Managerial Accounting Chapter 2 Garrison by mvw10761

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									                             Check Figures for Problems and Cases
                           Ray Garrison, Eric Noreen, and Peter Brewer
                               Managerial Accounting, 12th Edition

Chapter 1
No check figures

Chapter 2
Problem 2-14       Cost of shipping finished goods: variable, selling
Problem 2-15       (1) Manufacturing overhead: $60
Problem 2-16       Rent on warehouse: fixed, period
Problem 2-17       Plastic washers: variable, indirect
Problem 2-18       (1) Total internal failure cost this year: $4,000,000
Problem 2-19       (1) Cost of goods manufactured: $290,000
Problem 2-20       No check figure
Problem 2-21       Answering device: fixed, period
Problem 2-22       No check figure
Problem 2-23       (1) Total variable cost: $647,000
Problem 2-24       No check figure
Problem 2-25       (1) Cost of goods manufactured: $450,000
Problem 2-26       No check figure
Problem 2-27       (1) Direct labor: $65,000
Problem 2-28       Case 1, Goods available for sale: $24,000
Problem 2-29       (1) Cost of goods manufactured: $450,000
Case 2-30          (2) Cost of goods manufactured: $680,000
Case 2-31          Raw materials inventory: $70,000

Chapter 3
Problem 3-18       (3) Underapplied: £13,000; (4) Net operating income: £ 82,000
Problem 3-19       (3) Overapplied : $3,000; (4) Net operating inco me: $52,000
Problem 3-20       (3) Underapplied: $4,000; (4) Net operating inco me: $15,000
Problem 3-21       (3) Overapplied : $3,000; (4) Net operating inco me: $31,594
Problem 3-22       (3) Overhead applied: $32,000; (4) Total cost: $60,700
Problem 3-23       (1) Research:, $35 per hour; (3) Total cost: $4,060
Problem 3-24       (3) Overapplied : $3,000; (4) Net operating inco me: $40,400
Problem 3-25       (2) Total overhead: $3,980; (3) $312.40 per unit
Problem 3-26       (2) Overhead applied in 2005: $1,500
Problem 3-27       (4) Cost of goods manufactured: $810,000; (7) Overapplied: $15,000
Problem 3-28       (2) Cost of goods manufactured: $342,000; (5) Direct materials: $20,000
Problem 3-29       (2) Underapplied: $270,000
Problem 3-30       (3) Cost of goods manufactured: $590,000; (6) $48.16 per unit
Problem 3-31       (2) Overhead applied: $21,750
Case 3-32          (2) New approach: 88,000 units
Case 3-33          No check figure
Case 3-34          No check figure

Chapter 4
Problem 4-19       Ending Work in Process: $63,200
Problem 4-20       Ending Work in Process: $64,000
Problem 4-21       (1) Conversion: 390,000 equivalent units; (3) Ending Work in Process: $45,000
Problem 4-22       (2) Materials: $0.90 per equivalent unit; (3) Ending Work in Process: $70,000
Problem 4-23       Cost to Outpatient Clin ic: $60,000
Problem 4-24       (2) Conversion: 32,000 equivalent units
Problem 4-25       (1) Materials: $1.40 per equivalent unit; Ending Work in Process: $84,000
Problem 4-26   (1) Conversion: $3.00 per equivalent unit
Problem 4-27   (2) Manufacturing overhead: $7,000 debit balance
Case 4-28      No check figure
Case 4-29      (1) Materials: $0.31 per equivalent unit; Ending Work in Process: $6,400
Case 4-30      (1) Transferred in : $0.84 per equivalent unit; Ending Work in Process: $6,240
Case 3-31      (1) Overhead rate, Milling Depart ment: $4.05 per machine-hour

