Cost Accounting （成本会计）第五版 (Michael Maher 著) 机械工业出版社 课后答案 737页

'课后答案网：www.hackshp.cn课后答案网您最真诚的朋友www.hackshp.cn网团队竭诚为学生服务，免费提供各门课后答案，不用积分，甚至不用注册，旨在为广大学生提供自主学习的平台！课后答案网：www.hackshp.cn视频教程网：www.efanjy.comPPT课件网：www.ppthouse.com课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionsManualforCOSTACCOUNTINGCreatingValueforManagementFifthEditionMICHAELMAHERUniversityofCalifornia,Davis课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnTableofContentsChapter1Chapter15CostAccounting:HowManagersUserUsingDifferentialAnalysisforCostAccountingInformationProductionDecisionsChapter2Chapter16CostConceptsandBehaviourManagingQualityandTimeChapter3Chapter17CostSystemDesign:AnOverviewPlanningandBudgetingChapter4Chapter18JobCostingFlexibleBudgetingandPerformanceEvaluationChapter5ProcessCostingChapter19PerformanceEvaluation:CostChapter6VariancesSpoilageandQualityManagementChapter20Chapter7PerformanceEvaluationinAllocatingCoststoDepartmentsDecentralizedOrganizationsChapter8Chapter21Activity-BasedCostingTransferPricingChapter9Chapter22Activity-BasedManagementNonfinancialPerformanceMeasuresChapter10Chapter23AllocatingJointCosts课后答案网CapitalInvestmenetDecisionsChapter11Chapter24VariableCostingwww.hackshp.cnInventoryManagementChapter12Chapter25CostEstimationManagementEthicsandFinancialFraudChapter13Cost-Volume-ProfitAnalysisChapter26Revenue,MixandieldVariancesChapter14DifferentialCostandRevenueAnalysis若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnHowtoUsethisFileThisfilecontainsanentiremanualforyouruse.Withinthisfile,therehavebeenhypertextlinkscreatedtoallowyoutoquicklyaccessvarioussubjects.Thefollowingchartistobeusedasaguideastohowtomoveaboutthisdocumenteasily.Pleaseprintoutacopyforfuturereference.Themagnifyingglasswiththe“+”enlargesyourpage.Themagnifyingglasscontaining“–”reducesyourpage.(Clickontheicon,thenclickonyourpage.)Thesefouriconsareusedtoaccesspagesoneatatime.Thefirsticon,,allowsyoutomovequicklytothefirstpageofthebook.Thelasticon,,allowsyoutomovequicklytothelastpage.Thetwoicons,,allowyoutoviewpagesoneatatime,forwardsandbackwards.TheGoBackandGoForwardbuttonsallowyoutoretraceyourstepsinadocument,movingtoeachviewintheordervisited.TheActualSizebuttondisplaysthepageat100percent.TheFitPagebuttonscalestheentirepagedowntofitwithinthewindow.TheFitWidthbuttonscalesthepagewidthtofillthewindow.ClickthePageOnlybutton(firstontheleftsideoftoolbox)toclosetheoverviewareaofthewindow.Onlythepageyouwanttoviewwillbeshowing.ClicktheBookmarksandPagebutton(secondfromtheleftontoolbox)toopentheoverviewareaanddisplaybookmarkscreatedforthedocument.(Seenextentryforbookmarkexplanation.)ThisisasampleofthebookmarksthatwilldisplaywhentheBookmarksandPage课后答案网buttonisused.Thearrowtotheleftofthelistindicatesthatitisafoldercontainingsubentriesassociatedwithitsmainentry.Allothericonsareindicatorsofhypertextlinks.Tousethehypertextlinks,simplyclicwww.hackshp.cnkontheiconanditwillautomaticallytransportyoutothatlocation.若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter1CostAccounting:HowManagersUseCostAccountingInformationSolutionstoReviewQuestions1–1.CAnalysisofdivisionalperformanceACostingforincometaxpurposesBDetermininghowmanyunitstoproduceinthecomingweek1–2.Descriptionsofthesixbusinessfunctionsinthevaluechainareasfollows:1.Researchanddevelopment:thecreationanddevelopmentofideasrelatedtonewproducts,services,orprocesses.2.Design:thedetaileddevelopmentandengineeringofproducts,services,orprocesses.3.Production:thecollectionandassemblyofresourcestoproduceaproductordeliveraservice.4.Marketing:theprocessthatinformspotentialcustomersabouttheattributesofproductsorservices,andleadstothesaleofthoseproductsorservices.5.Distribution:theprocessestablishedtodeliverproductsorservicestocustomers.6.CustomerService:productorservicesupportactivitiesprovidedtocustomers.1–3.课后答案网Value-addedactivitiesareactivitiesthatcustomersperceiveasaddingutilitytothegoodsorservicestheypurchase.Nonvalue-addedactivitiesdonotaddvaluetothegoodsorservices.www.hackshp.cn1–4.Differentialcostsareimportantformanagerialdecisionmaking,butothercostdatacanprovidemanagementwithadditionalimportantinformation.Forexample,inventoryvaluesandcostsofgoodssoldareimportantforincometaxandfinancialreportingpurposesaswellasformostbonusandcost-pluscontractingpurposes.Costsforperformanceevaluationarenotnecessarilydifferentialcosts.Companiestrytorecoverallcosts,hencesomeestimateoftotalcostsisneeded.(Thiscouldbeanopportunitytodiscussshort-runandlong-runcostswithstudents,notingthatinthelongrun,allcostsmustbecovered.)©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn1–5.Coststhatcouldbesharedamonghousematesmightincludeashareoftherent,food,utilities,andotherrelatedcosts.Coststhatwoulddifferwiththeadditionofanotherpersonarethedifferentialcosts.Thesedifferentialcostsmightincludefood.Itwouldbenecessarytonegotiateanagreementbetweenyouandtheotherpersonconsideringallfactors.Forexample,shouldyousplitthetotalcostsorchargeonlythedifferentialcostsoftheadditionalperson.Businessesareoftenfacedwithsimilardecisionsonfindingtheappropriatecostbaseforsplittingcosts.Therearenogenerallyacceptedaccountingrulesfordeterminingappropriatesharedcostsineithersituation.Hence,itisimportanttospecifyarrangementsaboutcostspreciselywhenagreementsaremade.1–6.Performanceevaluationsystemsaredesignedforaspecificcompany’sneeds.Thesystemsshouldbeflexibletoadapttothecircumstanceswhichexistinthatcompany.Acommonsetofaccountingprincipleswouldtendtoreduceflexibilityandusefulnessofthesesystems.Aslongasallpartiesknowtheaccountingbasisusedbythesystem,theexactrulescanbedesignedinwhatevermannerthepartiesdeemappropriate.1–7.Mostutilitiesarecharacterizedbytheneedtoinstallasubstantialamountofequipmenttomeetpeakloads.Thepeakloadforthetelephonecompanyisduringbusinesshours,particularlyinthemid-morning.Atothertimesthisequipmentisoperatingatlessthancapacity.Thatis,therearelinesavailableforuse.Byencouraginguserstoshifttheirusagefromthepeaktimestosuchoff-peakhoursasevenings,nightsandweekends,lessequipmentisrequiredandtheexistingequipmentisutilizedmoreheavily.Theconsiderationsinthedecisionwouldinclude:(a)thesavingsfromnothavingtopurchasemoreequipment;(b)therevenuesthatcouldbegeneratedonoff-peakhourswhenexistingequipmentwouldbesufficient;(c)therevenuesthatcouldbegeneratedfromtelephonecallsthatwouldnotbemadeatallatthehigherprices;and(d)thecostsofoperatingthetelephonesysteminoff-peakhours.Offsettingthesebenefitswouldbethereductioninrevenuesfromcallsthatwouldbemadeduringoff-peakhourseveniffullrateswereineffect.Apparentlythetelephonecompanyhasfoundthatthebenefitsoutweighthelossinrevenuesfromusingoff-peakrates.1–8.Whileamanager,andnotthecontroller,hasthebusinessexpertisetomakemanagementdecisions,thedecisionswillnotbegoodonesifthemanagerdoesnotunderstandthedatausedtomakethem.Forexample,themanagermaybeworkingwiththecostsofaproduct,andnotrealizewhichcostsarefixedand课后答案网whicharevariable.Thecontrollerunderstandsthetypesofdatathatareavailable,therulesusedtoaccumulatethedata,andthelimitationsthatexistonthedata.Therefore,themanagerandthecontrollerneedtointeractinthedecision-makingprocess.Thecontrollercanprovidethemanagerwiththerelevantwww.hackshp.cndata,andanexplanationofitssuitableuses.Themanagerthencanmakebetterdecisions.©TheMcGraw-HillCompanies,Inc.,19972CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn1–9.Indecisionmaking,managersorsupervisorsmaywishtotakeactionsthatarenoteconomicallyjustifiable.Inmostcases,uponreceiptofawell-developedcostanalysis,aproductionmanagerissatisfiedwhetheranactionisfeasible.Iftheactionisnoteconomicallyjustifiable,thematterisdroppedwithoutconflict.Inafewcases,however,managersmaywishtopursueaprojectbecauseofpersonalreasons,andhopetohaveaneconomicanalysistosupportit.Inthesesituations,caremustbetakentoascertaintheeconomicmeritsoftheplan,and,iftheplancannotbejustifiedoneconomicgrounds,themanagermustmakethecasefortheprojectonanotherbasis.Thefinalresponsibilityforthedecisionrestswiththemanager.Therefore,plansthatcannotbejustifiedonacostanalysisbasismaystillbeadoptedatthediscretionofmanagement.Inthecontrolarea,theaccountantischargedwiththeresponsibilityofmakingcertainthatplansareexecutedinanoptimalandefficientmanner.Insomecasesthismaybeviewedasplacingrestrictionsonmanagementactions.Underthesecircumstancesthemanagermayviewtheaccountingfunctionasplacingtoogreataconstraintonthemanagerwhiletheaccountantmayviewthemanagerasattemptingtocircumventtherules.1–10.ThemarketingpeopleatLeverBros.relyonaccountinginformationfordecisions.Forexample,accountingprovidesinformationaboutdistributioncosts,andhelpsmarketingpeopledeterminethecostofmaterialsandpackagingifmanagementdecidestochangeaproduct.1–11.Thenonvalue-addedactivity—theamountoftimeemployeesareidleduringnormaltrashpickupsasaresultoftheirtrucksbreakingdown—occurredbecauseworkersdidnotinspecttheirtrucksattheendofshiftsformaintenanceandrepairsneeds.Sotrucksbrokedownduringnormaltrashpickups.Thethreatofprivatizationcreatedincentivesprobablybecauseworkersthoughttheywouldnotbehiredbyprivatetrashcollectors(ortheirworkingconditionswouldbeworseortheirwageswouldbelower).1–12.Theanswerissimple—yougetwhatyoumotivate.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises1–13.(20min.)Costdataformanagerialpurposes.a.Differentialcostsarecoststhatwouldchange;thatis,thematerialscostsinthissituation.Othercostswouldpresumablynotbeaffectedbythechangeinmaterials.Otherissuesincludethequalityandavailabilityofthenewmaterials.Differentialcostsnextyearare$.90(=$6.00–$5.10)calculatedasfollows:CostOldMaterialsNewMaterialsNextyear$6.00$5.10(85%x$6.00)b.Managementwouldusetheinformationtohelpdecidewhethertousethenewmaterials.Managementwouldalsowanttoknowthequalityofmaterialsandthereliabilityofthevendor.1–14.(20min.)Costdataformanagerialpurposes:Technology,Inc.Thisexercisedemonstratestheimportanceofdeterminingwhatisdifferential,andnotbeingmisledbythe“bottomline.”Allcostsexceptcorporateadministrationwouldbedifferential.Hereisthecalculationofthelostcontribution:Revenuelost......................................................$430,000Costssaved(excludingcorporateadmin.).........393,000Contributionlost,beforetaxes...........................37,000Taxessaved(40%ofthelostcontribution)........14,800Netcontributionlost...........................................$22,200课后答案网Managementmustdecidewhetherthecontributiontowardcorporateadministrativecostsandprofitsissufficienttojustifycontinuingoperations,orwhetheritshouldseekamoreprofitablelineofbusiness.Unlessthereisabetteralternativeuseofcorporateresources,www.hackshp.cnthedivisionshouldnotbeclosedintheshortrun,despitethereportedlossonthefinancialstatement.©TheMcGraw-HillCompanies,Inc.,19974CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn1–15.CostValueChainClassificationTransportationdistributionUtilitiesproductionSalariesresearchanddevelopmentVisitstocustomercustomerservicePackagingdesigndesignAdvertisingmarketing1–16.CostValueChainClassificationRedesigndesignPromotionmaterialsmarketingEquipmentresearchanddevelopmentSalespeoplebonusesmarketingPostagedistributionLaborproduction课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn1–17.(20min.)Ethicsandalteringthebooks:Amos&Associatesa.TheunofficialCMAanswercommentsspecificallyoncompetence,confidentiality,integrity,andobjectivitywithrespecttotheStandardsofEthicalConductforManagementAccountants.Basically,Elizabethhasaresponsibilitytoperformprofessionaldutiesinaccordancewithrelevantlaws,standards,andGAAP.Elizabethmustcommunicatebothfavorableaswellasunfavorableinformationfairlyandobjectively.Shemustdiscloseallrelevantinformationthatcouldinfluencetheusers’understandingofthereports.b.ElizabethshouldfirstfollowAmos&Associates’establishedpolicyontheresolutionofethicalconflict.(Assumingthereisone!)Ifthereisn’tanestablishedpolicyElizabethshouldconfrontthenexthigherlevelofmanagementthatshebelievesisnotinvolvedinthealteringoffigures.ThiscouldbetheChairmanoftheBoardofDirectors.IfthematterremainsunresolvedsheshouldtaketheissuetotheAuditCommitteeandtheBoardofDirectors.PerhapsElizabethshouldseekconfidentialdiscussionwithanobjectiveadvisor.Whenalllevelsofinternalreviewhavebeenexhaustedwithoutsatisfactoryresults,ElizabethshouldresignandsubmitaninformativememorandumtothechairmanoftheBoardofDirectors.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,19976CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems1–18.(30min.)Responsibilityforethicalaction:Toxic,Inc.a.AsamanagementaccountantPaulhasaresponsibilitytoperformhisprofessionaldutieswithcompetenceinaccordancewithrelevantlawsandregulations.Clearly,dumpingtoxicwasteisaviolationofthelaw.Assuch,Paulmighthavealegalresponsibilitytotakesomeaction.Asaprofessional,hemustcommunicatebothfavorableandunfavorableinformationinanobjectiveandfairmanner.Thus,hecannotsimplyignorethefactthatToxic,Inc.isinvolvedinillegaltoxicdumping.b.Thefirstpossiblecourseofactionwastodiscussthesituationwiththecontroller.Thisisanappropriateapproachtotheproblem.Alwaystakeaproblemtoyourimmediatesupervisorfirst.Ifthecontrollerindicatesthatheisawareofthesituationandthatyoushouldnotworryaboutit,thentakethematterupwithyourcontroller’ssuperior.Moveupthelayersofmanagementuntilsomeoneisconcernedandwilldealwiththeproblem.Asforthesecondcourseofaction,theproperauthoritiesshouldbenotifiedbysomeoneinthecompany.Thelocalnewspaper,however,isnottheproperauthority.PaulshoulddiscussthematterwiththeBoardofDirectorsonlyafterexhaustingpossibilitiesofdiscussingthematterwithinternalmanagement.1–19.(30min.)Ethicsandinventoryobsolescence:AngioplastyCorporation.a.Thecontrollerhasaresponsibilitytoperformhisdutiesinacompetentmanner,onethatisinaccordancewithrelevantlaws,regulations,technicalstandards,andgenerallyacceptedaccountingprinciples.Thecontroller"slackofactionregardingtheoverstatementofinventoryisaviolationofprofessionalresponsibilities.b.LindashouldfirstfollowAngioplasty’sestablishedpolicyontheresolutionofethicalconflict.(Assumingthereisone!)Ifthereisn’tanestablishedpolicy,Lindamightwant课后答案网tomentiontothecontrollerthefactthatshebelievesboththeCFOandtheexternalauditorsareunawareoftheinventoryovervaluation.Ifsheisuncomfortablementioningthistothecontroller,sheshouldtalkdirectlytotheCFOinstead.Ifthewww.hackshp.cnsituationisstillunresolvedthenLindashouldbringittotheattentionoftheAuditCommitteeandtheBoardofDirectors.PerhapsLindashouldseekconfidentialdiscussionwithanobjectiveadvisortoclarifytheissuesandpossiblecoursesofaction.Whenalllevelsofinternalreviewhavebeenexhaustedwithoutsatisfactoryresults,LindashouldresignandsubmitaninformativememorandumtothechairmanoftheBoardofDirectors.Exceptwherelegallyprescribed,thedisclosureofsuchinformationtooutsiders(themedia,regulatorybodies,externalauditors,etc.)isconsideredinappropriate.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn1–20.(30min.)Costdataformanagerialpurposes:WegrowFruits,Inc.Thisproblemdemonstratestheambiguityofcost-basedcontractingand,indeed,themeasurementof“cost.”Recommendedpricesmayrangefromthe$42.90suggestedbyNASAtothe$53.35chargedbyWegrowFruits,Inc.Thekeyistonegotiatethecost-basedpricepriortothesigningofthecontract.Considerationswhichaffectthebasecostsarereflectedinthefollowingoptions:Options:A.Onlythedifferentialcostscouldbeconsideredasthecostbasis.B.Thetotalcostpercasefornormalproductionof80,000casescouldbeusedasthecostbasis.C.Thetotalcostpercaseforproductionof120,000cases,excludingmarketingcosts,couldbeusedasthecostbasis.D.Thetotalcostpercaseforproductionof120,000cases,includingmarketingcosts,couldbeusedasthecostbasis.UnitCostOptionsCosts(OneUnit=OneCaseofFang)ABCDMaterials(var.)$12$12$12$12$12Labor(var.)1919191919Supplies(var.)88888Indirectcosts(fixed)440,000N/A5.503.673.67Marketing(var)2N/A2N/A2Administrative(fixed)160,000N/A21.331.33Percasecostbasis$39$48.50$44$46Percaseprice(Cost+10%)课后答案网$42.90$53.35$48.40$50.60Webelievethemostjustifiableoptionsexcludemarketingcostsandreflecttheactualproductionlevelof120,000cases.TheseareOptionsAandC.(Asstockholdersinwww.hackshp.cnWegrowFruits,Inc.,wewouldpreferOptionC.)©TheMcGraw-HillCompanies,Inc.,19978CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn1–21.(30min.)Costdataformanagerialpurposes:AnteDivision.Thisproblemdemonstratestheambiguityinmeasuring“costs.”AnteDivision’scontrollerincludedthe“perunit”fixedcosts,calculatedforallocationpurposesundernormalproductionvolume,whenitcalculatedtheperunitcostoftheadditionalproduction.ThecontrollerchargedBetaDivisiononthatbasis,ignoringthedifferentialcostsasabasisforinter-divisionsales.Possibleoptionsavailableareasfollows:A.Usethefullperunitcostfornormalproductionof25,000units.B.Useonlydifferentialcostsasthecostbasis.C.Usedifferentialcostsplusashareoffixedcosts,basedonactualproductionvolume(withBeta’sorder)of37,500units.CostsUnitCostOptions:ABCDirectmaterials(var.)$.80$.80$.80$.80DirectLabor(var.)4.004.004.004.00Othervariablecosts.40.40.40.40Fixedcosts90,000.003.60N/A3.00Perunitcost$8.80$5.20$8.20Costplus20%10.566.249.84Totalprice(5,000units)$52,800$31,200$49,200IffixedcostsarenotdifferentialandAntehasnoalternativeusesoftheexcesscapacity(between37,500unitsavailablecapacityand25,000unitsused),thenOptionBisthemostdefensible.OptionsAandCoverstatethedifferentialcostofproductionwhichcouldinappropriatelyaffectBeta’sdecisionsaboutbuyinginternallyorexternally,oraboutpricingitsproduct,amongotherdecisions.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn1–22.(20min.)Costdataformanagerialpurposes:Amanda"sCoffee,Inc.a.(1)(2)(3)AlternativeDifferentialwithIceRevenuesBaselineCreamandCostsSalesrevenue............$38,000$78,000$40,000Costs:Food.......................$15,000$35,000$20,000Labor......................12,00018,000a6,000Utilities...................2,0003,000a1,000Rent.......................4,0004,800b800Othercosts.............2,0002,400b400Manager’ssalary....6,0006,000–0–Totalcosts..........41,00069,20028,200Operatingprofit..........$(3,000)$8,800$11,800aFiftypercenthigherthanbaseline.bTwentypercenthigherthanbaselineb.Thedecisiontoexpandandoffericecreamresultsindifferentialprofitsof$11,800,soitisprofitabletoexpand.Notethatonlydifferentialcostsandrevenuesfiguredinthedecision.Thesupervisor"ssalarydidnotchange,soitwasnotincluded.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199710CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn1–23.(25min.)Costdataformanagerialpurposes:ChangeManagementCorporation.a.Thefollowingdifferentialcostswouldbeincurred:ConsultantLabor.......$134,000GivenEquipmentLease.......4,2005%of$84,000Supplies.....................5,40010%of$54,000OtherCosts...............5,70015%of$38,000TotalCosts................$149,300b.Technically,sinceacceptanceofthecontractwouldadd$700tooperatingprofits,itwouldseemthatacceptanceofthecontractiscalledfor.Ofcourse,asapracticalmattertheamountissosmallthatitwouldprobablynotbeworththeeffort.c.Otherfactorswouldinclude(1)whetherthiswillenablethecompanytogetintoanew,profitablelineofbusiness;(2)whatotheropportunitiesthecompanyhasforexpanding;and(3)whetherthecontractwillprovideformorerevenuesinthefuture.Inshort,thecompanymustconsiderthelongrunaswellasthefirstyear’sresults.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter111若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter2CostConceptsandBehaviorSolutionstoReviewQuestions2–1.Costisamoregeneraltermthatreferstoasacrificeofresourcesandmaybeeitheranopportunitycostoranoutlaycost.Anexpenseisthewrite-offofanoutlaycostagainstrevenuesinaparticularaccountingperiodandusuallypertainsonlytoexternalfinancialreports.2–2.Productcostsarethosecoststhatcanbemoreeasilyattributedtoproducts,whileperiodcostsarethosecoststhataremoreeasilyattributedtotimeperiods.Thedeterminationofproductcostsvariesdependingontheapproachused:fullabsorption,variable,ormanagerialcosting.Seepage44fordefinitionsofproductcostusingeachapproach.2–3.Yes.Thecostsassociatedwithgoodssoldinaperiodarenotexpectedtoresultinfuturebenefits.Theyprovidedrevenuesfortheperiodinwhichthegoodsweresold;therefore,theyareexpensedforfinancialaccountingpurposes.2–4.Bothaccountsrepresentthecostofthegoodsacquiredfromanoutsidesupplier,whichincludeallcostsnecessarytoreadythegoodsforsale(inmerchandising)orproduction(inmanufacturing).Themerchandiserexpensesthesecostsastheproductissold,asnoadditionalcostsareincurred.Themanufacturertransformsthepurchasedmaterialsintofinishedgoodsandchargesthesecosts,alongwithconversioncoststoproduction(workinprocessinventory).Thesecostsareexpensedwhenthefinishedgoodsaresold.课后答案网2–5.www.hackshp.cnDirectmaterials:Materialsintheirraworunconvertedformwhichbecomeanintegralpartofthefinishedproductareconsidereddirectmaterials.Insomecases,materialsaresoimmaterialinamountthattheyareconsideredpartofoverhead.Directlabor:Costsassociatedwithlaborengagedinmanufacturingactivities.Sometimesthisisconsideredasthelaborwhichisactuallyresponsibleforconvertingthematerialsintofinishedproduct.Assemblyworkers,cutters,finishersandsimilar“handson”personnelareclassifiedasdirectlabor.ManufacturingAllothercostsdirectlyrelatedtoproductmanufacture.Thesecostsincludetheindirectoverhead:laborandmaterials,costsrelatedtothefacilitiesandequipmentrequiredtocarryoutmanufacturingoperations,supervisorycosts,andallotherdirectsupportactivities.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter213若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–6.Stepcostschangewithvolumeinsteps,suchaswhensupervisorsareadded.Mixedcostshaveelementsofbothfixedandvariablecosts.Utilitiesandmaintenanceareoftenmixedcosts.2–7.Totalvariablecostschangeindirectproportiontoachangeinvolume(withintherelevantrangeofactivity).Totalfixedcostsdonotchangeasvolumechanges(withintherelevantrangeofactivity).2–8.Primecostsaredirect.Directmaterialsanddirectlaborarebytheirverynaturedirectlyrelatedtotheproduct.Someoverheadcostsaretreatedasindirectforpracticalreasons—whiletheymightbedirectlyassociatedwiththeproduct(e.g.,incidentalmaterials),theyaretoosmallinvaluetobeseparatelymeasured.Otheroverheadcosts,suchastheoccupancycostsofthemanufacturingplant,areclearlyindirect.2–9.Unitcostsareaveragesonlyatagivenlevelofproduction,therelevantrange.Sincesomecostsdonotchange,i.e.fixedcosts,withincertainproductionranges,theaverage(fixedcostsdividedbynumberofunits)willchangeasproductionchangeswithinthoseranges.Thus,todeterminetheincremental(ordifferential)costperunitonemustlookatthechangeintotalcostsbecauseofachangeinproductionactivityanddividebythetotalnumberofunits.2–10.Marketingandadministrativecostsaretreatedasperiodcostsandexpensedforfinancialaccountingpurposesinbothmanufacturingandmerchandisingorganizations.2–11.Knowingwhichcostswouldbeassignedtothefilmwasimportantforpeoplewhowerepaidbasedonapercentageofthefilm’snetprofits.HadtheyunderstoodhowcostsofForrestGumpweretobedefined,theymayhaveinsistedonashareofrevenuesoraflatfeeinsteadofprofitsharing.2–12.Answerwilldependontherestaurantstudied.Examplesare:materials—food;labor—mealpreparers;overhead—maintenance,utilities,leaseonbuilding.Provocativequestionsincludethefollowing:Arenapkins课后答案网andcondimentsdirectorindirectmaterials?Istherestaurantmanagerdirectorindirectlabor?Thenaskifthewayonecategorizesthesecostsaffectsmanagerialdecisions.(Probablynot.)2–13.www.hackshp.cnExamples:labor—instructors’salaries;overhead—departmentalofficestaff’ssalaries.©TheMcGraw-HillCompanies,Inc.,199714CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises2–14.(15min.)Basicconcepts.Fixed(F)Period(P)CostItemVariable(V)Product(R)a.Transportation-incostsonmaterialspurchased....................VRb.Assemblylineworkerswages................................................VRc.Propertytaxesonofficebuildingsforadministrativestaff......FPd.Salariesoftopexecutivesinthecompany.............................FPe.Overtimepayforassemblyworkers.......................................VRf.Salescommissions................................................................VPg.Salespersonnelofficerent.....................................................FPh.Salessupervisorysalaries.....................................................FPi.Controller’sofficerental.........................................................FPj.Administrativeofficeheatandairconditioning.......................FP2–15.(10min.)Basicconcepts.a.Factoryheatingandairconditioning.......................................Cb.Productionsupervisor’ssalary................................................Cc.Transportation-incostsonmaterialspurchased.....................Pd.Assemblylineworker’ssalary.................................................Be.Rawmaterialsusedinproductionprocess.............................Pf.Indirectmaterials....................................................................C课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter215若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–16.(15min.)Basicconcepts.ConceptDefinitionPeriodcosts5.Coststhatcanbemoreeasilyattributedtotimeintervals.Indirectcosts9.Coststhatcannotbedirectlyrelatedtoacostobject.Fixedcosts11.Coststhatdonotvarywiththevolumeofactivity.Opportunitycosts7.Thelostbenefitfromthebestforgonealternative.Outlaycosts6.Past,presentornear-futurecashflow.Directcosts10.Coststhatcanbedirectlyrelatedtoacostobject.Expense3.Thecostchargedagainstrevenueinaparticularaccountingperiod.Cost2.Asacrificeofresources.Variablecosts1.Coststhatvarywiththevolumeofactivity.Full-absorptioncost8.CostsusedtocomputeinventoryvalueaccordingtoGAAP.Productcosts4.Coststhatarepartofinventory.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199716CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–17.(15min.)Basicconcepts.CostItemFixed(F)Period(P)Variable(V)Product(R)a.Factorysecuritypersonnel.........................................FRb.Utilitiesincontroller’soffice........................................FPc.Factoryheatandairconditioning...............................FRd.Powertooperatefactoryequipment..........................VRe.Depreciationonfurnitureforcompanyexecutives.....FP2–18.(15min.)Preparestatementsforamerchandisingcompany:PC,Inc.PC,Inc.IncomeStatementFortheYearEndedDecember31,ThisYearRevenue..........................................................................$5,000,000Costofgoodssold(seestatementbelow)......................3,060,000Grossmargin...................................................................1,940,000Marketingandadministrativecosts.................................1,600,000Operatingprofit...............................................................$340,000PC,Inc.CostofGoodsSoldStatementFortheYearEndedDecember31,ThisYearBeginninginventory.........................................................$500,000Purchases.......................................................................$2,600,000Transportation-in.............................................................260,000Totalcostofgoodspurchased........................................2,860,000Costofgoodsavailableforsale......................................课后答案网3,360,000Endinginventory.............................................................300,000Costofgoodssold..........................................................www.hackshp.cn$3,060,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter217若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–19.(30min.)Preparestatementsforamanufacturingcompany.WerecommendsettingupeitherT-accountsorequationstosolveforthemissingdata.a.MaterialsInv.BeginningDirectDirectEndingdirect12,250directmaterials+materials=materials+materialsx23,850inventorypurchasedusedinventory13,60012,250+X=$23,850+$13,600X=$23,850+$13,600–$12,250X=$25,200FinishedGoodsBeginningCostofCostofEndingb.Inventoryfinishedgoods+goods=goods+finishedgoods2,250inventorymanufacturedsoldinventoryx28,0003,2502,250+X=$28,000+$3,250X=$28,000+$3,250–$2,250X=$29,000WorkinProcessBeginningworkTotalCostofEndingworkc.Inventoryinprocess+manufacturing=goods+inprocess16,150inventorycostmanufacturedinventoryx29,000*14,50016,150+X=$29,000*+$14,500X=$29,000+$14,500–$16,150X=$27,350*Fromsolutiontopartb.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199718CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–19.(continued)SebastianCompanyCostofGoodsSoldStatementFortheYearEndedDecember31Beginningworkinprocessinventory$16,150Manufacturingcosts:Directmaterials:Beginninginventory................................$12,250Purchases..............................................25,200(a)Materialsavailable.............................37,450Lessendinginventory............................13,600Directmaterialsused..........................$23,850Othermanufacturingcosts........................3,500*Totalmanufacturingcosts..................27,350(c)Lessendingworkinprocessinv.........14,500Costofgoodsmanufactured...........29,000(b)Beginningfinishedgoodsinventory...............2,250Finishedgoodsavailableforsale..................31,250Lessendingfinishedgoodsinventory...........3,250Costofgoodssold........................................$28,000Letters(a),(b),and(c)refertoamountsfoundforrequirementsa,b,andc.*Differencebetweentotalmanufacturingcostsanddirectmaterialsused:$3,500=$27,350–$23,850.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter219若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–20.(30min.)Preparestatementsforamanufacturingcompany:NishimotoMachineToolsCompanyWerecommendsettingupT-accountsorequationstosolveforthemissingdata.DirectMaterialsBeginningdirectDirectDirectEndingdirecta.Inventorymaterials+materials=materials+materials32,800inventorypurchasesusedinventoryx173,20036,600$32,800+X=$173,200+$36,600X=$173,200+$36,600–$32,800X=$177,000FinishedGoodsBeginningCostofCostofEndingb.Inventoryfinishedgoods+goods=goods+finishedgoods14,600inventorymanufacturedsoldinventoryx600,00015,000$14,600+X=$600,000+$15,000X=$600,000+$15,000–$14,600X=$600,400WorkinProcessBeginningworkTotalCostofEndingworkc.Inventoryinprocess+manufacturing=goods+inprocess36,200inventorycostsmanufacturedinventoryx600,400*35,400$36,200+X=$600,400+$35,400X=$600,400+$35,400–$36,200课后答案网X=$599,600*Frompartb.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199720CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–20.(continued)NishimotoMachineToolsCompanyCostofGoodsSoldStatementFortheYearEndedDecember31Beginningworkinprocessinventory$36,200Manufacturingcosts:Directmaterials:Beginninginventory.....................................$32,800Purchases...................................................177,000(a)Materialsavailable...................................209,800Lessendinginventory.................................36,600Directmaterialsused...............................$173,200Othermanufacturingcosts..........................426,400*Totalmanufacturingcosts.......................599,600(c)Totalcostsofworkinprocess.....................635,800Lessendingworkinprocess...................35,400Costofgoodsmanufactured................600,400(b)Beginningfinishedgoodsinventory....................14,600Finishedgoodsavailableforsale.......................615,000Endingfinishedgoodsinventory........................15,000Costofgoodssold.............................................$600,000Letters(a),(b),and(c)refertoamountsfoundinsolutionstorequirementsa,b,andc.*Differencebetweentotalmanufacturingcostsanddirectmaterialsused.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter221若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–21.(30min.)Preparestatementsforamanufacturingcompany:AlexisCompany.AlexisCompanyStatementofCostofGoodsSoldFortheYearEndedDecember31Workinprocess,Jan.1............................................$30,800Manufacturingcosts:Directmaterials:Beginninginventory,Jan.1...............................$36,800Addmaterialpurchases.....................................44,600Directmaterialsavailable...................................81,400Lessendinginventory,Dec.31.........................38,000Directmaterialsused.........................................$43,400Directlabor............................................................71,200Manufacturingoverhead:Supervisoryandindirectlabor...........................28,800Indirectmaterialsandsupplies..........................12,600Plantutilitiesandpower.....................................47,000Manufacturingbuildingdepreciation..................54,000Propertytaxes,manufacturingplant..................16,800Totalmanufacturingoverhead.......................159,200Totalmanufacturingcosts..........................273,800Totalcostofworkinprocessduringtheyear...........304,600Lessworkinprocess,Dec.31..............................26,200Costsofgoodsmanufacturedduringtheyear...278,400Beginningfinishedgoods,Jan.1..............................21,800Finishedgoodsinventoryavailableforsale..............300,200Lessendingfinishedgoodsinventory,Dec.31........18,000Costofgoodssold....................................................课后答案网$282,200AlexisCompanywww.hackshp.cnIncomeStatementFortheYearEndedDecember31Salesrevenue...........................................................$420,800Less:Costofgoodssold..........................................282,200Grossmargin............................................................138,600Administrativecosts..................................................$88,600Marketingcosts(salescommissions).......................30,400Totalmarketingandadministrativecosts.................119,000Operatingprofit.........................................................$19,600©TheMcGraw-HillCompanies,Inc.,199722CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–22.(30min.)Preparestatementsforamanufacturingcompany:Tots’ToyFactory.Tots’ToyFactoryStatementofCostofGoodsSoldFortheYearEndedDecember31Beginningworkinprocess,Jan.1..................................$6,600Manufacturingcosts:Directmaterials:Beginninginventory,January1...............................$8,200Addpurchases........................................................10,150Directmaterialsavailable....................................18,350Lessendinginventory,December31......................9,000Directmaterialsputintoprocess.........................$9,350Directlabor.................................................................16,300Manufacturingoverhead:Supervisoryandindirectlabor.................................6,200Indirectmaterialsandsupplies................................2,150Plantutilitiesandpower..........................................10,750Manufacturingbuildingdepreciation.......................12,500Propertytaxes,manufacturingplant.......................3,700Totalmanufacturingoverhead....................................35,300Totalmanufacturingcosts...................................60,950Totalcostofworkinprocessduringtheyear.................67,550Lessworkinprocess,December31...........................5,550Costsofgoodsmanufacturedduringtheyear........62,000Beginningfinishedgoods,January1.............................4,450Finishedgoodsinventoryavailableforsale...................66,450Lessendingfinishedgoodsinventory,December31.....课后答案网4,050Costofgoodssold.........................................................62,400www.hackshp.cnTots’ToyFactoryIncomeStatementFortheYearEndedDecember31Salesrevenue..........................................................$97,200Less:Costofgoodssold(perstatement)................62,400Grossmargin............................................................34,800Administrativecosts.................................................$21,550Salescommissions...................................................7,100Totalmarketingandadministrativecosts.................28,650Operatingprofit........................................................$6,150©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter223若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–23.(30min.)Preparestatementsforamanufacturingcompany:Carey’sCakes.Carey’sCakesStatementofCostofGoodsSoldFortheYearEndedDecember31Beginningworkinprocess,Jan.1.............................$7,700Manufacturingcosts:Directmaterials:Beginninginventory,Jan.1................................