) $26,200 using BOHR 170%
2. (a) $27,400 (using VOHR 90%, FOHR 100%)
(b) $25,600 (using VOHR 60%, FOHR 100%)
4-23 1. $30 per mh 2. dr. WIP Control $7,350,000 3. cr. CGS $50,000
4-24 2. (11) dr. MOH Allocated $2,080; cr. MOH Control $1,950; cr. CGS $130
4-25 8. dr. MOH Allocated $200,000; cr. MOH Control $184,000; cr. CGS $16,000
4-26 2. $6 3. dr. MOH Allocated $63; dr. CGS $5; cr. MOH Control $68
4-27 1. M1 $570,000 M2 $410,000 2. $380
3. dr. FG Control $570,000 cr. WIP Control $570,000 4. $410,000 dr. balance
4-28 1. (a) $58; $48 (b) $58; $45 (c) $60; $45
4-29 1a. D: $60 I: $109.09 Total $676,360
1b. D: $60 I: $100 Total $640,000
1c. D: $55 I: $100 Total $620,000
4-30 1. 50% 2. overallocated $4,000 3. CGS a. $556,000 b. $557,365 c. $557,455
4-31 2. M $50; F 200% 3. $9,000 4. $139.25
5. M $200,000 underallocated F $300,000 overallocated Total $100,000 overallocated
4-32 2. $65 3. $55 4. R $12,000 P $18,000
4-33 1. PL $125 AL $50 2. GS $45 SS $50 3. R $17,000; P $18,000
4-34 1. $60 2. $400,000 underallocated;
CGS a. $8,400,000 b. $8,320,000 c. $8,320,000 3.(c) is theoretically preferred
4-35 1. $1,800,000 2. $2,600,000 3. $400,000
4-36 1a. underallocated $3,000 1b. overallocated $13,000
2. CGS a. $1,590,000 b. $1,592,000 c. $1,592,650
4-37 1. $380,000 2. $480,000 3. $940,000 4. $300,000 5. $900,000
6. $60,000 underallocated 7.(a) CGS $960,000 (b) CGS $943,200
8. WO $(10,000); P $6,800
4-38 1. Matl Control $15,000 WIP Control $10,000 FG Control $20,000
2. dr. MOH Allocated $93,000; cr. MOH Control $87,000 cr. CGS $6,000
3. Matl Control $30,000 WIP Control $23,000 FG Control $25,000
4-39 1. 75% of LC 2. 3,919 3. overallocated 100 4. CGS a. 3,819 b. 3,822
4-40 1. $520 2. $487.50
4-41 1. $2,100 2. $5,650 3. underallocated $400 4. CCT a. $6,050 b. $5,942 c. $5,878
Cost Accounting 13e
Check Figures
Chapter 5. Activity-Based Costing and Activity-Based Management
5-16 1. a. unit-level b. batch-level c. unit-level d. batch-level e. product-sustaining
f. unit-level g. facility-sustaining
5-17 1. Unit-level: a, b Batch-level: c Service-sustaining: d
2. HT $17.96
ST $12.73
5-18 1. SD $12,506 TE $5,668
2. SD $11,620 TE $6,360
5-19 1. UM $9,258 HM $216,020 LV $83,322 Total $308,600
2. UM $23,800 HM $192,800 LV $92,000 Total $308,600
5-20 1. M $5.10 F $3.45
2. M $9.10 F $7.45
5-21 1. Standard $1,051.70 Special $1,121.70
2. Standard $378,857 Special $266,143
5-22 1. $15,600 45% 21%
2. $15,000 3. $15,560
4. $2,950,000 Excess capacity $590,000
5-23 1. BG $7,600; MFJ $1,900; FP $6,500
2. BG $1,400; MFJ $3,200; FP $11,400
5-24 1. $4,200 2. $(4,260) 3. $15,000 4. $7,000
5-25 1. $1.133 2. Clean $0.10 Cut $60 P $12 3. RP $1.19 IP $0.62
5-26 2. $3.60; 24; $0.50; 1; $0.70; $22.50; $80
Total MOH $53.30 Total Manu Costs $143.30
5-27 1. R $(210)
S $54
F $593.20
5-28 3. WC $18,200
SHG $16,800
5-29 1. $35 2. WC $14,070 SHG $20,930
5-30 1. WC $12,530
SHG $22,470
5-31 Total costs per unit 1. T $15.96 P $10.99 M $3.63
2. T $15.90 P $11.39 M $3.48
3. T $15.33 P $10.13 M $4.23
5-32 Budgeted costs per service 1. X-rays $56.16 U $127.68 CT $238.37 MRI $481.79
2. X-rays $41.17 U $112.83 CT $237.31 MRI $532.24
5-33 2. Supplies $9.97 per participant RM&U $8.37 per square foot
AS $22.71 per participant
Mark $300 per advertisement
3. Budgeted total costs: D $168,649 C $72,572 F $74,809
5-34 1. GSC 2.91% DC 4.76% MSS 9.09%
2. (1) $40 per order (2) $3 per line item (3) $47.973 per delivery
(4)$1 per carton (5) $16 per hour
3. Activity-based cost: GSC $58,997 DC $71,510 MPSS $170,573
OI:
GSC $49,003 DC $78,490 MSS $9,427
Cost Accounting 13e
Check Figures
5-35
DM Purses
DM Backpacks
DL Purses
DL Backpacks
Setup
Shipping
Design
Plant U&A
5-36
5-37
5-38
5-39
5-40
(1)
Unit-level
Unit-level
Unit-level
Unit-level
Batch-level
Batch-level
Product-sustaining
Facility-sustaining
(2)
Number of bags
Number of bags
Number of bags
Number of bags
Number of batches
Number of batches
Number of designs
Hours of production
(3)
$114.92 per purse
$71.17 per backpack
$31.11 per purse
$19.27 per backpack
$320 per batch
$355 per batch
$33,400 per design
$54.0865 per hour
4. Budgeted cost per bag B $136.16 P $226.88
1. (a) MSR $2,000/patient-year RCMR $6/sq foot ACR $4,000 per patient-year
LSR $40/test (b) A $880,000; $22,000 D $1,490,000; $29,800
1. Setup is $205 per batch; E&M is $4.6766 per mh; LRIU is $18 per sq ft