Chapter 5
Problem 5-14   (3) Total cost: $16,000
Problem 5-15   (2) Net operating inco me: $19,000
Problem 5-16   (2) Sh ipping expense: Y = £ 20,000 + £8.00X
Problem 5-17   No check figure
Problem 5-18   (1) Y = $800 + $40X
Problem 5-19   (1) Y = $1,185 + $37.82X
Problem 5-20   (1) Y = $40,000 + $7,500X
Problem 5-21   (4) Total cost $182,100
Problem 5-22   (3) Cost of goods manufactured: $307,500
Problem 5-23   (3) Total cost: 283,500 pesos
Case 5-24      No check figure
Case 5-25      (1) Y = $28,352 + $2.58X
Case 5-26      (4) Y = SFr64,840 + SFr2.06X
Case 5-27      No check figure

Chapter 6
Problem 6-18   (2) Break-even: $300,000
Problem 6-19   (1) Break-even: 15,000 units; (4) 17,500 units
Problem 6-20   (1) $8,600 loss
Problem 6-21   (1) 20,000 shirts; (3) $15,000 loss
Problem 6-22   (2) Break-even: 28,000 units
Problem 6-23   (1) Break-even: $100,000; (3) 57,500 pairs
Problem 6-24   (1) $24,000 total sales
Problem 6-25   (1b) Margin of safety: €80
Problem 6-26   (1) April net operating inco me: $62,000
Problem 6-27   (2) Break-even: 40,000 skateboards; (6a) 43,000 skateboards
Problem 6-28   No check figure
Problem 6-29   (1) Break-even: 50,000 units
Problem 6-30   (2c) Present marg in of safety: $160,000
Case 6-31      (1) $700,100 (rounded)
Case 6-32      (2c) Break-even: $26,875,000
Case 6-33      (2) 14,320 patient-days

Chapter 7
Problem 7-10   (1) Year 2 net operating inco me: $210,000
Problem 7-11   (1b) Net operating income : $70,000; (2b) Net operating loss : $10,000
Problem 7-12   (2) Net operating inco me: $40,000
Problem 7-13   (1b) Net operating income: $10,000; (3a) Net operating inco me: $40,000
Problem 7-14   (2) June net operating income: $90,000
Problem 7-15   No check figure
Problem 7-16   (2) Year 1 net operating inco me: $60,000
Problem 7-17   (1) Year 3 net operating inco me: $30,000
Case 7-18      (1) 210,000 units
Case 7-19      (2) Second Quarter net operating income : $270,000

Chapter 8
Problem 8-22    (3) Total cost of serving the Lazy Bee ranch: $161.50
Problem 8-23    (4) Yellow marg in: ($11.30)
Problem 8-24    (3b) Delu xe model unit product cost: $335.60
Problem 8-25    (3a) $1,816.50 per thousand square feet
Problem 8-26    (2) Margin for local co mmercial work: ($25,200)
Problem 8-27    (2) Yellow marg in: $158,800
Problem 8-28    (3a) Mono-circuit overhead cost: $30.75
Problem 8-29    (2b) XR7 unit product cost: $69.40
Case 8-30       (2d) Yellow margin for Lyn x Builders : $3,439
Case 8-31       (3b) Overhead cost per pound of Malaysian: $3.65

Chapter 9
Problem 9-8     No check figure
Problem 9-9     (3) Ending cash balance: $5,000
Problem 9-10    No check figure
Problem 9-11    (1) August: 56,000 un its; (3) July: 148,500 lbs.
Problem 9-12    (1) Total cash disbursements for materials for the year: $195,250
Problem 9-13    (2) Cash disbursements for manufacturing overhead for the year: $344,000
Problem 9-14    (1) May: $217,200; (2) May ending cash balance: $20,200
Problem 9-15    (1) Ending cash balance: $7,500
Problem 9-16    (1) August collections: $290,000; (3) August payments: $31,740
Problem 9-17    (2a) May purchases: $51,900; (5) Net income: $26,700
Problem 9-18    (1a) Third quarter cash collections: $523,000; (3) Third quarter ending cash balance: $18,500
Problem 9-19    (1) August collections: $47,760; (3) July ending cash balance: $8,410
Problem 9-20    (1) May production: 38,000 units; (3) Direct labor: $1,947,000
Problem 9-21    (2) March purchases: $55,300; (5) Net inco me: $7,690
Case 9-22       No check figure
Case 9-23       (2) June ending cash balance: $10,730; (3) Net income : $151,880