$8,600Add:Purchases..................................................11,560Transportation-in.........................................1,150Directmaterialsavailable................................21,310Lessendinginventory,Dec.31..........................8,050Directmaterialsused......................................$13,260Directlabor.............................................................19,350Manufacturingoverhead:Supervisoryandindirectlabor............................10,950Suppliesandindirectmaterials...........................1,450Heat,lightandpower—plant(77.6%oftotal).....9,700Depreciation—manufacturing(80%oftotal).......12,000Propertytaxes—plant(80%oftotal)...................3,150Totalmanufacturingoverhead........................37,250Totalmanufacturingcosts...........................69,860Totalcostofworkinprocessduringtheyear............77,560Lessworkinprocess,Dec.31...............................6,210Costsofgoodsmanufacturedduringtheyear....71,350Beginningfinishedgoods,Jan.1...............................3,550Finishedgoodsavailableforsale..............................课后答案网74,900Lessendingfinishedgoods,Dec.31.........................4,950Costofgoodssold.....................................................$69,950www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199724CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–23.(continued)Carey’sCakesIncomeStatementFortheYearEndedDecember31Salesrevenue....................................................$131,150Less:Costofgoodssold(perstatement)..........69,950Grossprofit.........................................................61,200Marketingandadministrativecosts:Depreciation(20%oftotal).............................$3,000Heat,lightandpower(22.4%oftotal)............2,800Propertytaxes(25%oftotal)..........................1,050Administrativesalaries....................................18,000Otheradministrativecosts..............................4,350Marketingcosts..............................................16,350Totalmarketingandadministrativecosts.......45,550Operatingprofit..................................................$15,650课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter225若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–24.(20min.)Costbehaviorfordecisionmaking:ExcalaburCompany.Variablecosts:Directmaterialsused($35,200x1.4)..................................$49,280Directlabor($66,500x1.4).................................................93,100Indirectmaterialsandsupplies($8,000x1.4).....................11,200Powertorunplantequipment($7,100x1.4)......................9,940Totalvariablecosts..............................................................$163,520Fixedcosts:Supervisorysalaries............................................................31,100Plantutilities(otherthanpowertorunplantequipment).....9,600Depreciationonplantandequipment..................................4,800Propertytaxesonbuilding...................................................6,500Totalfixedcosts...................................................................52,000Totalcostsfor1,400units.......................................................$215,520$215,520Unitcost=1,400units=$153.94$163,520Unitvariablecost==$116.801,400unitsChecktoseeifvariablecostperunitisthesameat1,400unitsasat1,000units:Unitvariablecost$35,200+$66,500+$8,000+$7,100$116,800===$116.80at1,000units1,0001,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199726CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–25.(20min.)Costbehavior:ExcalaburCompany.Fixedcosts=$52,000=$31,100+$9,600+$4,800+$6,500Fixedcost=$52,000=$31,100+$9,600+$4,800+$6,500$Fixed52,000costsVolumeVariablecosts=$116.80perunit=($163,520¸1,400units)or($116,800¸1,000units)$VariableCosts163,520116,800课后答案网www.hackshp.cn100014002000Volume©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter227若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–26.(30min.)Componentsoffullcosts.Directmaterials=$120Full-absorptioncostVariableDirectlabormanufacturing=$268=$70costs=$208VariablemanufacturingoverheadFullcost=$18UnitofmakingvariableandsellingcosttheproductFixedmanufacturing=$224=$324overhead=$60($72,000¸1,200units)VariableVariablemarketingmarketingandandadministrativeadministrative=$16=$16Fixedmarketingandadministrative课后答案网=$40($48,000¸1,200units)a.Variablemanufacturingcost:www.hackshp.cn$120+$70+$18=$208b.Variablecost:$120+$70+$18+$16=$224c.Fullabsorptioncost:$120+$70+$18+($72,000/1,200units)=$268d.Fullcost:$120+$70+$18+$16+($72,000/1,200units)+($48,000/1,200units)=$324©TheMcGraw-HillCompanies,Inc.,199728CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–27.(15min.)Componentsoffullcosts.a.Productcostperunit:$120+$70+$18+($72,000/1,200units)=$268b.Periodcostsfortheperiod:$48,000+($16x1,200units)=$67,200课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter229若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–28.(30min.)Componentsoffullcost:YoungCompany.a.Directmaterials=$175Full-absorptioncostVariableDirectlabormanufacturing=$500=$150costs=$425VariablemanufacturingoverheadFullcost=$100UnitofmakingvariableandsellingcosttheproductFixedmanufacturing=$465=$605overhead=$75($75,000¸1,000units)VariableVariablemarketingmarketingandandadministrativeadministrative=$40=$40课后答案网Fixedmarketingandadministrative=$65www.hackshp.cn($65,000¸1,000units)1.Variablemanufacturingcost:$175+$150+$100=$4252.Variablecost:$175+$150+$100+$40=$4653.Full-absorptioncost:$175+$150+$100+($75,000/1,000units)=$5004.Fullcost:$175+$150+$100+($75,000/1,000units)+($65,000/1,000units)+$40=$605©TheMcGraw-HillCompanies,Inc.,199730CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–28.(continued)b.Profitmarginandgrossmargin(perunitat1,000units):VariableManufacturingCost$425FullManufacturingCostPerUnit=$500FixedManufacturingCost$75FullCostVariableMarketing&=$605SalesPriceAdministrativeCost$40=$650GrossFixedMarketing&Margin=$150AdministrativeCost$65ProfitExcessofPriceMargin=$45OverUnitFullCost$45Profitmarginandcontributionmargin(perunitat1,000units):VariableManufacturingCost$425VariableCostPerUnit=$465VariableMarketing&AdministrativeCost$40FixedManufacturingSalesCost$75Price=$650ContributionFixedMarketing&Margin=$185AdministrativeCost$65ProfitExcessofPriceMargin=$45课后答案网OverUnitFullCost$45www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter231若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–29.(20min.)Componentsoffullcosts:Serviceorganizations:Joe’sTaxServicea.Variablecostsformonth+(Fixedcostsforthemonth/hours)=Costperunit(aunitisanhourbilled.)$20+($55,000/20,000hours)=$22.75b.1.Priceperhour–Costperunit=Profitmargin$35–$22.75=$12.252.Priceperhour–Variablecostsperhour=Contributionmargin$35–$20=$15课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199732CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–30.(30min.)Valueincomestatement:TopVideosa.TopVideosValueIncomeStatementForthemonthendingAugust31Nonvalue-Value-addedaddedactivitiesactivitiesTotalSalesRevenue$200,000$200,000Costofmerchandise:Costofgoodssold110,000110,000Defectivegoodsdestroyed$10,00010,000Grossmargin(10,000)90,00080,000Operatingexpenses:Employeesalariesandwages8,00032,00040,000Supervisorysalaries2,0008,00010,000Rent,utilities,andotherstorecosts*20,00020,000Operatingincome/(loss)$(20,000)$30,000$10,000*Aportionofthesecostsmightbenonvalue-addediftheycanbereducedbyreducingnonvalue-addedactivities.b.Thestoremanagercanimplementqualitycontrolprocedurestoidentifydefectivegoodsastheyreachthestoreratherthanwaitingforcustomerstocomplainorreturnthedefectivegoods.Inaddition,thestoremanagercancontactthestudiosthatproducethevideosandaskforimprovedquality(thestudiosmayhavetheupperhandiftheyaretheonlyonesdistributingthevideos—especiallythepopularvideos!)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter233若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–31.(30min.)Valueincomestatement:Atul’sRestauranta.Atul’sRestaurantValueIncomeStatementForthemonthendingNovember30Nonvalue-Value-addedaddedactivitiesactivitiesTotalSalesRevenue$130,000$130,000CostoffoodandbeveragesFoodandbeverages34,00034,000Foodreturnedbypatrons$3,0003,000Foodrejectedinthekitchen2,0002,000Grossmargin(5,000)96,00091,000Operatingexpenses:Employeesalariesandwages9,00051,00060,000Supervisorysalaries1,80010,20012,000Rent,utilities,andotherstorecosts*16,00016,000Operatingincome/(loss)$(15,800)$18,800$3,000*Aportionofthesecostsmightbenonvalue-addediftheycanbereducedbyreducingnonvalue-addedactivities.b.Therestaurantmanagercanbuybetterqualitygoodsfromsupplierstopreventfoodwasteinthekitchen.Thechefcanalsoinspectthepreparedfoodbeforetakingittothecustomertoreducethenumberofreturnedmeals.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199734CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–32.(30min.)Valueincomestatement:TasteeIceCreamShopa.TasteeIceCreamShopValueIncomeStatementForthemonthendingJuly31Nonvalue-Value-addedaddedactivitiesactivitiesTotalSalesRevenue$60,000$60,000Costoficecream4,40017,60022,000Grossmargin(4,400)42,40038,000Operatingexpenses:Employeesalariesandwages2,0006,0008,000Supervisorysalaries3,0009,00012,000Rent,utilities,andotherstorecosts*9,0009,000Operatingincome/(loss)$(9,400)$18,400$9,000*Aportionofthesecostsmightbenonvalue-addediftheycanbereducedbyreducingnonvalue-addedactivities.b.Theicecreamshopmanagershouldconsiderpurchasingabackupgeneratorforfuturepoweroutages—especiallyiftheseoutagesarecommon.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter235若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems2–33.(30min.)Costconcepts:Multiplechoice.a.Theansweris(1).Primecosts=directmaterials+directlaborDirectmaterials=beginninginventory+purchases–endinginventory=$9,000+$21,000–$7,500=$22,500Directlaborisgivenas$15,000Primecosts=$22,500+$15,000=$37,500b.Theansweris(3).Conversioncosts=directlabor+manufacturingoverheadConversioncosts=$15,000+$20,000=$35,000c.Theansweris(2).Totalmanufacturingcosts=directmaterials+directlabor+manufacturingoverhead=$22,500(fromaabove)+$15,000+$20,000=$57,500d.Theansweris(1).Costofgoodsmanufactured=beginningWIP+totalmanufacturingcosts–endingWIP=beginningWIP+directmaterials+directlabor+manufacturingoverhead–endingWIP=$4,500+$22,500+$15,000+$20,000–$3,000课后答案网=$4,500+$57,500(fromcabove)–$3,000=$59,000www.hackshp.cne.Theansweris(4).CostofCostofBeginningEndingfinishedgoods=goods+finishedgoods–goodssoldmanufacturedinventoryinventory=$59,000(fromdabove)+$13,500–$18,000=$54,500©TheMcGraw-HillCompanies,Inc.,199736CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–34.(30minutes)CostConcepts:multiplechoice.a.Theansweris(3)variablemanufacturingcost=manufacturingoverhead+directlabor+directmaterials=$30+$10+$40=$80b.Theansweris(4)fullunitcost=allunitfixedcosts+allunitvariablecosts=$20+$15+$5+$30+$10+$40=$120c.Theansweris(2)variablecost=allvariableunitcosts=$5+$30+$10+$40=$85d.Theansweris(1)fullabsorptioncost=fixedandvariablemanufacturingoverhead+directlabor+directmaterials=$15+$30+$10+$40=$95e.Theansweris(2).Primecost=directlabor+directmaterials=$10+$40=$50课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter237若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–34.(continued)f.Theansweris(4).conversioncost=directlabor+manufacturingoverhead=$10+($30+$15)=$55g.Theansweris(2).profitmargin=salesprice–fullcost=$160–$120=$40h.Theansweris(2).contributionmargin=salesprice–variablecosts=$160–$85=$75i.Theansweris(4).grossmargin=salesprice–fullabsorptioncost=$160–$95=$65j.Theansweris(1).Asthenumberofunitsincreases(reflectedinthedenominator),fixedmanufacturingcostperunitdecreases.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199738CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–35.(40min.)Findtheunknownaccountbalances.a.FinishedgoodsCostofgoodsCostofFinishedgoods+–=beginninginventorymanufacturedgoodssoldendinginventoryFinishedgoods$254,200+$679,200–$760,000=endinginventoryFinishedgoods$173,400=endinginventoryb.DirectDirectManufacturingTotal++=materialsusedlaboroverheadmanufacturingcostsDirect+$173,000+$240,000=$679,600materialsusedDirecta=$266,600(=$679,600–$173,000–$240,000)materialsusedc.MaterialsMaterialsMaterials+Purchases–=beginninginventoryusedendinginventory$8,000+Purchases–$15,000=$12,400Purchases=$19,400(=$12,400–$8,000+$15,000)d.Materialsbeginning+Purchases–Materials=Materialsinventoryusedendinginventory$45,000+$248,400–$234,200=Materialsendinginventory$59,200=Materials课后答案网endinginventorywww.hackshp.cnaAlsocanbefoundfromtheDirectMaterialsInventoryaccount:$24,600+$262,000=$20,000+Directmaterialsused.Directmaterialsused=$266,600©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter239若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–35.(continued)e.WorkinprocessTotalmanufacturingCostofgoodsWorkinprocess+–=beginninginventorycostsmanufacturedendinginventoryWorkinprocess+$1,526,800–$1,518,220=$85,200beginninginventoryWorkinprocess=$76,620(=$85,200–$1,526,800+$1,518,220)beginninginventoryf.Revenue–Costofgoodssold=Grossmargin$3,359,900–Costofgoodssold=$1,874,600Costofgoodssold=$1,485,300(=$3,359,900–$1,874,600)g.DirectmaterialsDirectManufacturingTotal++=usedlaboroverheadmanufacturingcostsDirect$234,200++$430,600=$1,526,800laborDirect=$862,000(=$1,526,800–$234,200–$430,600)labor课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199740CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–35.(continued)(Extraitems.)SomeinstructorsrequireStatementsofCostofGoodsSoldwhichweincludehere:Company1Company2Workinprocess,January1......................................$11,600$12,560Manufacturingcosts:Directmaterials:Directmaterialsinventory,January1................$24,600$8,000Directmaterialspurchased...............................262,00019,400(c)Directmaterialsavailableforuse..................286,60027,400Lessmaterialsinventory,December31........20,00012,400Materialsused...............................................$266,600(b)$15,000Directlabor...........................................................173,00023,200Manufacturingoverhead.......................................240,00019,800Totalmanufacturingcosts..........................679,60058,000Totalcostsofworkinprocessduringtheyear.........691,20070,560Lessworkinprocess,December31.....................12,00012,560Costofgoodsmanufacturedthisyear..............679,20058,000Addfinishedgoods,January1.................................254,2002,800Costofgoodsavailableforsale...............................933,40060,800Lessfinishedgoods,December31..........................课后答案网173,400(a)4,600Costofgoodssold....................................................$760,000$56,200Note:Superscriptletterscross-referencetomissingamountsintheproblem.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199741若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–35.(concluded)(Extraitems.)Company3Workinprocess,January1......................................$76,620(e)Manufacturingcosts:Directmaterials:Directmaterialsinventory,January1................$45,000Directmaterialspurchased...............................248,400Directmaterialsavailableforuse..................293,400Lessmaterialsinventory,December31........59,200(d)Materialsused...............................................$234,200Directlabor...........................................................862,000(g)Manufacturingoverhead.......................................430,600Totalmanufacturingcosts..........................1,526,800Totalcostsofworkinprocessduringtheyear.........1,603,420Lessworkinprocess,December31.....................85,200Costofgoodsmanufacturedthisyear..............1,518,220Addfinishedgoods,January1.................................334,480Costofgoodsavailableforsale...............................1,852,700Lessfinishedgoods,December31..........................367,400Costofgoodssold....................................................$1,485,300(f)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199742若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–36.(40min.)Findtheunknownaccountbalances.a.Materials+Purchases–Materials=MaterialsbeginninginventoryusedendinginventoryMaterials+$16,100–$15,300=$3,600beginninginventoryMaterials=$2,800(=$3,600–$16,100+$15,300)beginninginventoryb.WorkinprogressTotalCostofgoodsWorkin+–=beginninginventorymanufacturingmanufacturedprocessendingcostsinventoryCostofgoods$2,700+$55,550–=$3,800manufacturedCostofgoods=$54,450manufactured(=$2,700+$55,550–$3,800)c.Salesrevenues–Costofgoodssold=Grossmargin$103,300–$56,050=Grossmargin$47,250=Grossmargind.FinishedgoodsCostofgoodsCostofFinishedgoods+–=beginninginventorymanufacturedgoodssoldendinginventoryFinishedgoods课后答案网+$27,220–$27,200=$4,400beginninginventoryFinishedgoods=$4,380(=$4,400–$27,220+$27,200)beginninginventorywww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter243若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–36.(continued)e.TotalDirectDirectManufacturing++=manufacturingmaterialsusedlaboroverheadcostsDirecta+$3,800+$7,200=$23,600materialsusedDirecta=$12,600(=$23,600–$3,800–$7,200)materialsusedf.Salesrevenue–Costofgoodssold=GrossmarginSalesrevenue–$27,200=$16,400Salesrevenue=$43,600(=$16,400+$27,200)g.DirectDirectManufacturingTotal++=materialsusedlaboroverheadmanufacturingcostsManufacturing$66,100+$124,700+=$308,100overheadManufacturing=$117,300overhead课后答案网www.hackshp.cnaAlsofoundfromDirectMaterialsInventoryaccount:Beg.Bal.+Purchases=Mat.Used+End.Bal.$3,500+$12,000=Mat.used+$2,900Mat.used=$12,600©TheMcGraw-HillCompanies,Inc.,1997若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–36.(continued)(Extraitems.)SomeinstructorsassigntheCostofGoodsSoldStatements.Heretheyare:Company1Company2Workinprocess,January1................................$2,700$6,720Manufacturingcosts:Directmaterials:Directmaterialsinventory,January1..........$2,800(a)$3,500Directmaterialspurchased.........................16,10012,000Directmaterialsavailableforuse............18,90015,500Lessmaterialsinventory,December31..3,6002,900Materialsused.........................................15,300$12,600(e)Directlabor.....................................................26,4503,800Manufacturingoverhead.................................13,8007,200Totalmanufacturingcosts....................55,55023,600Totalcostsofworkinprocessduringtheyear...58,25030,320Lessworkinprocess,December31...............3,8003,100Costofgoodsmanufacturedthisyear........54,450(b)27,220Addfinishedgoods,January1...........................1,9004,380(d)Costofgoodsavailableforsale.........................56,35031,600Lessfinishedgoods,December31....................课后答案网3004,400Costofgoodssold..............................................$56,050$27,200www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199745若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–36.(concluded)(Extraitem.)Company3Workinprocess,January1......................................$82,400Manufacturingcosts:Directmaterials:Directmaterialsinventory,January1................$16,000Directmaterialspurchased...............................64,200Directmaterialsavailableforuse..................80,200Lessmaterialsinventory,December31........14,100Materialsused...............................................$66,100Directlabor...........................................................124,700Manufacturingoverhead.......................................117,300(g)Totalmanufacturingcosts..........................308,100Totalcostsofworkinprocessduringtheyear.........390,500Lessworkinprocess,December31.....................76,730Costofgoodsmanufacturedthisyear..............313,770Addfinishedgoods,January1.................................17,200Costofgoodsavailableforsale...............................330,970Lessfinishedgoods,December31..........................28,400Costofgoodssold....................................................$302,570课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–37.(30min.)Reconstructfinancialstatements:GarciaMesaCompany.GarciaMesaCompanyStatementofCostofGoodsSoldFortheYearEndedDecember31Workinprocess,January1................................$12,950Manufacturingcosts:Directmaterials:Directmaterialsinventory,January1..........$53,550aDirectmaterialspurchased.........................180,000Directmaterialsavailableforuse............233,550Lessmaterialsinventory,December31..42,500Materialsused.........................................$191,050Directlabor..................................................200,000Manufacturingoverhead:Indirectlabor...............................................16,000Plantheat,lightandpower..........................18,600Buildingdepreciation...................................31,500bMiscellaneousfactoryexpenses.................15,950Maintenanceonfactorymachines..............6,050Insuranceonfactoryequipment..................9,500Taxesonmanufacturingproperty...............6,550Totaloverhead........................................104,150Totalmanufacturingcosts....................495,200Totalcostofworkinprocessduringtheyear.....508,150Lessworkinprocess,December31...............12,300Costofgoodsmanufacturedthisyear........495,850Addfinishedgoods,January1...........................课后答案网40,000Costofgoodsavailableforsale.........................535,850Lessfinishedgoods,December31....................www.hackshp.cn45,000Costofgoodssold(toincomestatement).............$490,850aMaterialsusedisgiven,butthisnumberisnot.Toobtainit,Beg.Bal.+Purchases=Mat.Used+End.Bal.Beg.Bal.=Mat.Used+End.Bal.–Purchases$53,550=$191,050+42,500–$180,000b$31,500=7/9times$40,500©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter247若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–37.(continued)GarciaMesaCompanyIncomeStatementFortheYearEndedDecember31Salesrevenue.......................................................$812,500Less:Costofgoodssold(perstatement).............490,850Grossmargin........................................................321,650Buildingdepreciation.........................................$9,000aAdministrativesalaries......................................25,700Marketingcosts.................................................18,500Distributioncosts...............................................800Legalfees..........................................................4,100Totaloperatingcosts.........................................58,100Operatingprofit.....................................................$263,550a2/9times$40,500课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199748CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn2–38.(30min.)Analyzetheimpactofadecisiononincomestatements:Micro,Inc.a.Thisyear’sincomestatement:BaselineRent(StatusQuo)EquipmentDifferenceRevenue................................................$1,600,000$1,600,0000Operatingcosts:Variable.............................................(200,000)(200,000)0Fixed(cashexpenditures).................(750,000)(750,000)0Equipmentdepreciation.....................(150,000)(150,000)0Otherdepreciation.............................(125,000)(125,000)0Lossfromequipmentwrite-off...........0(850,000)a$850,000lowerOperatingprofit(beforetaxes)..............$375,000$(475,000)$850,000loweraEquipmentwrite-off=$1millioncost–$150,000accumulateddepreciationforoneyear(equipmentwaspurchasedonJanuary1oftheyear).b.Nextyear’sincomestatement:BaselineRent(StatusQuo)EquipmentDifferenceRevenue..............................................$1,600,000$1,760,000$160,000higherOperatingcosts:Equipmentrental.............................0(230,000)230,000higherVariable...........................................(200,000)(200,000)0Fixedcashexpenditures..................(750,000)(712,500)37,500lowerEquipmentdepreciation...................(150,000)0150,000lowerOtherdepreciation...........................(125,000)(125,000)0Operatingprofit...................................课后答案网$375,000$492,500117,500higherwww.hackshp.cnc.Despitetheeffectonnextyear’sincomestatement,thecompanyshouldnotrentthenewmachinebecausenetcashinflowasaresultofinstallingthenewmachine($160,000+$37,500)doesnotcovercashoutflowforequipmentrental.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter249若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter3CostSystemDesign:AnOverviewSolutionstoReviewQuestions3–1.Ajobcostingaccountingsystemtracescoststoindividualunitsortospecificjobs(typicallycustomproducts).Aprocesscostingaccountingsystemisusedwhenidenticalunitsareproducedthroughaseriesofuniformproductionsteps.Operationcostingisusedwhengoodshavesomecommoncharacteristics(processcosting)andsomeindividualcharacteristics(jobcosting).3–2.Continuousflowprocessingisusedwhenasingleproductismassproducedinacontinuingprocess.Exampleswouldincludeproductssuchaspaint,gasoline,paper,oranyothersthataremassproducedinacontinuingprocess.3–3.Thebasiccostflowmodelappearsasfollows:Beginningbalance+Transfersin–Transfersout=EndingbalanceBeginningbalanceisthebalanceofinventoryatthebeginningoftheperiod.Transfersinrepresentinventorypurchasedortransferredinfromanotherdepartment(forexample,rawmaterialswouldbegoodstransferredintoworkinprocess)fortheperiod.Transfersoutaregoodstransferredfromonedepartmenttoanother(forexample,workinprocesswouldbetransferredouttofinishedgoods).Endingbalancerepresentstheamountofinventoryinadepartmentattheendoftheaccountingperiod.3–4.Theperpetualmethodofinventoryaccountingrequiresanongoingrecordoftransfers-inandtransfers-out课后答案网forallinventoryaccounts.Managementisabletodetermineinventoryamountsatanypointintime.Thephysicalmethodofinventoryaccountingrequiresthataphysicalcountofinventorybeperformedtodetermineinventoryamounts.www.hackshp.cn3–5.Backflushcostingistypicallyusedincompaniesthatusejust-in-timeproductionprocesses.Inventorylevelsarekepttoaminimum.Productioncostsarerecordeddirectlyincostsofgoodssoldwhenincurred.Attheendoftheaccountingperiod,costsareassigned(backflushed)toanyremaininginventoryonhand.3–6.Traditionalcostingsystemsattachcoststotheproductateachstepoftheproductionprocess.SeePanelAofillustration3–3foradetaileddescriptionoftheflowofcoststhroughT-accountsusingatraditionalcostingsystem.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter351若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–7.ThethreeimportantcharacteristicsofaJITsystemareasfollows:1.Inventorylevelsarereduced(thusreducingcarryingcosts).2.Theproductionprocessisimprovedasqualitybecomesincreasinglyimportant.3.Thetimetoproduceaproductisreduced—allowingformoreflexibilityinmeetingcustomers’demands.SolutionstoCriticalAnalysisandDiscussionQuestions3–8.Customercostingcomparesthecostsofservingacustomertotherevenuesgeneratedfromthatcustomer.Marketingmanagersareabletousethisinformationtoassesstheprofitabilityofeachcustomer.3–9.Therearethreeimportantpointstoconsider:1.Thecostsystemshouldmeettheneedsoftheusers(thedecisionmakers).2.Thecostsystemmustprovidetheappropriatedataforitsintendedpurpose.Differentcostinformationisusedfordifferentpurposes.3.Costinformationformanagerialpurposesmustmeetthecost-benefittest.Thecostsofimplementingthesystemshouldbelessthanthebenefitsderivedfromthesystem(i.e.betterdecisions).3–10.Thebasiccostflowmodelisasfollows:Beginningbalance+Transfersin–Transfersout=EndingbalanceThismodelisusedforfindingoneunknownorforcomparingperpetualinventorysystemoutputtoaphysicalinventorycount.Anexampleoffindingoneunknownisifthebeginningbalanceisknown(fromthepreviousperiodendingbalance),transfersinareknown,andendinginventoryiscountedphysically—andweareaskedtofindthecostofgoodssoldfortheperiod(transfersout).3–11.Thememoshouldincludeadescriptionofthetwomethods.Theperpetualmethodofinventoryaccountingrequiresanongoingrecordoftransfers-inandtransfers-outforallinventoryaccounts.Managementisable课后答案网todetermineinventoryamountsatanypointintime.Thephysicalmethodofinventoryaccountingrequiresthataphysicalcountofinventorybeperformedtodetermineinventoryamounts.www.hackshp.cnThememoshouldalsoincludearecommendationwithreasoningtobackuptherecommendation.Perpetualinventorysystemsaremoreappropriateforhighvolumeretailersandaremorecostlytomaintainthanphysicalinventorysystems.Conversely,physicalinventorysystemsaremoreappropriateforlowvolumeretailers.Itisnotclearwhichcategoryanewsportinggoodsstorefallsunder.However,ifhighgrowthisanticipated,aperpetualinventorysystemmaybeappropriate.©TheMcGraw-HillCompanies,Inc.,199752CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–12.Reasonstoagreewithapproach:Ifthecustomersarenotcontributingtocompanyprofits,thenthecutomersshouldbeeliminated.Thiswillincreaseoverallcompanyprofits.Reasonsnottoagreewithapproach:Themarketingmanagermaybebuildingarelationshipwithnewcustomershopingforalong-termpayoffasthesecustomersgrow.Toenticethesecustomerstodobusinesswiththecompany,Johnmaybeofferingdiscountsonhisproductsorprovidingincreasedcustomerservice.Thus,theremightbestrategicconsiderationsthatoutweighthefinancialconsiderations.3–13.JITproductioncanworkwellwithcompaniesthathaveveryefficientpurchasingandproductionprocesses.Ifthiscompanyhasanyconsistentproblemsintheseareas,JITcouldbeadisaster.Also,JITiseffectiveonlyifthecompanyhasabacklogoforders.Ifproductionisshutdownforlongperiodswhileawaitingorders,JITwillnotwork.Inaddition,ifcustomersareaccustomedtoreceivingproductsimmediatelyuponbeingordered,JITwilllikelyincreasethewaitingperiodsincenofinishedgoodsinventoryismaintained.3–14.GMwastryingtominimizeinventorieswhileinplementingJIT.Asaresult,brakepartswereinshortsupplyatmostofGM’splantsbeforethestrikebegan.OncetheinflowofbrakepartsstoppedatmostofGM’splants,theseplantswereforcedtoshutdown.3–15.Just-in-timeeliminatesinventorywherespoiledgoodsanddefectscanbestored.Ifadepartmentismakingdefectiveproducts,withJITitmustcorrecttheproblembeforetheproductsaretransferredtothenextdepartment.3–16.FlexiblemanufacturingenablescompaniestochangefromproductionofproductAtoproductBquickly,withminimalsetuptime.Thisreducestheneedforinventories.3–17.Endinginventorycanbedeterminedtwoways.First,youcanphysicallycounttheinventoryanddeterminetotalcostbasedonthecount.Second,youcanusethebasiccostflowmodel(BB+TI–TO=EB)toverifytheresultsofcostingoutthephysicalcountofinventory.Iffraudoccursinthephysicalcountprocess,it课后答案网shouldbedetectedusingthebasiccostflowapproach.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter353若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises3–18.(20min.)Basiccostflowmodel:SinghCompanya.$150,000(seeitem5)b.$410,000=$400,000+$10,000(seeitems2&3)c.$125,000(seeitem5)d.$435,000BB+TI–TO=EB$150,000+$410,000–X=$125,000X=$150,000+$410,000–$125,000X=$435,0003–19.(20min.)Basiccostflowmodel:BoeingCompanya.$394million=$104million+$164million+(.7x$180million)b.$236.4million=.6x$394millionc.BB+TI–TO=EB0+$394million–$236.4million=EBEB=$157.6million课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199754CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–20.(20min.)Basiccostflowmodel.Basedonthebasicformula:BB+TI–TO=EBa.$34,000+$32,000–$38,000=XX=$28,000b.$14,200+X–$44,000=$12,400X=$12,400–$14,200+$44,000X=$42,200c.$78,000+$140,000–X=$64,000X=$78,000+$140,000–$64,000X=$154,0003–21.(20min.)Basiccostflowmodel.Basedonthebasicformula:BB+TI–TO=EBa.$136,000+$128,000–$152,000=XX=$112,000b.$56,800+X–$176,000=$49,600X=$49,600–$56,800+$176,000X=$168,800c.$312,000+$560,000–X=$256,000X=$312,000+$560,000–$256,000X=$616,0003–22.(20min.)Basiccostflowmodel.课后答案网Basedonthebasicformula:BB+TI–www.hackshp.cnTO=EBa.$170,000+$160,000–$190,000=XX=$140,000b.$71,000+X–$220,000=$62,000X=$62,000–$71,000+$220,000X=$211,000c.$390,000+$700,000–X=$320,000X=$390,000+$700,000–$320,000X=$770,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter355若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–23.(20min.)Basiccostflowmodel:TowerDesigns.a.BB+TI–TO=EBBB+$9,000–$10,500=$3,750BB=$10,500+$3,750–$9,000BB=$5,250b.MaterialsaretransferredfromDirectMaterialsInventorytoWorkinProcessInventory:$10,500.c.GoodsaretransferredfromWorkinProcesstoFinishedGoods:$29,300d.CostofgoodschargedtoCostofGoodsSoldcomesfromFinishedGoods:$41,000e.BB+TIMat’ls+TILabor+TIOverhead–TO=EB$3,000+$10,500+$8,500+TIOverhead–$29,300=$4,850TIOverhead+$4,850–$3,000–$10,500–$8,500+$29,300TIOverhead=$12,150f.BB+TI–TO=EB$23,200+$29,300–$41,000=EBEB=$11,500课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199756CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–24.(20min.)Basiccostflowmodel:BridalWearCorp.a.BB+TI–TO=EBBB+$27,000–$31,500=$11,250BB=$31,500+$11,250–$27,000BB=$15,750b.MaterialsaretransferredfromDirectMaterialsInventorytoWorkinProcessInventory:$31,500.c.GoodsaretransferredfromWorkinProcesstoFinishedGoods:$87,900d.CostofgoodschargedtoCostofGoodsSoldcomesfromFinishedGoods:$123,000e.BB+TIMat’ls+TILabor+TIOverhead–TO=EB$9,000+$31,500+$25,500+TIOverhead–$87,900=$14,550TIOverhead=$14,550–$9,000–$31,500–$25,500+$87,900TIOverhead=$36,450f.BB+TI–TO=EB$69,600+$87,900–$123,000=EBEB=$34,500课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter357若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–25.(20minutes)CustomerCosting:Powertools,Inc.LarryCurlyMoeSalesrevenue...........................$40,0001$20,0002$140,0003Costofgoodssold...................48,00046,000566,0006Grossmargin...........................(8,000)14,00074,000M&Acosts................................8,750710,500815,7509Operatingprofit........................$(16,750)$3,500$58,2501$40,000=$200,000x20%2$20,000=$200,000x10%3$140,000=$200,000x70%4$48,000=$120,000x40%5$6,000=$120,000x5%6$66,000=$120,000x55%7$8,750=$35,000x25%8$10,500=$35,000x30%9$15,750=$35,000x45%3–26.(20minutes)CustomerCosting:CustomTrailersInc.TrailTrailRiteWaysUTrailSalesrevenue...........................$360,0001$30,0002$210,0003Costofgoodssold...................234,000436,000590,0006Grossmargin...........................126,000(6,000)120,000M&Acosts................................课后答案网78,750710,500815,7509Operatingprofit........................$47,250$(16,500)$104,2501$360,000=$600,000x60%www.hackshp.cn2$30,000=$600,000x5%3$210,000=$600,000x35%4$234,000=$360,000x65%5$36,000=$360,000x10%6$90,000=$360,000x25%7$78,750=$105,000x75%8$10,500=$105,000x10%9$15,750=$105,000x15%©TheMcGraw-HillCompanies,Inc.,199758CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–27.(20min.)Backflushcosting:CarsonBiotech,Inc.Journalentries:CostofGoodsSold...............................................14,000AccountsPayable..............................................14,000CostofGoodsSold...............................................48,000Cash..................................................................16,000WagesPayable..................................................12,000ManufacturingOverheadApplied......................20,000WorkinProcessInventory....................................3,160CostofGoodsSold............................................3,1603–28.(20min.)Backflushcosting:InterplaySystems,Inc.Journalentries:CostofGoodsSold...............................................25,000AccountsPayable..............................................25,000CostofGoodsSold...............................................94,000AccountsPayable..............................................50,000WagesPayable..................................................44,000WorkinProcessInventory....................................8,200CostofGoodsSold............................................8,200课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter359若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–29.(30min.)Comparingbackflushandtraditionalcosting:CarsonBiotech,Inc.TraditionalSequentialCostingAccountsMaterialsWorkinProcessFinishedGoodsCostofPayableInventoryInventoryInventoryGoodsSold14,00014,00014,00014,00058,84058,84058,84058,84048,000Wages3,160PayableCash12,00016,000Mfg.O.H.Applied20,000BackflushCostingAccountsPayable14,000WagesCostofPayableGoodsSold12,00062,0003,160Mfg.O.H.AppliedWorkinProcess20,000InventoryCash3,1603,16016,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199760CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–30.