2. Cost of unused capacity is $64,800 3. B $490,505; $7.43 V $692,437; $6.92
1. J410 $1,332.50 J411 $571.375 2. J410 $1,820 J411 $547.75
1. Gross margin: M $8,499,900 R $128,100
1. OI: Book $264,115 CDs $74,657 Caf $(6,273)
2. OI: Book $546,850 CDs $81,784 Caf $(296,135)
Chapter 6. Master Budget and Responsibility Accounting
6-16 1. Total revenues $5,623,500 2. Total revenues $5,631,100
6-17 210,000
6-18 2,530,000
6-19 Prod budgetFG 47,000 units Pur budgetDM 131,000 gallons
6-20 1. $3,000,000 2. 4,500,000 units 3. 100,000 4-gallon units
6-21 1. Wool: 3,000,000 skeins; $6,017,450 Dye: 50,000 gal; $249,850
2. Weaving: $3.3664/DMLH Dyeing: $28.4644/MH 3. $1,219.11
4a. $200,000,000 4b. $190,000,000 5a. $121,928,300 5b. $115,832,750
6a. GM $78,071,700 6b. GM $74,167,250
6-22 1. 360,000,000,000 yen 2. 880,000 3. 28,320,000,000 yen
6-23 Production:
Jan 10,000
Feb 8,500
Mar 9,000
DML:
Jan $236,000
Feb $200,600
Mar $159,300
6-24 1. Total $27,147 Ordering $4,680 Del $7,626 SS $5,922 CS $8,919
SD $3,408 FP $17,012 PF $6,727 2. Fresh produce (63%)
6-25 1. Ordering $4,661 Del $7,596 SS $5,899 CS $8,869 Total $27,025
SD $3,393 FP $16,935 PF $6,697
6-26 1. (a) Salesman (b) VP of Sales 2. (a) VP of Sales (b) VP of Sales
3. (a) Manager, shipping (b) Manager or Dir of operations
4. (a) HR Dept (b) Production supervisor
5. (a) Production supervisor (b) Production supervisor
6. (a) Maintenance dept (b) Production supervisor
6-27 1. $429,400 2. (a) 104 (b) $187,200
6-28 1. a. $1,378,800 b. 750; 400 c. $553,720 usage $553,322 purchase
d. $127,500 e. $191,250 f. $44,462 g. $853,930
Cost Accounting 13e
Check Figures
6-29
6-30
6-31
6-33
6-34
6-35
6-36
6-37
6-38
6-40
1. $2,400,000 2. $8,000,000 3. $600,000 4. $96,000 5. $74.80 6. $1,496,000
7. $904,000 8. Budgeted GM: June $919,600 Sept $935,200
1. $19,900,000 2. T1 65,000 T2 41,000 3. A 469,000 B 256,000 C 42,000
4. $7,034,000
5. $3,528,000 6. $4,724,000
OI = $843,000
1. $155,000 2. C 520 D 285 3a. P 3,790 lbs; $15,110 M 545 lbs; $1,635
3b. P 3,920 lbs; $15,680 M 540 lbs; $1,620
4. $29,850 5. M $7,225 P $51,650 I $390.40
6. C $105.40 D $179.31 Total ending inv $8,064
7. $106,561 8. $38,450 9. $9,989
Total cash available $156,175 Total disb $133,415 Ending cash $20,740
1. $450,000 2. 1,100 3. $193,800 usage $188,000 purchases 4. $137,500
5. $104,500 6. $19 per hour 7. $95 per unit 8. $400.00 9. $135,000
10. $393,280 11. OI = $19,220 12. Total assets = $995,000
1. Ending cash: July $5,650 Aug $40,100 Sept $69,650 2. Yes 3. No
Ending cash balance: Dec 2004 $2,025 Jan 2005 $111,075
1. $54,260,000 2a. $0.12 per sales dollar
2b. $1,000 per delivery
3. C 172,500 units T 45,150 units 4a. $140 / setup hour 4b. $9 per mh
5. DM Usage Budget: W 1,178,550 b.f.; $1,881,312 G 90,300 sheets; $1,087,975
DM Pur Budget: W 1,186,850 b.f.; $1,898,960 G 90,550 sheets; $1,086,660
6. $0.80 per b.f. 7. $15,768,000 8. MH $942,840 MS $397,740 P $6,689,250
9. Unit costs Ending FG inv: C $99.84 T $211.40
Ending Inventories Budget DM $296,000 FG $1,324,290 Total $1,620,290
10. $26,678,827
11. Mark $6,511,200 Dist $434,000 Total $6,945,200 12. OI $20,634,973
1a. $16,200 1b. L 3,100 units G 1,830 units
c. DM Usage Budget: Sugar 1,690 lbs; $847 Sticks 4,930; $1,479 Total $2,326
DM Pur Budget: Sugar 1,805 lbs; $903 Sticks 5,060; $1,518 Total $2,421
d. $8,620
e. M Setup $825 Processing $1,832 Total $2,657
f. Unit costs of Ending FG inv: L $2.525
G $3.155
Ending Inventories Budget: DM $264 FG $1,325 Total $1,589
g. $13,252 h. $1,620
2. Total cash available $15,011 Total disb $14,239 Ending cash $572
3. NI $998 Total assets $141,203
Chapter 7. Flexible Budgets, Direct-Cost Variances, and Management Control
7-16 1. FBV $12,800 U SVV $7,200 U SBV $20,000 U
7-17 1. FBV $24,000 U SVV $72,000 F SBV $48,000 F
7-18 1. SBV $17,000 U 2. FBV $19,000 F SVV $36,000 U
7-19 1. FBV: $15,000 U SVV: $15,000 F SBV $0
2. Actual SP $5.50 Budgeted SP $3.50 Actual VC $3.96 Budgeted VC $2.00
7-20 1. Units $25,000 F (5.0%) Rev $110,000 F (3.4%) VMC $140,000 U (8.0%)
CM $30,000 U (2.0%) 2. FBV $105,000 U SVV $75,000 F 3. $52,500 U
7-21 1. FBV $408 F 2. PV $1,120 F EV $712 U
Cost Accounting 13e
Check Figures
7-22
7-23
7-24
7-25
7-26
7-27
7-28
7-29
7-30
7-31
7-32
7-33
7-34
7-35
7-36
7-37
7-38
7-39
7-40
7-41
7-42
7-43
DM: PV $14,000 F EV $11,000 F FBV $25,000 F
DML: PV $4,000 U EV $6,000 U FBV $10,000 U