Chapter 10
Problem 10-16   (1a) Materials quantity variance: $500 F; (1b) Labor rate variance: $1,080 F
Problem 10-17   (1) Materials price variance: $1,600 F; (2a) Labor efficiency variance: $5,400 U
Problem 10-18   (1a) Materials price variance: $5,280 F; (2a) Labor efficiency variance: $4,320 F
Problem 10-19   (1a) Materials quantity variance: $9,000 U; (2a) Labor rate variance: $800 U
Problem 10-20   (1a) M CE month 1: 11.1%; (3a) M CE month 5: 33.3%
Problem 10-21   No check figure
Problem 10-22   (3) Standard cost of lanolin : €1,940.40 per batch
Problem 10-23   No check figure
Problem 10-24   (1) M CE month 1: 7.8%; (3a) M CE month 5: 21.4%
Problem 10-25   No check figure
Problem 10-26   (1) Standard cost of direct material: €6.10 per jar
Problem 10-27   (1a) Standard price: $3 per pound; (2b) Labor rate variance: $1,500 U
Problem 10-28   (1a) Materials price variance $3,000 F; (2a) Labor rate variance: $1,300 F
Problem 10-29   (1) Materials price variance: $3,000 F; (3) Variable manufacturing overhead spending
                    variance: $1,520 U
Problem 10-30   (1) Standard cost: $11,400; (5) Labor rate variance: $450 U
Case 10-31      No check figure
Case 10-32      No check figure

Chapter 11
Problem 11-17   (3) Total variance: $7,050 U
Problem 11-18   (3a) Variable overhead spending variance: $3,250 U; (3b) Budget variance: $2,000 F
Problem 11-19   (2) Overhead applied: £ 92,000; (3) Vo lu me variance: £ 8,000 U
Problem 11-20   (1) Flexib le budget total cost at 780 liters: $38,779
Problem 11-21   (2) Materials price variance: $3,000 F; (3) Vo lu me variance: $4,200 F
Problem 11-22   (3a) Applied overhead: $360,000; (3b) Vo lu me variance: $30,000 U
Problem 11-23   (3) Variable overhead spending variance: $430 F
Problem 11-24   (3a) 33,000 standard DLHs; (4) Budget variance: $1,000 U
Problem 11-25   (2) Total variance: $800 U
Problem 11-26   (2) Variable overhead spending variance: $3,000 U
Problem 11-27   (4a) 46,250 standard hours; (4c) Vo lu me variance: $50,000 F
Problem 11-28   Total efficiency variance: $550 F
Case 11-29      (2) Flexib le budget total cost at the actual activity level: $340,112
Case 11-30      Shipping expense variance: $16,000 F
Case 11-31      No check figure

Chapter 12
Problem 12-21   (3) Midd le Europe segment marg in: €184,000
Problem 12-22   (2) Co mpany A margin : 14%
Problem 12-23   (1) Total ROI: 28%
Problem 12-24   (2a) $36 ≤ transfer price ≤ $39; (3a) $35 ≤ t ransfer price ≤ $57
Problem 12-25   (1) Cost charged to Machine Tools Division: $81,500
Problem 12-26   (1) Central seg ment margin : $32,000
Problem 12-27   (1) ROI: 33%
Problem 12-28   (2) Profits would drop by $60,000
Problem 12-29   (1) Flour segment margin: $42,000
Problem 12-30   (3) ROI: 20%; (6) ROI: 25%
Problem 12-31   (3) Net loss per player: $20
Problem 12-32   (1) Cost to Milling: 380,000K
Problem 12-33   (1) Garments segment margin: R40,000
Case 12-34      (1) Journal seg ment margin : $95,000
Case 12-35      (3) $12.50 ≤ transfer price ≤ $19.25