(30min.)Comparingbackflushandtraditionalcosting:InterplaySystems,Inc.TraditionalSequentialCostingAccountsMaterialsWorkinProcessFinishedGoodsCostofPayableInventoryInventoryInventoryGoodsSold25,00025,00025,00025,000110,800110,800110,800110,80050,00050,00044,000WagesPayable8,20044,000BackflushCostingAccountsPayableCostofGoodsSold25,00050,000119,0008,200WagesWorkinProcessPayableInventory44,0008,2008,200课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter361若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems3–31.ThemarketingmanagerforPowertoolsInc.shouldlookatLarrycarefullygiventhatLarryisnotaprofitablecustomer.Thefirstquestionshouldbe“arethereanystrategicimplicationsifwedropLarryasacustomer?”(i.e.willhebeprofitableinthefuture?Ishiscompanygrowing?).Then,themarketingmanagershouldconsiderwhetherrevenuescanbeincreasedand/orcostdecreasedtomakethiscustomerprofitable.AlthoughCurlyandMoearebothprofitable,Curly’sprofitmarginpercentage(17.5%)iswellbelowMoe’sprofitmarginpercentage(41.6%).PowertoolsmaydecidetofocusonincreasingsalestoMoegivenhisrelativelyhighprofitmarginpercentage.3–32.ThemarketingmanagerforCustomTrailersInc.shouldlookatTrailWayscarefullygiventhatTrailWaysisnotaprofitablecustomer.Thefirstquestionshouldbe“arethereanystrategicimplicationsifwedropTrailWaysasacustomer?”(i.e.willtheybeprofitableinthefuture?Isthecompanygrowing?).Then,themarketingmanagershouldconsiderwhetherrevenuescanbeincreasedand/orcostsdecreasedtomakethiscustomerprofitable.AlthoughTrailRiteandUTrailarebothprofitable,TrailWays’profitmarginpercentage(13.1%)iswellbelowUTrail’sprofitmarginpercentage(49.6%).CustomTrailersInc.maydecidetofocusonincreasingsalestoUTrailgiventheirrelativelyhighprofitmargin.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199762CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–33.(20min.)Backflushcosting:CreativeDesigners,Inc.Journalentries:CostofGoodsSold...............................................250,000AccountsPayable..............................................100,000WagesPayable..................................................150,000WorkinProcessInventory....................................25,000FinishedGoodsInventory.....................................50,000CostofGoodsSold............................................75,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter363若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–34.(30min.)Comparingbackflushandtraditionalcosting:CreativeDesigners,Inc.TraditionalCostingAccountsWorkinProcessFinishedGoodsCostofPayableInventoryInventoryGoodsSold100,000250,000225,000225,000175,000175,000Wages25,00050,000Payable150,000BackflushCostingAccountsPayableCostofGoodsSold100,000250,00075,000WagesPayableWorkinProcessFinishedGoodsInventoryInventory150,00025,00050,00025,00050,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199764CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–35.Answerswillvary.Companieswithcomputerizedinventorysystemsaremorelikelytologinanorderatthepointofsale.Studentsshouldnotassumearetailstoreusesjust-in-timeinaliteralsense,butshouldrecognizethedifferencebetweenkeepingastockofitemsthatarereplenishedascustomersorderthem(perpetualapproach)comparedtolookingatinventoryfromtimetotimetoseewhatneedstobeordered(thesupplycabinetapproach).课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter365若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–36.(45min.)Comparebackflushandtraditionalcostflows:RiverCityQualityInstruments.T-accountsa.Traditionalcostsystem:AccountsPayableMaterialsWIPMeterAssemblyFinishedGoods260,000materials210,000fromtoCostlabor200,000Testing1,731,250ofGoodsoverhead840,000atoCaseSold1,731,250Assembly1,125,000d$0$125,000MaterialsInventoryWIPCaseAssemblyCostofGoodsSoldpurchase260,000To:materials40,000fromFinishedMeterAssy210,000labor350,000Goods1,731,250CaseAssy40,000overhead160,000bTesting10,000fromMeter1,125,000toTesting1,591,250e$083,750WagesPayableWIPTestingMeterAssy200,000materials10,000CaseAssy350,000labor90,000Testing90,000overhead40,000ctoFinishedfromMeter1,591,250Goods1,731,250$0OverheadApplied课后答案网MeterAssy840,000aCaseAssy160,000bTesting40,000www.hackshp.cnc$210,000$10,000a$840,000=x$1,040,000c$40,000=x$1,040,000$260,000$260,000$40,000d$90%ofWIPMeterAssemblycostsweretransferredout.b$160,000=x$1,040,000$260,000e$95%ofWIPCaseAssemblycostsweretransferredout.©TheMcGraw-HillCompanies,Inc.,199766若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–36.(continued)T-accountsb.Backflushsystem:AccountsPayableMaterialsCostofGoodsSoldtoCOGS260,000Materials260,000Labor640,000Overhead1,040,000toMeter125,000atoCase$83,750bWagesPayabletoCOGS640,000OverheadWIPMeterAssemblyAppliedfromCOGS125,000toCOGS1,040,000125,000WIPCaseAssemblyfromCOGS83,75083,750a10%ofMeterscostsarestillininventory.b5%ofCasescostsarestillininventory.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter367若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–37.(30min.)Comparebackflushandtraditionalcostflows:DavisAgriproductsInc.a.BackflushcostingAccountsPayableCostoforCashGoodsSold29,60051,0004,200a(Culturing)2,600b(Packaging)ConversionCosts21,400WIP:Culturing4,2004,200WIP:Packaging2,6002,600a$4,200=2,000x($1.30+$.80)b$2,600=1,000x($1.30+$.80+$.20+$.30)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199768CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–37.(continued)b.TraditionalcostingAccountsPayableorCashWIP:CulturingWIP:Packaging29,60037,800Materials26,000c37,800aMaterials3,600eConv.Costs16,000dConv.Costs5,400f44,200b4,2002,600MaterialsInventory29,60029,600ConversionCostsFinishedGoodsInventoryCostofGoodsSold21,40044,20044,20044,2000a$37,800=18,000unitsx($1.30formaterials+$.80forconversioncosts).b$44,200=17,000unitsx($1.30+$.80+$.20+$.30).c$26,000=$1.30formaterialsx20,000units.d$16,000=$.80forconversioncostsx20,000units.e$3,600=$.20formaterialsx18,000units.f$5,400=$.30forconversioncostsx18,000units.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199769若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn3–38.CustomerCosting:QualityLawnCareInc.1.OperatingRevenuesCostsIncomeSierraUniversity............................................$130,000$91,000$39,000DavisAgriproductsInc..................................90,00092,000(2,000)AmericanRiverRestaurant...........................40,00037,0003,000BrownandAssociates...................................38,00054,000(16,000)OttInvestmentAdvisers................................186,500115,50071,000Totals.........................................................$484,500$389,500$95,0002.Thecompanyshouldlookcloselyatthreecustomers—DavisAgriproducts(lossof$2,000),AmericanRiverRestaurant(negligibleincomeof$3,000),andBrownandAssociates(lossof$18,000).GivenBrownandAssociates’significantloss,QualityLawnCareshouldseriouslyconsiderraisingratesforBrownand/orreducingexpensesbycuttingbackontheworkforceworkingonthisprojectorfindinglowerpaidlabor.Ifnootherstrategicfactorsareinvolved(forexample,Brownisnotexpectedtogroworprovidereferencesforothersignificantprofitablebusiness),QualityLawnCareshouldalsoconsiderdroppingBrownandAssociatesasaclient.3.Thelaborcostsallocatedtoeachclientisstraightforwardassumingtheselaborcostsarestrictlyvariablecostswithintherelevantrange.However,ifsalariedsupervisors’costsareallocatedtoeachclient,thereisthepotentialforarbitraryallocations,andthus,inaccuratelaborcostsforeachcustomer.Itisalsodifficulttoallocateequipmentcoststoeachprojectgiventhedifficultyoftrackingequipmentusebyeachcustomer.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199770CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter4JobCostingSolutionstoReviewQuestions4–1.Companiesusingajobordercostsystemarelikelytobeperformingservicesormanufacturingproductsaccordingtospecificcustomerordersandproductspecifications.Constructioncontractors,manufacturersofspecialequipment,aircraftmanufacturers,CPAfirms,attorneys,andhospitalsallemployjobordercostsystems.4–2.ThemostcommonallocationbasesintheUSaredirectlaborhoursanddirectlabordollars.Thisisprobablytheresultofacloselinkagebetweenlaborworkedandindirectcosts.However,withthecurrentshiftawayfromlabortoincreasedautomation,thismaynolongerholdtrue.4–3.TheManufacturingOverheadaccountisusedtoaccumulatetheactualmanufacturingoverheadcostsastheyareincurred.ManufacturingOverheadAppliedrepresentstheestimateofoverheadthatisusedasabasisforcomputingworkinprocessandotherinventorycosts.Theappliedaccountisusedtofacilitaterecordkeepingduringtheperiod.4–4.Amaterialsrequisitionisusedtodocumenttheauthorizationforissuancesofmaterialsfromthestoreroomwhilethesourcedocument(orreceivingslip)isusedtoindicatequantitiesanddescriptionsofmaterialsreceived.4–5.课后答案网Thejobcostingprocedureisbasicallythesameinbothtypesoforganizations,exceptthatservicefirmsuselessdirectmaterials.Also,servicefirmstypicallydonotshowinventoriesontheirbalancesheets,anduseacostofservicesbilledaccountratherthanCostofGoodsSold.www.hackshp.cn4–6.Thecostsofaproductusingnormalcostingare:·Actualdirectmaterialscost·Actualdirectlaborcost·Predeterminedoverheadratexactualallocationbase4–7.Indirectcostsarereimbursedbasedonanegotiatedpercentageofdirectcostsusinghistoricaldataasaguide.AsaresultofallocatingimproperindirectexpensestoresearchprojectsfundedbytheOfficeofNavalResearch,StanfordUniversity’sindirectcostreimbursementratedecreasedfrom70%ofdirectcoststo58%(asrequestedbytheOfficeofNavalResearch).©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter471若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoCriticalAnalysisandDiscussionQuestions4–8.Theproblemwiththisrecommendationistheactualoverheadcostsoftenconsistofmanydifferentlineitems,someofwhichcannotbeeasilyassignedtojobs.Inaddition,manyactualcostsarenotknownuntilaftertheperiodisover.Further,overheadcostsareaffectedbyseasons.Itmaynotbelogical,forexample,tochargecostsofheatingthefactoryonlytothosejobsproducedinthewintermonths.Rather,suchseasonalcostsshouldbeallocatedacrossallproductionduringtheyear.4–9.Ifmaterialscostsarenotproperlyassignedtojobs,managementmaylaterbemisleadinestimatingtheactualcoststocompletefuture,similarjobs.Thus,profitplanningmaybeinerror.Profitablejobsmayberejectedbecauseerrorsincostassignmentshavemadethejobslookunprofitableorlessprofitable.Ifthecompanypreparesbidsonjobs,thebidsmaybeinerroriftheyarebasedonthewrongcosts.4–10.Orionassignedthecostof“flops”togoodjobs,thusoverstatingassetsandunderstatingcostwrite-offs.Amoreaccurateapproachwouldbetoassigncostsonlytojobs(movies)theyrelateto,regardlessofthemovie’sprofitability.4–11.Answerswillvary.Expectthemanagersinsmallconstructionfirmstobasetheirestimatesontheirownexperience,notaformalmodel.4–12.Answerswillvary.4–13.Theywouldmostlikelyusejobcostingsincetheirjobsaretypicallyeasilyidentifiableandrelativelyunique.4–14.Yes,O.J.’strialwasajobforcostingpurposes.课后答案网www.hackshp.cn72©TheMcGraw-HillCompanies,Inc.,1997CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises4–15.(20min.)Assigningcoststojobs:Apex,Inc.1.MaterialsInventory.............................................................10,000AccountsPayable............................................................10,0002.ManufacturingOverhead....................................................500MaterialsInventory..........................................................5003.MaterialsInventory.............................................................7,000AccountsPayable............................................................7,0004.AccountsPayable...............................................................10,000Cash................................................................................10,0005.Work-in-Process—DirectMaterials.....................................8,500MaterialsInventory..........................................................8,5006.Work-in-Process—DirectLabor..........................................12,500PayrollPayable...............................................................12,5007.ManufacturingOverhead....................................................13,250Cash................................................................................13,2508.Work-In-Process—OverheadApplied(12,500x125%).....15,625ManufacturingOverheadApplied....................................15,6259.ManufacturingOverhead....................................................6,250AccumulatedDepreciation—Property,PlantandEquipment....................................6,250课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter473若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–16.(15min.)Assigningcoststojobs:Apex,Inc..MaterialsInventoryBalance1/118,5252.Ind.materials5001.10,0005.Directmaterials8,5003.7,000Balance1/3126,525**$26,525=$18,525+$10,000+$7,000–$500–$8,500WorkinProcessBalance1/14,1255.Directmaterials8,500PerFinishedGoods6.Directlabor12,500T-account30,0758.Overheadapplied15,625Balance1/3110,675ActualManufacturingOverhead2.5007.13,2509.6,250ManufacturingOverheadApplied8.15,625AccountsPayable4.10,0001.10,0003.7,000课后答案网Cash4.10,000www.hackshp.cn7.13,250PayrollPayable6.12,50074©TheMcGraw-HillCompanies,Inc.,1997CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–16.(continued)AccumulatedDepreciation—Property,Plant,andEquipment9.6,250FinishedGoodsBalance1/120,750TransfertoCostofGoodsSold32,925Goodscompleted30,075*Balance1/3117,900*$30,075=$32,925+$17,900–$20,750CostofGoodsSoldBalance1/3132,925课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter475若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–17.(25min.)Assigningcoststojobs:AvianCompany.a.$6,400,thecreditsideoftheMaterialsInventoryaccount.b.Directlabor.............................................$6,000Laborrate...............................................$24perhourDirectlaborhours...................................$6,000¸$24=250hoursManufacturingoverheadapplied............250x$20=$5,000c.$12,000,thedebitadditiontotheFinishedGoodsInventoryaccount.d.BB+TI–TO=EBEB=$4,000+($6,400+$6,000+$5,000)–$12,000EB=$9,400e.$5,200–$5,000=$200(variance)f.Sales.............................$18,000COGS............................$8,000UnderappliedOH...........200S&Acosts......................3,20011,400Operatingprofit..............$6,600课后答案网www.hackshp.cn76©TheMcGraw-HillCompanies,Inc.,1997CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–18.(10min.)Predeterminedoverheadrates:Kustom-Kraft,Inc.Directmaterialused.................................................$115,000cDirectlabor...............................................................220,000bManufacturingoverheadapplied..............................165,000aTotalmanufacturingcostduringtheyear.................500,000SupportingComputationsaManufacturingoverheadapplied:$165,000=33%xtotalmanufacturingcost(33%x$500,000)bDirectlabor:75%ofdirectlaborequals$165,000,sodirectlaborwas$220,000(=$165,000¸75%)cDirectmaterialusedequalstotalmanufacturingcostlessdirectlaborandmanufacturingoverheadapplied[$500,000–($220,000+$165,000)=$115,000].课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter477若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–19.(15min.)Predeterminedoverheadrates:XavierCorp.$44,000a.Applicationrate:=$.55perdollarofdirectlabor$80,000Job1:$20,000x$.55=$11,000Job2:30,000x.55=16,500Job3:40,000x.55=22,000$49,500b.$52,000–$49,500=$2,500manufacturingoverheadvariance4–20.(20min.)Applyingoverheadusingapredeterminedrate:PaigePrintingTheansweris(3).SinceJobNo.75istheonlyjobintheaccount,theendingbalanceoftheaccountmustequalthetotalcostofthejob.Wecanfindtheaccount’sendingbalanceusingthebasiccostequation:BB+TI–TO=EBEB=$5,000+($30,000+$20,000+$16,000)–60,000EB=$11,000WearetoldthatdirectlaborforJobNo.75is$2,500andthatoverheadisappliedatarateof80%ofdirectlaborcost.So,Factoryoverhead=80%x$2,500=$2,000Tosolvefordirectmaterialswesetupthecostequation,课后答案网Totalcost=directmaterials+directlabor+factoryoverhead$11,000=directmaterials+$2,500+$2,000Directmaterials=$11,000–$2,500–$2,000www.hackshp.cnDirectmaterials=$6,50078©TheMcGraw-HillCompanies,Inc.,1997CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–21.(15min.)Calculatingoverheadvariance:OwingsCo.Theansweris(1).Predeterminedoverheadrate=estimatedoverhead/estimatedallocationbase=$600,000/100,000hours=$6perhourAppliedoverhead=predeterminedoverheadratexactualallocationbase=$6perhourx110,000hours=$660,000Overheadvariance=appliedoverhead–actualoverhead=$660,000–$650,000=$10,000overapplied4–22.(15min.)Prorateunder-oroverappliedoverhead:XavierCorp.Calculationofmanufacturingoverheadvariance:Manufacturingoverheadapplied............$49,500Manufacturingoverheadactual..............52,000Manufacturingoverheadvariance..........2,500underappliedProrationofmanufacturingoverheadvariance:WorkinProcessInventory......................250aFinishedGoodsInventory.......................625bCostofGoodsSold.................................1,625cManufacturingOverheadVariance.....2,500a$250=$2,500x10%课后答案网b$625=$2,500x25%c$1,625=$2,500x65%www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter479若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–23.(25min.)Computejobcostsforaserviceorganization:TerneCorporationa.BeginningofmonthDirectAppliedTotalLaborOverheadX-10......$1,280$640$1,920Y-12......$840$420$1,260EachmonthAdditionalAdditionalBeginningDirectAppliedTotalLaborOverheadTotalX-10......$1,920$1,400$700$4,020Y-12......$1,260$4,000$2,000$7,260b.DirectAppliedLaborOverheadTotalZ-14......$2,840*$1,420$4,260*$2,840=$8,240–$1,400–$4,000c.Overheadappliedduringmonth:X-10......$700Y-12......2,000Z-14......1,420Total.....$4,120Variance=$4,120applied–$4,000actual=$120overapplied.课后答案网www.hackshp.cn80©TheMcGraw-HillCompanies,Inc.,1997CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–24.(30min.)Jobcostinginaserviceorganization:ErnestPeat&Co.a.CostofWagesPayableWorkinProcessServicesBilled140,000a140,000a164,000c164,000c24,000bServiceOverheadServiceO.H.AppliedServiceO.H.Variance20,00020,000d24,000d24,000b4,000da$70perhourx600hoursforClientA,and$70perhourx1,400hoursforClientB.b$12perhourx600hoursforClientA,and$12perhourx1,400hoursforClientB.cSumofworkdoneduringSeptember,allbilledtoclients.dClosingentrytorecordoverappliedoverheadof$4,000(=$24,000applied–$20,000actual)b.ErnestPeat&Co.IncomeStatementFortheMonthEndedSeptember30Salesrevenue.........................................$280,000aCostofservicesbilled.............................164,000Add:Overappliedserviceoverhead........4,000Grossmargin..........................................120,000Marketingandadministration..................84,000Operatingprofit.......................................$36,000a$280,000=2,000hoursx$140课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter481若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems4–25.(25min.)Estimatehoursworkedfromoverheaddata:GraultCo.31,000directlaborhourswereworked.With$120,000infixedcostsexpectedand30,000directlaborhoursexpected,theapplicationrateforthefixedcostswas$4.00perdirectlaborhour.Iftheoverappliedoverhead,allduetoproductionvolume,is$4,000,thenanextra1,000directlaborhourswereworked($4,000/$4perhour).Consequently,31,000(=30,000+1,000)directlaborhourswereworked.Also,seeTaccountsbelow:ManufacturingOverheadManufacturingOverheadApplied120,000124,000(givenasactual=(=$4xActualexpected)hoursworked)Fromtheseaccounts,wesolveforactualhoursworked:Actualhoursworked=$124,000/$4=31,000hoursworked.课后答案网www.hackshp.cn82©TheMcGraw-HillCompanies,Inc.,1997CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–26.(40min.)Assigningcosts—missingdata.(a)$200,000,theothersideofthecredittotheAccountsPayable—MaterialsSuppliersaccount.(b)$188,000,FromtheMaterialsInventoryaccount,$16,000+$200,000–$8,600–$19,400=$188,000(c)$242,000=$324,000+$239,000–$248,600–$72,400.(d)$361,000,thechargetoWorkinProcessthatisnotduetodirectmaterialsordirectlabor.(e)$800,200=$44,600+$361,000+$242,000+$188,000–$35,400.(f)$805,600fromtheCostofGoodsaccount.(g)$23,000=$28,400+$800,200(frome)–$805,600(fromf).(h)$63,200(chargedtoManufacturingOverhead)=$471,400–$408,200.(i)$6,400(chargedtoManufacturingOverhead)=$48,600–$42,200.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter483若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–27.(50min.)Assigningcosts—missingdata.MaterialsInventoryBalance9/122,700(a)43,100DirectmaterialsPurchases56,800(a)8,200IndirectmaterialsBalance9/3028,200Work-in-ProcessInventoryBalance9/116,300(a)Directmaterials43,100(b)Directlabor88,000187,200(b)Overheadapplied132,000(d)Balance9/3092,200(h)Proration3,135Balance9/3095,335FinishedGoodsInventoryBalance9/164,800(d)187,200(c)201,500Balance9/3050,500(h)Proration1,881Balance9/3052,381CostofGoodsSold(c)201,500(h)Proration7,524(Actual)ManufacturingOverhead课后答案网(a)8,200(e)13,000(f)24,100www.hackshp.cn(g)99,240ManufacturingOverheadApplied(b)132,000(h)12,54084©TheMcGraw-HillCompanies,Inc.,1997CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–27.(continued)WagesPayable(b)88,000(e)13,000SalesRevenue(c)362,700(a)Fromtheworkinprocessaccountweobtainthe$43,100indirectmaterialsissued.Thebeginningbalanceequalstheendingbalanceof$28,200minustheincreaseof$5,500equals$22,700.Theunaccountedbalancerepresentsindirectmaterialsandisdeterminedas:$22,700+$56,800–$28,200–$43,100(debittoworkinprocess)=$8,200(b)LetX=directlaborcostsOverheadapplied=150%X$132,000=150%XX=$88,000(c)LetX=CostofgoodssoldSales=180%X$362,700=180%XX=$201,500(d)FinishedgoodsBB=FinishedGoodsEB+$14,300$64,800=EB+$14,300EB=$50,500课后答案网Costofgoodsmanufactured=FinishedgoodsEB+Costofgoodssold–www.hackshp.cnFinishedGoodsBB=$50,500+$201,500–$64,800=$187,200WorkinprocessEB=$16,300+$43,100+$88,000+$132,000–$187,200=$92,200©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter485若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–27.(continued)(e)Indirectlabor=Payroll–Directlabor=$101,000–$88,000=$13,000(f)Chargefactorydepreciationtomanufacturingoverhead.(g)Chargeoverheadtomanufacturingoverhead.(h)Prorationto:Work-in-process(25%x$12,540)$3,135Finishedgoods(15%x$12,540)1,881Costofgoodssold(60%x$12,540)7,524$12,540课后答案网www.hackshp.cn86©TheMcGraw-HillCompanies,Inc.,1997CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–28.(40min.)Analysisofoverheadusingapredeterminedrate(multiplechoice):SparkleCorp.$636,000a.(4)$10.60perDLH=$10.60perDLH60,000b.(3)$158,500Beginningbalance.....$54,000Directmaterials.........45,000Directlabor................28,000*Overheadapplied......31,500**$158,500*Thewageratefordirectlaboris$8.00perhour.$8.00x3,500hours=$28,000.($8.00=$68,000indirectlaborwagesdividedby8,500directlaborhours).**$9.00x3,500directlaborhours.c.(1)$18,000$9.00x2,000directlaborhours=$18,000d.(2)$76,500$9.00x8,500directlaborhours=$76,500e.(2)$43,500Supplies................................$6,000Indirectlaborwages.............17,000Supervisorysalaries.............6,000Factoryfacilities....................6,500Factoryequipmentcosts......8,000$43,500f.(5)Creditittocostofgoodssold.Theamountisclearlynotmaterial(0.1%ofcostofgoodssold),soitisnotworththeeffortinvolvedinprorating.Ifitwerematerial,thentheproperanswerwouldbe(2),prorateitbetweenworkinprocessinventory,finishedgoodsinventory,andcostofgoodssold.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter487若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–29.(40min.)Basiccostflowmodel:I.M.Dunce.a.T-accountsfollowtheseanswers:(1)MarketingandAdministrativeCosts:GrossMargin–OperatingProfit=MarketingandAdministrativeCosts$4,000–$1,000=$3,000(2)CostofGoodsSold:TotalRevenue–GrossMargin=CostofGoodsSold$13,500–$4,000=$9,500(3)BeginningFinishedGoodsInventory:CostofGoodsBB+=CostofGoodsSold+EBManufacturedBB+$8,000=$9,500+$3,000BB=$4,500(4)DirectMaterialsUsed:DirectMaterialsDirectLaborActualBeg.WIP.+++UsedIncurredOverheadCostofGoodsEndingWork=+ManufacturedinProcess$1,500+DirectMaterialsUsed+(375x$5)+$750=$8,000+$2,000DirectMaterialsUsed=$5,875(5)EndingDirectMaterialsInventory:BB+Purchases=DirectMaterialsUsed+EB$1,400+$5,250=$5,875+EB$775=EndingDirectMaterialsInventory课后答案网www.hackshp.cn88©TheMcGraw-HillCompanies,Inc.,1997CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–29.(continued)DirectMaterialsInventoryWorkinProcessInventoryFinishedGoodsInventoryBB1,400BB1,500BB4,500Purch.5,2505,875UsedDirectmatl.5,875Costof8,0009,500C.G.S.EB775Directlabor1,8758,000GoodsEB3,000Overhead750ManufacturedEB2,000WagesandAccountsPayableCostofGoodsSoldPurch.5,2509,500Overhead750DirectLabor1,875MarketingandAdministrativeCostsMarketing3,000andAdmin.3,000ManufacturingOverhead750750课后答案网www.hackshp.cn89©TheMcGraw-HillCompanies,Inc.,199789若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–29.(continued)b.IncomeStatementRevenue..............................................$13,500Costofgoodssold...............................9,500Grossmargin.......................................4,000Marketingandadministrativecosts.....3,000Operatingprofit....................................$1,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199790CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–30.(30min.)Basiccostflowmodel:CzechCo.a.April30,EndingWorkinProcessInventory:—onlyonejobisremaininginendingWorkinProcessInventory.DirectMaterials..................................................$5,200DirectLabor.......................................................3,600($12perhourx300hours)ManufacturingOverhead...................................1,800($6perhourx300hours)TotalCostofEndingWorkinProcessInventory..........................................$10,600b.DirectmaterialspurchasedduringApril:Sincetheaccountspayableaccountisusedonlyfordirectmaterialpurchases,themonth’spurchasescanbedeterminedfromanalyzingtheaccountspayableaccount:BeginningBalance+TransfersIn–TransfersOut=EndingBalance$12,000+TransfersIn–$84,000=$18,000TransfersIn=$90,000c.ActualmanufacturingoverheadincurredduringApril:$6perhourx5,200totaldirectlaborhours=$31,200d.CostofgoodssoldduringApril:BeginningFinishedCostofGoodsCostofEndingFinished+–=GoodsInventoryManufacturedGoodsSoldGoodsInventoryCostof$36,000+$188,000–=$22,000GoodsSold$224,000–$22,000=CostofGoodsSold课后答案网$192,000=CostofGoodsSoldwww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter491若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–31.(30min.)Costaccumulation;service:WhiteandBriteDryCleaners.T-accounts(Notrequired—seenextpageforincomestatement)Wages,SalariesCoinWashingandAccountsDryCleaningDirectandDryingSpecialCleaningRepairsUnassignedPayableLaborCostDirectLaborCostDirectLaborCostDirectLaborCostLaborCost2,5606401,000720200(=$8x320)(=$8x80)(=$8x125)(=$8x90)(=$8x25)2,560CoinWashingDryCleaningandDryingDirectSpecialCleaningRepairsDirectDirectOverheadCostOverheadCostDirectOverheadCostOverheadCost5002504001401252001752525062510010200500903,590课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199792若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–31.(continued)IncomeStatementWhiteandBriteDryCleanersIncomeStatementforMonthEndingNovember30CoinDryWashingSpecialCleaningandDryingCleaningRepairsTotalRevenue..........................................................................$4,625$5,250$2,000$625$12,500CostofServices:Labor...........................................................................$2,560a$640a$1,000a$720aDirectOverhead...........................................................1,075b1,575b765b175bIndirectOverhead........................................................256c64c100c72cTotalcostsofservices..............................................$3,891$2,279$1,865$9679,002Departmentmargin.........................................................$734$2,971135$(342)$3,498Lessothercosts:Unassignedlaborcosts(idletime)...............................200dUnassignedoverheadindirectcosts............................20eMarketingandadministrativecosts.............................4,050fOperatingprofit...............................................................$(772)aAmountsequal$8perhourtimesdirectlaborhoursaccordingtotheproblem(drycleaning,$8x320hours;etc.)课后答案网bAmountsequalthesumofdirectoverheaditemsgivenintheproblem.cRate=Totalcost=$512www.hackshp.cn=$.80perhour.Fordrycleaning,.80x320hours=$256,etc.Totalhours640hoursworked(includingidletime)d$200=$8x25hourse$20=$512–$256–$64–$100–$72fSumofmarketingandadministrativecosts($2,000+$1,500+$400+$150)©TheMcGraw-HillCompanies,Inc.,199793若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–31.(continued)OnlyCoinWashingandDryingisclearlyprofitable.“Repairs”islosingmoney,andthemarginsoftheotherdepartmentsarelow,consideringtheamountofsalaryforHexterandtheassistant(plusothercosts)thatmustbecovered.Thecompanyshouldreconsideritsfull-product-linestrategy;perhapsdroppingRepairsandraisingpricesonDryCleaningandSpecialCleaning.Thecompanycouldalsofindwaystobemoreefficient,perhapseliminatingtheneedforHexter’sassistantoroneoftheotherfouremployees.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199794CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–32.(25min.)Jobcosts;service:WehelpConsultants.a.UnassignedCosts(notNocandoSailsInc.OriginalJohn’srequired)TotalRevenue..............$80,000$24,000$40,000$144,000(=1,000x$80)(=300x$80)(=500x$80)Labor....................$30,000$9,000$15,000$6,000$60,000(=1,000x$30)(=300x$30)(=500x$30)(=200x$30)aaaaOverhead............$15,000$4,500$7,5003,00030,000Margin..................$35,000$10,500$17,500a$15,000=1,000/2,000x$30,000;$4,500=300/2,000x$30,000;etc.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199795若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–32.(continued)b.IncomeStatementRevenuefromclients.....................................$144,000Lesscostofservicestoclients:Labor..........................................................$54,000Overhead...................................................27,000Totalcostofservicestoclients..............81,000Grossmargin.................................................63,000Lessothercosts:Labor..........................................................6,000Overhead...................................................3,000Mktg.andadm.costs.................................20,000Totalothercosts.....................................29,000Operatingprofit..............................................$34,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199796CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–33.(50min.)Jobcostsinaservicecompany:McHalePaintersInc.MaterialsInventoryBalance1/1(given)92016IndirectMaterialsPurchases(given)116314RequisitionBalance1/31706Work-in-ProcessInventory(a)Balance1/1576504JobA-15(c)(b)JobA-15170850JobA-38(e)(d)JobA-38608(f)NewJobA-40556Balance1/31556FinishedGoodsInventoryBalance1/1($392+$158)550(c)JobA-15504550Sold(e)JobA-38850Balance1/311,354a.DirectMaterials+DirectLabor+AppliedOverhead=$174+$32+$64+$84+[150%+($64+$84)]=$576.b.TocompleteJobA-15:$68DirectLabor+($68x150%)AppliedOverhead课后答案网=$170.www.hackshp.cnc.TransfertoFinishedGoods:JobA-15BeginningInventoryCost+CurrentCost=$174+$64+150%($64)+$170=$504.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter497若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–33.(continued)d.TocompleteJobA-38:$108Materials+$200DirectLabor+(150%x$200)AppliedOverhead=$108+$200+$300=$608.e.TransferofJobA-38:BeginningInventoryCost+CurrentCost[$16+$42+150%($42)]+[$54+$100+150%($100)]=[$32+$84+150%($84)]+[$108+$200+150%($200)]=$850.f.NewJobCost=CurrentChargestoWIPlessCurrentChargesforJobsA-15andA-38:=CurrentMaterials+DirectLabor+Overhead–JobA-15CurrentCost–JobA-38CurrentCost=$314+$408+$150%($408)–$170(b)*–$608(d)*=$556.*Theselettersrefertosolutionpartsbanddabove.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,199798CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–34.(55min.)Tracingcostsinajobcompany.ArrowSpace,Inc.a.(1)MaterialsInventory..................................................................71,600AccountsPayable................................................................71,600(2)ManufacturingOverhead........................................................2,000MaterialsInventory..............................................................2,000(3)AccountsPayable...................................................................71,600Cash....................................................................................71,600(4)WorkinProcess—DirectMaterials.........................................34,000MaterialsInventory..............................................................34,000(5)Payroll.....................................................................................56,000PayrollTaxesPayable.........................................................18,000Cash....................................................................................38,000(6)Payroll.....................................................................................28,000FringeBenefitsPayable......................................................28,000(7)WorkinProcess(60Percentx$84,000)................................50,400ManufacturingOverhead(30%x$84,000).............................25,200AdministrativeandMarketingCosts(10%x$84,000)............8,400Payroll($56,000+$28,000)................................................84,000(8)ManufacturingOverhead........................................................43,200Cash....................................................................................43,200(9)WorkinProcess—OverheadApplied($50,400x175percent)......................................................88,200OverheadApplied................................................................88,200(10)ManufacturingOverhead........................................................21,000AccumulatedDepreciation—课后答案网Property,Plant,andEquipment.......................................21,000www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter499若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–34.(continued)b.MaterialsInventoryBalance1/174,1002,000(2)(1)71,60034,000(4)Balance1/31109,700aa$109,700=$74,100+$40,000+$31,600–$2,000–$34,000.Work-in-ProcessInventoryBalance1/116,500115,100PerFinishedGoods(4)DirectMaterials34,000T-account(7)DirectLabor50,400(9)OverheadApplied88,200Balance1/3174,000bb$74,000=$16,500+$34,000+$50,400+$88,200–$115,100.ActualManufacturingOverhead(2)2,000(7)25,200(8)43,200(10)21,000ManufacturingOverheadApplied88,200(9)课后答案网AccountsPayable(3)71,60071,600(1)www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997100CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–34.(continued)Cash71,600(3)38,000(5)43,200(8)Payroll(5)56,000(6)28,00084,000(7)PayrollLiabilities(IncludingTaxes)18,000(5)28,000(6)AdministrativeandMarketingCosts(7)8,400AccumulatedDepreciation—Property,Plant,andEquipment21,000(10)FinishedGoodsBalance1/183,000GoodsCompleted115,100a131,700CostofGoodsSoldBalance1/3166,400a$115,100=$131,700+$66,400–$83,000.课后答案网CostofGoodsSoldBalance1/31131,700www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter4101若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–35.(50min.)Costflowsthroughaccounts:LeeviesPantsInc.a.Taccounts.DirectMaterialsFinishedGoodsInventoryWork-In-ProcessInventory13,720(1a)(1)32,42076,110a76,110128,2209,300(1b)(2)100,00052,110b52,1109,400(1c)(3)6,200(4)20,920WagesPayableCostofGoodsSold49,000(2a)128,22031,240(2b)19,760(2c)VariableManufacturingOverhead2,990(3a)2,750(3b)460(3c)FixedManufacturingOverhead*10,400(4a)8,820(4b)1,700(4c)a$76,110=13,720+$49,000+$2,990+$10,400b$52,110=$9,300+$31,240+$2,750+$8,820课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997102CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–35.(continued)b.TotalDirectLaborCosts=$400,000.$400,000TotalDirectLaborHours==80,000.$5perHourVariableManufacturingOverhead=0.30x$104,000=$31,200$31,200PredeterminedVariableOverheadRate=80,000=$0.39perDirectLaborHour.FixedManufacturingOverhead=0.70x$104,000=$72,800$72,800PredeterminedFixedOverheadRate=80,000=$0.91perDirectLaborHour.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter4103若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–35.