1. DM: PV $1,815.00 U; EV $990.00 U DML: PV $104.50 U; EV $440.00 F
Total FBV $2,469.50 U; 13.21% (= $2,469.50/$18,700)
2. DM: PV $1,156.16 U; EV $772.20 U DML: PV $102.41 U; EV $607.20 F
Total FBV $1,423.57 U; 7.61% (= $1,423.57/$18,700)
1. DM: PV $15,000 U; EV $2,002 F DML: PV $7,350 U; EV $750 F
2. cr. AP Control $465,000; cr. DM Control $441,248; cr. WP Control $154,350
1. March: DM 9.761 DML 0.488
2. DM: PV $15,000 U; EV $8,592 U DML: PV $7,350 U; EV $2,796 U
1. DM: PV $370 U; EV $1,500 F FBV $1,130 F
DML: PV $180 F; EV $1,000 F FBV $1,180 F
2. PV $600 U;
EV $1,500 F
For req #1: cr. AP Control $18,870; cr. DM Control $18,500; cr. WP Control $8,820
For req #2: cr. AP Control $30,600; cr. DM Control $18,500
1. DM: PV $370 U; EV $1,500 F; SVV $5,000 F
DML: PV $180 F; EV $1,000 F; SVV $2,500 F
1. FBV: R $152,145 U; P $54,686 U; T $328 F 2. R $0; P $65,262 U; T $46 F
1. FBV $11,000 F SVV $260,000 U
2. DM: PV $54,000 U EV $60,000 F DML: PV $50,000 F EV $40,000 U
1. OI SBV $8,225 F 2. FBV: R $5,625 F S $562.50 U L $300 F OI $5,362.50 F
4. Budget: LT 80 cars ST 60 cars
1a. SPV $14,550 F 1b. PV $19,033 U; EV $8,280 U
1c. DM Frames: PV $4,656U; EV $3,201U DM Lenses: PV $7,130 F; EV $22,553 U
DML: PV $1,964 F; EV $16,369 U
1. DM Bottles: PV Pesos 25,000 U; EV Pesos 210,000 U
DML:
PV Pesos 19,168 U; EV Pesos 294,172 U
1. PV $12,000 F; EV $20,000 U
1. DML: PV $16,000 F EV $24,000 U
2. 126,250 lbs 3. $1.95 per pound 4. PV $7,500 F
1. 2,000 hours 2. 1,900 hours 3. $21/hour 4. 12,000 lbs 5. 12,500 lbs
6. 13,000 lbs $5.25/lb
1. DM Wool: PV $395 U; EV $379.50 F DML: PV $963.50 F; EV $325.50 U
2. cr. AP Control $8,295.50; cr. Wages Payable Control $7,814.50
1. Unit VC: A $28.00 B $42.63 C $29.55 D $34.84
2. Firm B: DM PV 0.98 U / 10.0%; DM EV 0.25F / -2.5%
DL PV 0.55 / 3.3%;
DL EV 5.25 U / 46.7%
1. OI A $5,732,000 SB $6,750,000 2. SBV $1,018,000 U 3. $5,990,000
4. $258,000 U 5. $760,000 U 6. DML: PV $0; EV $18,000 U 7. $18,000 U
1. OI FBV $8,672 F; SVV $33,168 F
DM: PV=$2,880U; EV=$5,472
DML: PV=$4,320 U; EV=$2,880 F
1. SPV $22,500 U 2. DM PV $66,500 U 3. DM EV $39,750 U
4. DML: PV $0; EV $15,000 F
1. Setup:
FBV $3,900 U; PV $1,750 U; EV $2,150 U
QInspection: FBV $950 F;
PV $2,700 F; EV $1,750 U
1. DM: PV $306 F; EV $3,060 F
DML: PV $153 U; EV $2,754 F
Cost Accounting 13e
Check Figures
Chapter 8. Flexible Budgets, Overhead Cost Variances, and Management Control
8-16 1. FBV $324 U SV $2,268 F EV $2,592 U
8-17 1. SV $1,516 U 2. PVV $2,400 F
8-18 1. 64,000 hours 2. SV $176,400 U EV $56,000 F
8-19 1. SV $16,000 U PVV $32,000 U 2. Underallocated by $48,000
8-20 1. VMOH: SV $90U
EV $630F
PV Never a variance
FMOH: SV $1,360 U EV Never a variance PV $1,536 F
2. VMOH a. cr. AP Control, etc. $12,420
b. cr. VMOH Allocated $12,960
c. cr. VMOH Control $12,420
d. cr. CGS $540
FMOH a. cr. Wages Payable, etc. $20,560 b. cr. FMOH Allocated $20,736
c. cr. FMOH Control $20,560
d. cr. CGS $176
8-21 1. Var: (1) $4,200 U (2) $4,500U (3) never
(4) $8,700 U (5) $8,700 U
Fixed: (1) $3,000 U (2) never
(3) $600 U (4) $3,000 U (5) $3,600 U
8-22 1. VMOH: SV $17,800 U
EV $16,000 U
FMOH: SV $13,000 U
PVV $36,000 F
8-23 1. VMOH: SV $4,500 F
EV $12,000 U
FMOH: SV $11,000 U
PVV $21,000 U
8-24 1. VOH: SV $1,716 U EV $660 F
2. FOH: SV $3,600 U PVV $4,200 U
8-25 1. DML: PV $ 3,856 U EV $1,920 U FBV $5,776 U
Total MOH: SV $14,000 U EV $960 U
PVV $5,600 F
D = 4,200 dlh
8-26 1. a. $90,000 b. $89,625 c. $89,100 d. $900 U e. $525 U
2. a. $30,375 b. $28,800 c. $23,760 d. $5,040 U e. $1,575 U
8-28 1. a. DM PV $100,000 U
b. DM EV $50,000 F
c. DML PV $50,000 U
d. DML EV $112,500 F
e. VMOH SV $50,000 F f. VMOH EV $25,000 F
g. FMOH PVV $12,500 U h. FMOH SV $100,000 U
8-29 1. 1,776
2. $196.00
3. $40.00 4. 1,920 5. 960 6. 1.9
8-30 1. VMOH: SV $3,648 U EV $3,840 F
PVV Never a variance
FMOH: SV $2,112 U EV Never a variance PVV $28,224 F
VMOH a. cr. AP Control, etc. $76,608 b. cr. VMOH Allocated $76,800
c. cr. VMOH Control $76,608
FMOH a. cr. Wages Payable, etc. $350,208 b. cr. FMOH Allocated $376,320
c. cr. FMOH Control $350,208
2. cr. CGS $26,304
8-31 2. a. VMOH: SV $475,000 U EV $675,000 U
PVV Never a variance
b. FMOH: SV $50,000 U
EV Never a variance PVV $2,250,000 U
4. FBV: $50,000 U
PVV: $3,000,000 F
Total MOHV $2,950,000 F
8-32 A: VMOH EV $1,125 U FMOH SV $1,500 U FMOH PVV $0
B: VMOH EV $0
C: FMOH SV $2,500 U
8-33 1. $396,000 = $194,700 + $201,300
2. $150 U 3. $6,000 U
