CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-20 (1520 min.) Classification of costs, manufacturing sector.
Cost object: Type of car assembled (Corolla or Geo Prism) Cost variability: With respect to changes in the number of cars assembled There
(25 min.) ABC, cost hierarchy, service. Output unit-level costs a. Direct-labor costs, $240,000 b. Equipment-related costs (rent, maintenance, energy, and so on), $400,000 These costs are output unit-level costs because they are incurred on each u
CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-20 1. 12-ounce bottles 4-gallon units
(30 min.) Revenues and production budget. Selling Price $0.25 1.50 Units Sold 4,800,000a 1,200,000b Total Revenues $1,200,000 1,800,000 $3,000,000
CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION 11-19 (30 min.) Special order, activity-based costing.
1. Award Plus' operating income under the alternatives of accepting/rejecting the special order are: Without OneWith OneTime Only Time Only Special
CHAPTER 15 ALLOCATION OF SUPPORT-DEPARTMENT COSTS, COMMON COSTS, AND REVENUES 15-16 (20 min.) Single-rate versus dual-rate methods, support department. Bases available (kilowatt hours): Rockford Practical capacity 10,000 Expected monthly usage 8,000 1a.
CHAPTER 17 PROCESS COSTING 17-16 (25 min.) Equivalent units, zero beginning inventory. 1. Direct materials cost per unit ($720,000 10,000) Conversion cost per unit ($760,000 10,000) Assembly Department cost per unit $ 72 76 $148
2a. Solution Exhibit 17-16
CHAPTER 18 SPOILAGE, REWORK, AND SCRAP 18-21 (30 min.) Weighted-average method, spoilage. 1. Solution Exhibit 18-21A calculates equivalent units of work done in the current period for direct materials and conversion costs.
SOLUTION EXHIBIT 18-21A Summariz
CHAPTER 21 CAPITAL BUDGETING AND COST ANALYSIS 21-21 (30 min.) Comparison of projects, no income taxes. 1. Total Present Value Plan I $ (200,000) (2,391,000) $(2,591,000) Plan II $(1,000,000) (893,000) (797,000) $(2,690,000) Plan III $ (100,000) (893,000)