(continued)c.TaccountsDirectMaterialsFinishedGoodsInventoryWork-In-ProcessInventory13,720(1a)(1)32,42075,46075,460124,1239,300(1b)(2)100,00048,66348,6639,400(1c)(3)7,800(4)18,200WagesPayableCostofGoodsSold49,000(2a)124,12331,240(2b)19,760(2c)VariableManufacturingUnder-orOver-Overhead*AppliedOverhead(Actual)(Applied)(b)2,7201,600(a)6,2003,822(3a)(a)1,6002,437(3b)1,541(3c)FixedManufacturingOverhead*(Actual)(Applied)20,9208,918(4a)5,686(4b)3,596(4c)2,720(b)课后答案网*Thesecanbedividedintotwoaccounts,onefor“actual”andonefor“applied.”Weputtheminoneaccounttosavespace.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997104CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–35.(continued)d.ActualNormalFullAbsorptionCostingSalesRevenue...........................................$140,000$140,000LessCostofGoodsSold...........................(128,220)(124,123)GrossMargin.............................................$11,780$15,877Less:(Under-)OverappliedOverhead...............—(1,120)MarketingandAdministrativeCosts.........(11,200)(11,200)OperatingProfit(Loss)...............................$580$3,557课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter4105若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–36.(60min.)Showflowofcoststojobs:BrightEquipmentCo..a.1.PaymentreceivedonaccountCash...........................................................................................25,000Accountsreceivable...............................................................25,0002.InventorypurchaseMaterialsandequipmentinventory............................................18,700Accountspayable...................................................................18,7003.BillingAccountsreceivable...................................................................175,000Salesrevenue.........................................................................175,000Cash...........................................................................................100,000Accountsreceivable...............................................................100,0004.IndirectlaborManufacturingoverhead—Indirectlabor....................................1,300Wagespayable.......................................................................1,3005.IndirectmaterialsissuedOverhead...................................................................................310Materialsandequipmentinventory.........................................3106.OverheadandadvertisingOverhead[$1,100+$1,350+$640+$400+$650+$900]......5,040Sellingcosts—Advertising..........................................................1,200Cash.......................................................................................5,340AccumulatedDepreciation......................................................900课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997106CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–36.(continued)a.(continued)7.ChargestoWorkinProcessWorkinprocess—materialsandequipment[$3,200+$14,200+$17,000+$6,200]..................................40,600Workinprocess—directlabor[$1,800+$1,200+$3,100+$900].........................................7,000Workinprocess—overheadapplied[15%x$40,600]................6,090Materialsinventory..................................................................40,600Wagespayable.......................................................................7,000Overheadapplied....................................................................6,0908.TransferofJob51Costofinstallationscompletedandsold....................................136,480Workinprocess—materialsandequipment[$95,000+$14,200]............................................................109,200Workinprocess—directlabor[$9,700+$1,200]....................10,900Workinprocess—overheadapplied[15%x$109,200]..........16,380Note:Nofinishedgoodsinventoryaccountisrequired.b.Overheadanalysis:Applied(Entry7)............$6,090IncurredEntry4.......................$1,300Entry5.......................310Entry6.......................5,0406,650Underapplied....................课后答案网$560www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter4107若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–36.(continued)c.InventorybalancesMaterialsandEquipmentInventoryBalance9/148,000(7)40,600(2)18,700(5)310Balance9/3025,790WorkinProcessInventoryBalance9/1162,250*Currentcharges(7)53,690Job51(8)136,480Balance9/3079,460CostofGoodsSold**(8)136,480Underappliedoverhead560Balance9/30137,040*Job46+Job51=$43,300+$118,950**Notrequired.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997108CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–37.(70min.)Reconstructmissingdata:BadomenEquipmentInc..Thisisachallengingproblem.Weputtheworkinprocessaccountontheboardforthe"bigpicture,"thensolveforeachitemintheaccountasfollows:Work-in-Process(a)Balance,beginning86,200Transferredto(b)Directmaterials70,314finishedgoods53,500(d)(c)Directlabor67,700Disasterloss204,014(f)(e)Overheadapplied33,300Balance,ending–0–Thecalculationsareshownbelow.WeusuallypresenttheseusingbothT-accountsandthefollowingformulas.(a)Given(b)Directmaterials=Beginninginventory+Purchases–Endinginventory–Indirectmaterials=$49,000a+$66,400*–$43,000a–$2,086b=$70,314*Purchases=Accountspayable,ending+Cashpayments–Accountspayable,beginning=$50,100a+$37,900a–$21,600a=$66,400(c)Directlabor=Payroll–Indirectlabor课后答案网=$82,400a–$14,700a=$67,700www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter4109若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–37.(continued)(d)Costtransferredtofinishedgoods=Finishedgoods,ending+Costofgoodssold–Finishedgoods,beginning=$37,500a+($396,600a–$348,600a)–$32,000a=$53,500(e)Overheadapplied=Endingmanufacturingoverhead–beginningmanufacturingoverhead+overappliedoverhead=$217,000a–$184,900a+$1,200a=$33,300(f)Loss=$86,200a+$70,314+$67,700+$33,300–$53,500=$204,014Note:Theinsurancecompanymaydisputepayingthe$1,200overappliedoverhead.aGiveninproblembGiveninpaperfragments课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997110CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–38.(60min.)Derivingoverheadrates:PremierPastaCompany.Thisproblemrelatesoverheadallocationtodecisionmaking.Itcouldbeassignedinlaterchaptersondecisionmakingorbudgeting,aswellashere.Weliketouseitheretomotivateoverheadcostassignmentfordecisionmakingandperformanceevaluation.Calculatethecostandvolumedifferentialstodeterminethevariableoverheadrate:$34,500,000–$29,880,000=$4,620,0001,380,000–1,080,000300,000=$15.40perdirectlaborhourTotaloverhead(Year1)........................................$34,500,000Totalvariableoverhead(1,380,000x$15.40)......(21,252,000)Totalfixedoverhead.............................................$13,248,000Totaloverheadcostsat1,150,000directlaborhoursTotalvariableoverhead(1,150,000x$15.40)......$17,710,000Totalfixedoverhead.............................................13,248,000Totaloverhead......................................................$30,958,000$30,958,000Totaloverheadrate==$26.92.1,150,000hrs.Fixedoverheadrate=$26.92–$15.40=$11.52.$13,248,000Also,fixedoverheadrate==$11.52.课后答案网1,150,000hoursTheinformationaboveshouldbeincorporatedintoareporttomanagement.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter4111若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–38.(continued)Forpresentationtostudents,wefindithelpfultopresentthefollowinggraphoftheserelationships:(000omitted)$34,500~$15.4030,958*29,8801,0801,1501,380Directlaborhours*$29,880+[(1,150hrs.–1,080hrs)x$15.40]=$30,958.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997112CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–39.(45min.)Incompletedata—jobcosting:PaigePrintingInc.Thefollowinginformationshouldbeincluded(insummary)inareporttomanagement.Work-in-ProcessCostofGoodsSoldCashJobNo.101JobNo.1014,600*M*2,0002,000M*2,000L*9,60019,200L19,200O34,8009,600O29,6004/116,40030,800*L19,600O44,8000WagesPayableJobNo.102JobNo.10232,000*M53,0003,000M3,000L612,00012,000L12,000O76,0006,000O6,000021,000OverheadJobNo.103OverheadVarianceActualAppliedM*1,6004,0001020,000*16,0009L*10,400O85,2004/3017,200Note:Seefootnotesonnextpage.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter4113若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–39.(continued)MreferstodirectmaterialsLreferstodirectlaborOreferstomanufacturingoverhead*Numbersgivenintheproblem1Labortocompletejobis$9,600sincethebeginninginventorywas50%complete2Appliedoverhead=$30,800–$2,000–$19,200=$9,600$9,600Appliedoverhead=$19,200=$0.50perlabordollar3Overheadinbeginninginventory=0.50x$9,600=$4,8004OverheadappliedinApril=0.50x$9,600=$4,8005MaterialsforJobNo.102=Purchases–materialsforJobNo.103=$4,600–$1,600=$3,0006LaborforJobNo.102=Totaldirectlaborcosts–LaborforJobNo.101–LaborforJobNo.103=$32,000–$9,600–$10,400=$12,0007OverheadforJobNo.102=0.50x$12,000课后答案网=$6,0008OverheadforJobNo.103=0.50x$10,400www.hackshp.cn=$5,2009AppliedOverhead=$4,800+$6,000+$5,200=$16,00010Underappliedoverhead=Actual–Applied=$20,000–$16,000=$4,000©TheMcGraw-HillCompanies,Inc.,1997114CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn4–40.(25min.)JobCostingandEthics.a.ItwouldbeunethicalforSuzietofalsifyjobcostreportsbyimproperlyassigningcoststotheU.S.governmentjobwhichwereactuallypartofthecostoftheArrowSpacejob.SinceSuzie’sbosssuggestedthiscourseofaction,sheshouldapproachhigherlevelsofmanagementwithherproblem.Giventhepotentialillegalityandotherpossiblenegativeramificationsofthisproblem(suchaslostreputation),itislikelythatmanagementwilldecidetowriteoffthecostoverrunsinsteadoffalselyreportingthem.b.ThefactthatSuzie’scompanyisreimbursedontheU.S.governmentcontractmakesitparticularlyenticingtochargetheexcesscoststothisproject.However,sincetheU.S.governmentcontractisbasedoncosts,itmaybeanillegalactionforthecompanytomisrepresentcostschargedtothisproject.Ifthisactionisdiscoveredandprovenincourt,thecompanycouldbeliablefortheexcesscharges,interestandpunitivedamages.Suzieandherbosscouldbeheldresponsibleforcivilandcriminalpenalties,nottomentionthelossoftheirjobsandtheirreputations.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter4115若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter5ProcessCostingSolutionstoReviewQuestions5–1.Theequivalentunitsconceptequatesunitsatvariousstagesofcompletiontoacommonmeasurementunit.Thecalculationisnecessarybecauseproductsarepartiallyincomplete.5–2.Usingthebasiccostflowequation,rearrangethetermstosolvefortheunknownbeginninginventory.FromBB+TI–TO=EB,wehave:BeginningInventory+CurrentWork–TransferredOut=EndingInventory.Rearrangingyields:BeginningInventory=TransferredOut+EndingInventory–CurrentWork5–3.WithFIFOcosting,theunitsinthebeginninginventoryaretransferredoutfirst.Thesebeginninginventoryunitscarrywiththemthecostsincurredinapreviousperiodplusthecostsincurredthisperiodtocompletethebeginninginventory.Unitsstartedandcompletedduringtheperiodarechargedoutusingallcurrentperiodcosts.Whilesuchadistinctionismadebythedepartmenttransferringtheunitsout,thedepartmentreceivingtheunitsusuallyignoresthedistinctionincostsincurredinthepriordepartment.5–4.UnderFIFOcosting,theequivalentunitsrepresentonlytheworkdoneinthecurrentperiod.Under课后答案网weighted–average,theequivalentunitsrepresenttheworkassociatedwithallofthecostschargedtoworkinprocessregardlessoftheperiodinwhichthosecostswereincurred(i.e.,includingcostsfrompriorperiodsthatareinbeginninginventory).www.hackshp.cn5–5.Priordepartmentcostsbehavethesameasdirectmaterialswhicharetypicallyaddedatthestartofproduction.Theyaretreatedseparatelybecausetheyrepresenttheaccumulationofcostsfrompreviousdepartmentsratherthanthereceiptofmaterialsfromthestoresarea.Itishelpfultoseparatepriordepartmentcostsfromothercostsbecausethemanagerofthedepartmentreceivingthetransferredunitshasnocontroloverthecostsincurredinpriordepartments.Thus,thepriordepartmentcostsarenotusefulforevaluatingtheperformanceofthemanagerofthedepartmentreceivingtheunits.5–6.FromBB+TI–TO=EB;TO=BB+TI–EB©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5117若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoCriticalAnalysisandDiscussionQuestions5–7.Toassigncoststospecificlotsofcerealorsimilarlymass–produceditemsrequiresalotofrecord-keeping.Assumingproductsareallthesame,aprocesscostingsystemprovidessufficientinformationforcontrolpurposes.Recordkeepingissimplifiedsinceallcostsinagivenmonthareaccumulatedinoneaccountandassignedattheendoftheperiod.5–8.Thisisafairlycommonproblem.LIFOisusuallybeneficialfortaxpurposeswhenpricesarerisingandinventorylevelsaresteadyorrising.However,maintaininginternalrecordsonaLIFObasisisoftenquiteburdensome.Toavoidtheproblem,companiesusuallymaintaintheirinternalaccountingrecordsonaFIFOorweighted-averagebasisandthenmakeanestimateoftheLIFOcostofinventories.TheLIFOestimateisusuallydoneonahighlyaggregatedbasisandemployssomeformof“dollarvalue”LIFOestimation.AcompanymayuseLIFOfortaxpurposesandsomeothermethodforinternalaccountingpurposes.Thisisanexampleoftheideaof“differentcostsfordifferentpurposes”whichwasdiscussedinearlierchapters.5–9.Carbonatedwaterandcolasyruparecombinedinthefirststage.Emptycansarefilledinthesecondstage.Topsareplacedonthecansinthethirdstage.Finally,thecansarepackagedandpreparedforshipping.5–10.Thecorrectansweris(2).WhencostofgoodsmanufacturedisthesameunderFIFOandweighted-average,thedifferencebetweentheweighted-averageandFIFOmethodsofprocesscostingishowtheyhandlebeginningWIP.WhenthereisnobeginningWIPthereisnodifferencebetweenthetwocostingmethods.5–11.Thecorrectansweris(1).Ifthepercentageofcompletionassignedislowerthanactuallyattained,equivalentunitswillbeunderstated.Forexample,ifthecorrectpercentageshouldbe75%,but50%isassignedto100unitsinendinginventory,EUwillbe50insteadof75.Thiserrorresultsinhigher课后答案网(overstated)costsperequivalentunitandhigher(overstated)costsassignedtogoodstransferredout.5–12.www.hackshp.cnThecorrectansweris(2).Theweighted-averagemethodofprocesscostingcombinesthecostsofworkdoneinthepreviousperiodandthecurrentperiod.5–13.(5).Noneoftheseanswersarecorrect.Answers(1)and(2)areincorrectbecause(1)ignoresstagesofcompletionand(2)doublecountsunitsstartedthatarestillinendinginventory.Answer(3)isincorrectbecausetheendinginventoryshouldbemultipliedbytheamountofworkdonethisperiod,notworknecessarytocompletetheitems.Answer(4)isincorrectbecauseitdefinesweighted-averageEUproduced,andithasthesameerrorasanswer(3).©TheMcGraw-HillCompanies,Inc.,1997118CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises5–14.(20min.)Computeequivalentunits—weightedaveragemethod.ComputationofEquivalentUnitsProduced—WeightedAveragea.b.ConversionMaterialsCostsUnitstransferredout.................................................9,0009,000Equivalentunitsinendinginventory:Materials:10%x6,500aunits...............................650E.U.Conversioncosts:15%x6,500units....................975E.U.Totalequivalentunitsforallworkdonetodate........9,650E.U.9,975E.U.a6,500unitsinendinginventory=3,500unitsinbeginninginventory+12,000unitsstartedthisperiod–9,000unitstransferredout.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5119若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–15.(20min.)Computeequivalentunits—FIFOmethod.a.b.ConversionComputeEquivalentUnits—FIFOMaterialsCostsTocompletebeginninginventory:Materials:80%ax3,500units................................2,800E.U.Conversioncosts:85%bx3,500units...................2,975E.U.Startedandcompletedduringtheperiod..................5,500E.U.c5,500E.U.Unitsstillinendinginentory:Materials:10%x6,500dunits................................650E.U.Conversioncosts:15%x6,500units....................975E.U.8,950E.U.9,450E.U.a80%=100%–20%alreadydoneatthebeginningoftheperiod.b85%=100%–15%alreadydoneatthebeginningoftheperiod.C5,500unitsstartedandcompleted=9,000unitstransferredoutless3,500unitsfrombeginninginventory.d6,500endinginventory=3,500unitsbeginninginventory+12,000unitsstartedthisperiod–9,000unitstransferredout.AlternativeMethodEquivalentUnitsE.U.E.U.unitsofwork=transferred+ending–beginningdonethisperiodoutinventoryinventorya.Materials:8,950E.U.=9,000units+650E.U.–700E.U.b.ConversionCosts:9,450E.U.=9,000units+975E.U.–525E.U.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997120CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–16.(15min.)Computeequivalentunits—weightedaveragemethod.a.b.ConversionMaterialsCostsUnitstransferredout...........................................30,00030,000Equivalentunitsinendinginventory:Materials:25%x10,000units.........................2,500Conversioncosts:15%x10,000units............1,500Totalequivalentunitsforallworkdonetodate..32,50031,500课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5121若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–17.(20min.)Computeequivalentunits—FIFOmethod.a.b.ConversionMaterialsCostsTocompletebeginninginventory:Materials:45%bx5,000aunits.......................2,250E.U.Conversioncosts:30%cx5,000units............1,500E.U.Startedandcompletedduringtheperiod...........25,000E.U.d25,000E.U.Unitsstillinendinginentory:Materials:25%x10,000dunits.......................2,500E.U.Conversioncosts:15%x10,000dunits..........1,500E.U.29,750E.U.28,000E.U.a5,000unitsinbeginninginventory=30,000unitstransferredout+10,000unitsinendinginventory–35,000unitsstartedthisperiod.b45%=100%–55%alreadydoneatthebeginningoftheperiod.c30%=100%–70%alreadydoneatthebeginningoftheperiod.d25,000unitsstartedandcompleted=30,000unitstransferredoutless5,000unitsfrombeginninginventory.AlternativeMethodEquivalent=Units+E.U.–E.U.unitsofworktransferredendingbeginningdonethisperiodoutinventoryinventorya.Materials:29,750E.U.=30,000units+2,500E.U.–2,750E.U.b.ConversionCosts:28,000E.U.=30,000units+1,500E.U.–3,500E.U.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997122CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–18.(20min.)Computeequivalentunits—weightedaveragemethod:KeanuCo.Theansweris(a).ConversionCosts:Unitstransferredout...............................................................40,000Equivalentunitsinendinginventory(16,000unitsx75%).....12,000Totalequivalentunitsforconversioncosts.............................52,0005–19(20min.)Computeequivalentunits—FIFOmethod:AlyssaCo.Theansweris(d)ConversionMaterialsCostsEq.unitsEq.unitsTocompletebeginninginventory:Materials:allcomplete..........................................0Conv.costs:250unitsx(1–40%).........................150Startedandcompletedduringtheperiod(1,050unitstrans.out—250beg.Invent.)............800800Unitsinendinginventory:Materials(200x100%).........................................200Conv.costs(200x25%).......................................50Equivalentunitsofproduction..................................1,0001,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5123若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–20.(20min.)Computecostperequivalentunit—weightedaveragemethod:AlexisCo.Theansweris(9).PhysicalUnitsMaterialsEq.UnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory.......................................60,000Unitsstartedthisperiod........................................160,000Totalunitstoaccountfor...................................220,000Unitsaccountedfor:CompletedandtransferredoutMaterials(170,000x100%)...............................170,000170,000Unitsinendinginventory:Materials(50,000x100%).................................50,00050,000Totalunitsaccountedfor................................220,000220,000DirectMaterialsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory.........................$11,000Currentperiodcosts..............................................35,200Totalcoststobeaccountedfor.........................$46,200Costperequivalentunit课后答案网Materials($46,200/220,000units)........................$0.21www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997124CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–21.(20min.)Computeequivalentunits—FIFOmethod:JuanCo.Theansweris(b).PhysicalEquiv.unitsUnitsConversionCostsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory......................................40,000Unitsstartedthisperiod........................................680,000Totalunitstoaccountfor...................................720,000Unitsaccountedfor:CompletedandtransferredoutFrombeginningWIPinventory:Conv.costs40,000x(1–60%)......................40,00016,000Startedandcompletedcurrently.......................600,000600,000UnitsinendingWIPinventory:Conv.costs80,000x40%................................80,00032,000Totalunitsaccountedfor...............................720,000648,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5125若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–22.(35min.)Computecostperequivalentunit—weightedaveragemethod.PhysicalUnitsEquivalentUnitsMaterialsConversionCostsEq.unitsEq.unitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory.....................150Unitsstartedthisperiod......................1,000Totalunitstoaccountfor.................1,150Unitsaccountedfor:Completedandtransferredout...........850850850Unitsinendinginventory.....................300Materials(300x40%)......................120Conv.costs(300x20%)..................60Totalunitsaccountedfor.................1,150970910DirectConversionTotalMaterialsCostsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory.......$624$488$136Currentperiodcosts............................9,0425,7203,322Totalcoststobeaccountedfor.......$9,666课后答案网$6,208$3,458CostperequivalentunitMaterials($6,208/970units)...............www.hackshp.cn$6.40Conv.costs($3,458/910)...................$3.80©TheMcGraw-HillCompanies,Inc.,1997126CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–23.(20min.)Assigncoststogoodstransferredoutandendinginventory—weightedaveragemethod.PhysicalUnitsEquivalentUnitsMaterialsConversionCostsEq.unitsEq.unitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory......................150Unitsstartedthisperiod........................1,000Totalunitstoaccountfor...................1,150Unitsaccountedfor:Completedandtransferredout.............850850850Unitsinendinginventory......................300Materials(300x40%).......................120Conv.costs(300x20%)...................60Totalunitsaccountedfor...................1,150970910DirectConversionTotalMaterialsCostsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory...........$624$488$136Currentperiodcosts...............................9,0425,7203,322Totalcoststobeaccountedfor...........$9,666课后答案网$6,208$3,458CostperequivalentunitMaterials($6,208/970units)...................www.hackshp.cn$6.40Conv.costs($3,458/910).......................$3.80Costsaccountedfor:Costsassignedtounitstransferredout$8,670$5,440$3,230CostofendingWIPinventory.................996768228Totalcostsaccountedfor....................$9,666$6,208$3,458Coststransferredouttotal$8,670,andcostsinendinginventorytotal$996.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5127若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–24.(35min.)Computecostperequivalentunit—FIFOmethod.PhysicalUnitsEquivalentUnitsMaterialsConversionCostsEq.unitsEq.unitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory.....................150Unitsstartedthisperiod......................1,000Totalunitstoaccountfor.................1,150Unitsaccountedfor:CompletedandtransferredoutFrombeginningWIPinventory........150Materials150x(1–60%)..............60Conv.costs150x(1–30%)..........105Startedandcompletedcurrently......700700700UnitsinendingWIPinventory300Materials(300x40%)......................120Conv.costs(300x20%)..................60Totalunitsaccountedfor..............1,150880865DirectConversionTotalMaterialsCostsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory.......$624课后答案网$488$136Currentperiodcosts............................9,0425,7203,322Totalcoststobeaccountedfor.......$9,666www.hackshp.cn$6,208$3,458CostperequivalentunitMaterials($5,720/880units)...............$6.50Conv.costs($3,322/865units)..........$3.84©TheMcGraw-HillCompanies,Inc.,1997128CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–25.(20min.)Assigncoststogoodstransferredoutandendinginventory—FIFOmethod.PhysicalUnitsEquivalentUnitsMaterialsConversionCostsEq.unitsEq.unitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory....................150Unitsstartedthisperiod......................1,000Totalunitstoaccountfor.................1,150Unitsaccountedfor:CompletedandtransferredoutFrombeginningWIPinventory........150Materials150x(1–60%)..............60Conv.costs150x(1–30%).........105Startedandcompletedcurrently.....700700700UnitsinendingWIPinventory.............300Materials(300x40%).....................120Conv.costs(300x20%).................60Totalunitsaccountedfor.............1,150880865课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5129若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–25.(continued)DirectConversionTotalMaterialsCostsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory.....................$624$488$136Currentperiodcosts..........................................9,0425,7203,322Totalcoststobeaccountedfor.....................$9,666$6,208$3,458CostperequivalentunitMaterials($5,720/880units).............................$6.50Conv.costs($3,322/865units)........................$3.84Costsaccountedfor:CostsassignedtounitstransferredoutCostsfrombeginningWIPinventory.............$624$488$136CurrentcostsaddedtocompletebeginningWIPinventory............................794Materials($6.50x60units).......................390Conv.costs($3.84x105units).................404*Currentcostsofunitsstartedandcompleted....7,238Materials($6.50x700)..............................4,550Conv.costs($3.84x700)..........................2,688Totalcoststransferredout....................................$8,656$5,428$3,228CostofendingWIPinventory...............................1,010Materials($6.50x120)..............................780Conv.costs($3.84x60)............................230Totalcostsaccountedfor..............................$9,666课后答案网$6,208$3,458*Includes$1roundingerror.www.hackshp.cnCoststransferredouttotal$8,656,andcostsinendinginventorytotal$1,010.©TheMcGraw-HillCompanies,Inc.,1997130CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–26.(35min.)Computecostperequivalentunit—weightedaveragemethod.PhysicalUnitsEquivalentUnitsMaterialsConversionCostsEq.unitsEq.unitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory....................8,000Unitsstartedthisperiod......................14,000Totalunitstoaccountfor.................22,000Unitsaccountedfor:Completedandtransferredout...........17,00017,00017,000UnitsinendingWIPinventory.............5,000Materials(5,000x80%)..................4,000Conv.costs(5,000x40%)..............2,000Totalunitsaccountedfor.............22,00021,00019,000DirectConversionTotalMaterialsCostsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory.......$124,160$50,820$73,340Currentperiodcosts...........................895,240390,600504,640Totalcoststobeaccountedfor.......$1,019,400$441,420$577,980Costperequivalentunit课后答案网Materials($441,420/21,000units).....$21.02Conv.costs($577,980/19,000units).www.hackshp.cn$30.42©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5131若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–27.(20min.)Assigncoststogoodstransferredoutandendinginventory—weightedaveragemethod.PhysicalUnitsEquivalentUnitsMaterialsConversionCostsEq.unitsEq.unitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory............................8,000Unitsstartedthisperiod.............................14,000Totalunitstoaccountfor........................22,000Unitsaccountedfor:Completedandtransferredout..................17,00017,00017,000Unitsinendinginventory............................5,000Materials(5,000x80%)..........................4,000Conv.costs(5,000x40%)......................2,000Totalunitsaccountedfor.....................22,00021,00019,000DirectConversionTotalMaterialsCostsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory............$124,160$50,820$73,340Currentperiodcosts.................................895,240390,600504,640Totalcoststobeaccountedfor............$1,019,400课后答案网$441,420$577,980CostperequivalentunitMaterials($441,420/21,000units)...........www.hackshp.cn$21.02Conv.costs($577,980/19,000units)......$30.42Costsaccountedfor:Costsassignedtounitstransferredout....$874,480$357,340$517,140CostsofendingWIPinventory.................144,92084,08060,840Totalcostsaccountedfor.....................$1,019,400$441,420$577,980Coststransferredouttotal$874,480,andcostsinendinginventorytotal$144,920.©TheMcGraw-HillCompanies,Inc.,1997132CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–28.(35min.)Computecostperequivalentunit—FIFOmethod.PhysicalUnitsEquivalentUnitsMaterialsConversionCostsEq.unitsEq.unitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory....................8,000Unitsstartedthisperiod......................14,000Totalunitstoaccountfor.................22,000Unitsaccountedfor:CompletedandtransferredoutFrombeginningWIPinventory........8,000Materials8,000x(1–30%)...........5,600Conv.costs8,000x(1–30%)......5,600Startedandcompletedcurrently.....9,0009,0009,000UnitsinendingWIPinventory................5,000Materials(5,000x80%)..................4,000Conv.costs(5,000x40%)..............2,000Totalunitsaccountedfor.............22,00018,60016,600DirectConversionTotalMaterialsCostsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory.......$124,160课后答案网$50,820$73,340Currentperiodcosts...........................895,240390,600504,640Totalcoststobeaccountedfor.......$1,019,400www.hackshp.cn$441,420$577,980CostperequivalentunitMaterials($390,600/18,600units).....$21.00Conv.costs($504,640/16,600units).$30.40Theunitcostsareslightlyhigherunderweighted-averagethanunderFIFO.Thecostsperunitinbeginninginventorywereslightlyhigherthanthecostperunitincurredthisperiod,whichincreasesweighted-averageunitcost.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5133若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–29.(20min.)Assigncoststogoodstransferredoutandendinginventory—FIFOmethod.PhysicalUnitsEquivalentUnitsMaterialsConversionCostsEq.unitsEq.unitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory.....................8,000Unitsstartedthisperiod......................14,000Totalunitstoaccountfor.................22,000Unitsaccountedfor:CompletedandtransferredoutFrombeginningWIPinventory........8,000Materials8,000x(1–30%)...........5,600Conv.costs8,000x(1–30%).......5,600Startedandcompletedcurrently......9,0009,0009,000UnitsinendingWIPinventory.................5,000Materials(5,000x80%)...................4,000Conv.costs(5,000x40%)...............2,000Totalunitsaccountedfor..............22,00018,60016,600课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997134CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–29.(continued)DirectConversionTotalMaterialsCostsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory......................$124,160$50,820$73,340Currentperiodcosts..........................................895,240390,600504,640Totalcoststobeaccountedfor......................$1,019,400$441,420$577,980CostperequivalentunitMaterials($390,600/18,600units)....................$21.00Conv.costs($504,640/16,600units)................$30.40Costsaccountedfor:Costsassignedtounitstransferredout:CostsfrombeginningWIPinventory.............$124,160$50,820$73,340CurrentcostsaddedtocompletebeginningWIPinventory.............................................287,840Materials($21x5,600)..........................117,600Conv.costs($30.40x5,600).................170,240Currentcostsofunitsstartedandcompleted:462,600Materials($21x9,000)..............................189,000Conv.costs($30.40x9,000).....................273,600Totalcoststransferredout....................................$874,600$357,420$517,180CostofendingWIPinventory................................144,800Materials($21x4,000)..............................84,000Conv.costs($30.40x2,000).....................60,800Totalcostsaccountedfor...............................$1,019,400课后答案网$441,420$577,980Endinginventoryisslightlyhigherundertheweighted-averagemethodbecausetheunitcostsarehigherunderweighted-average.UnderFIFO,theunitcostsare$21forwww.hackshp.cnmaterialsand$30.40forconversioncosts.Underweighted-average,theunitcostsare$21.02formaterialsand$30.42forconversioncosts.ThereasonforthedifferenceinunitcostisexplainedinExercise5–28.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5135若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–30.(50min.)ProductionCostReport:OverlandCo.—FIFOmethod.PhysicalUnitsEquivalentUnitsPriorDepartmentDepartmentNo.2Flowofunits:Unitstobeaccountedfor:BeginningWIPinventory...................................3,000Unitsstartedthisperiod....................................7,000Totalunitstoaccountfor...............................10,000Unitsaccountedfor:CompletedandtransferredoutFrombeginningWIPinventory......................3,000Priordepartment........................................0DepartmentNo.2[3,000unitsx(1–20%)].2,400Startedandcompletedcurrently....................6,0006,0006,000UnitsinendingWIPinventory...............................1,000Priordepartment............................................1,000DepartmentNo.2(1,000unitsx45%)..........450Totalunitsaccountedfor............................10,0007,0008,850课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997136CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–30.(continued)PriorDepartmentTotalDepartmentNo.2Flowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory......................$18,406$14,500$3,906Currentperiodcosts..........................................107,24032,90074,340Totalcoststobeaccountedfor......................$125,646$47,400$78,246CostperequivalentunitPriordepartment($32,900/7,000units)............$4.70Dept.No.2($74,340/8,850units)....................$8.40Costsaccountedfor:Costsassignedtounitstransferredout:CostsfrombeginningWIPinventory..............$18,406$14,500$3,906CurrentcostsaddedtocompletebeginningWIPinventory.............................................20,160Priordepartment.....................................0Dept.No.2($8.40x2,400units)...........20,160Currentcostsofunitsstartedandcompleted:..78,600Priordepartment($4.70x6,000)...............28,200Dept.No.2($8.40x6,000)......................50,400Totalcoststransferredout....................................$117,166$42,700$74,466CostofendingWIPinventory................................8,480Priordepartment($4.70x1,000)..............4,700Dept.No.2($8.40x450)..........................3,780Totalcostsaccountedfor...............................$125,646课后答案网$47,400$78,246www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5137若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–31.(50min.)Productioncostreport—weightedaveragemethod:OverlandCo.PhysicalUnitsEquivalentUnitsPriorDepartmentDepartmentNo.2Flowofunits:Unitstobeaccountedfor:BeginningWIPinventory...................................3,000Unitsstartedthisperiod....................................7,000Totalunitstoaccountfor...............................10,000Unitsaccountedfor:Completedandtransferredout.........................9,0009,0009,000Unitsinendinginventory...................................1,000Priordepartment(1,000unitsx100%)..........1,000DepartmentNo.2(1,000unitsx45%)..........450Totalunitsaccountedfor............................10,00010,0009,450DirectConversionTotalMaterialsCostsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory.....................$18,406$14,500$3,906Currentperiodcosts..........................................107,24032,90074,340Totalcoststobeaccountedfor.....................$125,646$47,40078,246CostperequivalentunitPriordepartments($47,400/10,000units).........课后答案网$4.74DepartmentNo.2($78,246/9,450)...................$8.28www.hackshp.cnCostsaccountedfor:Costsassignedtounitstransferredout.............$117,180$42,660$74,520CostsofendingWIPinventory..........................8,4664,7403,726Totalcostsaccountedfor..............................$125,646$47,400$78,246Theendinginventoryislowerundertheweighted-averagemethodthanundertheFIFOmethod.Underweighted-average,theendinginventoryis$8,466.Thisis$14lessthanFIFO,whichis$8,480.ThedifferenceisduetothedifferencesincostsperequivalentunitbetweenFIFOandweighted-average.