4. $8,850 F
5. $18,300 F
8-34 1. DML: PV $1,950 U; EV $65,000 U
2. VMOH: SV $2,437.5 F; EV $32,500 U
8-35 1. VMOH: SV $280 U; EV $380 U 2. FMOH SV $4,000 F; PVV $2,700 U
Cost Accounting 13e
Check Figures
8-36
8-37
8-38
8-39
8-40
8-41
8-43
1. 20,000 2. 15,000 3. 18,000 4. $2.50/hr
5. VMOH: SV $19,800 U; EV $36,000 U 6. FMOH: SV $5,000 F; PVV $15,000 U
1. 400 setups 2. 432 setups 3. 450 setups 4. FMOH rate = $30/hr
5. Total MOH setup costs $780 6. VMOH: SV $29,250F; EV $33,300U
7. FMOH: SV $7,000 U; PVV $5,760 F
1. SV $200 U 2. PVV $3,600 U 4. SVV $12,000 U; OI FB $9,000; OI VV $8,400 U
1. a. 160,000 b. 6,000 c. $7,650 F d. 25,500 e. 24,000 f. $256,000 U
1. $1,248,000 2. a. $5,000 U b. $1,500 F c. $16,040 F d. $16,500 U
e. $39,400 U f. $6,600 U g. $8,000 U
1. EV 10 hours U; QV 25 hours F 2. EV 500lbs F; QV 500lbs F
1. a. $2.50 per mh b. $7,750,000 c. $25,000 U
2. VMOH: SV $1,200,000 U; EV $900,000 F
Chapter 9. Inventory Costing and Capacity Analysis
9-16 1. (a) VCOI: April $1,250,000 May $3,120,000
(b) ACOI: April $1,850,000 May $2,640,000
9-17 1. TCOI: April $755,00 May $3,516,000
9-18 1. (a) VCOI: J $160,000 F $260,000 M $960,000
(b) ACOI: J $280,000 F $290,000 M $826,000
9-19 1. TCOI: J $40,000 F $260,000 M $1,060,000
9-20 1. VCOI $2,937,320 ACOI $2,694,920
2. VC 38.7% AC 35.5%
9-21 1. (a) 2. (c)
9-22 1. VCOI: $2,531,520 2. ACOI: $2,703,120
9-23 1. VCOI: 2003 $400 2004 $700
2. ACOI: 2003 $600 2004 $640
9-24 1. Denominator level: 50,000 units annually; Disposing using COGS
2. BE = 50,000 units (= Fixed costs $1,400,000 / CM $28)
3. Var Costing OI: 2006 $zero 2007 $zero 2008 $280,000
9-25 1. a, b 2. a 3. d 4. c, d 5. c 6. d 7. a 8. b (or a) 9. b 10. c, d 11. a, b
9-26 1. T $1,388.89 P $2,083.33 N $3,333.33 M 2,666.67
9-27 1a. VCOI: $10,000 1b. ACOI: $30,000 2. (a) 750; (b) 500
3. (a) 857.14 (b) 666.66 4. (a) 800 (b) 800
9-28 1. ACOI $7,000 2. VCOI $0
9-29 1. VCOI: 2008 $(20,000); 2009 $(20,000); $(40,000)
ACOI:
If Together 20,000-unit denominator: 2008 $120,000; 2009 $(160,000); Together $(40,000)
If 10,000-unit denominator: 2008 $260,000; 2009 $(300,000); Together $(40,000)
2. (a) VC BE 10,667 tons per year
(b) AC If sales 10,000 then BE 11,429 units
3. VC $0 at all times
AC 2008: $140,000 or $280,000 2009: $zero
9-30 1. 67% 2. 12/31/2008 $520,000 12/31/2009 $140,000
9-31 1. GM: $280,000; $304,000; $352,000
2. Ending inv: 0 books / $0; 2,000 books / $144,000; 6,000 books / $432,000
3a. Adj GM: $280,000; $289,600; $308,800 3b. 1.0; 1.2; 1.6
Cost Accounting 13e
Check Figures
9-32
9-33
9-34
9-35
9-36
9-37
9-38
9-39
9-41
1. T $6.00 P $8.00 N $10.00 M(a) $12.50 M(b) $8.33
2. OI: T $9,632,000 P $10,032,000 N $10,432,000
1. Normal capacity (or Master budget) 2. Theoretical capacity
1. PVV T $ 400,000 U; P $192,000 U; N 120,000 F
2. OI: T $1,104,000 P $1,088,000 N $1,064,000
Denominator Level: 1. 24,000 mh 2. 40,000 mh 3. Normal capacity utilization
SP: 1. Orig $800 2. Competitive $950
1. Inv Cost: T $3.75
P $4.50
N $6.50
M $7.50
2. PVV:
T $725,000 U P $560,000 U N $120,000 U M $100,000 F
3. OI:
T $25,000
P $40,000
N $80,000
M $100,000
1. OI:
T $125,000
P $125,000
N $125,000
M $125,000
2. Decrease in OI: T $100,000 P $85,000 N $45,000
M $25,000
3. OI:
T $90,909
P $90,909
N $90,909
M $90,909
1. 2009 $1.50 fixed cost per meal
2. 2010 $6.25 total budgeted cost per meal
3. Since excess capacity, try PC of 1,460,000 as denominator
1. VC OI: April $75,000 May $75,000
June $75,000
2. AC OI: April $75,000 May $105,000 June $45,000
3. TC OI: April $75,000 May $60,000
June $90,000
Chapter 11. Decision Making and Relevant Information
11-16 1. Difference in favor of remachining $2,000
2. Difference in favor of rebuilding $5,000
11-17 1. Relevant costs per unit: Make $200
Buy $210
2. Total relevant costs:
Keep $80,000 Replace $53,500
11-18 1. (b) $30,000 increase 2. (b) $85,000
11-19 1. Yes, increases OI by $50,000 2. No, decreases OI by $15,000
3. No, decreases OI by $25,000
11-20 1. $339 2. Making CMCBs has a $410,000 advantage
3. Make CMCBs
11-21 1. $94,680 2. No 3. Relevant costs: A $2,177,480 B $2,171,400
11-22 1. Cola $4.60
Lemonade $3.90 Punch $6.40
NOJ $9.00
2. Cola $115.00 Lemonade $93.60 Punch $25.60 NOJ $45.00
3. Max total CM per day $1,135.00
11-23 Only Model 14 (CM/machine hour is $9.50 vs. $9.00 for Model 9)
11-24 No, net benefit of closing Alameda Base is $440 million.
