CHAPTER 18 SPOILAGE, REWORK, AND SCRAP 18-30 Weighted-average method, spoilage.
Solution Exhibit 18-30 summarizes total costs to account for, calculates the equivalent units of work done to date for each cost category, and assigns total costs to units com
CHAPTER 17 PROCESS COSTING 17-38 Transferred-in costs, weighted average.
1. Solution Exhibit 17-38A computes the equivalent units of work done to date in the Binding Department for transferred-in costs, direct materials, and conversion costs. Solution Exh
Maximum PC has both a magazine and an online website that can reach the Microsoft Surfaces target
consumers. Its circulation is ab
The setup activity is the simplest and it takes the same amount of time to do one setup
regardless of the product. The setup activity has the most employees and the costliest
activity to perform by Waveco. There are six cost elements in the setup activity
Managerial Accounting and Cost
Cost Classifications for Assigning Costs to
Purpose of Cost Classification
Assigning costs to cost objects
Accounting for costs in manufacturing companies
What is Managerial Accounting?
Financial & Non-Financial
A Tool to Aid Decision Making
Activity-Based Costing (ABC)
Designed to provide managers with cost
information for strategic and other decisions
that potentially affect fixed and variable costs
Used as a supple
Variable Costing and Segment
Reporting: Tools for
All variable and fixed manufacturing costs are
included as inventoriable costs
Fixed costs are part of the cost of the product
Cost-Volume-Profit (CVP) Analysis
Discusses the behavior and relationship among:
Identifies break-even points, profits, and losses
Focuses on how profits are affected by:
Standard Costs and Variances
A benchmark or norm for measuring performance
Quantity and Cost (Acquisition Price) Standards
Price (Cost) Standards
Specify how much should be paid for each unit of the input
Flexible Budgets and
Static (Planning) budgets are prepared for a
single, planned activity level of activity.
Performance evaluation for overhead is
difficult when actual level of activity differs
Budget is a detailed plan, expressed in quantitative
terms, that specifies how resources will be
acquired and used during a specified period of
Budgets are used for two distinct purposes
Differential Analysis: The Key to
Involves choosing from among at least two
Estimated costs that differ between alternatives
Department of Accounting and Finance College of Business Administration California State University - San Marcos Acct 306 Section 01 Cost Accounting Spring 2012 Course: Meeting: Room: Instructor: Office: Office Phone: E-mail: Support Staff: Cost Accountin
CHAPTER 22 MANAGEMENT CONTROL SYSTEMS, TRANSFER PRICING, AND MULTINATIONAL CONSIDERATIONS 22-30 1. Pounds of cranberries harvested Gallons of juice processed (500 gals per 1,000 lbs.) Revenues (200,000 gals. $2.10 per gal.) Costs Harvesting Division Varia
CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-29 1a. Computing cost of goods purchased and cost of goods sold. Marvin Department Store Schedule of Cost of Goods Purchased For the Year Ended December 31, 2011 (in thousands) $155,000 7,000 162,000
CHAPTER 3 COST-VOLUME-PROFIT ANALYSIS NOTATION USED IN CHAPTER 3 SOLUTIONS SP: VCU: CMU: FC: TOI: 3-34 1. Selling price Variable cost per unit Contribution margin per unit Fixed costs Target operating income CVP, target operating income, service firm. Rev
CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-28 1a. Budget schedules for a manufacturer. Revenues Budget
Units sold Selling price Budgeted revenues Knights Blankets 120 $150 $18,000 Raiders Blankets 180 $175 $31,500 Total
CHAPTER 9 INVENTORY COSTING AND CAPACITY ANALYSIS 9-29 Variable costing and absorption costing, the All-Fixed Company.
This problem always generates active classroom discussion. 1. The treatment of fixed manufacturing overhead in absorption costing is aff
CHAPTER 10 DETERMINING HOW COSTS BEHAVE 10-37 1. Cost estimation, incremental unit-time learning model. Cost to produce the 2nd through the 7th boats: Direct materials, 6 $200,000 Direct manufacturing labor (DML), 72,6711 $40 Variable manufacturing overhe
CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION 11-42 Equipment replacement decisions and performance evaluation.
1. Operating income for the first year under the keep and replace alternatives are shown below: Denote the current direct manufacturing l
CHAPTER 15 ALLOCATION OF SUPPORT-DEPARTMENT COSTS, COMMON COSTS, AND REVENUES 15-25 Revenue allocation, bundled products.
1a. Under the stand alone revenue-allocation method based on selling price, Monaco will be allocated 30% of all revenues, or $39 of t
CHAPTER 16 COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS 16-32 Joint-cost allocation with a byproduct.
1. Sales value at splitoff method: Byproduct recognized at time of production method Rubber Floor Mats Car Mats Shreds (lbs) Products manufactured 31,2
CHAPTER 21 CAPITAL BUDGETING AND COST ANALYSIS 21-30 NPV, IRR and sensitivity analysis.
1. Net Present Value of project: Period 0 Cash inflows Cash outflows Net cash flows $(62,000) $(62,000) 1 10 $28,000 (18,000) $ 10,000
Annual net cash inflows $ 10,000
Capital Budgeting Decisions
Capital Budgeting Planning Investments
Long-term decision making
Capital Budgeting Decisions
Any decision that involves an outlay now in order
to obtain a future return is a capital bu