©TheMcGraw-HillCompanies,Inc.,1997138CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems5–32.(45min.)Computeequivalentunits—multiplechoice.a.Theansweris(2).ConversionMaterialsCostsUnitstransferredout...............................132,500a132,500aE.U.inendinginventory:Materials100%x12,500units............12,500E.U.Conversioncosts40%x12,500units.5,000E.U.E.U.producedthisperiod.......................145,000E.U.137,500E.U.aUnitstransferredout=unitsstarted+beg.inventory–endinginventory=120,000+25,000–12,500=132,500b.Theansweris(4).PriorDepartmentConversionCostsMaterialsCostsUnitstransferredout...............................330,000a330,000a330,000aE.U.inendinginventory:Priordepartmentcosts.......................40,000E.U.Materialsb............................................–0–E.U.Conversioncosts90%x40,000units.36,000E.U.E.U.producedthisperiod.......................370,000E.U.课后答案网330,000E.U.366,000E.U.a320,000started+50,000inbeg.inv.–40,000inendinginv.=330,000transferredout.bMaterialsareaddedattheendoftheprocess.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5139若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–32.(continued)c.Theansweris(2).E.U.tocompletebeginninginventory40%ax16,000units........6,400E.U.Startedandcompletedb..............................................................240,000E.U.E.U.inendinginventory40%x32,000units..............................12,800E.U.E.U.donethisperiod..................................................................259,200E.U.a40%=100%–60%alreadydoneatthebeginningoftheperiod.b240,000units=256,000transferredout–16,000frombeginninginventory.d.Theansweris(1).ConversionMaterialsCostsTocompletebeginninginventory:Materials:0%ax10,000units...........................0Conversioncosts:30%bx10,000units............3,000E.U.Startedandcompletedduringtheperiod.............35,000cE.U.35,000E.U.Unitsstillinendinginventory:Materials:100%x8,000units...........................8,000E.U.Conversioncosts:50%x8,000units................4,000E.U.Workdoneincurrentperiod.................................43,000E.U.42,000E.U.a0%=100%–100%alreadydoneatthebeginningoftheperiod.b30%=100%–70%alreadydoneatthebeginningoftheperiod.c35,000=45,000transferredout–10,000frombeginninginventory.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997140CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–33.(30min)ProductionreporttofindconversioncostsinendingWIPinventory—FIFOmethoda.Theansweris(3)PhysicalEquivalentUnitsUnitsConversionCostsFlowofunitsUnitstobeaccountedfor:BeginningWIPinventory....................50,000Unitsstartedthisperiod......................270,000Totalunitstoaccountfor.............320,000Unitsaccountedfor:CompletedandtransferredoutFrombeginningWIPinventory........50,000(50,000x20%)............................10,000Startedandcompletedcurrently.....150,000150,000UnitsinendingWIPinventory.............120,000(120,000x50%)..........................60,000Totalunitsaccountedfor..........320,000220,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5141若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–33.(continued)ConversionCostsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory.....................$86,000Currentperiodcosts..........................................484,000Totalcoststobeaccountedfor.....................$570,000Costperequivalentunit($484,000/220,000)...$2.20Costsaccountedfor:Costsassignedtounitstransferredout:CostsfrombeginningWIPinventory.............$86,000CurrentcostsaddedtocompletebeginningWIPinventory:Conv.costs($2.20x10,000)....................22,000Currentcostsofunitsstartedandcompleted:Conv.costs($2.20x150,000)......................330,000Totalcoststransferredout................................$438,000CostofendingWIPinventory:Conv.costs($2.20x60,000)....................132,000(Answer)Totalcostsaccountedfor..............................$570,000b.Theansweris(2).Costperunitforthepreviousperiodis$2.15[=$86,000/(50,000equiv.unitsx80%)]Costperunitforthecurrentperiodis$2.20ascalculatedin(a)above.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997142CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–34.(50min.)Prepareaproductioncostreport—weightedaveragemethod:BajaCorporation.a.BajaCorporationAssemblyDepartmentProductionCostReport—WeightedAverageFLOWOFPRODUCTIONUNITS(Section1)PhysicalunitsUnitstobeaccountedfor:BeginningWIPinventory....................1,000Unitsstartedthisperiod......................5,000Totalunitstobeaccountedfor...............6,000(Section2)COMPUTEEQUIVALENTUNITSPriordepartmentManufacturingcostsMaterialsLaboroverheadUnitsaccountedfor:Unitscompletedandtransferredout:课后答案网Frombeginninginventory................1,000Startedandcompletedcurrently.....www.hackshp.cn3,000Totaltransferredout........................4,0004,0004,0004,0004,000UnitsinendingWIPinventory.............2,0002,0001,800(90%)1,400(70%)700(35%)Totalunitsaccountedfor........................6,0006,0005,8005,4004,700©TheMcGraw-HillCompanies,Inc.,1997143若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–34.a.(continued)DETAILSPriorTotaldepartmentManufacturingcostscostsMaterialsLaboroverheadCoststobeaccountedfor:(Section3)CostsinbeginningWIPinventory...................$64,700$32,000$20,000$7,200$5,500Currentperiodcosts.......................................310,000160,00096,00036,00018,000Totalcoststobeaccountedfor..........................$374,700$192,000$116,000$43,200$23,500Costperequivalentunit:(Section4)Priordepartmentcosts($192,000¸6,000)....$32.00Materials($116,000¸5,800)..........................$20.00Labor($43,200¸5,400).................................$8.00Manufacturingoverhead($23,500¸4,700)....$5.00Costsaccountedfor:(Section5)Costsassignedtounitstransferredout:Priordepartmentcosts($32x4,000)..........$128,000$128,000Materials($20x4,000)...............................80,000$80,000Labor($8x4,000).......................................32,000$32,000Manufacturingoverhead($5x4,000).........20,000$20,000Totalcostsofunitstransferredout.................课后答案网260,000CostsassignedtoendingWIPinventory:Priordepartmentcosts($32x2,000)..........www.hackshp.cn64,00064,000Materials($20x1,800)...............................36,00036,000Labor($8x1,400).......................................11,20011,200Manufacturingoverhead($5x700)............3,5003,500TotalendingWIPinventory.............................$114,700Totalcostsaccountedfor...................................$374,700$192,000$116,000$43,200$23,500©TheMcGraw-HillCompanies,Inc.,1997144若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–34.a.(continued)PriorDepartmentManufacturingCostsMaterialsLaborOverheadCostsaccountedfor:(Section5)Costsassignedtounitstransferredout:Priordepartmentcosts($32x4,000)..........$128,000$128,000Materials($20x4,000)...............................80,000$80,000Labor($8x4,000).......................................32,000$32,000Manufacturingoverhead($5x4,000).........20,000$20,000Totalcostsofunitstransferredout.................260,000CostsassignedtoendingWIPinventory:Priordepartmentcosts($32x2,000).............64,00064,000Materials($20x1,800)...............................36,00036,000Labor($8x1,400).......................................11,20011,200Manufacturingoverhead($5.00x700).......3,5003,500TotalendingWIPinventory.............................$114,700Totalcostsaccountedfor...................................$374,700$192,000$116,000$43,200$23,500b.Thereporttomanagementshouldincludethefollowingitems:课后答案网•Materials:The$20perunitgoalsetbymanagementiscurrentlybeingachievedbytheAssemblyDept.•Labor:Equivalentunitlaborcostsperunit($8)isbelowmanagement’sgoalof$10.www.hackshp.cn•Manufacturingoverhead:overheadcostsperunit($5)isslightlyhigherthanmanagement’sgoalof$4.50.©TheMcGraw-HillCompanies,Inc.,1997145若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–35.(50min.)Prepareaproductioncostreport—FIFOmethod:BajaCorporation.a.BajaCorporationAssemblyDepartmentProductionCostReport—FIFOFLOWOFPRODUCTIONUNITS(Section2)(Section1)COMPUTEEQUIVALENTUNITSPriorPhysicaldepartmentManufacturingunitscostsMaterialsLaboroverheadUnitstobeaccountedfor:BeginningWIPinventory...............................1,000Unitsstartedthisperiod.................................5,000Totalunitstobeaccountedfor..........................6,000Unitsaccountedfor:Unitscompletedandtransferredout:Frombeginninginventory...........................1,000–0––0–400(40)%a500(50%)bStartedandcompletedcurrently................3,0003,0003,0003,0003,000UnitsinendingWIPinventory........................2,0002,0001,800(90%)1,400(70%)700(35%)Totalunitsaccountedfor...................................课后答案网6,0005,0004,8004,8004,200www.hackshp.cna40%=100%–60%alreadydoneatthebeginningoftheperiod.b50%=100%–50%alreadydoneatthebeginningoftheperiod.©TheMcGraw-HillCompanies,Inc.,1997146若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–35.a.(continued)COSTSDETAILSPriorTotaldepartmentManufacturingCostscostsMaterialsLaboroverheadCoststobeaccountedfor:(Section3)CostsinbeginningWIPinventory....................................$64,700$32,000$20,000$7,200$5,500Currentperiodcosts........................................................310,000160,00096,00036,00018,000Totalcoststobeaccountedfor...........................................$374,700$192,000$116,000$43,200$23,500Costperequivalentunit:(Section4)Priordepartmentcosts($160,000¸5,000)...................$32.00Materials($96,000¸4,800)...........................................$20.00Labor($36,000¸4,800)................................................$7.50Manufacturingoverhead($18,000¸4,200)...................$4.2857课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997147若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–35.a.(continued)DetailsPriorTotaldepartmentManufacturingCostscostsMaterialsLaboroverheadCostsaccountedfor:(Section5)Costsassignedtounitstransferredout:CostsfrombeginningWIPinventory............................$64,700$32,000$20,000$7,200$5,500CurrentcostsaddedtocompletebeginningWIPinventory:Priordepartmentcosts.............................................–0––0–Materials...................................................................–0––0–Labor($7.50x400)..................................................3,0003,000Manufacturingoverhead($4.2857x500).................2,1432,143Totalcostsfrombeginninginventory...........................69,843Currentcostsofunitsstartedandcompleted:Priordepartmentcosts($32.00x3,000)......................96,00096,000Materials($20.00x3,000)...........................................60,00060,000Labor($7.50x3,000)...................................................22,50022,500Manufacturingoverhead($4.2857x3,000).................12,85712,857Totalcostsofunitsstartedandcompleted......................191,357Totalcostsofunitstransferredout......................................261,200课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997148若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–35.a.(continued)DetailsPriorTotaldepartmentManufacturingCostscostsMaterialsLaboroverheadCostsassignedtoendingWIPinventory:Priordepartmentcosts($32.00x2,000).........................$64,00064,000Materials($20.00x1,800)...............................................36,00036,000Labor($7.50x1,400)......................................................10,50010,500Manufacturingoverhead($4.2857x700)........................3,0003,000TotalendingWIPinventory.................................................$113,500Totalcostsaccountedfor....................................................$374,700$192,000$116,000$43,200$23,500b.Thereporttomanagementshouldincludethefollowingitems:•Materials:Theequivalentunitmaterialscostsperunit($20)isthesameasmanagement’sgoalof$20.•Labor:Equivalentunitlaborcostsperunit($7.50)isbelowmanagement’sgoalof$10.•Manufacturingoverhead:Overheadcostsperunit($4.29)isbelowmanagement’sgoalof$4.50.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997149若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–36.(60min.)Prepareaproductioncostreportandadjustinventorybalances—weightedaveragemethod:LakeviewCorporation.a.LakeviewCorporationProductionCostReport—WeightedAverageFLOWOFPRODUCTIONUNITS(Section1)PhysicalunitsUnitstobeaccountedfor:BeginningWIPinventory................................200,000Unitsstartedthisperiod..................................1,000,000Totalunitstobeaccountedfor...........................1,200,000(Section2)COMPUTEEQUIVALENTUNITSMaterialsLaborOverheadUnitsaccountedfor:Unitscompletedandtransferredout:Frombeginninginventory............................200,000Startedandcompletedcurrently.................700,000Totaltransferredout....................................900,000900,000900,000900,000UnitsinendingWIPinventory.........................课后答案网300,000300,000150,000(50%)150,000(50%)Totalunitsaccountedfor....................................1,200,0001,200,0001,050,0001,050,000www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997150若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–36.(continued)COSTSDETAILSTotalcostsMaterialsLaborOverheadCoststobeaccountedfor:(Section3)CostsinbeginningWIPinventory...................$704,000$200,000$315,000$189,000Currentperiodcosts.......................................4,492,0001,300,0001,995,0001,197,000Totalcoststobeaccountedfor..........................$5,196,000$1,500,000$2,310,000$1,386,000Costperequivalentunit:(Section4)Materials($1,500,000¸1,200,000)..............$1.25Labor($2,310,000¸1,050,000)...................$2.20Overhead($1,386,000¸1,050,000).............$1.32Costsaccountedfor:(Section5)Costsassignedtounitstransferredout:Materials($1.25x900,000)........................$1,125,000$1,125,000Labor($2.20x900,000)..............................1,980,000$1,980,000Overhead($1.32x900,000).......................1,188,000$1,188,000Totalcostsofunitstransferredout.................4,293,000CostsassignedtoendingWIPinventory:Materials($1.25x300,000)........................课后答案网375,000375,000Labor($2.20x150,000)..............................330,000330,000Overhead($1.32x150,000).......................www.hackshp.cn198,000198,000TotalendingWIPinventory.............................903,000Totalcostsaccountedfor...................................$5,196,000$1,500,000$2,310,000$1,386,000©TheMcGraw-HillCompanies,Inc.,1997151若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–36.(continued)b.Adjustmentrequired:WorkinFinishedProcessGoodsPerproblemstatement.........$660,960$1,009,800Correct..................................903,000954,000aDifference.............................($242,040)$55,800Journalentry:WorkinProcess................242,040FinishedGoods.............55,800CostofGoodsSold........186,240Additionalcomputations:a200,000($1.25+2.20+1.32)=$954,000c.Incomewouldhavebeenunderstated.Workinprocesswouldhavebeenunderstated.Finishedgoodswouldhavebeenoverstated.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997152CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–37.(70min.)Showcostflows—FIFOmethod:Bran-U-FlakeCo.WorkinProcessBeginningBalance358,000cTransferredout:Currentwork:Frombeginninginventory358,000amaterials(given)150,200Fromcurrentworkconversion(given)643,500materials120,160aconversioncosts416,988bEndingBalance256,552Additionalcomputations:a$120,160=20,000E.U.transferredx($150,200/25,000E.U.formaterials)(20,000E.U.=25,000–5,000inendinginventory)b$416,988=20,250E.U.transferredoutx($643,500/31,250E.U.forconversioncosts)(20,250E.U.=31,250–11,000inendinginventory)FinishedGoodsTransferredin895,148aToCostofGoodsSold626,604(70%)Balance268,544aFromtotalcreditsinWorkinProcess.CostofGoodsSoldFromFinishedGoods$626,604Overappliedoverhead27,500(Seeexplanationbelow)OverheadappliedinbeginningWIPinventoryis125%ofdirectlaborcosts(i.e.,$162,500/$130,000).Sincetheapplicationratehasnotchanged,theratioofappliedoverheadtototalconversioncostsfoundinthebeginninginventoryshouldalsoholdfor课后答案网conversioncoststhisperiod.Forthisperiod,1.25D.L.+D.L.=$643,500www.hackshp.cn2.25D.L.=$643,500D.L.=$286,000$643,500–$286,000=$357,500Basedonthebalanceinthemanufacturingoverheadaccount,actualoverheadis$330,000.Therefore,overheadisoverappliedby$27,500(i.e.,$357,500–$330,000).Thejournalentrytoassigntheoverappliedoverheadtocostofgoodssoldis:Overappliedoverhead...................................27,500Costofgoodssold......................................27,500©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5153若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–38.(40min.)Prepareaproductioncostreportandshowcostflowsthroughaccounts—FIFOmethod:MalcolmCorporation.MalcolmCorporationProductionCostReport—FIFOa.FLOWOFPRODUCTIONUNITS(Section2)ComputeEquivalentUnits(Section1)ConversionPhysicalunitscostsUnitstobeaccountedfor:BeginningWIPinventory...............................1,000Unitsstartedthisperiod................................9,000Totalunitstobeaccountedfor.........................10,000Unitsaccountedfor:Unitscompletedandtransferredout:aFrombeginninginventory..........................1,000600(60%)Startedandcompletedcurrently................8,5008,500UnitsinendingWIPinventory.......................500100(20%)Totalunitsaccountedfor..................................10,0009,200a60%=100%–40%alreadydoneatthebeginningoftheperiod.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997154CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–38.(continued)COSTSTotalConversioncostscostsCoststobeaccountedfor:(Section3)CostsinbeginningWIPinventory...............................................$840$840Currentperiodcosts...................................................................36,00036,000Totalcoststobeaccountedfor......................................................$36,840$36,840Costperequivalentunit:(Section4)Conversioncosts($36,000¸9,200)...........................................$3.913Costsaccountedfor:(Section5)Costsassignedtounitstransferredout:Costsfrombeginninginventory...............................................$840$840CurrentcostsaddedtocompletebeginningWIPinventory:Conversioncosts($3.913x600).........................................2,3482,348Totalcostsfrombeginninginventory..........................................$3,188Currentcostsofunitsstartedandcompleted:Conversioncosts($3.913x8,500).........................................33,26033,260Totalcostsofunitsstartedandcompleted.................................$33,260Totalcostsofunitstransferredout.............................................$36,448CostsassignedtoendingWIPinventory:Conversioncosts($3.913x100)............................................392392TotalendingWIPinventory.........................................................$392Totalcostsaccountedfor...............................................................$36,840$36,840b.WorkinProcessBeginninginventory:ToFinishedGoodsInventoryConversioncosts课后答案网840Frombeginninginventory:840aThisperiod"scosts:Conversioncosts36,000Fromthisperiod"scosts35,608aEndinginventorywww.hackshp.cn392Allcostshavebeenaccountedfor.VariousPayablesFinishedGoodsInventory36,00036,448a$35,608=$2,348+$33,260.c.Thecompany’stargethasbeenachieved.Productioncoststotal$3.913perunit,lessthanmanagement’stargetof$4.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5155若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–39.(40min.)Solvingforunknowns—FIFOmethod.a.Equivalentunits=Beginninginventoryx(1–percentageofcompletionofbeginninginventory)+100%ofunitsstartedandcompleted+endinginventorytimesitspercentageofcompletion=2,800equivalentunitsLetXbetheunknownpercentageofcompletion.Then,2,800=500(1–X)+2,250+(1,500x30%)2,800=500–500X+2,700collectingterms:2,800–2,700–500=–500X400=500XX=80%Also,usingBB=TO+EB–TI=(2,250+500)+450–2,800=400units400=500XX=80%b.Thecostperequivalentunitisobtainedbydividingtheendinginventorycostsbytheequivalentunitsinendinginventory;$8,700=$8.70perE.U.1,000E.U.Equivalentunitsworkedthisperiodarethesumoftheequivalentunitsto:(a)completethebeginninginventory(b)startandcompletesomeunits,and课后答案网(c)tostarttheendinginventoryWhich,fortheproblemare:www.hackshp.cn4,200+6,000+1,000=11,200Thetotalcostsincurredarethecostperequivalentunittimestheequivalentunitsworkedthisperiod.Thatis11,200x$8.70=$97,440©TheMcGraw-HillCompanies,Inc.,1997156CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–39.(continued)c.Unitsstartedandcompletedequalstheunitstransferredout(unitscompletedthisperiod)lesstheunitsstartedinapreviousperiod(beginninginventory):8,000unitstransferredout–1,000unitsinbeginninginventory7,000unitsstartedandcompleted.d.Currentunitsstartedequalsunitstransferredoutminusbeginninginventoryplusendinginventoryor,inequationform:CurrentStarts=TO–BB+EB=19,000–8,000+6,000=17,000units课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5157若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–40.(50min.)Solvingforunknowns—weighted-averagemethod.a.Unitstransferredoutequalsbeginninginventorypluscurrentworkminusendinginventory.Inequationform:TO=BB+TI(currentwork)–EB=4,100+3,500–3,250=4,350Ofthe4,350unitstransferredout,4,100werefromthebeginninginventory.Therefore,250unitswerestartedandcompleted.Thatis,4,350completedthisperiodless4,100startedinapriorperiodequalsthe250startedandcompletedthisperiod.b.Theinventoryequationyields:BB+TI=TO+EBGiventheinformationintheproblem,wecancomputetherighthandside.Thereare1,200(6,000x20%)equivalentunitsinendinginventoryatacostof$4,500.Thecostperequivalentunitis$3.75(or$4,500¸1,200E.U.).Therighthandsideoftheequationisthetotalequivalentunitsrepresentedbyallcostsintheaccount(18,000E.U.)timesthecostperequivalentunit($3.75).Theresulting$67,500andthebeginninginventorycostof$14,200areenteredintheequation:$14,200+TI=$67,500andsolvingforTI:TI=$67,500–$14,200=$53,300课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997158CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn5–40.(continued)c.First,wecomputethecostofendinginventory:BB+TI(currentwork)=TO+EB$1,900+$18,100=$19,200+EBEB=$20,000–$19,200=$800Equivalentunitsinendinginventoryequals$800dividedbythecostperequivalentunit.Costsperequivalentunitisthe$19,200transferredoutcostsdividedbytheunitstransferredout:$19,200/4,800units=$4perE.U.Costassignedtoendinginventoryisbasedontherelationship:$800=E.U.inEBtimes$4.00andsolvingforE.U.inEBE.U.inEB=$800/$4=200E.U.d.Thecostperequivalentunitis:$3,360/1,600unitstransferredout=$2.10perE.U.Sinceendinginventorycontainsdirectmaterialscostof$630,itmustcontain$630/$2.10equivalentunitsor300equivalentunits.Iftheinventoryis25%completewithrespecttodirectmaterialscosts,thenthese300equivalentunitsrepresent25%ofthephysicalcountofunitsintheendinginventory.Therefore,since课后答案网300E.U.=.25(unitsinEB)Thenwww.hackshp.cnunitsinEB=300/.25=1,200©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter5159若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter6SpoilageandQualityManagementSolutionstoReviewQuestions6–1.Normalspoilageisdefinedasgoodsthatdonotpassqualityinspectionsasaresultofnormalortypicalproblemsintheproductionprocess.Abnormalspoilageisdefinedasgoodsthatdonotpassqualityinspectionsasaresultofunusualorinfrequentproblemswiththeproductionprocess.6–2.Theentryisasfollows:AbnormalSpoilage.............................5,000WIPInventory.................................5,000Abnormalspoilageisalossfortheperiodandwouldappearintheincomestatement.6–3.Thefivestepsare:1.Summarizetheflowofphysicalunits:thisisderivedfromthebasiccostflowmodel(beginninginventory+transfersin–transfersout=endinginventory).2.Computetheequivalentunitsproducedtakingintoaccountthelevelofcompletionfordirectmaterialsandconversioncosts.3,SummarizethetotalcoststobeaccountedforincludinginbeginningWIPinventory,andforunitsstartedduringtheperiod.课后答案网4.Computecostsperequivalentunitfordirectmaterialsandconversioncostsbydividingtotalcoststobeaccountedforfromstepthreebyequivalentunitsfromsteptwo.5.AssigncoststogoodstransferredoutandendingWIPinventoryusingthecostperequivalentunitfromwww.hackshp.cnstepfourandtheflowofunitsfromstepone.6–4.Thetwoapproachesare1)spreadingspoilagecostsoveralljobsbyestablishingaprovisionforspoilageintheoverheadrate;and2)assigningspoilagecoststoaspecificjoborsetofjobs.Thefirstapproachisusedwhenspoilageisaresultoftheproductionprocessandnotoneparticularjob.Thesecondapproachisusedwhenspoilageisaresultofaparticularproductionprocessusedforaspecificjob.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter6161若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–5.Whenspoilageresultsfromtheproductionprocess,costsofspoilagearespreadevenlyacrossallproductsthroughanoverheadrate.Ifspoilageisattributedtoaspecificjob,costsofspoilageareassignedtothatparticularjobandnoprovisionintheoverheadrateisnecessary.6–6.Reworkisperformedonproductsthatdidnotpassinspectionandmustbereworkedtotakecareofqualityproblemsdiscoveredintheinspectionprocess.Thecostsofreworkcanbeassignedtospecificproducts(calledtheproductidentificationmethod),orspreadevenlyacrossallproductsthroughanincreasedoverheadrate(calledtheoverheadmethod).SolutionstoCriticalAnalysisandDiscussionQuestions6–7.Companiesgenerallyprefertoidentifyspoilageasearlyintheproductionprocessaspossible.Bymovingtheinspectionpointasfarupstreamonthevaluechainaspossible,companiesareabletominimizethecostsoflaborandmaterialsusedondefectivegoodsafterspoilageoccurs.However,thedisadvantageofmovingtheinspectionpointupstreamonthevaluechainisthatspoilagemayoccurfurtherintotheproductionprocessthananticipatedandthus,productswouldpasstheinitialinspectionbutbecomespoilageaftertheinspectionpoint.6–8.Normalspoilageassumesthatdefectsarearesultoftheregularoperationoftheproductionprocess.However,usingtotalqualitymanagementthereshouldbenodefectsinproduction.So,advocatesoftotalqualitymanagementwouldlikelyconsiderallspoilagetobeabnormalspoilage.6–9.Ifspoilageisnotdetectedduringproductionanddefectivegoodsaresenttocustomers,thecompanymaylosefuturesalestothecustomerandperhapsothercustomersduetolostcustomergoodwill.课后答案网6–10.Answerswillvary.www.hackshp.cn6–11.Answerswillvary.6–12.Answerswillvary.©TheMcGraw-HillCompanies,Inc.,1997162CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises6–13.(40minutes)Normalspoilage,SierraCompany.a.(Step1)(Step2)PhysicalEquivalentUnitsUnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory..........................................–0–Unitsstartedthisperiod............................................2,000Totalunitstoaccountfor......................................2,000Unitsaccountedfor:Goodunitscompletedandtransferredout...............1,6001,600Spoiledunits.............................................................400400Totalunitsaccountedfor......................................2,0002,000TotalCostsFlowofcosts(step3):Coststobeaccountedfor:CostsinbeginningWIPinventory............................$–0–Currentperiodcosts.................................................20,000Totalcoststobeaccountedfor.............................$20,000Costperequivalentunit(step4):($20,000/2,000).......................................................$10.00Costsaccountedfor(step5):课后答案网Costsassignedtogoodunitstransferredout...........$16,000Costsassignedtospoiledunits................................4,000CostofendingWIPinventory...................................www.hackshp.cn–0–Totalcostsaccountedfor......................................$20,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter6163若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–13.(continued)b.WorkinProcessFinishedGoodsCostofInventoryInventoryGoodsSold20,00016,000a16,000a10,000a10,0004,0001,500b2,500b7,500Spoilageadjustmenta$16,000=1,600x$10$10,000=1,000unitssoldx$10bAllocatebasedongoodunits:$1,500=(600/1,600)x$4,000$2,500=(1,000/1,600)x$4,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997164CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–14.(40minutes)Normalspoilage,AppalachianEnterprises.(Step1)(Step2)PhysicalEquivalentUnitsUnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory..........................................–0–Unitsstartedthisperiod............................................1,000Totalunitstoaccountfor.......................................1,000Unitsaccountedfor:Goodunitscompletedandtransferredout...............800800Spoiledunits.............................................................200200Totalunitsaccountedfor.......................................1,0001,000TotalCostsFlowofcosts(step3):Coststobeaccountedfor:CostsinbeginningWIPinventory.............................$–0–Currentperiodcosts.................................................20,000Totalcoststobeaccountedfor.............................$20,000Costperequivalentunit(step4):($20,000/1,000).......................................................$20.00Costsaccountedfor(step5):Costsassignedtogoodunitstransferredout...........$16,000Costsassignedtospoiledunits................................4,000CostofendingWIPinventory...................................课后答案网–0–Totalcostsaccountedfor......................................$20,000www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter6165若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–15.(30minutes)Spoilageduringtheprocess,SierraCompany.(Step1)(Step2)PhysicalEquivalentUnitsUnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory..........................................–0–Unitsstartedthisperiod...........................................2,000Totalunitstoaccountfor......................................2,000Unitsaccountedfor:Goodunitscompletedandtransferredout...............1,6001,600Spoiledunits(400x50%)........................................400200Totalunitsaccountedfor......................................2,0001,800TotalCostsFlowofcosts(step3):Coststobeaccountedfor:CostsinbeginningWIPinventory............................$–0–Currentperiodcosts.................................................20,000Totalcoststobeaccountedfor............................$20,000Costperequivalentunit(step4):($20,000/1,800).......................................................$11.11Costsaccountedfor(step5):Costsassignedtogoodunitstransferredout...........$17,778Costsassignedtospoiledunits................................2,222CostofendingWIPinventory...................................–0–Totalcostsaccountedfor.....................................课后答案网$20,000www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997166CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–16.(30minutes)Normalspoilage,AppalachianEnterprises.(Step1)(Step2)PhysicalEquivalentUnitsUnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory..........................................–0–Unitsstartedthisperiod............................................1,000Totalunitstoaccountfor.......................................1,000Unitsaccountedfor:Goodunitscompletedandtransferredout...............800800Spoiledunits(200x40%).........................................20080Totalunitsaccountedfor.......................................1,000880TotalCostsFlowofcosts(step3):Coststobeaccountedfor:CostsinbeginningWIPinventory.............................$–0–Currentperiodcosts.................................................20,000Totalcoststobeaccountedfor.............................$20,000Costperequivalentunit(step4):($20,000/880)..........................................................$22.73Costsaccountedfor(step5):Costsassignedtogoodunitstransferredout...........$18,182(rounded)Costsassignedtospoiledunits................................1,818CostofendingWIPinventory...................................课后答案网–0–Totalcostsaccountedfor......................................$20,000www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter6167若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–17.(40minutes)Normalspoilage,VailCompany.a.(Step1)(Step2)PhysicalEquivalentUnitsUnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory..........................................–0–Unitsstartedthisperiod...........................................2,000Totalunitstoaccountfor......................................2,000Unitsaccountedfor:Goodunitscompletedandtransferredout...............1,8001,800Spoiledunits.............................................................200200Totalunitsaccountedfor......................................2,0002,000TotalCostsFlowofcosts(step3):Coststobeaccountedfor:CostsinbeginningWIPinventory............................$–0–Currentperiodcosts.................................................10,800Totalcoststobeaccountedfor............................$10,800Costperequivalentunit(step4):($10,800/2,000).......................................................$5.40Costsaccountedfor(step5):Costsassignedtogoodunitstransferredout...........$9,720Costsassignedtospoiledunits................................1,080CostofendingWIPinventory...................................–0–Totalcostsaccountedfor.....................................课后答案网$10,800www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997168CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–17.(continued)b.WorkinProcessFinishedGoodsCostofInventoryInventoryGoodsSold10,8009,7209,7208,100c8,1001,080a900a180a1,800bSpoilageadjustmentaSpoilageof$1,080allocated300/1,800toFinishedGoodsInventoryand1,500/1,800toCostofGoodsSold.b$1,800=[($9,720x300inendinginv.)/1,800unitsproduced]+$180c$8,100=[($9,720x1,500unitssold)/1,800unitsproduced]课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter6169若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–18.(30minutes)Spoilageduringtheprocess,VailCompany.(Step1)(Step2)PhysicalEquivalentUnitsUnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory..........................................–0–Unitsstartedthisperiod...........................................2,000Totalunitstoaccountfor......................................2,000Unitsaccountedfor:Goodunitscompletedandtransferredout...............1,8001,800Spoiledunits(200x60%)........................................200120Totalunitsaccountedfor......................................2,0001,920TotalCostsFlowofcosts(step3):Coststobeaccountedfor:CostsinbeginningWIPinventory............................$–0–Currentperiodcosts.................................................10,800Totalcoststobeaccountedfor............................10,800Costperequivalentunit(step4):($10,800/1,920).......................................................$5.625Costsaccountedfor(step5):Costsassignedtogoodunitstransferredout...........$10,125Costsassignedtospoiledunits................................课后答案网675CostofendingWIPinventory...................................–0–Totalcostsaccountedfor.....................................www.hackshp.cn$10,800©TheMcGraw-HillCompanies,Inc.,1997170CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–19.(10min.)Normalversusabnormalspoilage:ParkCityCo.AbnormalSpoilageExpense......................120,000WorkinProcessInventory......................120,0006–20.(10min.)Normalversusabnormalspoilage:TreeCo.AbnormalSpoilageExpense......................100,000WorkinProcessInventory......................100,0006–21.(10min.)Normalversusabnormalspoilage:multiplechoice.Theansweris(2).Abnormalspoilageistreatedasaperiodexpenseandappearsintheincomestatement.Normalspoilageisusuallytreatedasaninventoriablecost.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter6171若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–22.(45minutes)SpoilageDuringtheProcess,DavisCompany(step1)Physical(step2)UnitsEquivalentUnitsMaterialsConversionCostsEq.UnitsEq.UnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory..................................–0–Unitsstartedthisperiod...................................6,000Totalunitstoaccountfor..............................6,000Unitsaccountedfor:Goodunitscompletedandtransferredout.......5,0005,0005,000Spoiledunitstransferredout:..........................1,000Materials(1,000x60%)................................600Conv.costs(1,000x30%)............................300Totalunitsaccountedfor..............................6,0005,6005,300DirectConversionTotalMaterialsCostsFlowofcosts(step3):Coststobeaccountedfor:CostsinbeginningWIPinventory....................