11-25 1. OI increases by $7,000 by closing RI store
2. OI increases by $11,000 by opening another store like RI store
11-26 First allocate 1000 machine-hours to Kelly, then allocate remaining 1,000 machinehours to Taylor resulting in OI = $16,000
11-27 1. (a) $8,000 benefit of buying new machine
(b) $8,000 benefit of buying new machine 2. No affect.
11-28 1. Replace, benefit of $180,000 2. $4,380,000 (= $4,200,000 + $180,000)
3. (i) Upgrade if <15,000 units (ii) Replace if > 15,000 units
4. Upgrade, since first year OI $140,000 higher
11-29 1. Accept, OI increases by $90,000 2a. Reject, OI decreases by $50,000 2b. $30
Cost Accounting 13e
Check Figures
11-30
11-31
11-32
11-33
11-34
11-35
11-36
11-37
11-38
11-39
11-40
11-41
11-42
1. $88,000 2. Yes, lower fare increases CM $1,379.20
3. No, should reject Travel International offer
1. Relevant OI: Easyspread 1.0 $160; Easyspread 2.0 $165; Introduced immediately
1. $18,000 2. Reject Buckeye offer because OI decreases by $2,000 3. $9
1. 50,000 units of R3 and zero units of HP6
2. Yes. OI will increase $250,000 by producing 130,000 of HP6 and zero of R3
3. 20,000 of S3; 45,000 of R3; Zero of HP6
1. Benefit of continuing Tables Line, $130,000 2. Increase OI by $128,000
3. No, benefit of keeping Northern Division open $140,000
4. Yes, benefit of opening Southern Division, $40,000
1. Buy from Tidnish if production less than 140,000 units
2. Buy from Tidnish if production less than 190,000 units
1. No, $2,000 benefit of making
2. Buy, $2,000 benefit
3. Yes, $260 benefit of buying chains
1. b 2. e, decrease OI by $16,800 3. c 4. a 5. b 6. e 7. e, $3.55
1. CM: A $65,000; D$(16,500)
2. Fixed cost savings if shutdown: A $51,000; D $26,100
1. CM per pound:
A110 $4.00 B382 $2.80 C657 $7.00
2. Units to produce max CM: A110 200
B382 200
C657 800
2. 18 Dellas Delights and 8 Bonnys Bourbons
1. Produce, difference of $16,600 2. Purchase, difference of $13,240
1. MH demanded: Nealy 5,400 Tersa: 11,250 Pelta: 39,000
2. CM per unit: Nealy $1,500 Tersa: $995
Pelta: $420
3. CM per MH: Nealy $500
Tersa: $398
Pelta: $420
Optimum product mix:
Nealy 5,400 Tersa: 5,600
Pelta: 39,000
Chapter 13. Strategy, Balanced Scorecard, and Strategic Profitability Analysis
13-16 1. Cost leadership strategy
13-17 1. Yes, consistent with strategy
13-18 1. Product differentiation
13-19 1. OI: 2006 $1,500,000 2007 $2,851,700 (Change is $1,351,700 F)
2. Growth $725,580 F Price-recovery $555,488 F Productivity $70,632 F
13-20 MS $295,000 F CL $986,068 F PD $70,632 F Very successful
13-21 1. (a) 500; $155,000 (b) Cannot determine, discretionary cost
2. $62,000 maximum savings (= 200 x $310)
13-22 1. Product differentiation strategy
13-23 1. 2008: $1,400,000 2009: $2,007,500
2. Growth $280,000 F Price-recovery $235,500 F Productivity $92,000 F
13-24 MS $168,000 F CL $92,000 F PD $347,500 F
13-25 1. Manufacturing: 40, $324,000; Selling and customer service: 20, $198,000
Design: discretionary cost so cannot be calculated 2. $243,000
13-26 1. Cost leadership strategy
13-27 1. 2008 $465,000; 2009 $585,000
2. Growth $200,000 F Price-recovery $269,000 U Productivity $189,000 F
Cost Accounting 13e
Check Figures
13-28
13-29
13-30
13-31
13-32
13-33
13-35
13-36
13-37
13-38
13-39
Industry-market-size factor $60,000 F Cost leadership $224,000 F
Product differentiation $164,000 U; Very successful
1. Software implementation support: 20, $82,000
Software development: discretionary cost so cannot be calculated 2. $61,500
2. Cost leadership strategy
1. 2008: $21,000; 2009: $57,820
2. Change in OI: Growth $58,628 U
Price-recovery $24,030 U;
Productivity $2,222 F
Overall $36,820 F
Change in OI: Industry-M-S factor $13,840 F Product differentiation $24,030 U
Cost leadership $47,010 F
Overall $36,820 F
1. a. 1,750; $40,250 b. 0; 0 c. Cannot be determined since a discretionary cost
1. Yes 2. Yes; Yes 3. No 4. Yes, linkage. To strengthen linkage add gas
station performance measures 5. Yes, agree.
1. Not successful 2. Not helpful 3. Yes
2. No, partial productivity measures cannot be aggregated over different inputs.
3. Use to set targets for next year or compare over multiple periods.
1. 2009: DM: 1.59 wallets per yard CC: 0.95 wallets per unit of capacity
2008: DM: 1.33 wallets per yard CC: 0.883 wallets per unit of capacity
1. 0.1725 units of output per $ of input
2. Increased 12.3%
1. Product differentiation strategy 2. 2009 $198,000 2010 $219,300
3. Growth $0 Price-recovery $65,100 U Productivity $86,400 F
4. Not successful in implementing product differentiation strategy
Chapter 16. Cost Allocation: Joint Products and Byproducts
16-16 1. a. $15.34
b. $11
2. Sales value at splitoff method
16-17 1. Breasts $5.0625 W $0.49
T $1.29 Bones $0.3065
F $0.06
2. Breasts $4.4835
Thighs $1.1418
16-18 Corn Syrup $260,000
Corn Starch $65,000
16-19 1. M $30,000 T $90,000
2. M $40,000 T $80,000
3. PM: M $15,000 T $0 Estimated NRV: M $5000 T $10,000
4. WA $60,000 T $60,000 Yes
16-20 1. a. X $108,000; $72,000 Y $24,000; $136,000 Z $13,000; $247,000
b. X $135,000; $90,000 Y $30,000; $170,000 Z $8,750; $166,250
2. a. X 60% Y 60% Z 25.71%
b. X 50% Y 50% Z 50.00%
16-21 1. a. CO $270
NGL $90
NG $1,440
Total $1,800
b. CO $1,136.25
NGL $290.25
NG $373.50
Total $1,800
2. a. CO $2,255
NGL $555
NG $(610)
Total $2,200
b. CO $1,388.75
NGL $354.75
NG $456.50
Total $2,200
16-22 1. a. B 50% S 42% T 44%
b. B 41% S 45% T 44%
c. B 46.7% S 43.2% T 44.1%
16-23 1a. C $278 S $222
1b. C $375 S $125
16-24 1. Pro $288,000 Sales $284,000 2. Pro: Main product $88,000; Byproduct $12,000
Sales: Main product $96,000; Byproduct $0
16-25 1. A $7.24
B $1.31
C $1.95
2. A $7.45
B $1.36
C $1.69
16-26 1. Inv Cost: Main product $360 Byproduct $12
GM: $1,320
2. Inv Cost: Main product $375 Byproduct $0
GM: $1,323
Cost Accounting 13e
Check Figures
16-27
16-28
16-29
16-30
16-31
16-32
16-33
16-34
16-35
1.