Chapter 13
Problem 13-16   (1) Decrease in profits: $450
Problem 13-17   (1) $0.35 per pound profit fro m further processing
Problem 13-18   (1) Decrease in net operating income : $20,000
Problem 13-19   (2) Maximu m price: $0.43
Problem 13-20   (1) Increased net operating income: €90,000
Problem 13-21   (1) $140,000 d isadvantage to close
Problem 13-22   (2) Breakeven price: $24.50
Problem 13-23   (1) $18,000 advantage to buy
Problem 13-24   (2) Hours required: 161,900 DLHs
Problem 13-25   (1) Incremental contribution marg in: $0.98 per container
Case 13-26      (1) Lowest price: $34,750
Case 13-27      No check figure
Case 13-28      No check figure
Case 13-29      (2) Selling price of flour should be at least $670
Case 13-30      No check figure

Chapter 14
Problem 14-21   (2) NPV of cash flows: $(192,400)
Problem 14-22   NPV: $(45,210)
Problem 14-23   (2) Simp le rate of return: 14%
Problem 14-24   NPV: $18,211
Problem 14-25   (2) NPV: $12,516
Problem 14-26   (1) Project #1: 0.18
Problem 14-27   (1) Net annual cash receipts: $63,900
Problem 14-28   (2) Simp le rate of return: 14.2%
Problem 14-29   (2) NPV: $90,700
Problem 14-30       (3a) Internal rate of return: 10%
Problem 14-31       (1) NPV in favor of leasing: $52,340
Problem 14-32       (3) Payback: 2.5 years
Problem 14-33       (1) Project A: 0.28
Problem 14-34       (1) Year 3 net cash flow: $30,000
Problem 14-35       (2) NPV of A lternative #2: $7,801
Problem 14-36       (1) NPV in favor of the new generator: $14,635
Problem 14-37       (1) NPV: $(63,011)
Case 14-38          No check figure
Case 14-39          (1) NPV in favor of leasing: $3,949,950
Case 14-40          (1) NPV in favor of Alternative #2: $24,640

Chapter 15
Problem 15-9        No check figure
Problem 15-10       (1) Net cash provided by operating activities : $104
Problem 15-11       (1) Net cash provided by operating activities: $104
Problem 15-12       (2) Net cash used for investing activities : $164,000
Problem 15-13       (1) Net cash provided by operating activities : $39,000
Problem 15-14       (2) Net cash provided by financing activities : $67,000
Problem 15-15       (1) Net cash provided by operating activities: $21,000
Problem 15-16       (2) Net cash used for investing activities: $570,000
Problem 15-17       Net cash provided by operating activities: $356,000
Problem 15-18       Net cash provided by financing activities : $310,000

Chapter 16
Problem 16-11       (1d) Times interest earned his year: 27.4 days; (1d) Average collection period this year: 7.0
                       times
Problem 16-12       (1a) Earn ings per share this year: $6.16; (1e) Price-earnings ratio this year: 7.3
Problem 16-13       (1b) Cu rrent ratio : 2.5
Problem 16-14       (1a) Return on total assets this year: 6.8%; (2e) Book value per share this year: $52
Problem 16-15       No check figure
Problem 16-16       No check figure
Problem 16-17       No check figure
Problem 16-18       No check figure
Problem 16-19       Total assets: $1,500,000; Net inco me: $162,000

Pricing Appendix
Problem A-4         (1b) Target selling price: $90
Problem A-5         (2) Price elasticity of demand: -1.2239
Problem A-6         (3) Profit-maximizing price: $13.98
Problem A-7         (2a) Markup: 75%
Problem A-8         (1) Maximu m purchase price: $3,320

Profitability Appendix
Problem B-4        (2) Total pro fit : $1,192
Problem B-5        No check figure
Problem B-6        (3) Total contribution margin: $151,000
Problem B-7        No check figure
Case B-8           No check figure

								
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