$–0–$–0–$–0–Currentperiodcosts.........................................72,00027,00045,000Totalcoststobeaccountedfor....................$72,000$27,000$45,000Costperequivalentunit(step4):Materials($27,000/5,600eq.units).................课后答案网$4.821Conv.costs($45,000/5,300eq.units)............$8.491Costsaccountedfor(step5):www.hackshp.cnCostsassignedtogoodunitstransferredout...$66,560$24,107a$42,453aCostsassignedtospoiledunits........................5,4402,8932,547Totalcostsaccountedfor.............................$72,000$27,000$45,000aRounded.©TheMcGraw-HillCompanies,Inc.,1997172CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–23.(30minutes)MovingtheInspectionPoint,DavisCompany(step1)Physical(step2)UnitsEquivalentUnitsMaterialsConversionCostsEq.UnitsEq.UnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory..................................–0–Unitsstartedthisperiod....................................6,000Totalunitstoaccountfor...............................6,000Unitsaccountedfor:Goodunitscompletedandtransferredout.......5,0005,0005,000Spoiledunitstransferredout:...........................1,000Materials(1,000x50%)................................500Conv.costs(1,000x20%)............................200Totalunitsaccountedfor...............................6,0005,5005,200DirectConversionTotalMaterialsCostsFlowofcosts(step3):Coststobeaccountedfor:CostsinbeginningWIPinventory.......................$–0–$–0–$–0–Currentperiodcosts...........................................60,00020,00040,000Totalcoststobeaccountedfor.......................$60,000$20,000$40,000Costperequivalentunit(step4):Materials($20,000/5,500eq.units)...................课后答案网$3.636Conv.costs($40,000/5,200eq.units)...............$7.692Costsaccountedfor(step5):www.hackshp.cnCostsassignedtogoodunitstransferredout.....$56,643$18,182a$38,462aCostsassignedtospoiledunits..........................3,3571,8181,538Totalcostsaccountedfor................................$60,000$20,000$40,000aRounded.Costsperunitarelowerinexercise23becausetheinspectionpointwasmovedtoapointearlierintheproductionprocess.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter6173若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems6–24.(45minutes)SpoilageDuringtheProcess,WoodlandCompanya.(step1)Physical(step2)UnitsEquivalentUnitsMaterialsConversionCostsEq.UnitsEq.UnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory................................–0–Unitsstartedthisperiod.................................20,000Totalunitstoaccountfor............................20,000Unitsaccountedfor:Goodunitscompletedandtransferredout.....18,50018,50018,500Spoiledunitstransferredout:........................1,500Materials(1,500x35%)..............................525Conv.costs(1,500x55%)..........................825Totalunitsaccountedfor............................20,00019,02519,325DirectConversionTotalMaterialsCostsFlowofcosts(step3):Coststobeaccountedfor:CostsinbeginningWIPinventory......................$–0–$–0–$–0–Currentperiodcosts...........................................750,000课后答案网300,000450,000Totalcoststobeaccountedfor......................$750,000$300,000$450,000Costperequivalentunit(step4):www.hackshp.cnMaterials($300,000/19,025eq.units)...............$15.769Conv.costs($450,000/19,325eq.units)..........$23.286Costsaccountedfor(step5):Costsassignedtogoodunitstransferredout.....$722,511$291,721a$430,789aCostsassignedtospoiledunits..........................27,4898,27919,211Totalcostsaccountedfor...............................$750,000$300,000$450,000aRounded.b.Spoilageisgreaterthan1%(3.8%=$27,489/$722,511).Thus,managementshouldbringinthespecialteam.©TheMcGraw-HillCompanies,Inc.,1997174CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–25.(45minutes)SpoilageDuringtheProces—weightedaverage:Orth&KidsCompany.a.PhysicalUnitsEquivalentUnitsMaterialsConversionCostsEq.UnitsEq.UnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory................................3,000Unitsstartedthisperiod..................................12,000Totalunitstoaccountfor.............................15,000Unitsaccountedfor:Goodunitscompletedandtransferredout.....11,00011,00011,000Spoiledunitstransferredout:.........................1,750Materials(1,750x50%)..............................875Conv.costs(1,750x30%)..........................525Unitsinendinginventory:2,250Materials(2,250x30%)..............................675Conv.costs(2,250x20%)..........................450Totalunitsaccountedfor.............................15,00012,55011,975DirectConversionTotalMaterialsCostsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory.......................$11,000$5,000$6,000Currentperiodcosts...........................................90,00020,00070,000Totalcoststobeaccountedfor.......................$101,000课后答案网$25,000$76,000Costperequivalentunit:Materials($25,000/12,550units).......................www.hackshp.cn$1.992Conv.costs($76,000/11,975units)...................$6.347Costsaccountedfor:Costsassignedtogoodunitstransferredout.....$91,724$21,912$69,812aCostsassignedtospoiledgoods........................5,0751,7433,332CostofendingWIPinventory.............................4,2011,3452,856Totalcostsaccountedfor................................$101,000$25,000$76,000aRounded.b.Spoilageisgreaterthan2%(5.5%=$5,075/$91,724).Thus,managementshouldbringinthespecialteam.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter6175若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–26.(45minutes)SpoilageDuringtheProcess—FIFO:Orth&KidsCompany.a.PhysicalUnitsEquivalentUnitsMaterialsConversionCostsEq.UnitsEq.UnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory................................3,000Unitsstartedthisperiod.................................12,000Totalunitstoaccountfor............................15,000Unitsaccountedfor:GoodunitscompletedandtransferredoutFrombeginningWIPinventory...................3,000Materials3,000x(1–75%)......................750Conv.costs3,000x(1–65%)..................1,050Startedandcompletedcurrently.................8,0008,0008,000Spoiledunitstransferredout..........................1,750Materials(1,750x50%)..............................875Conv.costs(1,750x30%)..........................525UnitsinendingWIPinventory........................2,250Materials(2,250x30%)..............................675Conv.costs(2,250x20%)..........................450Totalunitsaccountedfor............................15,00010,30010,025课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997176CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–26.(continued)DirectConversionTotalMaterialsCostsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory.......................$11,000$5,000$6,000Currentperiodcosts...........................................90,00020,00070,000Totalcoststobeaccountedfor.......................$101,000$25,000$76,000Costperequivalentunit:Materials($20,000/10,300units).......................$1.942Conv.costs($70,000/10,025units)...................$6.983Costsaccountedfor:Costsassignedtounitstransferredout:CostsfrombeginningWIPinventory...............$11,000$5,000$6,000CurrentcostsaddedtocompletebeginningWIPinventory:8,788Materials($1.942x750units)....................1,456aConv.costs($6.983x1,050units).............7,332Currentcostsofunitsstartedandcompleted..71,394Materials($1.942x8,000)..........................15,534aConv.costs($6.983x8,000)......................55,860aCostsofspoilage.............................................5,365Materials($1.942x875).............................1,699Conv.costs($6.983x525).........................3,666Totalcoststransferredout..............................$96,547$23,689$72,858CostofendingWIPinventory:4,453Materials($1.942x675).............................课后答案网1,311Conv.costs($6.983x450).........................3,142Totalcostsaccountedfor................................$101,000$25,000$76,000aYouranswersmayvaryslightlyduetorounding.www.hackshp.cnb.Spoilageisgreaterthan2%(5.9%=$5,365/[$11,000+$8,788+$71,394]).Thus,managementshouldbringinthespecialteam.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter6177若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–27.(15minutes)Equivalentunits—multiplechoice:MesaVerdeCo.Theansweris(2)–totalequivalentunitsforconversioncosts=88,000.PhysicalConversionCostsUnitsEq.UnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory....................................20,000Unitsstartedthisperiod.....................................80,000Totalunitstoaccountfor................................100,000Unitsaccountedfor:Goodunitscompletedandtransferredout.........66,00066,000Spoiledunitstransferredout:4,000Conv.cost(4,000x100%).............................4,000Unitsinendinginventory:30,000Conv.costs(30,000x60%)............................18,000Totalunitsaccountedfor100,00088,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997178CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–28.(20min.)Spoilagewithrework:OrlandoCompany.Rework:Thecostofreworkmaybeaccountedforusingtheproductidentificationmethodortheoverheadmethod.Usingproductidentification,the$250wouldbeassignedtothe50defectiveunitsandcarriedthroughinventoryaccountsandcostofgoodssold.Usingtheoverheadmethod,the$250wouldbedebitedtoManufacturingOverheadandappliedtoallunitsproduced,whetherdefectiveornot.SpoiledUnits:Thecostofspoiledunitscouldbetreatedasnormalspoilageandtrackedseparately.Ifkeptseparate,theaccountantsshouldmatchthecostsofthespoiledunitsagainsttheirrevenueof$750.Thecostofthespoiledunitscouldalsobetreatedasabnormalspoilageandwrittenoffasaperiodexpense.Inanycase,the$750wouldberecordedasrevenuewhenthecompanymadethesale.Recommendation:Answerswillvary.Themostaccurateapproachistoassignthecostsassociatedwithreworkandspoiledgoodstothereworkedandspoiledunits(50unitsand100units,respectively).However,thedollaramountswouldprobablybeconsideredimmaterial,andthesecostswouldlikelyberecordedasaperiodexpense.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter6179若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–29.(45minutes)SpoilageDuringtheProcess—weightedaverage:Oregonian,Inc.PhysicalUnitsEquivalentUnitsMaterialsConversionCostsEq.UnitsEq.UnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory..................................200Unitsstartedthisperiod...................................4,800Totalunitstoaccountfor..............................5,000Unitsaccountedfor:Goodunitscompletedandtransferredout.......3,6003,6003,600Spoiledunitstransferredout:..........................1,000Materials(1,000x100%)..............................1,000Conv.Costs(1,000x20%)...........................200Unitsinendinginventory:400Materials(400x100%)400Conv.Costs(400x50%)..............................200Totalunitsaccountedfor..............................5,0005,0004,000DirectConversionTotalMaterialsCostsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory....................$14,000$10,000$4,000Currentperiodcosts.........................................386,000190,000196,000Totalcoststobeaccountedfor....................$400,000课后答案网$200,000$200,000Costperequivalentunit:Materials($200,000/5,000units).....................www.hackshp.cn$40.00Conv.costs($200,000/4,000units).................$50.00Costsaccountedfor:Costsassignedtogoodunitstransferredout...$324,000$144,000$180,000Costsassignedtospoiledgoods......................50,00040,00010,000CostofendingWIPinventory...........................26,00016,00010,000Totalcostsaccountedfor.............................$400,000$200,000$200,000Reporttomanagement:Spoilageisgreaterthan10%(15.4%=$50,000/$324,000).Thus,furtheractionshouldbetakentoreducethecostofspoilage.©TheMcGraw-HillCompanies,Inc.,1997180CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–30.(45minutes)SpoilageDuringtheProcess,RacquetProducts,Inc.a.PhysicalUnitsEquivalentUnitsPriorConversionDept.costsMaterialsCostsEq.UnitsEq.UnitsEq.UnitsFlowofunits:Unitstobeaccountedfor:BeginningWIPinventory....................–0–Unitsstartedthisperiod(transferredin)...............................6,000Totalunitstoaccountfor.................6,000Unitsaccountedfor:Goodunitscompletedandtransferredout................................3,3003,3003,3003,300Spoiledunits.......................................100100100100Unitsinendinginventory:..................2,600Priordept.costs(2,600x100%).....2,600Materials(2,600x80%)..................2,080Conv.costs(2,600x45%)..............1,170Totalunitsaccountedfor.................6,0006,0005,4804,570PriorConversionTotalDept.CostsMaterialsCostsFlowofcosts:Coststobeaccountedfor:CostsinbeginningWIPinventory.......$–0–$–0–$–0–$–0–Currentperiodcosts...........................52,175课后答案网43,2002,5006,475Totalcoststobeaccountedfor.......$52,175$43,200$2,500$6,475Costperequivalentunit:www.hackshp.cnPriordept.($43,200/6,000units).......$7.200Materials($2,500/5,480units)...........$0.456Conversioncosts($6,475/4,570units)$1.417Costsaccountedfor:Costsassignedtounitstransferredout.................................$29,941$23,760$1,505$4,676Costsassignedtospoiledgoods........90772046141CostofendingWIPinventory.............21,32718,7209491,658Totalcostsaccountedfor................$52,175$43,200$2,500$6,475©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter6181若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–30.(continued)b.Journalentry.FinishedGoodsInv..................................605CostofGoodsSold..................................302WorkinProcessInv..............................907c.Abnormalspoilage.AbnormalSpoilageExpense....................907WorkinProcessInv..............................907d.Spoilageis3%ofgoodunitsproduced.Dependingoncompanyguidelinesregardingspoilage,thismaybecauseformanagementtopursuereductionsinspoilage.Giventotalcostsaccountedforof$52,175,spoilageof$907isrelativelyimmaterial.Thus,itwouldbeeasier(andmoreefficient)torecordthisspoilageasabnormalratherthantrackingthecostthroughinventoryinfutureperiods.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997182CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–31.(70min.)Processcostingwithspoilage:StatesideCorp.StatesideCorp.WestcoastDivisionProductionCostReport—NovemberFLOWOFPRODUCTIONUNITS(Section1)PhysicalunitsUnitstobeaccountedfor:BeginningWIPinventory.................4,000Unitsstartedthisperiod...................16,000Totalunitstobeaccountedfor............20,000(Section2)COMPUTEEQUIVALENTUNITS(WeightedAverage)MaterialsLaborOverheadUnitsaccountedfor:Unitstransferredout........................15,00015,00015,00015,000Spoiledunits....................................2,000a2,000-0--0-UnitsinendingWIPinventory..........3,0003,0001,000(33%)1,000(33%)Totalunitsaccountedfor.....................课后答案网20,00020,00016,00016,000www.hackshp.cnNote:Seefootnotesatendofproductioncostreport.©TheMcGraw-HillCompanies,Inc.,1997183若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–31.(continued)COSTSDETAILSTotalCoststobeaccountedfor:(Section3)CostsMaterialsLaborOverheadCostsinbeginningWIPinventory......................$69,310$22,800$24,650$21,860dCurrentperiodcosts..........................................278,29081,600b103,35093,340cTotalcoststobeaccountedfor......................$347,600$104,400$128,000$115,200Costperequivalentunit:(Section4)Materials($104,400¸20,000)...........................$5.22Labor($128,000¸16,000)................................$8.00Overhead($115,200¸16,000)..........................$7.20Costsaccountedfor:(Section5)Costsassignedtogoodunitstransferredout:Materials($5.22x15,000)..........................$78,300$78,300Labor($8.00x15,000)...............................120,000$120,000Overhead($7.20x15,000).........................108,000$108,000Totalcostsofgoodunitstransferredout........306,300课后答案网Note:Seefootnotesatendofproductioncostreport.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997184若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn6–31.(continued)DETAILSTotalCostsMaterialsLaborOverheadCostsassignedtoendingWIPinventory:Materials($5.22x3,000)............................15,66015,660Labor($8.00x1,000).................................8,0008,000Overhead($7.20x1,000)...........................7,2007,200TotalendingWIPinventory................................30,860Costsassignedtospoiledunits:Materials($5.22x2,000)............................10,44010,440Labor..........................................................–0––0–Overhead....................................................–0––0–Totalcostsassignedtospoiledunits..........10,440Totalcostsaccountedfor......................................$347,600$104,400$128,000$115,200aBB+TI=TO+EB+spoilage4,000+16,000=15,000+3,000+spoilageSpoilage=2,000unitsb$81,600=$10,000+$51,000+(4,000poundsx$51,500/10,000pounds)c$93,340=$52,000+[$2perhourx($103,350/$5)]课后答案网d$21,860=$12,000(Dept.overhead)+$9,860(Div.Overhead)www.hackshp.cnb.ReporttoManagement:Spoilageis3.4%ofthecostofgoodunitstransferredout(3.4%=$10,440/$306,300).Thus,managementshouldcallinaspecialteamtoinvestigateandfixtheproblem.©TheMcGraw-HillCompanies,Inc.,1997185若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter7AllocatingCoststoDepartmentsSolutionstoReviewQuestions7–1.Someofthecostsinclude:(1)additionalbookkeeping;(2)additionalmanagementcostsinselectingallocationmethodsandallocationbases;and(3)costsofmakingthewrongdecisioniftheallocationsprovidemisleadinginformation.7–2.Someofthebenefitsofcostallocationinclude:(1)instillingresponsibilityforallcostsofthecompanyinthedivisionmanagers;(2)relatingindirectcoststocontracts,jobsandproducts;and(3)constructingperformancemeasures(“netprofit”)foradivisionthatmaybemoremeaningfultomanagementthancontributionmargins.7–3.Asidefromregulatoryrequirements,costsareallocatedifthebenefitsofcostallocationexceedthecostsincurredtoallocate.7–4.课后答案网Managementoftenusesthistypeofinformationforperformanceevaluationandtoassesslong-rundecisions.Thatis,inthelongrun,anactivity(e.g.,production)mustrecoverallofitscosts(bothdirectandindirect).www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7187若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–5.CostCategoryAllocationBasesLabor-relatedcommoncostsnumberofemployeeslaborhourswagespaidsomeotherlabor-relatedbaseMachine-relatedcommonmachinehourscostscurrentvalueofmachinerynumberofmachinessomeothermachine-relatedbaseSpace-relatedcommoncostsareaoccupiedvolumeoccupiedsomeotherspace-relatedbaseService-relatedcommoncostscomputertimeservicehourssomeotherservice-relatedbase7–6.Theessentialdifferenceistheallocationofcostsamongservicedepartments.Thedirectmethodmakesnointer-service-departmentallocation,thestepmethodmakesapartialinter-service-departmentallocation,whilethesimultaneoussolutionmethodfullyrecognizesinter-service-departmentactivities.7–7.Allocationsusuallybeginfromtheservicedepartmentthathasprovidedthegreatestproportionofitsservicestootherdepartments,orthatservicesthegreatestnumberofotherservicedepartments.Thiscriterionisusedtominimizetheunrecognizedportionofreciprocalservicedepartmentcosts.(Recallthattheamountofservicereceivedbythefirstdepartmenttoallocateinthestepallocationsequenceisignored.)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997188CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoCriticalAnalysisandDiscussionQuestions7–8.Managementmaybelievetherearebenefitstotheuseofallocatedcosts.Anawarenessoftotalcostsmayinfluencemanagerialbehavioranddecisionmaking.Forexample,managementmaywanttomakedivisionmanagersawareofcommoncostsofdivisionsthatmustbecoveredbydivisionmarginsbeforethecompanyasawholeearnsaprofit.Allocatedcostsarealsousedforcontractualandregulatorypurposes.Manyoftheexactreasonsforthecontinueduseofinformationbasedonallocatedcostsarestillunknown.However,itswidespreadusagebymanagementwouldindicatetheinformationisbeneficial.7–9.Allocatingzerocostsisanotherallocationmethod.Ittooisanarbitrarymethod.However,anadvantageofnotallocatingcostsisthatthetimesavedreducestheexpensesofcostallocation.Adisadvantageisthatcommoncostsmustbecoveredbeforethecompanyasawholeearnsaprofit.Costallocationmaymakemanagersmoreawareofcommoncostsaffectinglong-runprofitability.7–10.Costsallocatedtowordprocessingwerehigh,thuswordprocessing’schargesfortypingwashigh.Thiscreatedincentivesfortechnicalpeopletotypetheirownwork.Allocatedcostswerehigherbecausehighcostlabspace,librarycostsandtravelsupportcostswereallocatedtoWordProcessing.7–11.Whenacosthastwoormoredifferentrelationshipsbetweenitandthecostobject,morethanonefactormaybeusedtorelatethecosttothecostobjects.Costswhichhaveasignificantfixedcomponentandavariablecomponentaswellareoftenallocatedusingdualrates.Thefixedportionisallocatedonthebasisofcapacitydemandedandthevariableportiononthebasisofservicesused.Thisprinciplecanbeextendedtoevenmorefactors.7–12.Theconceptsofdirectandindirectarerelatedtoaspecificcostobjectwithintheorganization.Coststhatcanbeattributedtoacostobjectandcaninbothaphysicalandpracticalsenseberelatedtothecost课后答案网objectwithnointermediateallocationsareconsidereddirect.Thus,thecostsofmaterialsthatbecomeanintegralpartofthefinalproductmaybedirectlyidentifiedwiththeproductandwiththedepartmentwhichrequisitionedthematerialsandusedtheminproduction.However,thecostsofthepayrollaccountingwww.hackshp.cnfunctionwhichrepresentsaserviceusedbymanydifferentdepartmentscannotbetraceddirectlytoaproduct,nortoaspecificmanufacturingdepartment.However,thecostscanbetraceddirectlytotheofficeperformingthepayrollaccountingfunctionandthenallocatedtootherdepartmentsonsomerationalbasisthatisexpectedtoreflectacauseandeffectrelationshipbetweenthecostsoftheserviceandsomeactivity.7–13.Thereciprocalmethodtakesintoaccountalloftheservicesrenderedamongtheservicedepartments.Itispreferred(assumingcost-effectiveness)sinceitresultsinanallocationschemethatreflectsthetotalcostoftheuseofeachservice.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7189若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–14.Ifnoservicedepartmentperformsservicesforanyotherservicedepartment(orifallservicedepartmentsrenderservicestoproducingdepartmentsinthesameproportions)thenthedirectmethodwillgivethesameanswerasanyotherallocationmethod.7–15.Theadditionofanemployeeinonedepartmentwillincreasetheallocationbaseand,therefore,reducetheallocationtothedepartmentwhichdoesnotaddtheemployee.Themanagerofthedepartmentwhichdoesnotaddtheemployeebenefitsfromtheactionsoftheotherdepartment.Anexamplemayservetohighlightthepoint.Ifeachproducingdepartmenthasoneemployeeandservicedepartmentcoststotal$12,000,thentheallocationwouldbe:ToP1:1employeex($12,000¸2employees)=$6,000.ThiswouldbethesameastheallocationtoP2.NowifP1addsanemployee,theallocationwouldbe:P12employeesx($12,000¸3employees)=$8,000P21employeex($12,000¸3employees)=$4,000andthemanagerinP2hasa$2,000costreductioneventhoughthemanagerofP2tooknoactionwhichwouldwarrantsuchareductionincosts.Oneoftheproblemsthatmaygiverisetothissituationisthatthecostsallocateddonotbeararelationshiptotheallocationbase.Thus,ifanumberofemployeeswereanappropriateallocationbase,onewouldnotexpectthetotalcosttoremainfixedwhenthenumberofemployeesincreases.Inpractice,though,itmaynotbepossibletoobtaincorrelationbetweenacostandtheallocationbase.7–16.Theservicecostsarebeingallocatedonthebasisofusewhen,infact,someofthecostswereincurredtoprovidecapacity.Dualratesmightbeestablishedsothatthecapacitycostswouldbeallocatedonthebasisofthecapacityrequestedbyeachofthedepartmentswhiletheusecostswouldbeallocatedonthecurrentbasis.Aninterestingproblemariseswhenthejointcapacitymaybelessthanthecapacitythatwouldberequiredbyeachdepartmentindividually.Thisproblemofthe“economiesofscale”resultsinaneedtofindabasisforallocatingthecostsavingsarisingfromsucheconomies.Noentirelysatisfactoryanduniquesolutionisreadilydeterminable.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997190CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises7–17.(20min.)Whycostsareallocated:BarfieldandMcAllister.a.TheBarfieldswouldprefercoststobeallocatedbasedontherelativevolumeoftheundergroundoilreservoir(i.e.,theacrefeet).Theywouldarguethatsince3/4oftheoil-bearingrockisundertheirland,theyareentitledto3/4ofthepurchaseprice.Surfaceareasareirrelevantbecausetheassetbeingassignedistherightstotheundergroundminerals,nottheuseofthesurface.b.TheMcAllisterswouldarguethatsinceeachpartyhasone-halfoftheland,theproceedsshouldbesplitequally.Theywouldholdthattheymustgiveuptheiruseofthewhole4,000acrestoaccommodatetheintrusionoftheoildeveloper.Itdoesn’tmattertotheMcAllisterswhattheundergrounddepositlookslike.Whatisimportantistheimpactitwillhaveontheirenjoymentofthesurface.NOTE:Byagreement,oilproducersusemethod(a)forallocatingcostsandrevenuesfromcommonoildepositswhichunderlieseparatelyownedtractsofland.7–18.(10min.)Alternativeallocationbases.CommonCostAllocationBaseBuildingutilitiesSpaceoccupiedPayrollaccountingNumberofemployeesPropertytaxesoninventoriesValueofinventoriesEquipmentrepairNumberofservicecallsQualitycontrolinspectionNumberofunitsproduced课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7191若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–19.(15min.)Alternativeallocationbases:CytotechCompany.a.Wireservicehoursbasis.TVStation450x$100,000=$60,000450+300RadioStation300x$100,000=$40,000450+300Check:$100,000=$60,000+$40,000b.HoursofnewsbroadcastsTVStation100x$100,000=$17,858100+460RadioStation460x$100,000=$82,142100+460Check:$100,000=$17,858+$82,142c.AllocationbywireservicehoursresultsinanallocationofmorecoststotheTVstation.课后答案网TheTVstationusesrelativelymorewireservicehoursthantheradiostationandwhenwireservicehoursistheallocationbase,itreceivesagreaterportionofcommoncosts.www.hackshp.cnUseofhoursofnewsbroadcastasabasisallocatesmorecoststotheradiostation.TheradiostationusesagreaterportionofhoursofnewsbroadcaststhantheTVstationandwhenhoursofnewsbroadcastsistheallocationbase,itreceivesthegreatercostallocation.©TheMcGraw-HillCompanies,Inc.,1997192CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–20.(20min.)Alternativeallocationbases:WARPEnterprises.a.DryMeatGoodsOperatingprofitbeforebuildingoccupancycosts$85,000$112,500Buildingoccupancycosts:10,000x$400,000........................................................33,333120,00030,000x$400,000........................................................100,000120,000Operatingprofit(loss).....................................................$51,667$12,500b.Thefrontofthestoremaybemorevaluablespace.Ifso,“Meat”shouldbeallocatedmorepersquarefootthan“DryGoods.”Thereislittlequestionthatstoreareaswithagreatercustomertrafficcountareconsideredmorevaluable.Anallocationschemebasedontrafficcountorprofitsbeforecostallocationmightbeconsideredmorereasonable.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7193若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–21.(25min.)Alternativeallocationbases:TheQualityJacketCompany.Materialsused:1.Computerateperdollarofmaterialsused:$1,600,000Rate==$3.20perdollarofmaterialsused$300,000+$200,0002.Multiplytheratetimesthematerialsusedperproduct:Standard:$300,000x$3.20=$960,000Deluxe:$200,000x$3.20=$640,0003.Dividethetotaloverheadallocatedtoeachproductlinebytheunitsproduced:$960,000Standard:=$12.00perstandardjacket80,000$640,000Deluxe:=$42.67perdeluxejacket15,000Directlaborhours:$1,600,0001.Rate==$6.40perhourofdirectlabor100,000+150,0002.Standard:100,000x$6.40=$640,000Deluxe:150,000x$6.40=$960,000$640,0003.Standard:=$8.00perstandardjacket80,000$960,000Deluxe:课后答案网=$64.00perdeluxejacket15,000www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997194CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–21.(continued)Machinehours:$1,600,0001.Rate==$32.00permachinehour40,000+10,0002.Standard:40,000x$32.00=$1,280,000Deluxe:10,000x$32.00=$320,000$1,280,0003.Standard:=$16.00perstandardjacket80,000$320,000Deluxe:=$21.33perdeluxejacket15,000Output:$1,600,0001.Rate==$16.84perjacket80,000+15,000Withunitsofoutputastheallocationbase,theratewillbethesameforbothtypesofjackets.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7195若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–22.Alternativeallocationbases:TheQualityJacketCompany.a.Allocationbaseoptions:(AllocationstakenfromExercise7–21)StandardJacketsAllocationA.Materialsused(Mat)...............$12.00B.Directlaborhours(DLH)..............8.00C.Machinehours(MH)................16.00D.Output(Output)...........16.84Perunitvariablecostcalculations:Directmaterials=$300,000/80,000=$3.75/jacketDirectlabor=($8x100,000)/80,000=$10.00/jacketOptions:MatDLHMHOutputDirectMaterials.............$3.75$3.75$3.75$3.75DirectLabor...................10.0010.0010.0010.00AllocatedOverhead.......12.008.0016.0016.84Total..............................$25.75$21.75$29.75$30.59DeluxeJacketsAllocationA.Materialsused(Mat).......................$42.67B.Directlaborhours(DLH).....................64.00C.Machinehours(MH).......................21.33D.Output(Output)..................16.84Perunitvariablecostcalculations:课后答案网Directmaterials=$200,000/15,000=$13.33/jacketDirectlabor=($8x150,000)/15,000=$80/jacketOptions:www.hackshp.cnMatDLHMHOutputDirectMaterials.............$13.33$13.33$13.33$13.33DirectLabor...................80.0080.0080.0080.00AllocatedOverhead.......42.6764.0021.3316.84Total..............................$136.00$157.33$114.66$110.17b.Fourdifferentcostnumbersperjacketarereflectedintheavailableselectionoffourdifferentallocationbases.TheallocationmethodchosendoesnotaffectTheQualityJacketCompany’stotalmanufacturingcosts,onlythecostsassignedtoeachproduct.Managementshouldevaluatethecauseandeffectrelationshipcomprisingoverheadcoststodeterminethemostappropriateallocationbase.©TheMcGraw-HillCompanies,Inc.,1997196CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–23.(20min.)Costallocations—directmethod:AcmeCorporation.DirectMethod:ToFromP1P2S1..................$40,000a$40,000aS2..................62,500b37,500bTotalCosts....$102,500$77,500a.10$40,000=x$80,000(Since.80ofservicedepartment1’scostsusedbyS2.10+.10areignored,theallocationbasisisthe.20usedbyP1andP2.)b.50.30$62,500=x$100,000;$37,500=x$100,000;and$62,500+(.50+.30)(.50+.30)$37,500=$100,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7197若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–24.(30min.)Allocatingservicedepartmentcostsfirsttoproductiondepartments,thentojobs:AcmeCorporation.P1P2TotalCostsallocatedtoeachdepartment(fromExercise7–23)......................$102,500$77,500$180,000Allocationbases:Job10:Laborhours.......................80–0–Machinehours..................–0–20Job11:Laborhours.......................10–0–Machinehours..................–0–90Total................................................90110Departmentrates:P1...................................................................$102,50090laborhours=$1,138.89/L.H.P2...................................................................$77,500110mach.hours=$704.55/M.H.Costsassignedtojobs:Job10:Laborhours80x$1,138.89=$91,111$91,111Machinehours:20x$704.55=$14,09114,091Total..................................$105,202Job11:Laborhours:10x$1,138.89课后答案网=11,389$11,389Machinehours:90x$704.55=$63,41063,410Total..................................www.hackshp.cn$74,799Note:Thetotalcostsallocatedtojobsequals$180,000afterallowingforrounding($105,202+$74,799=$180,001).©TheMcGraw-HillCompanies,Inc.,1997198CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–25.(25min.)Costallocations–directmethod:CustomTailors,Inc.GFAMaintenanceCuttingAssemblyServicedepartmentcosts.....$20,000$48,000NANAGFAallocation......................(20,000)NA$4,000a$16,000aMaintenanceallocation........(48,000)12,000b36,000bTotalcostsallocated............$16,000$52,000a100$4,000=x$20,000(100+400)400$16,000=x$20,000(100+400)b1,000$12,000=x$48,000(1,000+3,000)3,000$36,000=x$48,000(1,000+3,000)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7199若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–26.(25min.)Costallocations–stepmethod:AcmeCorporation.a.StepMethod—recommendedorder:S1provides80%ofitsservicestootherservicedepartmentswhileS2provides20%.Therefore,S1shouldbeallocatedfirst.ToFromAmountS2P1P2S1........................$80,000$64,000a$8,000a$8,000aS2........................$164,000b(64,000)102,500c61,500cTotalCosts..........$110,500$69,500a$64,000=80%x$80,000;$8,000=10%x$80,000b$164,000=$100,000directcosts+$64,000fromS1c.50.30$102,500=x$164,000;$61,500=x$164,000(.50+.30)(.50+.30)$102,500+$61,500=$164,000b.StepMethod—reverseorder:ToFromAmountS1P1P2S2.......................$100,000$20,000a$50,000a$30,000aS1.......................$100,000b(20,000)50,000c50,000cTotalCosts.........$100,000$80,000a$20,000=20%x$100,000;$50,000=50%x$100,000and$30,000=30%x$100,000b$100,000=$80,000directcosts+$20,000fromS2c.10课后答案网$50,000=x$100,000(.10+.10)www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997200CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–27.(15min.)Costallocation—stepmethod:CustomTailors,Inc.GFAMaintenanceCuttingAssemblyServicedepartmentcosts.............$20,000$48,000NANAMaintenanceallocation................9,600a(48,000)$9,600a$28,800aGFAallocation..............................$(29,600)5,920b23,680bTotalcostsallocated....................$15,520$52,480Usingthismethod,morecostsareallocatedtotheAssemblyDepartmentthanbyusingthedirectmethod.a1,000$9,600=x$48,000(1,000+1,000+3,000)3,000$28,800=x$48,000(1,000+1,000+3,000)b100$5,920=x$29,600(100+400)400$23,680=x$29,600(100+400)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7201若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–28.(45min.)Costallocations—reciprocalmethod:AcmeCorporation.Setuptheequations:S1=$80,000+.2S2S2=$100,000+.8S1S1=$80,000+.2($100,000+.8S1)=$80,000+$20,000+.16S1S1=$100,000.84S1=$119,048S2=$100,000+.8($119,048)=$195,238AllocatingtoP1andP2:P1=.1S1+.5S2=.1($119,048)+.5($195,238)=$109,524P2=.1S1+.3S2=.1($119,048)+.3($195,238)=$70,476课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997202CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–29.(15min.)Costallocations—reciprocalmethod:twoservicedepartments.P1=$120,000+.30S1+.20S2P2=$312,500+.20S1+.15S2P3=$390,000+.10S1+.55S2S1=$67,000+0S1+.10S2S2=$59,500+.40S1+0S2Computations:S1=$67,000+.1($59,500+.4S1)S1=$67,000+$5,950+.04S1.96S1=$72,950$72,950S1==$75,990.96SoS2=$59,500+.4($75,990)=$89,896NextsolveforPdepartments:P1=$120,000+.3($75,990)+.2($89,896)=$160,776P2=$312,500+.2($75,990)+.15($89,896)=$341,182P3=$390,000+.1($75,990)+.55($89,896)=$447,042Notrequired—CostsallocatedtoP1,P2andP3:P1:$160,776total–$120,000direct=$40,776allocatedP2:$341,182total–$312,500direct=$28,682allocatedP3:$447,042total–$390,000direct=$57,042allocated课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7203若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–30.(35min.)Costallocation—reciprocalmethod:CustomTailors,Inc.GFAMaintenanceCuttingAssemblyServicedepartmentcosts.........$20,000$48,000NANAGFAallocationa.........................(30,621)5,104b$5,104b$20,414bacccMaintenanceallocation............10,621(53,104)10,62131,862Totalcostsallocated.................$15,725$52,276aG=GFAcosts=$20,000+1/5(M)M=Maintenancecosts=$48,000+1/6(G)G=$20,000+1/5($48,000+1/6(G))G=$20,000+$9,600+1/30(G)G=$29,600+1/30(G)29/30(G)=$29,600G=$29,600(30/29)=$30,621M=$48,000+1/6($30,621)M=$53,104b100$5,104=x$30,621(100+100+400)400$20,414=x$30,621(100+100+400)c1,000$10,621=x$53,104(1,000+1,000+3,000)3,000$31,862=x$53,104(1,000+1,000+3,000)课后答案网NOTE:Minordiscrepanciesinthesolutionarearesultofrounding.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997204CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–31.