16-36
1. a. SA 25%
SB 5%
C 50%
SD (4.17%)
b. SA 13.33% SB 0% C 80% SD 16.67%
c. SA 16.67% SB 10% C 50% SD 12.5%
2. OI can be increased by $50,000 if both B and D are sold at splitoff.
1. a. C $10,500; M $19,500
b. C $12,000 M $18,000
c. C $9,375
M $20,625
d. C $9,330
M $20,670
2. a. C 3.125%
M 10.294% T 8% b. C (3.125)% M 13.235% T 8%
c. C 7.812%
M 8.088% T 8% d. C 8%
M 8%
T 8%
3. Yes
1. a. S $461,539 D $230,769 P $307,692
b. S $750,000 D $50,000 P $200,000
c. S $444,445 D $259,259 P $296,296
2. Further processing of decorative pieces adds $50,000
1. a. Butter $4,000
Buttermilk $16,000
b. Butter $8,000
Buttermilk $12,000
c. Butter $12,000 Buttermilk $8,000
d. Butter $10,625 Buttermilk $9,375
1. 2. 3. Decision not affected by method of joint allocation
1. Inv: A $4,375 B $2,625
GM: A $35,625 B $21,375
2. Inv: A $6,250 B $3,750
GM: A $33,750 B $20,250
1. i) At time of production: dr. WIP Inventory
$10,000
dr. FG Inventory Coal Tar $3,000
dr. FG Inventory Grade A
$4,375
ii) At time of sale:
dr. Cash or AR
$3,000
dr. Cash or AR
$64,000
dr. CGS Grade A
$4,375
1. Continue to sell bulk raw coal without further processing. Incremental loss
$(5,500,000) = Incremental rev $68,400,000 Incremental costs $73,900,000
2. Cost of producing raw coal is irrelevant to this decision.
3. Further process coal fines if incremental income is at least $12.22 per ton.
1. Inv: Main product $3,500 Byproduct $1,000
GM $94,000
2. Inv: Main product $5,000 Byproduct $0
GM $94,500
3a. i) At time of production: dr. WIP Inventory
$25,000
cr. WIP Inventory
$7,500
cr. WIP Inventory
$17,500
ii) At time of sale:
cr. FG Inv - Scarves
$6,500
cr. Sales rev - Blouses
$108,000
cr. FG Inv - Blouses
$14,000
1. Joint costs allocated: a. D $18,194 S $5,806 b. D $18,276 S $5,724
c. D $16,000 S $8,000
The NRV method
2. Should process standard modules into DRAM modules.
Cost Accounting 13e
Check Figures
Chapter 17.
17-16 1.
2a.
17-17 1.
2.
3.
17-18 1.
2.
17-19
17-20
17-21
17-22
17-23
17-24
17-25
17-26
17-27
17-28
17-29
Process Costing
$154.80
EU: DM 10,000 CC EU 9,500 Cost per EU: DM $75 CC $84 2b. $159
dr. WIP Assembly $750,000
dr. WIP Assembly $798,000
dr. WIP Testing $1,431,000
EU: P 50,000 Q 35,000 CC 45,000
Total costs: P $250,000 Q $70,000 CC $135,000
Cost per EU: P $5
Q $2
CC $3
Transferred Out $350,000 Ending WIP $105,000
WA EU: DM 532 CC 496
Total costs:
DM $3,713,360 CC $1,483,040
WA cost per EU: DM $6,980
CC $2,990
Transferred Out $4,586,200
Ending WIP $610,200
FIFO EU: DM 460 CC 464
Total costs:
DM $3,713,360 CC $1,483,040
FIFO cost per EU: DM $7,000
CC $3,000
Transferred Out $4,584,400
Ending WIP $612,000
1. Standard EU:
DM 465,000
CC 576,150
2. Total costs:
DM $845,000
CC $1,307,040
Standard cost per EU: DM $1.30
CC $2.10
Transferred Out $1,740,800
Ending WIP $411,240
1. WA EU:
DM 62,500
CC 52,500
2. Total costs:
DM $425,000 CC $551,250
WA cost per EU: DM $6.80
CC $10.50
Transferred Out $735,250
Ending WIP $241,000
1. FIFO EU:
DM 50,000
CC 43,750
2. Total costs:
DM $425,000 CC $551,250
FIFO cost per EU: DM $7
CC $10.60
Transferred Out $730,250
Ending WIP $246,000
1. Standard EU:
DM 50,000
CC 43,750
Total costs:
DM $412,500 CC $546,000
Standard cost per EU: DM $6.60
CC $10.40
Transferred Out $722,500
Ending WIP $236,000
2. Variances: DM $20,000 U CC $8,750 U
1. WA EU:
TIC 135
DM 150
CC 150
2. Total costs:
TIC $217,500 DM $37,500 CC $108,000
Standard cost per EU: TIC $1,035.71 DM $250
CC $535.85
3. Transferred Out $275,934
Ending WIP $87,066
1. FIFO EU:
TIC 135
DM 150
CC 150
2. Total costs:
TIC $190,800
DM $37,500 CC $108,000
FIFO cost per EU:
TIC $968.89
DM $250
CC $520
3. Transferred Out $254,766
Ending WIP $81,534
1. Beginning inventory: DM 100% CC 55% 2. Ending WIP: DM 100% CC 60%
3. Cost per unit: DM $4.85 CC $3.10 4. $6,325,575
Cost Accounting 13e
Check Figures
17-30
17-31
17-32
17-33
17-34
17-35
17-36
17-37
17-38
17-39
1. WA EU:
DM 25,000
CC 24,250
2. Total costs:
DM $5,750,000 CC $2,740,250
WA cost per EU: DM $230
CC $113
3. Transferred Out $7,717,500
Ending WIP $772,750
1. dr. WIP Assembly $4,500,000
2. dr. WIP Assembly $2,337,500
3. dr. WIP Testing $7,717,500
1. FIFO EU:
DM 20,000 CC 21,250
2. Total costs:
