Chapter_18_Solutions_7e

Chapter_18_Solutions_7e - Chapter 18 Introduction to...

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Chapter 18 Introduction to Management Accounting Quick Check Answers: 1. a 3. d 5. a 7. b 9. d 2. c 4. b 6. c 8. a 10. d Explanations: 8. a. Beginning work in process inventory……. .. $ 2 + Direct materials used…………………………. $101 Direct labor……………………………………. .. 30 Manufacturing overhead……………………. .. 20 Total manufacturing costs incurred………. . 151 Total manufacturing costs to account for. .. 153 Ending work in process inventory…………. (1 ) Cost of goods manufactured………………. .. $152 9. d. Beginning finished goods inventory……. . $ 3 + Cost of goods manufactured……………… 152 Cost of goods available for sale…………. . 155 Ending finished goods inventory…………. (5 ) Cost of goods sold…………………………. . $150 Chapter 18 Introduction to Management Accounting 87
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Short Exercises (10 min.) S 18-1 d 1. A philosophy of delighting customers by providing them with superior products and services. Requires improving quality and eliminating defects and waste throughout the value chain. c 2. Use of the Internet for such business functions as sales and customer service enables companies to reach thousands of customers around the world. a 3. Software systems that can integrate all of a company’s worldwide functions, departments, and data into a single system. b 4. A system in which a company produces just in time to satisfy needs. Suppliers deliver materials just in time to begin production, and finished units are completed just in time for delivery to customers. Accounting 7/e Solutions Manual 88
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(10 min.) S 18-2 e 1. Providing high quality, reliable products/services for a reasonable price in a timely manner. f 2. Paying taxes in a timely manner d 3. Providing a safe, productive work environment a 4. Generating a profit b 5. Repaying principal plus interest in a timely manner Chapter 18 Introduction to Management Accounting 89
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(5-10 min.) S 18-3 FA 1. Helps investors make investment decisions MA 2. Provides detailed reports on parts of the company MA 3. Helps in planning and controlling operations MA 4. Reports can influence employee behavior FA 5. Reports must follow Generally Accepted Accounting Principles (GAAP) FA 6. Reports audited annually by independent certified public accountants Accounting 7/e Solutions Manual 90
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(5-10 min.) S 18-4 Revenue from haircuts $5,000 Hair supplies expense 700 Building rent expense 1,100 Utilities 150 Depreciation on equipment 50 Total operating expenses $2,000 Net Operating Income $3,000 Unit cost of one haircut = total operating costs ÷ total number of haircuts $2,000 ÷ 200 haircuts = $10 per haircut Chapter 18 Introduction to Management Accounting 91
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(5 min.) S 18-5 The Glass Doctor Cost of Goods Sold Computation Cost of goods sold: Beginning inventory $ 8,000 Purchases $40,000 Freight-in 3,000 43,000 Cost of goods available for sale 51,000 Ending inventory (5,000 ) Cost of goods sold $46,000 Accounting 7/e Solutions Manual 92
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(5-10 min.) S 18-6
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This note was uploaded on 05/05/2010 for the course BUSINESS 71395 taught by Professor Brown during the Spring '09 term at Miss. College.

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Chapter_18_Solutions_7e - Chapter 18 Introduction to...

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