(15min.)Evaluatecostallocationmethods:CustomTailors,Inc.Theanswertothisquestiondependsonthecostandbenefitsofeachmethod.Thereciprocalmethodtakesintoaccountthefactthateachservicedepartmentusestheservicesoftheother.Whilethedifferenceincostsissmall,thereisagainofincreasingcross-departmentcostmonitoring.Thevalueofanyparticularmethoddependsonhowthenumberswillbeused.Iftheallocationsareusedonlytocomputeinventoryvaluesandcostofgoodssoldinexternalfinancialstatements,thenitusuallymakessensetousetheeasiestmethod.Ifthenumbersaretobeusedformanagerialdecisionmaking,thentheincreasedprecisionofthemorecomplexmethodsmayjustifytheadditionalcost.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7205若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–32.(15min.)Singlevs.dualrates:CytotechCompany.TVStation100FixedCosts:x$52,000=$9,286100+460450VariableCosts:x($100,000–$52,000)=$28,800450+300Totaloffixedandvariablecosts$38,086RadioStation460FixedCosts:x$52,000=$42,714100+460300VariableCosts:x($100,000–$52,000)=$19,200450+300Totaloffixedandvariablecosts$61,914Check:$100,000=$38,086+$61,914课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997206CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–33.(20min.)Singleversusdualrates:Lawfirm.a.Bankruptcy4,000x$200,000=$50,0004,000+12,000PersonalInjury12,000x$200,000=$150,0004,000+12,000Check:$200,000=$50,000+$150,000b.Bankruptcy1,000,000x$200,000=$105,2631,000,000+900,000PersonalInjury900,000x$200,000=$94,7371,000,000+900,000Check:$200,000=$105,263+$94,737课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7207若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–34.(20min.)Singleversusdualrates:Lawfirm.BankruptcyFixedCosts:1,000,000x$100,000=$52,6321,000,000+900,000VariableCosts:4,000x$100,000=25,0004,000+12,000Total$77,632PersonalInjuryFixedCosts:900,000x$100,000=$47,3681,000,000+900,000VariableCosts:12,000x$100,000=75,0004,000+12,000Total$122,368Check:$200,000=$77,632+$122,368课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997208CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–35.(20min.)Multiplefactorallocation:EdeeBowerClothing.PercentagefactorsStorePayrollSalesAssetsA$85,000$1,000,000$240,000=34.0%=25.0%=26.7%$250,000$4,000,000$900,000B$35,000$1,200,000$250,000=14.0%=30.0%=27.8%$250,000$4,000,000$900,000C$60,000$1,100,000$210,000=24.0%=27.5%=23.3%$250,000$4,000,000$900,000D$70,000$700,000$200,000=28.0%=17.5%=22.2%$250,000$4,000,000$900,000100.0%100.0%100.0%AllocationpercentageA(34.0%+25.0%+26.7%)=28.57%3B(14.0%+30.0%+27.8%)=23.93%3C(24.0%+27.5%+23.3%)=24.93%3D(28.0%+17.5%+22.2%)=22.57%3100.00%Allocationofheadquarters’costsA$300,000x28.57%=$85,710B$300,000x23.93%=$71,790课后答案网C$300,000x24.93%=$74,790D$300,000x22.57%=$67,710www.hackshp.cn$300,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7209若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–36.(25min.)Determinestateincometaxallocations:Multi-State,Inc.Mo:–0–sincethereisnoincometaxIll.1$2.4$.8$.3++x$400,000x5%3[$2.4+$1.8$2.6+$.8+$.6$1.2+$.3+$.5]1=[.5714+.2+.15]x$400,000x5%3=$6,143TaxLiabilityCal:1$1.8$.6$.5++x$400,000x7%3[$2.4+$1.8$2.6+$.8+$.6$1.2+$.3+$.5]1=[.4286+.150+.250]x$400,000x7%3=$7,734TaxLiabilityNote:Dollaramountsinmillionsofdollars课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997210CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems7–37.(25min.)Choosinganappropriateallocationbaseinahigh-techenvironment:ChipsCorp.a.ROM-ARAM-BUnitsproduced.......200,0001,600Directmaterials......$25,000$224Directlabor............1,000600Overhead...............3,840a2,304bTotalcosts.............$29,840$3,128Costsperunit.........$.149$1.955$29,840$3,128==200,0001,600a$3,840=$1,000/$625,000x$2,400,000b$2,304=$600/$625,000x$2,400,000b.ROM-ARAM-BUnitsproduced.......200,0001,600Directmaterials......$25,000$224Directlabor............1,000600Overhead...............15,000a120bTotalcosts.............$41,000$944Costsperunit.........$.205$.59$41,000$944课后答案网==200,0001,600a$15,000=200,000/32,000,000x$2,400,000www.hackshp.cnb$120=1,600/32,000,000x$2,400,000c.Differentperunitcostsresultfromusingtwodifferentallocationbases(directlaborcostsandunitsproduced).Sincelaborcostsrepresentalowproportionoftotalcostsforbothproducts,unitsproducedlikelyprovidesabetterallocationbase.However,onecanarguethatRAM-Bisaspecializedproduct,andthusshouldcostmorethanROM-A.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7211若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–38.(25min.)Choosinganappropriateallocationbaseinanautomatedenvironment:FencesPlusCorp.a.RailsPostsUnitsproduced.......90030Directmaterials......$5,580$180Directlabor.............400500abOverhead................2,5003,125Totalcosts..............$8,480$3,805Costsperunit.........$9.422$126.833$8,480$3,805==90030a$2,500=$400/$88,000x$550,000b$3,125=$500/$88,000x$550,000b.RailsPostsUnitsproduced.......90030Directmaterials......$5,580$180Directlabor.............400500Overhead................1,980a66bTotalcosts..............$7,960$746Costsperunit.........$8.844$24.867$7,960$746==90030a$1,980=900/250,000x$550,000b$66=30/250,000x$550,000c.Thesecondmethodappearstorelateoverheadwiththecostsofunitsproducedina课后答案网morereasonablemanner.Sincematerialscostsandtimetoproduceareapproximatelythesameforbothunits,itwouldseemthattheonlydifferenceisthelengthoftheproductionrun.Inwww.hackshp.cna.therelativecostofposts-to-railsis13.5:1whichseemsexcessiveforproductionrundifferencesalone.Inb,therelativecostisabout2.8:1,whichseemsmorereasonable.Theadditionalproblemwitha.isthatlaborcostsarenotcloselyrelatedtoproduction.Theyarerelatedtothenumberofproductionruns,butnottounitsproduced.Hence,theydonotseemtoreflectthecause-and-effectcriterionforallocatingcoststounits.©TheMcGraw-HillCompanies,Inc.,1997212CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–39.(50min.)Stepmethodwiththreeservicedepartments:CrashTestCorporation.a.Tofacilitatesolution,reducethedifferentallocationbasestoproportionsusedbydepartmentsotherthanthesamedepartment.ProportionUsedByBuildingPayrollEquipmentOccupancyAccountingMaintenancePaintingPolishingBuildingArea...............—a.06b.04b.72.18Employees...................09c—a.06c.35.50EquipmentValue..........01d.20d—a.52d.27aSelf-usageisignoredbBasisis250,000squarefeet,whichignoresBuildingOccupancy:.06=15,000¸250,000;.04=10,000¸250,000;etc.cBasisis100employees,whichignoresPayrollAccounting:.09=9¸100;.06=6¸100;etc.dBasisis$1,200,whichignoresEquipmentMaintenance:.01=$12¸$1,200;.20=$240¸$1,200;.52=$624¸$1,200;etc.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7213若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–39.(continued)a.(continued)Rankforallocation:EquipmentMaintenancePayrollAccountingBuildingOccupancyCrashTestCorp.StepMethodToEquipmentPayrollBuildingMaintenanceAccountingOccupancyPaintingPolishingDirectCosts.......$264,000$500,000$360,000$1,350,000$965,000FROMEquipmentMaintenance....(264,000)52,800a2,640a137,28071,280PayrollAccounting......(552,800)52,928b205,830b294,042BuildingOccupancy......(415,568)332,454c83,114cTotals..........$2,025,564$1,413,436$2,025,564+1,413,436=$3,439,000whichisthetotalofthedirectcostsforallserviceandproducingdepartments.a.20$52,800=x$264,000;(.01+.20+.52+.27)课后答案网.01$2,640=x$264,000,etc.(.01+.20+.52+.27)b.09www.hackshp.cn$52,928=x$552,800;(.09+.35+.50).35$205,830=x$552,800,etc.(.09+.35+.50)c.72$332,454=x$415,568;(.72+.18).18$83,114=x$415,568(.72+.18)©TheMcGraw-HillCompanies,Inc.,1997214CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–39.(continued)b.PaintingPolishingDirectmaterials..................$475,000–0–Directlabor........................650,000$820,000Overhead(direct)...............225,000145,000Overhead(allocated).........675,564448,436Totals.............................$2,025,564$1,413,436Unitcost:Painting:$2,025,564/1,000units=$2,026Polishing:$1,413,436/1,000units=$1,413Total..............................................$3,439c.Unitcostofallocatedservicedepartmentcosts:Painting:$675,564/1,000units=$675.56Polishing:$448,436/1,000units=$448.44Paintingdidnotmeetmanagement’sstandardofkeepingservicedepartmentcostsbelow$500,butPolishingdidmeetthestandard.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7215若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–40.(40min.)Solveforunknowns:Pete’sDeliciousFoods.a.Sincethedirectmethodisused,S2’scostsareallocatedonlytoP1andP2,nottoS1.TofindthecostofS2’sservices:.3x(S2)$22,500fromS2toP2=.5+.3$22,500=.375x(S2)$22,500S2==$60,000.375TofindthecostofS1’sservices:S1=Total–S2S1=$100,000–$60,000S1=$40,000Since$40,000fromS1isallocatedtoP1,nothingisallocatedfromS1toP2.TotalallocatedtoP2=$22,500(=$22,500+0)..5b.AmountallocatedfromS2toP1=$37,500(x$60,000).5+.3FromToP1P2S1...............$40,000–0–S2...............$37,500$22,500课后答案网c.AllofS1’scostswereallocatedtoP1andnonewereallocatedtoP2.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997216CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–41.(60min.)Costallocation—stepmethodwithanalysisanddecisionmaking:ElektrikCorp.a.Thecompanyconsideredonlythedirectcostsoftheelectricgeneratingplant.Itdidnotincludethecostsofnaturalgasreceivedtopowertheelectricplantorotherindirectcosts.b.Let:S1=NaturalgasproductionS2=Electricgenerating—fixedS3=Electricgenerating—variableS4=EquipmentmaintenanceP1=ProductionDepartment—No.1P2=ProductionDepartment—No.2Allocation:ToAmounttoS4S2S3P1P2From:beallocated$48$30$80$600.00$440.00Naturalgas(S1).......$7028a7.00a35.00abbEquip.Maint.(S4).......48(48)6330.009.00Elec.—fixed(S2).......36(36)013.50c22.50cElec.—var.(S3).......111(111)71.82d39.18d$722.32$545.68CostsallocatedfromtheelectricdepartmentS2+S3=$36+$111=$147Ifelectricitygenerationcausesthecostsallocatedtoit,thenthecompanywouldcompare$147,000internalcostto$160,000fromtheoutsideutility.a课后答案网S1allocation:$28=$70x.40;$7=$70x.10;$35=$70x.50b.10.05S4allocation:$6=x$48;$3=x$48;etc..10+.05+.50+.15www.hackshp.cn.80cS2allocation:.30.50$13.5=x$36;$22.50=x$36(.30+.50)(.30+.50)dS3allocation:.55.30$71.82=x$111;$39.18=x$111(.55+.30)(.55+.30)©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7217若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–41.(continued)c.Ifthecompanycouldrealize$58,000fromthesaleofthenaturalgas,thentherelevantcostswouldbe:Naturalgas.............................................$58,000aEquipmentmaintenance.........................9,000bDirectcosts.............................................110,000$177,000whichisgreaterthantheproposed$160,000electriccompanyrates.Managementmay,ofcourse,wanttoconsiderotherfactorswhenmakingthisdecision.aThe$58,000fromthesaleofnaturalgasisanopportunitycost.IfElektrikproducesitsownelectricity,itloses$58,000inpotentialsalesofnaturalgas.b.10+.05$9,000=$48,000equipmentmaintenancex[].80课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997218CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–42.(30min.)(Appendix)Costallocations—reciprocalmethod(computerrequired):ElektrikCo.ServicesPerformedBy:UsedBy:S1S2S3S4P1P2S1..................................–100.0%10.0%10.0%20.0%0.0%0.0%S2..................................0.0%–100.0%0.0%10.0%0.0%0.0%S3..................................40.0%0.0%–100.0%5.0%0.0%0.0%S4..................................0.0%10.0%5.0%–100.0%0.0%0.0%P1..................................10.0%30.0%55.0%50.0%100.0%0.0%P2..................................50.0%50.0%30.0%15.0%0.0%100.0%Coststobeallocated:$70,000$30,000$80,000$48,000InverseMatrixS1S2S3S4P1P2S1.............–104.6%–12.7%–11.6%–22.8%0.0%0.0%S2.............–0.2%–101.0%–0.5%–10.2%0.0%0.0%S3.............–42.0%–5.6%–104.9%–14.2%0.0%0.0%S4.............–2.1%–10.4%-5.3%–101.7%0.0%0.0%P1.............34.7%39.9%61.7%64.0%100.0%0.0%P2.............65.3%60.1%38.3%36.0%0.0%100.0%CostAllocationTotalFrom:AllocatedtoTo:S1S2S3S4P1P2ProductionS1.............$(73,249)$(3,823)$(9,283)$(10,936)$–$–S2.............(148)课后答案网(30,312)(424)(4,883)––S3.............(29,374)(1,685)(83,925)(6,816)––S4.............(1,484)(3,115)(4,239)(48,829)––P1.............24,26711,960www.hackshp.cn49,33330,722––$116,282P2.............45,73318,04030,66717,278––$111,718$228,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7219若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–43.(20min.)Costallocationsanddecisionmaking*:ParkerCo.Tobeuseful,costinformationmustbepresentedsothatthedifferentialcostsarereadilyidentified.Directdepartmentcostswouldnormallybedifferential;however,additionaldetailshouldberequestedandanalyzedpriortomakingdecisionstoinsurethatallcostscanandwillbeeliminated.Forinstance,certainadministrativefunctionswithinthepromotiondepartmentmayhavetobecontinuedevenifanoutsideagencyisemployed.Chargesfromotherdepartmentsmaybeusefulinmakingthedecision;however,thedetailofthecostsshouldbeanalyzedtomakesureallthecostsaredifferentialandcouldbeeliminated.Administrativeoverheadcostsallocatedtothedepartmentwouldnotbeusefulbecausethesecostswouldnotbeeliminated,butratherreallocatedtootherdepartments.Inadditiontothecostsfactors,qualitativefactorsshouldbeconsidered:Cananoutsidefirmmaintainthenecessarydegreeofconfidentiality?Cantheoutsidefirmmatchthequalityofworkperformed?*CMAadapted.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997220CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–44.(35min.)Allocateservicedepartmentcosts—directandstepmethods:DoxolbyManufacturing.a.Theansweris2.Factorymaintenanceisallocatedbasedonsquarefootageoccupied.Thedirectmethodisused.Theamountallocatedtothefabricationdepartmentis88,000$111,760=x$203,200.(88,000+72,000)b.Theansweris3.Generalfactoryadministrationisallocatedbasedondirectlaborhours.Thedirectmethodisused.Theamountallocatedtotheassemblydepartmentis437,500$70,000=x$160,000.(562,500+437,500)c.Theansweris3.8$3,840=x$240,000=.016x$240,000(8+12+280+200)d.Theansweris1.Thereisnoallocationofcostsbacktothedepartmentaftercostshavebeenallocatedfromit.Factorycafeteriacostshavealreadybeenallocatedfromittootherdepartments.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7221若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–45.(40min.)Costallocations—comparisonofdualandsinglerates:SkyBlueAirlines.a.Allocationsbasedontimeusage:ProportionofAllocatedDepartmentTotalTimeCostabReservations......................161$1,940,050Scheduling.........................1101,325,500Maintenance......................4064,892,300Accounting.........................3233,892,150$12,050,000a2,500¸(2,500+1,700+6,300+5,000)=2,500¸15,500=.161;.110=1,700¸15,500;.406=6,300¸15,500;.323=5,000¸15,500b.161x($7,050,000+$5,000,000)=$1,940,050;$1,325,500=.110x$12,050,000;$4,892,300=.406x$12,050,000;$3,892,150=.323x$12,050,000b.Dualallocations(1)(2)(3)(4)(5)AllocatedTotalProportionofAllocatedProportionCapacityAllocatedTimeUsageTimeCostofCapacityCostCols.2+4Reservations......161a$1,135,050b.600c$3,000,000d$4,135,050Scheduling.........110775,500.2401,200,0001,975,500Maintenance......4062,862,300.084420,0003,282,300Accounting.........3232,277,150.076380,0002,657,150$12,050,000afrompart(a)b$1,135,050=$7,050,000x.161;$775,500=$7,050,000x.110;$2,862,300=$7,050,000x.406;$2,277,150=$7,050,000x.323课后答案网c.600=1,500¸(1,500+600+210+190)=1,500¸2,500;.240=600¸2,500;.084=210¸2,500;.076=190¸2,500d$3,000,000=.600x$5,000,000;$1,200,000=.240x$5,000,000;etc.www.hackshp.cnc.Dualratesshouldbeused.Ifasinglerate(timeusage)isused,theremaynotbeacausalrelationshipbetweentimeusageandstorage-relatedcosts.Forexample,Maintenancehadthehighesttimeusage(andthus,wasallocatedalargeshareoftotalcostsusingasinglerate),buthadarelativelylowstoragecapacityrequirement.Usingdualrates,Maintenancewouldreceiveafairershareofcosts.©TheMcGraw-HillCompanies,Inc.,1997222CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–46.(40min.)Costallocationforrate-makingpurposes:WorryfreeInsuranceCo.a.ConsumerGroupPresentation:InsuranceincomeRemarksPremiumrevenue........................$200Operatingcosts:Claims......................................125Administrative...........................31.510%chargedtoinvestmentincomeSalescommissions...................3220%chargedtoinvestmentincomeTotaloperatingcost..............188.5Profit............................................$11.5InvestmentincomeInvestmentincome.......................$15Administrativecosts.....................3.5Salescommissions......................8Totaloperatingcost...........$11.5Profit............................................$3.5Check:$15million=$11.5million+$3.5millionb.Theargumentusuallygivenisthattheadministrativeandsalescostsareincurredtooperatetheinsuranceactivities.Thesecostswouldnotchangeregardlessofinvestmentactivity.Theinvestmentincomeisseparateandincidentaltotheprimaryunderwritingbusiness.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter7223若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–47.(30min.)Costallocationfortravelreimbursement.a.Sincetheround-tripcostoftheSaltLakeCityportion(2x$1,400=$2,800)isgreaterthanthecostoftheexcursionticket,theemployeewouldrequestthefull$2,640.b.Theminimumcosttothecompanywouldbe$1,400.c.Areasonablealternativecouldbecomputedasfollows:Theroundtrip-businessportionofthetripwas3,678miles(=1,839+1,839).Dividingbythetotalmileageof4,717milesequals.78or78%ofthetotalfare.Thisalternativewouldresultinareimbursementof$2,059(i.e.,.78x$2,640).Sincethetripwasprimarilyforbusinessitwouldseemappropriatetoreimburseaminimumof$2,059.Themaximumreimbursementwouldbe$2,640.Dependingonpolicysomeamountbetween$2,059and$2,640wouldusuallybesuggestedasabasisforreimbursement.Thisproblemdemonstratestheneedforexantepolicywhentherearearbitraryandpotentiallycontentiousallocations.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997224CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–48.(50min.)Costallocation—stepmethod:WecareHospitalCase.Stepmethodsolution:Orderofallocation:1.Buildingsdepreciationandmaintenance4.Maintenanceofpersonnel2.Employeehealth&welfare5.Centralsupply3.Laundry&linen课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997225若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–48.(continued)TO(Department)EmployeeHealth&LaundryMaintenanceCentralOperatingPatientFROM(Department)Welfare&LinenofPersonnelSupplyRoomsRadiologyLaboratoryRoomsBuildingsDepreciationandMaintenance...............–0–.10.10–0–.05.02.02.71EmployeeHealth&Welfare..—.15.05.03.25.05.04.43Laundry&linen.....................——–0––0–.353.118.059.470(.30/.85a)(.10/.85a)(.05/.85a)(.40/.85a)Maintenanceofpersonnel.....———.12.36.10.08.34Centralsupply.......................————.110.049.036.805(.09/.82b)(.04/.82b)(.03/.82b)(.66/.82b)SincetheservicesofBuildingsDepreciationandMaintenance,EmployeeHealth&WelfareandMaintenanceofPersonnelarenotusedbydepartmentsaheadofthesedepartmentsintheallocationorder,thedenominatoroftheallocationequationXiisequaltoone.Therefore,theproportionallocatedtoeachdepartmentequalstheproportionalusageofthetotalåXiserviceallocationbase.Additionalcomputations:a.85=sumofproportionsallocatedtodepartmentsafterlaundry&linenintheallocationorder=.30+.10+.05+.40.The课后答案网sumoftheallocationpercentages(i.e.,.353+.118+.059+.470)equals1.000.(Thelasttermwasroundeddownsothefourwouldsumtoone.)b.82=sumoftheproportionsallocatedtodepartmentsaftercentralsupplyintheallocationorder=.09+.04+.03+.66.www.hackshp.cn(Thethirdtermwasroundeddownsothefourwouldsumtoone.)©TheMcGraw-HillCompanies,Inc.,1997226若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn7–48.(continued)BuildingsDepreciationEmployeeandHealth&LaundryMaintenanceCentralOperatingPatientMaintenanceWelfare&LinenofPersonnelSupplyRoomsRadiologyLaboratoryRoomsDirectcosts............................$830,000$375,000$250,000$210,000$745,000$1,450,000$160,000$125,000$2,800,000BuildingsDepreciationandMaintenance.......................(830,000)–0–83,000a83,000–0–41,50016,60016,600589,300EmployeeHealth&Welfare..(375,000)56,250b18,75011,25093,75018,75015,000161,250Laundry&Linen....................(389,250)–0–b–0–137,40545,93222,966182,947Maintenanceofpersonnel.....(311,750)37,410b112,23031,17524,940105,995Centralsupply......................(793,660)87,303b38,88928,572638,896Totals.............................$1,922,188$311,346$233,078$4,478,388Medicareportion....................25%20%28%36%Medicarereimbursementclaim...................................$480,547$62,269$65,262$1,612,220a$83,000=.10x$830,000;$41,500=.05x$830,000;$16,600=.02x$830,000;$589,300=.71x$830,000bTheseallocationsarecomputedbymultiplyingtheproportionsonthepreviouspagetimestheamounttobeallocated.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997227若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter8Activity-BasedCostingSolutionstoReviewQuestions8–1.Companiesusingasingleplantwideratefortheirallocationofindirectcostsusuallyselectavolumebasedallocationfactorsuchasdirectlaborhours,machinehours,directlabordollars,volumeofactivity,ormaterialcosts.8–2.Plantwideallocationisthesimplestmethodandreferstotheallocationofindirectcoststoproductsusingasinglerate,regardlessofthetypeofproductoractivitiesthatcausedthecosts.Departmentallocationismorecomplex.Acostpoolisestablishedforeachdepartmentandaseparateoverheadallocationrateiscomputedforeachdepartment.Thisallowslaborintensivedepartmentstouselaborhoursasanallocationbaseandmachineintensivedepartmentstousemachinehoursasanallocationbase.8–3.Acostdriverisatermusedinactivity-basedcosting.Itsimplyreferstoanyactivitythatcausesacost.Itcanbeanythingfrommachinehours,laborhours,numberofmachinesetups,orthenumberofpartsinaproduct.(SeeIllustration8–2)8–4.Activity-basedcostingidentifiescostdrivers(activitiesthatcausecosts)thatwerenotpreviouslyaccountedforbythecostingsystem.Onceknown,theproductionmanagerscancontrolcostsbymanagingthesecostdrivers.Furthermore,byprovidingmarketingwithmoreaccurateproductcosts,marketingcanmakebetter课后答案网decisionsaboutpricing.8–5.www.hackshp.cn1.Identifyactivitiesthatconsumeresources.2.Identifythecostdriverassociatedwitheachactivity.3.Computeacostrateperactivityunit(e.g.,ratepersetup,rateperpart,ratepermachinehour).4.Allocatecoststoproductsbymultiplyingtheactivityratetimesthevolumeofactivityconsumedbytheproduct.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8229若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–6.Lowvolumeproductsmaybemorespecializedrequiringmoredrawingsandspecifications,andmoreinspections.Lowvolumeproductsoftenrequiremoremachinesetupsandpurchaseordersforagivenlevelofproductionoutput,becausetheyareproducedinsmallerbatches.Further,thelowvolumeproductaddscomplexitytotheoperationbydisruptingtheproductionflowofthehighvolumeitems.Thus,whenoverheadisappliedbasedonthevolumeofoutput,itiseasytoseehowhighvolumeproductsareallocatedrelativelymoreoverheadthanlowvolumeproducts.8–7.1.Isthereacausalrelation?Allocatecoststotheproductthatcausesthecost.2.Arebenefitsreceived?Allocatecoststotheproductthatreceivesthemostbenefit.3.Reasonableness—Somecostscannotbelinkedtoproductsbasedoneithercausalityorbenefitsreceived,sotheymustbeallocatedonthebasisoffairnessorreasonableness.8–8.Traditionallymanycompanieshaveallocatedoverheadtoproductsbasedonthevolumeofdirectlabor.Ascompanieshavebecomemoreautomatedandlesslaborintensive,itisnotsurprisingthatthisallocationofoverheadtoproducts,basedondirectlabor,canresultinerroneousproductcosts.Thesecompaniesshoulduseactivity-basedcostingtodeterminetherealactivitiesthatcausethecosts.SolutionstoCriticalAnalysisandDiscussionQuestions8–9.False—thischapterdealswiththeproblemofallocatingindirectcoststoproducts.Indirectcostscanbetheoverheadcostsincurredinmanufacturingagoodorprovidingaservice.Directcostssuchasdirectlaboranddirectmaterialsaretraceabledirectlytoaspecificproductand,therefore,arenotaproblemtoallocate.8–10.False—activity-basedcostingprovidesanalternativemethodofallocatingindirectcostsforbothserviceandmanufacturingproducts.Productscanbegoodssuchasanautomobile,oraservicesuchasanX-rayexaminationinthehospital.课后答案网8–11.www.hackshp.cnUncertain—Whileomittingtheallocationofservicedepartmentcoststoproductiondepartmentsisdefinitelysimpler,itisalsoincorrect.Ifthisstepisomittedtheproductiondepartmentcostswillbeunderstated,andultimatelytheproductcostswillbeaswell.Furthermore,theallocationoftheseservicecoststoproductiondepartmentsenablesmanagementtoassignresponsibilityforservicecoststothepeopleintheproductiondepartmentwhorequestedtheservices.8–12.Whileitistruethatthereisreallyonlyonecorrectcostforaproduct,nocostsystemcanmeasurethesecostsperfectly.Whiledirectmaterialanddirectlaborcostsmaybethesameunderdifferentcostsystems,theallocationofoverheadcostswillprobablyvaryaccordingtothecostsystemandallocationbaseyouuse.©TheMcGraw-HillCompanies,Inc.,1997230CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–13.Whileactivity-basedcostingmayyieldmoredetailedproductcostestimates,itmustpassacostbenefittestbeforebeingimplemented.Activity-basedcostingrequiresamuchmoredetailedbreakdownofcostsintoactivitiesthatcausecosts.Thiscanbeacomplextaskinvolvingtheteamworkofmanagement,production,accounting,purchasing,marketingandmanyothers.AcompanyshouldimplementABConlyifitthinksthebenefitfromimprovedmanagementdecisionswilloutweighthecostofestablishingandmaintainingthenewcostsystem.8–14.False—Thelessonlearnedfromactivity-basedcostingisthatcostsareafunctionnotonlyofoutputvolume,butalsoofotherfactorssuchascomplexity.Acomplexmulti-productoperationwillcostmorethanasimplesingleproductoperation,forexample.8–15.False—activity-basedcostingbreaksdownthecostsintocostpoolsaccordingtotheactivitiesthatcausethecosts.Whileseveraldepartmentsmayhavethesamecostdrivers,eachdepartmentshouldindividuallydeterminewhichactivitiescausetheircosts.8–16.Disagree.Theestimatedamountoftotaloverheadshouldbethesameunderbothdepartmentallocationandactivity-basedcosting.Whatwilldiffer,however,istheamountallocatedtoeachproduct.Thisisbecausedepartmentallocationusuallyallocatesoverheadtoproductsbasedoneitherdirectlaborhoursormachinehours,whileactivitybasedcostingusesmultipleactivitiestoallocatetheoverheadtotheproducts.8–17.ByallocatingoverheadbasedondirectlaborhoursthemanagementatHitachiissendingasignaltothedepartmentmanagers.Themessageissimple.Reduceyourdirectlabororbechargedwithalargeshareoftheoverhead.ThisincentivewilldrivethedepartmentmanagerstodoexactlywhatuppermanagementbelieveswillkeepHitachicompetitive,mainlybecomingmoreautomated.8–18.Thebasicprinciplesofactivity-basedcostingcanworkforanydepartment.Marketingdepartments,for课后答案网example,mustconcernthemselveswiththecostofdistribution.Severalactivitiesthatcausedistributioncostsincludethenumberofshipmentsperperiod,thesizeoftheshipments,andthenumberofproductsinashipment.Itwouldbewisetoknowthesecostsbeforemakingdistributiondecisions.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8231若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises8–19.(30min.)Plantwideversusdepartmentallocation:ComprehensivePublishers,Inc.PaperbacksHardbacksa.Revenue.................$3,600,000$2,500,000DirectLabor............600,000400,000DirectMaterials......1,600,000800,000Overhead................400,000a600,000bProfit.......................$1,000,000$700,000a$400,000=10,000hoursx$40perhourb$600,000=15,000hoursx$40perhourb.Harrywaswrong;Paperbacksweremoreprofitable.PaperbacksHardbacksRevenue.................$3,600,000$2,500,000DirectLabor............600,000400,000DirectMaterials......1,600,000800,000Overhead................360,000a750,000bProfit.......................$1,040,000$550,000a$360,000=10,000mach.hrs.x$36perhourb$750,000=15,000mach.hrs.x$50perhour课后答案网c.Theplantwideallocationmethodallocatesoverheadat$40permachinehourforbothtypesofbooks.Whilethisisthesimplestmethod,itisusuallynotveryaccurate.Itassumesthatoverheadinbothdepartmentshasthesamerate.Whenoverheadcostswww.hackshp.cnarebrokendownintodepartmentcostpools,weseethatDepartmentPisallocatedasmallershareoftheoverhead.Eachdepartmentshouldtrytoassesswhatcausesitsoverhead,andusethatasitsallocationbase.©TheMcGraw-HillCompanies,Inc.,1997232CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–20.(35min.)Plantwideversusdepartmentallocation:SpecialtySweets,Inc.ChoccoChewynuttaMarshBarBarBara.DirectLabor(percase)........$100$110$150RawMaterials(percase).....508060Overhead.............................50a55b75cTotalcost(percase)............$200$245$285a$50=10hoursx$5perhourb$55=11hoursx$5perhourc$75=15hoursx$5perhourb.DepartmentChasanoverheadallocationrateof$7.00permachinehour($17,640/2,520machinehours).DepartmentMhasanoverheadallocationrateof$2.20perlaborhour($3,960/1,800laborhours).ChoccoChewynuttaMarshBarBarBarc.DirectLabor(percase)........$100$110$150RawMaterials(percase).....508060Overhead.............................70a77b33cTotalcost(percase)............$220$267$243a$70=10machine-hoursx$7permachineb$77=11machine-hoursx$7permachinec$33=15labor-hoursx$2.20perlabor-hour课后答案网d.MonicawascorrectinherbeliefthatshewasbeingallocatedsomeofDepartmentC’soverhead.Plantwideallocationdoesnotcorrectlyallocatetheoverheadbydepartment,itsimplyusesoneallocationrateforallproductsinalldepartments.Underwww.hackshp.cnplantwideallocation,acaseofMarshBarscost$285.00percase.Oncetheoverheadwasreallocatedintodepartmentcostpools,thecostoftheMarshBarfellto$243.00percase.Althoughitrequiresmoretimeandskilltocollectandprocesstheinformation,departmentallocationgenerallyyieldsmoreaccurateproductcostinformation.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8233若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–21.(30min.)Activity-basedcosting:Hewlett-Packard.a.PCBBSpecialCostofType#ofCostCostper67AfromRateperDriversperCircuitIllustrationActivityCostDriverCostDriverBoardBoard8–4PurchasingNumberof$.10perpartx100parts$10.00$9.00materialspartsineachcircuitboardStartingtheNumberof$1.00perx1raw1.001.00productboardsintheboardboardproductInsertingtheNumberof$.20perx6012.0016.00componentsinsertionsinsertioninsertionsperboardSolderingNumberof$3.00perx1board3.003.00boardsboardsolderedQualityNumberof$70.00perx.15hours10.5014.00testinghoursboardhourisintestingTotaloverheadperprintedcircuitboard36.5043.00Costofdirectmaterials85.0075.00Totalcostofmanufacturingeachboard$121.50$118.00b.ThePCBBSpecialcosts$121.50toproducewhileType67Acostsonly$118.00to课后答案网produce.HewlettPackardshouldcontinueproducingType67A.However,theyshouldtrytoincorporatesomeofthedesignfeaturesofthePCBBSpecialintoType67A.Specifically,thosethatallowforlessqualityinspectiontimeandlessinsertionsperwww.hackshp.cnboard.©TheMcGraw-HillCompanies,Inc.,1997234CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–22.(30min.)Activity-basedcosting:SUCompany.a.CostCostAllocatedAllocatedtoStandardCosttoUniqueActivityRateCostDriverProductDriverProductPurchasing$2perpound6,000$12,0004,000$8,000materialspoundspoundsMachine$2,000per5setups10,00015setups30,000setupssetupInspections$100per200hours20,000200hours20,000inspectionhourRunning$30perhour1,500hours45,000500hours15,000machinesTotalallocatedtoeachproduct$87,000$73,000b.IfSUCompanyhadbeenusingmachinehourstoallocateitsoverheadtotheStandardandUniqueproducts,Nedwouldhavehadamuchhardertimereducingcosts.Hewouldnothaveknownwhichactivitieswerecausingthecostsorinwhatamount.Anadvantageofactivity-basedcostingisthatoverheadcostsarebrokendownintoactivitiesthatcausethecosts.Theseactivitiescanthenbechangedtoreducecosts.Thedisadvantageofactivity-basedcostingisthatitrequiresamoredetailedbreakdownofcosts.Theadditionalcostrequiredtoattainandmaintainthisdetailedinformationmustbelessthanthebenefitsreceivedfromhavingsuchinformationtojustifyactivity-basedcosting.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8235若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–23.(30min.)Activity-basedcostinginanonmanufacturingenvironment:RiverRafting,Inc.a.&b.ActivitiesFloatTrip(3day)WhiteWaterTrip(3day)Advertisetrips.....$430$430Permittouse100theriver...........60Equipmentuse...320[=$40+($10x28people)]528[=$80+($16x28people)]Insurance...........150254Payingguides....2,400($600x4guides)3,200($800x4guides)Food...................3,360(=$120x28people)3,360(=$120x28people)Total...................$6,720$7,872c.Ifthemanagerwantstocoverhercostssheshouldcharge$280percustomerforthe3dayfloattrip($6,720/24payingcustomers),and$328percustomerforthe3daywhitewatertrip($7,872/24payingcustomers).课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997236CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–24.(35min.)ABCversustraditionalcosting:AudioCorporation.a.RateStandardHigh-GradeTotalDirectlabora...................$174,000$66,000$240,000Directmaterialsb.............125,000114,000239,000OverheadcostsProd.runs...................$2,000c80,000f20,000100,000Qual.tests..................3,000d36,000g54,00090,000Ship.orders................200e20,000h10,00030,000Totaloverhead............136,00084,000220,000Totalcosts......................$435,000$264,000$699,000Totalunitcost.................$1.36i$2.64jaDatagiveninthefirsttableoftheexerciseinthetextbDatagiveninthefirsttableoftheexerciseinthetextc$2,000perrun=$100,000inproductioncosts/50totalrunsd$3,000pertest=$90,000inqualitycosts/30totaltestse$200perorder=$30,000inshippingcosts/150processedordersf$80,000=$2,000perproductionrunx40runsforStandardg$36,000=$3,000perqualitytestx12testsforStandardh$20,000=$200perordershippedx100ordersshippedi$1.36=$435,000totalcostsforStandard/320,000unitsproducedj$2.64=$264,000/100,000unitsproducedReadingfromthetableabove,wecanseethatthetotaloverheadassignedis$136,000and$84,000forStandardandHigh-Grade,respectively.Thetotalcostperunitisthetotalcostperproductdividedbythetotalunitsproduced;$1.36perStandardcassetteand$2.64perHigh-Gradecassette.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8237若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–24.(continued)b.RateStandardHigh-GradeTotalDirectlabora...................$174,000$66,000$240,000Directmaterialsb............125,000114,000239,000cdTotaloverhead...............$.917159,50060,500220,000Totalcosts.....................$458,500$240,500$699,000Totalunitcost................$1.43e$2.41aDatagiveninthefirsttableintheexercisebDatagiveninthefirsttableintheexercisec$.917=$220,000totaloverhead/$240,000totaldirectlabord$159,500=$.917perdirectlabordollarx$174,000e$1.43=$458,500/320,000StandardunitsproducedFromthetableabove,totaloverheadallocatedtoStandardandHigh-Gradeis$159,500and$60,500respectively.TheunitcostforStandardandHigh-Gradeis$1.43and$2.41respectively.c.Byallocatingoverheadonthebasisofdirect-labor,AudiohasbeenunderstatingthecosttomanufactureHigh-GradecassettesandoverstatingHigh-Grade’sprofits.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997238CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–25.(30min.)Activity-basedcostinginaserviceenvironment:GreenGardenCare,Inc.a.CommercialResidentialTotalRevenue........................$133,000a$286,000$419,000DirectLabor...................63,000b117,000180,000Overhead.......................21,700c40,30062,000Profit..............................$48,300$128,700$177,000a$133,000=7,000hoursx$19perhourb$63,000=7,000hoursx$9perhourc$21,700=($62,000/20,000hours)x7,000hoursb.RateCommercialResidentialTotalRevenue........................$133,000a$286,000$419,000DirectLabor...................63,000b117,000180,000OverheadTransport....................$133c2,000f6,0008,000Equipment..................3.214d11,250g6,75018,000Supplies......................0.18e23,400h12,60036,000TotalOverhead..............36,65025,35062,000Profit..............................$33,350$143,650$177,000a$133,000=7,000hoursx$19perhourb$63,000=7,000hoursx$9perhourc$133.33perclient=$8,000/60clientsservedd$3.214perhour=$18,000/5,600equipmenthourse$0.18persquareyard=$36,000/200,000squareyards课后答案网f$2,000=$133.33x15commercialclientsg$11,250=$3.214x3,500equipment-hourswww.hackshp.cnh$23,400=$0.18x130,000squareyardsc.TherecommendationtoMs.Greenthumbisthatshereconsiderdroppingresidentialservicesinfavorofthecommercialbusiness.Fromthetableinpartbofthesolution,wecanshowMs.Greenthumbthatcommercialworkhasaprofitmarginof25%,whiletheresidentialbusinesshasaprofitmarginof50%.WecanexplainthedifferencesinprofitsunderthetwocostmethodsbyshowingMs.Greenthumbthatthereislittlecorrelationincostsbetweendirectlaborandtheoverheadcosts.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8239若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–26.(35min.)ABCversustraditionalcosting:TravelGadgetsCorporation.Note:Youranswermayvaryslightlyduetorounding.a.CostDriverRateTravelClocksWatchesProductionSetup..........................