DM $5,750,000 CC $2,740,250
FIFO cost per EU: DM $225
CC $110
3. Transferred Out $7,735, 250
Ending WIP $755,000
1a. Beg WIP: TIC 100% DM 0% 1b. End WIP: TIC 100% DM 0%
2. WA EU:
TIC 30,000
DM 26,300
CC 28,520
Total costs:
TIC $10,650,000 DM $9,704,700 CC $4,791,360
WA cost per EU:
TIC $355
DM $369
CC $168
3. Transferred Out $23,459,600
Ending WIP $1,686,460
4. cr. WIP Assembly $7,717,500
dr. FG $23,459,600
1a. Beg WIP: TIC 100% DM 0% 1b. End WIP: TIC 100% DM 0%
2. FIFO EU:
TIC 22,500
DM 26,300
CC 23,270
Total costs:
TIC $10,617,125 DM $9,704,700
CC $4,791,360
FIFO cost per EU: TIC $343.79
DM $369.00
CC $170.00
3. Transferred Out
$23,459,600
Ending WIP $23,463,766
4. cr. WIP Assembly $7,735,250
dr. FG $23,463,766
WA EU:
DM 625
CC 525
Total costs:
DM $19,375 CC $11,025
WA cost per EU: DM $31
CC $21
Transferred Out $26,000
Ending WIP $4,400
dr. WIP Assembly $17,600
dr. WIP Assembly $10,890
dr. WIP Finishing $26,000
FIFO EU:
DM 550
CC 495
Total costs:
DM $19,375 CC $11,025
FIFO cost per EU: DM $32
CC $22
Transferred Out
$25,850
Ending WIP $4,550
1. WA EU:
TIC 3,600
DM 3,000
CC 3,360
Total costs:
TIC $176,775 DM $26,700 CC $84,000
WA cost per EU: TIC $49.104
DM $8.90
CC $25.00
Transferred Out $249,012
Ending WIP $38,463
2. cr. WIP Printing $144,000
dr. FG $249,012
1. FIFO EU:
TIC 2,700
DM 3,000
CC 3,000
FIFO cost per EU: TIC $52.50
DM $8.90
CC $23.00
Transferred Out $240,525
Ending WIP $39,780
. cr. WIP Printing $141,750 dr. FG $240,525
Cost Accounting 13e
Check Figures
17-40
17-41
17-42
1. WA EU:
TIC 6,250
DM 5,250 CC 5,650
Total costs:
TIC $125,000 DM $25,200 CC $47,460
WA cost per EU: TIC $20
DM $4.80 CC $8.40
Transferred Out $174,300
Ending WIP $23,360
2. FIFO EU:
TIC 5,000
DM 5,250 CC 4,650
Total costs:
TIC $122,920 DM $25,200 CC $47,460
FIFO cost per EU: TIC $18.80 DM $4.80 CC $8.258
Transferred Out
$173,477
Ending WIP $22,103
1. Standard EU:
DM 126,250
CC 119,375
2. Total costs:
DM $378,125 CC $1,381,250
Standard cost per EU: DM $2.50
CC $10.00
Transferred Out
$1,562,500
Ending WIP $196,875
3. Variances:
DM $11,875 U CC $13,655 U
1. Bud conv rate: (1) $4.50 (2) $1.80 (3) $1.90 (4) $2.10 (5) $0.45 (6) $0.90
2. Bud COGM: WO10399 (basic), $21,850; WO10400 (fancy), $5,880
3. Bud cost per pair of shoes: WO10399 (basic), $21.85; WO10400 (fancy), $39.20
Chapter 18. Spoilage, Rework, and Scrap
18-16 1. Normal spoilage 6,600 units; Abnormal spoilage 5,400 units
2. $120,000
18-17 WA EU:
DM 11,150 CC 9,750
18-18 Total Cost:
DM $13,603 CC $28,860
WA cost per EU: DM $1.22
CC $2.96
Transferred out (including normal spoilage) $38,038
Abnormal spoilage $209 Ending WIP $4,216
18-19 FIFO EU:
DM 10,150 CC 9,250
18-20 Total Cost:
DM $13,603 CC $28,860
FIFO cost per EU: DM $1.20
CC $3
Transferred out (including normal spoilage) $38,053
Abnormal spoilage $210 Ending WIP $4,200
18-21 1. WA EU:
DM 12,000 CC 11,550
2. Total Cost:
DM $99,000 CC $103,900
WA cost per EU: DM $8.250 CC $8.9957
Transferred out (including normal spoilage) $170,732
Abnormal spoilage $5,174 Ending WIP $26,994
18-22 dr. MOH Control $250 cr. WIP $250
18-23 1. $20.90 2. $10,450
3. $1.10 4. dr. Loss from abnormal spoilage $10,450
18-24 1. WA EU Units: DM 3,150
CC 2,880
2. Total Cost:
DM $663,000 CC $245,700
WA cost per EU: DM $210.476 CC $85.3125
Transferred out (including normal spoilage) $714,329
Abnormal spoilage $84,300 Ending WIP $110,071
Cost Accounting 13e
Check Figures
18-25
18-26
18-27
18-28
18-29
18-30
18-31
18-32
18-33
18-34
18-35
1. FIFO EU:
DM 2,550
CC 2,700
2. Total Cost:
DM $663,000 CC $245,700
FIFO cost per EU: DM $222.353
CC $85.333
Transferred out (including normal spoilage) $705,590
Abnormal spoilage $87,691 Ending WIP $115,419
1. Standard EU: DM 2,550
CC 2,700
2. Total Cost:
DM $630,000 CC $216,000
Standard cost per EU: DM $200
CC $75
Transferred out: $664,125
Abnormal spoilage $78,375 Ending WIP $103,500
1. dr. Loss from abnormal spoilage, $1,000; Remaining case cost unaffected at $6.00
2. (a) cr. WIP Control $400
Good case now $6.3478 per unit
(b) cr. WIP Control $1,200 Good case remains at $6.00 per unit
3. (a) cr. WIP Control $200
Good case now $6.08 per unit
(b) cr. MOH Control $200 Good case remains at $6.00 per unit
2. $50
1. cr. WIP Control $490
2. cr. Sale of scrap $4,000 OR cr. MOH Control $4,000
3. cr. MOH Control $4,000
cr. Materials Control $4,000
WA EU: DM 25,000 CC 22,000
Total costs:
$47,000
Transferred out:
$40,700
Abnormal spoilage: $1,300
Ending WIP:
$ 5,000
FIFO EU: DM 22,500 CC 20,000
Total costs:
$47,000
Transferred out:
$40,700
Abnormal spoilage: $1,300
Ending WIP:
$5,000
WA EU: TIC 26,000 DM $16,000 CC $18,500
Total costs:
$76,925
Transferred out:
$51,748
Abnormal spoilage: $821
Ending WIP:
$24,356
FIFO EU: TIC 18,500 DM 16,000 CC 12,500
Total costs:
$76,925
Transferred out:
$51,627
Abnormal spoilage: $823
Ending WIP:
$ 24,475
1a. cr. WIP Control $1,875 1b. cr. WIP Control $1,995
2a. No 2b. If inputs are used: $74,300
cr. WIP Control $1,132
If outputs are used: $72,425
cr. WIP Control $1,151
1. 14.3%
2a. dr. Materials Control (spoiled goods)
$1,000
2b. dr. MOH Control (normal spoilage)
$4,000
2c. dr. Loss from Abnormal Spoilage
$4,000
Cost Accounting 13e
Check Figures
18-36
18-37
18-38
18-39
18-40
a. dr. WIP Control (Job #10)
$1,800
b. dr. MOH Control (rework costs)
$1,800
c. dr. Loss from Abnormal Rework
$1,800
a. cr. Scrap Revenues
$ 300
b. cr. WIP Control (Job #10)
$ 300
c. cr. MOH Control
$ 300
d. cr. WIP Control (Job #10)
$ 300
Normal spoilage: (a) 15%; 6,600 (b) 40%; 7,440 (c) 100%, 6,780
Abnormal spoilage: (a) 15%; 3,400 (b) 40%; 2,560 (c) 100%, 3,220
WA EU: TIC 100,000 DM 87,500 CC 96,250
Total costs: $3,349,000
Transferred out: $2,346,687
Abnormal spoilage: $84,638
Ending WIP: $ 917,675
1. dr. WIP Control
$8,800
dr. MOH Control (rework)
$1,800
dr. Loss from Abnormal Rework
$1,080
cr. MOH Allocated (rework)
$1,800
2. $2,280
Chapter 23. Performance Measurement, Compensation, and Multinational Considerations
23-16 2. A: 10%; 2.0; 20% B: $5,000,000; 10%; 0.1
C: $10,000,000; $50,000; 1%
23-17 1. TP 2008: 8.5%
4.1
35.4%
TP 2009: $8,400 $2,000 4.2
TP 2010: $10,545 $2,109 55%
LA 2008: 26.3% 1.8
48.4%
LA 2009: $660
1.7
36.7%
LA 2010: $585 $4,680 12.5%
LW 2008:12.6% 3.2
40.6%
LW 2009: $1,500 $11,400 $3,800
13.2% 3
39.5%
LW 2010: $1,745 $15,225 $4,449
11.5% 3.4 39.2%
23-18 1. ROI 6.25%
2. $780
3. $764
23-19 1. ROI 16%
2. RI $538,000
23-20 2. Charter DM: J-J $0
J-D $6,600
2009 $6,600
Mesa DM: J-J $10,840 J-D $11,120 2009 $21,960
23-21 1. Yes, replace
2. ROI: Yr1 7.02%; Yr2 7.82%; Yr3 8.89%; Yr4 10.26%; Yr5 12.12%
23-22 1. ROI: NC = 7.5% PP = 9.0%
2. RI: NC = $(693,000) PP = $153,000
3. RI:
NC = $(1,485,000)
PP = $(855,000)
4. EVA: NC = $(1,049,400)
PP = $(390,600)
23-23 Radnor, RI based on net BV
Easttown, RI based on gross BV
Marion, ROI based on either gross or net BV
23-24 1a. OI $1,200,000 1b. Norwegian ROI (based on kroners) 15.43%
2. Comparable ROI for Norwegian 14.24%
3. U.S. RI $240,000
Norwegian RI (in U.S. dollars) $196,154
Cost Accounting 13e
Check Figures
23-25
23-27
23-28
23-29
23-30
23-31
23-32
23-34
23-35
23-36
23-37
1. Clothing: ROI 20.00% RI $300,000
Cosmetics: ROI 16.00% RI $600,000
2. EVA: Clothing = $460,000
Cosmetics = $450,000
1. RI $193,800
2. EVA $318,800
1. ROI Historical: Passion 38.24%
Kiwi 19.13% Mango 23.46%
ROI Current: Passion 18.49%
Kiwi 14.18% Mango 21.88%
1. NetPro ROI: 2007 0.29 (=1.11 x 0.26) 2008 0.12 (=0.94 x 0.13)
OnPoint ROI: 2007 0.12 (=1.25 x 0.10) 2008 0.28 (=1.46 x 0.19)
2. NP 2007: R&D 16% P 30% M & Dist 39% CS 15%
NP 2008: R&D 10% P 35% M & Dist 46% CS 10%
OP 2007: R&D 13% P 40% M & Dist 36% CS 11%
OP 2008: R&D 18% P 30% M & Dist 36% CS 16%
1. US: ROI 11.0% RI $34,900 France: ROI 11.1% RI 26,400 eu
France: ROI 12.0% RI $58,320
1. ATOI: US $1,781,400
Germany $1,478,400
NZ $696,800
2. ROI:
US 12%
Germany 12%
NZ 12%
3. RI:
US $890,700
Germany $246,400
NZ $(58,067)
1. Print: Inv T/O 0.939 x ROS 0.239 = ROI 0.224
Internet: Inv T/O 2.133 x ROS 0.025 = ROI 0.053
2. Print: ROI Before 0.224 ROI With 0.222
3a. RI: Print $2,150 Internet $(840)
3b. Mays would be indifferent.
1. % of salary: Retail Banking 15% Business Banking 12% CrC 15%
1a. OI $(400,000)
1b. OI $1,100,000
2. UFP is emphasizing profit
1. ROS 12%; ROI 18%
2. (a) Cut costs by $200,000 (b) Decrease assets by $1,000,000
3. RI $300,000
4. Decrease assets by $700,000
Cost Accounting 13e
Check Figures