$2,000a$20,000d$30,000Mat.Handling...............................277.78b5,000e10,000PackagingandShipping...............0.25c11,250f18,750TotalOverhead.............................$36,250$58,750a$2,000persetup=$50,000/25setupsb$277.78perpart=$15,000/54partsc$0.25perunitshipped=$30,000/120,000unitsshippedd$20,000=$2,000x10setupse$5,000=$277.78x18partsf$11,250=$0.25x45,000unitsshippedb.TravelClocksWatchesTotalDirectLaborHours........30,000a90,000120,000Overhead......................$23,750b$71,250$95,000a30,000hours=0.5hoursperclockx60,000clocksproducedb$23,750=($95,000OH/120,000hours)x30,000hoursc.Notnecessarily.Activity-basedcostingprovidesamoreaccurateallocationofoverheadcosts.However,themoreaccuratemethodisalsomoreexpensive.TheABCsystemshouldbeadoptedifthebenefitsfromimprovedinformationexceedthe课后答案网additionalcostsrequiredtoobtaintheinformation.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997240CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–27.(35min.)ABCversustraditionalcostinginaservicecompany:JackChapman&Associates.a.AccountRateTaxConsultingTotalRevenue........................$130,000$270,000$400,000Expenses:Sec.Salary.................$666.67a48,000d32,00080,000Supplies......................144b28,800e43,20072,000ComputerDeprec.......25c25,000f15,00040,000Profit..............................$28,200$179,800$208,000a$666.67perclient=$80,000/120clientsb$144pertransaction=$72,000/500transactionsc$25percomputerhour=$40,000/1,600hoursd$48,000=$666.67perclientx72clientse$28,800=$144perhourx200transactionsf$25,000=$25percomputerhourx1,000hoursb.AccountRateTaxConsultingTotalRevenue........................$130,000$270,000$400,000Expenses......................$48a62,400b129,600192,000Profit..............................$67,600$140,400$208,000a$400,000revenue/$100perhour=4,000hoursoflabor$48perlaborhour=$192,000ofexpenses/4,000hoursb$62,400=$48perlaborhourx1,300hoursoflabor课后答案网c.Underlabor-basedcosting,taxworkappearsrelativelymoreprofitablethanunderABC,andmayleadJacktoconcentratemoreheavilyintaxwork.www.hackshp.cnd.ABCandtraditionalcostingsystemsgenerallyyieldcomparableproduct-lineprofitswhenoverheadisasmallportionofcosts,orwhencostdriversarehighlycorrelatedwiththevolume-relatedallocationbase.Inthiscase,laborhoursweredistributed32.5%toTaxand67.5%toConsulting.IfJack’sthreecostdriverswereeachalsodistributed32.5%toTaxand67.5%toConsulting,thelabor-hourallocationandABCwouldhavebeenidentical.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8241若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–28.(30min.)ABC:CostflowsthroughT-accounts:MossManufacturing,Inc.MaterialsInventoryWorkinProcess(WIP)Inventory$200,000DepartmentFDirectMaterials200,000WagesPayableDirectLabor100,000$100,000Mat.HandlingOH30,000Qual.Inspect.OH75,000600,000OverheadApplied:MachineSetupOH45,000MaterialsHandlingRunningMachinesOH150,0002,500poundsx$12.00perpound=$30,000toWIPFinishedGoodsInventoryOverheadApplied:600,000QualityInspections600,000500inspectionsx$150perinspection=$75,000toWIPOverheadApplied:MachineSetups25setupsx$1,800persetup=$45,000toWIP课后答案网OverheadApplied:RunningMachineswww.hackshp.cn10,000hoursx$15perhour=$150,000toWIP©TheMcGraw-HillCompanies,Inc.,1997242CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–29.(30min.)ABC:CostflowsthroughT-accounts:Fleetfoot,Inc.MaterialsInventoryWorkinProcess(WIP)Inventory$100,000toWIPDepartmentBDirectMaterials100,000250,000WagesPayableDirectLabor50,000$50,000toWIPMat.Handling10,000Qual.Inspect.20,000OverheadApplied:MachineSetup20,000MaterialsHandlingRunningMachines50,00020,000yardsx$.50peryard=$10,000toWIPFinishedGoodsInventoryOverheadApplied:250,000QualityInspections250,000400inspectionsx$50perinspection=$20,000toWIPOverheadApplied:MachineSetups50setupsx$400persetup=$20,000toWIPOverheadApplied:课后答案网RunningMachines10,000hoursxwww.hackshp.cn$5perhour=$50,000toWIP©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8243若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems8–30.(40min.)Comparativeincomestatementsandmanagementanalysis:Nykee,Inc.a.Nykee,Inc.IncomeStatementAccountRateB-BallMarathonTotalRevenue.........................$195,000$184,000$379,000DirectMaterials..............55,00050,000105,000DirectLabor....................40,00020,00060,000IndirectCosts:Administration.............0.325a13,000e6,50019,500ProductionSetup........1,500b15,000f30,00045,000QualityControl............375c15,000g15,00030,000Sales&Marketing.......1,000d12,000h48,00060,000TotalIndirectCosts........55,00099,500154,500OperatingProfit..............$45,000$14,500$59,500a0.325=$19,500ofAdministrativecosts/$60,000ofdirectlaborcostsb$1,500=$45,000ofProductionsetupcosts/30productionrunsc$375=$30,000ofQualitycontrolcosts/80inspectionsd$1,000=$60,000ofSalesandMarketingcosts/60advertisementse$13,000=$0.325x$40,000directlaborcostsf$15,000=$1,500persetupx10productionrunsg$15,000=$375perinspectionx40inspectionsh$12,000=$1,000peradvertisementx12advertisements课后答案网b.Activity-basedcostinghighlightstheactivitiesthatcausecosts,andprovidesinsightintowhichcostscouldbereduced.Forexample,managementmaybeabletooperatewww.hackshp.cnwithfewerbutlargerproductionruns,therebyreducingsetupcosts.Focusingonactivitiescanidentifynon-valueaddingactivitiesthatcanbeeliminatedwithoutreducingtheproduct’svalue.©TheMcGraw-HillCompanies,Inc.,1997244CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–30.(continued)c.Nykee,Inc.IncomeStatementAccountRateB-BallMarathonTotalRevenue........................$195,000$184,000$379,000DirectMaterials..............55,00050,000105,000DirectLabor...................40,00020,00060,000OverheadCosts.............2.575a103,000b51,500154,500OperatingProfit..............$(3,000)$62,500$59,500a2.575=$154,500ofOverheadCosts/$60,000DirectLaborCostsb$103,000=2.575OverheadRatex$40,000DirectLaborCostsd.DearMembersoftheManagementBoard:ThepurposeofthisreportistoexplainthedifferencesbetweentheprofitsofourB-BallandMarathonproductlinesusingactivity-basedcostingversusourtraditionallabor-basedoverheadallocationmethods.Thetwocostingmethodsdifferintheirresultsbecauseofthewayoverheadcostsareallocatedbetweenourproducts;directcostsdonotdifferunderthetwomethods.Underthelabor-basedapproach,alloverheadcostsarepooledtogetherandallocatedtoourproductsonthebasisofdirect-laborcosts.Underactivity-basedcosting,costdrivers,suchasinspectionsandset-ups,areidentifiedandtheircostsareappliedtotheproductsinrelationtousage.Traditionallabor-basedallocationislessaccuratethanactivity-basedallocationsbecausemanyoverheadcostsarenotwellcorrelatedwithlaborcosts.Forinstance,ourB-BallproductreceivestwiceasmuchoverheadunderourtraditionalapproachthandoesourMarathonproductbecauseitusestwiceasmuchlabor.However,after课后答案网analyzingthefactorsdrivingtheoverheadandapplyingthesecoststoourproducts,wefindthattheB-BalllineshouldreceiveonlyabouthalfasmuchoverheadastheMarathonproduct.www.hackshp.cnOurfindingssuggestthatmanagementmightmakesub-optimaldecisionsifitweretocontinuetouselabor-basedoverheadallocations.Underourtraditionalmethod,theB-Ballproductlineisnotprofitable(lossesof$3,000),andmanagementmightwishtoeliminatetheB-Ballproduct.Underthemoreaccuratemethodofactivity-basedcosting,theB-Ballproductisshowntocontribute$45,000towardsprofits,morethanthree-timestheprofitsoftheMarathonproductline.ManagementshouldnotdroptheB-Ballline,insteadweshouldpursuewaystoreduceourcosts,suchasreducingthenumberofsetupsrequired.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8245若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–31.(40min.)Comparativeincomestatementsandmanagementanalysis:Filmworks,Inc.a.Filmworks,Inc.:IncomeStatementAccountRateDeluxeStandardTotalRevenue...............................$720,000$800,000$1,520,000DirectMaterials....................100,000100,000200,000DirectLabor..........................360,000240,000600,000IndirectCosts:Administration...................0.167a60,000e40,000100,000ProductionSetup..............$500b75,000f125,000200,000QualityControl..................$200c60,000g40,000100,000Sales&Marketing.............$800d48,000h32,00080,000TotalIndirectCosts..............243,000237,000480,000OperatingProfit(loss)..........$17,000$223,000$240,000a0.1667=$100,000administrativecosts/$600,000ofdirectlaborcostsb$500=$200,000productionsetupcosts/400photosessionsc$200=$100,000qualitycontrolcosts/500inspectionsd$800=$80,000salesandmarketingcosts/100advertisementse$60,000=0.1667x$360,000directlaborcostsf$75,000=$500persessionx150sessionsg$60,000=$200perinspectionx300inspectionsh$48,000=$800peradvertisementx60advertisementsb.Activity-basedcostinghighlightstheactivitiesthatcausecosts,andprovidesinsightintowhichcostsmaybereduced.Forinstance,Filmworks’managementhasidentified课后答案网threecostdrivingactivities;productionsetups,qualitycontrolinspections,andadvertising.Setupscost$500eachandinspectionscost$200each.Therefore,betweensetupsandinspections,theeffortofmakingaoneunitreductioninanactivitywww.hackshp.cnshouldbedirectedatsetups,asthesavingswouldbegreaterthanthe‘same’effortwouldproduceifdirectedatinspections.Theadvertisingactivityisexaminedinconjunctionwiththebenefitsprovidedintheformoffuturesales,whichisaseparateissue.©TheMcGraw-HillCompanies,Inc.,1997246CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–31.(continued)c.Filmworks,Inc:IncomeStatementAccountRateDeluxeStandardTotalRevenue...............................$720,000$800,000$1,520,000DirectMaterials.....................100,000100,000200,000DirectLabor..........................360,000240,000600,000abOverheadCosts....................0.80288,000192,000480,000OperatingProfit(loss)...........$(28,000)$268,000$240,000a0.80=$480,000ofOverheadCosts/$600,000DirectLaborCostsb$288,000=$0.80Overheadratex$360,000DirectLaborCostsd.DearMembersoftheManagementBoard:ThepurposeofthisreportistoexplainthedifferencesbetweentheprofitsinourDeluxeandStandardproductlinesusingactivity-basedcostingversusourtraditionallabor-basedoverheadallocationmethod.Thetwocostingmethodsdifferintheirresultsbecauseofthewayoverheadcostsareallocatedbetweenourproducts;directcosts,suchasMaterialsandLabordonotdifferunderthetwomethods.Underthelabor-basedapproach,alloverheadcostsarepooledtogetherandallocatedtoourproductsonthebasisofdirect-laborcosts.Underactivity-basedcosting,costdrivers,suchasinspectionsandset-ups,areidentifiedandtheircostsareappliedtotheproductsinrelationtousage.Traditionallabor-basedallocationislessaccuratethanactivity-basedallocationsbecausemanyoverheadcostsarenotwellcorrelatedwithlaborcosts.Forinstance,ourDeluxeportraitsreceivesone-and-a-halfasmuchoverheadunderourtraditional课后答案网approachasdoesourStandardportraitbecauseitusesone-and-a-halfasmuchlabor.However,afteranalyzingthefactorsdrivingtheoverheadandapplyingthesecoststoourproducts,wefindthattheDeluxelineshouldonlyreceive$243,000inoverhead.www.hackshp.cnOurfindingssuggestthatmanagementmightmakesub-optimaldecisionsifitweretocontinuetouselabor-basedoverheadallocations.Underourtraditionalmethod,theDeluxePortraitisnotprofitable(lossesof$28,000).Underthemoreaccurateactivity-basedcosting,theDeluxePortraitlineearns$17,000inprofits,adifferenceof$45,000.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8247若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–32.(50min.)ABCandpredeterminedoverheadallocationrates:ImportGlass&CrystalCo.a.ComputingoverheadallocationratesCostEst.DriverAllocationActivityDriverCostsUnitsRateOrderProc.....................#orders$15,000100$150Prod.Setup...................#runs60,000501,200Mat.Hdlg.......................lbs.mat.100,00080,0001.25Mach.Dep.....................mach.-hrs.80,0008,00010Qual.Cntl......................#insp.20,00030666.67Packing..........................#units40,000320,0000.125Totalest.overhead........$315,000Predeterminedrate=estimatedactivity/estimatedallocationbasefordirectlaborhour=$315,000/5,000hours=$63perhourb.ProductionCostsusingDirectLabor-HoursAccountUnleadedLow-LeadHigh-LeadTotalDirectMaterials.........$13,000$8,000$5,000$26,000DirectLabora.............2,2502,2503,0007,500IndirectCostsb...........9,4509,45012,60031,500TotalCost..................$24,700$19,700$20,600$65,000aNumberoflaborhoursx$15perhour.课后答案网bNumberoflaborhoursx$63perhour.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997248CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–32.(continued)c.ProductionCostsusingABCAccountUnleadedLow-LeadHigh-LeadTotalDirectMaterials..........$13,000$8,000$5,000$26,000DirectLabor...............2,2502,2503,0007,500IndirectCostsOrderProc.............6004503001,350Prod.Setup............1,2001,2002,4004,800Mat.Hdlng.............6,2502,5001,25010,000Mach.Dep.............5,8001,4008008,000Qual.Cntl..............6676676672,000aPacking...................2,5001,0003753,875TotalCost..................$32,267$17,467$13,792$63,525aaRoundedacrosstherow.d.InternalMemorandumThediscrepancybetweenourproductcostsusingdirect-laborhoursastheallocationbaseversusactivity-basedcostingisfoundinthewayoverheadcostsareallocated.Ourexistingdirect-laborcostmethoddistortsourproductcostsbecausethereislittlecorrelationbetweenourdirect-laborcostsandoverhead.Activity-basedoverheadismoreaccurate.Itallocatestheindividualcomponentsofouroverheadtoourproductsbasedupontheproduct’suseofthatoverheadcomponent.Withthemoreaccurateproductcosts,weshouldbegintoconcentrateoureffortsuponreducingthecostsofourmoreexpensiveoverheadoperations.Asseenintheactivity-课后答案网basedcostingreport,alargeshareofourtotaloverheadiscomprisedofmaterialshandlingandmaintenancecosts—costswhichwerenotvisibleunderthedirect-laborapproach.Reducingourmaterialshandlingandmachinedepreciationandwww.hackshp.cnmaintenancecostsshouldbeanewpriority.Werecommendassessingthecostofusinganactivity-basedsysteminourcompany.Wewillproceedwithactivity-basedcostingifwefindthecostofthenewsystemislessthanthebenefitsofthemoreaccurateinformationwewillreceive.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8249若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–33.(50min.)ABCandpredeterminedoverheadrates:ShadesCo.a.ActivityRecommendedBaseAllocationRateProductionSetup#ofproductionruns$600perrun($60,000/100runs)OrderProcessing#ofOrders$500perorder($100,000/200orders)MaterialsHandlingLbs.ofmaterial$5perlb.($40,000/8,000lbs.)EquipmentMaintenanceMachinehours$12perhour($120,000/10,000hrs.)QualityManagement#ofinspections$2,500perinsp.($100,000/40insp.)Packing&ShippingUnitsshipped$4perunit($80,000/20,000units)Directlaborhourrate$250perhour($500,000/2,000hrs.)b.NerdsStarsFashionsDirectMaterials.............$4,000$2,500$2,000DirectLabora.................2,0002,4002,200Overheadb.....................25,00030,00027,000TotalCosts....................$31,000$34,900$31,200aNumberofhoursx$20perhourbNumberofhoursx$250perhour课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997250CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–33.(continued)c.NerdsStarsFashionsDirectMaterials..............$4,000$2,500$2,000DirectLabor...................2,0002,4002,200OrderProcessing...........4,000a4,0002,000ProductionSetup...........1,200b2,4004,800Mat.Handling.................2,000c1,0001,000Equip.Maintenance.......6,000d3,6003,600QualityManagement......5,000e5,0005,000Shipping.........................4,000f2,0001,200TotalCost......................$28,200$22,900$21,800a$500perorderx8orders=$4,000b$600perrunx2runs=$1,200c$5perlb.x400lbs.=$2,000d$12perhourx500hours=$6,000e$2,500perinspectionx2inspections=$5,000f$4perunitx1,000units=$4,000d.InternalMemorandumRe:Product-CostDiscrepancyThediscrepancybetweenourproductcostsusingdirect-laborhoursastheallocationbaseversusactivity-basedcostingisfoundinthewayoverheadcostsareallocated.Ourexistingdirect-laborcostmethoddistortsourproductcostsbecausethereislittlecorrelationbetweenourdirect-laborcostsperproductandoverhead.Activity-basedoverheadismoreaccurate.Itallocatestheindividualcomponentsofouroverheadto课后答案网ourproductsbasedupontheproductsuseofthatoverheadcomponent.Withthemoreaccurateproductcosts,weshouldbegintoconcentrateoureffortsuponwww.hackshp.cnreducingthecostsofourmoreexpensiveoverheadoperations.Asseenintheactivity-basedcostingreport,alargeshareofourtotaloverheadiscomprisedoforderprocessing,qualitymanagement,equipmentmaintenanceandshippingcosts—coststhatwerenotvisibleunderthedirect-laborapproach.Reducingtheseoverheadcostsshouldbeatoppriority.Weshoulduseactivity-basedcostingifwefindthebenefitsfromthenewsystemexceeditscosts.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8251若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–34.(40min.)ChoosinganABCsystem:CannonballCorp.a.CannonballCorporationIncomeStatementAerolightSummitSpinnerTotalSales..............................$380,000$560,000$475,000$1,415,000DirectCosts:DirectMat...................150,000240,000200,000590,000DirectLab...................14,40024,00054,00092,400Var.OHa.....................52,20083,520125,280261,000Cont.Mrg..................$163,400$212,480$95,720471,600FixedOHPlantAdmin...............88,000Other..........................140,000GrossProfit................$243,600a(Machinehours/Totalmachinehours)x$261,000totalvar.Overheadb.CannonballCorporationIncomeStatementAerolightSummitSpinnerTotalSales.............................$380,000$560,000$475,000$1,415,000DirectCosts:DirectMat..................150,000240,000200,000590,000DirectLab..................课后答案网14,40024,00054,00092,400Var.OH:Mach.Setups.............www.hackshp.cn5,7208,84011,44026,000OrderProc.................16,00024,00024,00064,000Warehousing..............23,25023,25046,50093,000Depreciation...............8,40013,44020,16042,000Shipping.....................2,4009,60024,00036,000Cont.Mrg.......................$159,830$216,870$94,900471,600FixedOHPlantAdmin................88,000Other..........................140,000Grossprofit....................$243,600©TheMcGraw-HillCompanies,Inc.,1997252CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–34.(continued)c.Theactivity-basedcostingmethodprovidesamoredetailedbreakdownofthecosts.ThisadditionalinformationshouldenableCannonballmanagementtomakebetterdecisions.Forexample,ifCannonballwantstoreducecoststhenactivity-basedcostingwilllisttheactivitiesonwhichmanagementshouldfocusitscostreducingefforts.Also,thecompanywillprobablyhavemoreaccurateproductcostinformationforpricingandotherdecisions.d.Somecostsmayhavenorelationshiptoanyvolumeoractivitybase.Toartificiallyallocatethesecostswoulddistorttheaccountinginformationusedforpricing,evaluation,etc.Apreferablemethodofhandlingsuchcostsmightbetorequirea“contributionmargin”fromeachproductthatmustcoveraportionofthesecosts.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8253若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–35.(15min.)Benefitsofactivity-basedcosting.Ifmanagementimplementedanactivitybasedcostingsystemitshouldbeprovidedwithamorethoroughunderstandingofproductcosts.Bybreakingdowncostsintocostdrivers,i.e.,thoseactivitiesthatdrivethecosts,managementshouldbeabletoseetherelationshipbetweenproductcomplexity,productvolumeandproductcost.Thiswouldbevitalinformationforpricingdecisionsandprofitabilitystrategies.Managementshouldalsobeabletostreamlinetheproductionprocessbyreducingthosenon-valueaddingactivitiessuchassetupsandtraveltimebetweenactivitycentersordepartments.(Managementmightconsiderrunninglargerbatches,orredesigningtheplantlayout.)(CMAadapted)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997254CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–36.(15min.)Benefitsofactivity-basedcosting:SparkleManufacturingActivity-basedcostingwouldhelptoclearherconfusionbyidentifyingtheactivitiesthatdriveoverheadcosts.Forinstance,shemightfindthattheadditional$200,000inoverheadcostscomefromtheadditionaldepreciationandmaintenanceforthenewequipment.Further,mostcompaniesthatbecomemorecapitalintensiveseeoverheadincreaseandlabordecrease.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8255若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–37.(40min.)ChoosinganABCsystem:HomeManufacturers,Inc.a.HomeManufacturers,Inc.IncomeStatementBasicHomeValueCastleTotalSales.............................$6,000,000$10,000,000$9,000,000$25,000,000DirectCosts:DirectMat..................2,000,0003,000,0002,200,0007,200,000DirectLabor...............400,000600,0001,200,0002,200,000Var.OH.........................1,392,0002,088,0002,320,0005,800,000Cont.Margin..................$2,208,000$4,312,000$3,280,000$9,800,000PlantAdmin................4,000,000GrossProfit...................$5,800,000b.HomeManufacturers,Inc.IncomeStatementBasicHomeValueCastleTotalSales.............................$6,000,000$10,000,000$9,000,000$25,000,000DirectCosts:DirectMat..................2,000,0003,000,0002,200,0007,200,000DirectLabor...............400,000600,0001,200,0002,200,000Var.OH:Mach.Setup...............320,000640,000640,0001,600,000OrderProc.................270,000600,000330,0001,200,000Warehousing..............400,000800,000400,0001,600,000Machineoperation.....课后答案网192,000288,000320,000800,000Shipping.....................160,000280,000160,000600,000Cont.Margin..................$2,258,000$3,792,000$3,750,000$9,800,000PlantAdmin................www.hackshp.cn4,000,000GrossProfit...................$5,800,000©TheMcGraw-HillCompanies,Inc.,1997256CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–37.(continued)c.Althoughbothmethodsyieldsimilarproductcosts,theactivity-basedcostingmethodprovidesamoredetailedbreakdownofthecosts.ThisadditionalinformationshouldenableHomeManufacturers,Inc.(HMI)managementtomakebetterdecisions.Forexample,ifHMIwantstoreducecoststhenactivitybasedcostingwilllisttheactivitiesonwhichmanagementshouldfocusitscostreducingefforts.Further,activity-basedcostingshouldincreasetheaccuracyofproductcosts,whichwouldhelpdecisionmaking(e.g.,pricing,make-or-buydecision).d.Ifplantadministrationcostsweretobeallocatedtoproducts,thecostsshouldbeallocatedinsomemannerthatbearsarelationshiptothebenefitsreceivedbytheproducts.Inthiscase,wewouldwanttoknowmoreaboutthecontentsoftheplantadministrationcosts.Ifthecostsaremainlypersonnelcosts,forexample,suchasthecostsofatrainingprogramorofaplantcafeteria,wecouldallocatethecostsbasedupondirectlaborhours.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8257若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoIntegrativeCases8–38.(40min.)Plant-wideversusdepartmentaloverheadallocation:CarryallCorp.a.Amounts(000omitted)MoldingComponentAssemblyTotalManufacturingDepartments:Variableoverhead............................$3,500$10,000$16,500$30,000Fixedoverhead................................17,5006,2006,10029,800Totalmanufacturingdepartmentoverhead...............$21,000$16,200$22,600$59,800ServiceDepartments:Power...............................................18,400Maintenance....................................4,000Totalestimatedoverhead.............$82,200Estimateddirectlaborhours(DLH)Molding.........................................................................................................500Component...................................................................................................2,000Assembly......................................................................................................1,500Totalestimateddirectlaborhours.............................................................4,000EstimatedoverheadPlant-wideoverheadrate=EstimatedDLH$82,200=课后答案网4,000hrs.=$20.55perdirectlaborhourwww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997258CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–38.(continued)b.Departments(000omitted)ServiceManufacturingPowerMaintenanceMoldingComponentAssemblyDepartmentaloverheadcosts.................................................$18,400$4,000$21,000$16,200$22,600Allocationofmaintenancecosts(direct)4,000xeachof:90/125a;25/125a;10/125a..........................(4,000)2,880800320Allocationoffixedpowercosts(direct)Fixed:$12,000xeachof:500/1,000b;350/1,000b;150/1,000b.....(12,000)6,0004,2001,800Variable:($5,000+1,400)xeachof:360/800c;320/800c;120/800c.....(6,400)d2,8802,560960Totalallocateddepartmentaloverheadcosts.....................$0$0$32,760$23,760$25,680Base....................................................................................875MH2,000DLH1,500DLHRate(Departmentaloverhead¸Base)...................................$37.44/MH$11.88/DLH$17.12/DLHa125=90+25+10b1,000=500+350+150c800=360+320+120d6,400=5,000+1,400课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997259若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–38.(continued)c.CarryallCorporationshouldusedepartmentalratestoassignoverheadtoitsproducts.Theidealcriterionforchoosinganallocationbaseisacause-and-effectrelationship.ThisrelationshipexistswithdifferentbasesinCarryall’sdifferentdepartments,necessitatingtheuseofdepartmentalrates.Aplant-widerateisappropriatewhenallproductspassthroughthesameprocesses,alldepartmentsaresimilar,orthecompanyisnotinterestedincostrefinementbydepartments.Departmentalratesareappropriatewhentheconverseistrue.Carryall’sdepartmentsaredissimilarinthattheMoldingDepartmentismachineintensivewhiletheothertwodepartmentsarelaborintensive.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997260CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–39.(60min.)Distortionscausedbyinappropriateoverheadallocationbases:ChocolateBars,Inc.a.AlmondKrispyCreamyDreamKrackleCrunchProductCosts:Labor-hoursperunit.......................731Totalunitsproduced.......................1,0001,0001,000Materialcostperunit......................$8.00$2.00$9.00Directlaborcostperunit................$42.00$18.00$6.00Labor-hoursperproduct.................7,0003,0001,000Totaloverhead=$69,500Totallabor-hours=11,000Directlaborcostsperhour=$6.00Allocationrateperlabor-hour=$6.32perlabor-hourCostsofproducts:Materialcostperunit.......................$8.00$2.00$9.00Directlaborcostperunit.................42.0018.006.00Allocatedoverheadperunit.............44.2418.966.32Productcost....................................$94.24$38.96$21.32Sellingprice........................................$85.00$55.00$35.00Grossprofitmargin.............................–10.87%29.16%39.09%Dropproduct?.....................................YesNoNoFromthetableabove,wecanseethattheoverheadallocationsystemusedbyCBIwouldleadthemtodropAlmondDreamandkeeptheremainingtwobars,KrispyKrackleandCreamyCrunch.课后答案网b.AlmondDreamhasamuchhigherproportionofdirectlaborhoursthanKrispyKrackleorCreamyCrunch,soAlmondDreamisallocatedagreatershareoftheoverheadcosts.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8261若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–39.(continued)c.KrispyCreamyKrackleCrunchDirectlaborcostperhour....................$6.00$6.00Directlaborhoursperunit...................31Totalunitsproduced............................1,0002,000Laborhoursperproduct......................3,0002,000Totallaborhours:5,000Allocationrateperlaborhour=Totaloverhead/Totallaborhours=$69,500/5,000=$13.90perlaborhourKrispyCreamyAllocatedProductionCosts:KrackleCrunchMaterialcostperunit.....................................$2.00$9.00Directlaborcostperunit...............................18.006.00Allocatedoverheadperunit($13.90perlaborhour)..............................41.7013.90Productcost..................................................$61.70$28.90Grossprofitmargins:Sellingprice...................................................$55.00$35.00Productcost—directlaborallocationbase....–61.70–28.90$(6.70)$6.10Profitmarginpercentage...............................($6.70)/$55.00$6.10/$35.00课后答案网=(12.2)%=17.4%TherecommendationtomanagementistodropKrispyKrackleandincreaseproductionofCreamyCrunch.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997262CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–39.(continued)d.CreamyCrunchDirectlaborcostperhour..............................$6.00Directlaborhoursperunit.............................1Totalunitsproduced......................................3,000Laborhoursperproduct................................3,000Totallaborhours:3,000Allocationrateperlaborhour=Totaloverhead/Totallaborhours=$69,500/3,000=$23.17perlaborhourCreamyAllocatedProductionCosts:CrunchMaterialcostperunit.....................................$9.00Directlaborcostperunit................................6.00Allocatedoverheadperunit...........................23.17Productcost...................................................$38.17Grossprofitmargins:Sellingprice...................................................$35.00Productcost—directlaborallocationbase.....–38.17$(3.17)Profitmarginpercentage...............................($3.17)/$35.00=(9.1)%TherecommendationtomanagementistodropCreamyCrunchandsellout!课后答案网e.ThepoliciesandallocationmethodemployedbyCBIencouragepoordecisionmaking.www.hackshp.cnThedirectlaborhoursareinappropriateasanallocationbaseandgivemisleadinginformation.Theallocationmethodandpolicytodropproductswithgrossprofitmarginslessthan10percentcouldleadtothesystematiceliminationofallproducts.CBIisaprofitablefirm,intotal,andmisallocationofoverheadcanleadmanagementtomakeunprofitabledecisions.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8263若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–40.(90min.)Multipleallocationbases:ChocolateBars,Inc.a.AlmondKrispyCreamyDreamKrackleCrunchTotalTotaldirectlaborhoursa.....7,000(63.6%)3,000(27.3%)1,000(9.1%)11,000(100%)Totalmachinehoursa..............2,000(13.3%)7,000(46.7%)6,000(40%)15,000(100%)Factoryspace(sq.ft.)..............1,000(10%)4,000(40%)5,000(50%)10,000(100%)Totalrentforfactoryspace:$15,000permonthTotalmachineoperatingcosts:$30,000permonthTotalotheroverhead:$24,500permonth(=$69,500–$15,000–$30,000)Totalunitsproduced/month:3,000unitsProductallocationbase:Fraction:Labor(%)Machinehours(%)Factoryspace(%)AlmondDream..............63.613.310%KrispyKrackle................27.346.740%CreamyCrunch.............9.140.050%PerAllocatedCosts:TotalUnitAlmondDream(63.6%x$24,500)+(13.3%x$30,000)+(10%x$15,000)..............................................................=$21,072$21.07KrispyKrackle(27.3%x$24,500)+(46.7%x$30,000)+(40%x$15,000)..............................................................=26,69926.70CreamyCrunch(9.1%x$24,500)+(40%x$30,000)+(50%x$15,000)..............................................................=21,730课后答案网21.73AlmondKrispyCreamyAllocatedproductioncosts:www.hackshp.cnDreamKrackleCrunchMaterialcost................................$8.00$2.00$9.00Directlabor..................................42.0018.006.00AllocatedOH...............................21.0726.7021.73Productioncostperunit...............$71.07$46.70$36.73Sellingprice.................................$85.00$55.00$35.00Productcost................................–71.07–46.70–36.73Profit(loss)..................................$13.93$8.30$(1.73)Profitmarginratio........................16.4%15.1%(4.9)%aTotalsequalhoursperunittimes1,000units.©TheMcGraw-HillCompanies,Inc.,1997264CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–40.(continued)b.Baseduponthetableaboveandthegrossprofitmarginrule,managementwouldrecommenddroppingCreamyCrunch.TwocharacteristicsofCreamyCrunchappeartomakeitappearrelativelyunprofitable:one,thesellingpriceiscomparativelylowascomparedtotheothertwoproducts;two,CreamyCrunchuses50%ofthefactoryspaceandthusisallocatedhalfoftherentcosts.c.AlmondKrispyDreamKrackleDirectlaborhoursperunit.......73Machinehoursperunit............27Factoryspace(sq.ft.)a.............2,000(33.3%)4,000(66.7%)Unitofoutputpermonth..........2,0001,000Laborhoursrequired...............14,000(82.4%)3,000(17.6%)Machinehoursrequired...........4,000(36.4%)7,000(63.6%)Totalrentforfactoryspace:$15,000permonthTotalmachineoperatingcosts:$30,000permonthTotalotheroverhead:$24,500permonthTotallaborhours/month:17,000Totalunitsproduced/month:3,000unitsTotalmachinehours11,000hoursProductallocationbase:Fraction:Labor(%)Machinehours(%)Factoryspace(%)AlmondDream...........82.436.433.3(rounded)KrispyKrackle............17.663.666.7(rounded)aThisproductmixleaves4,000squarefeetofspaceavailable.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8265若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–40.(continued)PerAllocatedCost:TotalUnitAlmondDream(82.4%x$24,500)+(36.4%x$30,000)+(33.3%x$15,000)....=$36,108$18.05KrispyKrackle(17.6%x$24,500)+(63.6%x$30,000)+(66.7x$15,000).......=33,39233.39AlmondKrispyAllocatedproductioncosts:DreamKrackleMaterialcost........................................$8.00$2.00Directlabor..........................................42.0018.00AllocatedOH.......................................18.0533.39Productioncostperunit.......................$68.05$53.39Sellingprice.........................................$85.00$55.00Productcost........................................–68.05–53.39$16.95$1.61Profitmarginratio:Ratio=GrossMargin/Price.................19.9%2.9%BasedonthegrossprofitmarginsofAlmondDreamandKrispyKrackle,managementshoulddropKrispyKrackleandcontinuetoproduceAlmondDream.AlmondDreamappearstobethemostprofitableproduct.Infact,itsmarginratioisonly13.9%,computedasfollows:UnitsProduced=3,000OverheadAllocation=$69,500/3,000=$23.17AlmondAllocatedproductioncosts:课后答案网DreamMaterialcost........................................$8.00Directlabor..........................................www.hackshp.cn42.00AllocatedOH.......................................23.17Productioncostperunit.......................$73.17Sellingprice.........................................$85.00Productcost........................................–73.17$11.83Profitmarginratio:Ratio=GrossMargin/Price.................13.9%©TheMcGraw-HillCompanies,Inc.,1997266CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn8–40.(continued)c.(continued)Ifwecomputethegrossmarginforthethreeproductsatmaximumproduction,wefindAlmondDreamandKrispyKrackletobeequallyprofitable,computedasfollows:AlmondKrispyCreamyororDreamKrackleCrunchUnits..............................3,0003,0003,000CostsMaterials....................$24,000$6,000$27,000Labor.........................126,00054,00018,000Overhead...................+69,500+69,500+69,500$219,500$129,500$114,500Revenue....................$255,000$165,000$105,000–TotalCosts................–219,500–129,500–114,500GrossMargin.............$35,500$35,500$(9,500)Moral:Don’tmaketoomuchofallocatedcostnumbersindecisionmaking.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter8267若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter9Activity-BasedManagementSolutionstoReviewQuestions9–1.Activity-basedcostingprovidesmanagementwithdetailedcostinginformation.Activity-basedmanagementfocusesontheuseofactivity-basedcostinginformationtomakedecisions.Activity-basedmanagementisbasedonactivityanalysisandfindingwaystobemoreefficientwithactivitieswithintheorganization.9–2.Activity-basedmanagementcanbeimplementedwithoutanactivity-basedcostingsystem.However,sincethefocusofactivity-basedmanagementisonthoseactivitiesthatcausethemostcosts,activity-basedcostingprovidesdatausefultotheimplementationofactivity-basedmanagement.9–3.1)Identifytheprocessobjectivesdefinedbywhatthecustomerwantsorexpectsfromtheprocess.2)Recordbycharting,fromstarttofinish,theactivitiesusedtocompletetheproductorservice.3)Classifyallactivitiesasvalue-addedornonvalue-added.4)Continuouslyimprovetheefficiencyofallvalue-addedactivitiesanddevelopplanstoeliminateorreducenonvalue-addedactivities.9–4.Value-addedactivitiesaddvaluetotheproductorservicewhereasnonvalue-addedactivitiesdonotaddvalue.Byidentifyingactivitiesthatdonotaddvalue,managementisabletofocusoneliminatingorreducingnonvalue-addedactivities.Byidentifyingvalue-addedactivities,managementknowswhichactivitiestoretain课后答案网andmakemoreefficient.9–5.www.hackshp.cnCommonnonvalue-addedactivitiesincludemovementofinventory,storageofinventory,andwaitingforwork.Manyotheritemsintheproductionprocessarealsooftenfoundtobenonvalue-added.9–6.Customerresponsetimeisthetimeittakesthecompanytoprovidetheproductorservicestartingfromthetimethecustomerplacestheorder.Thistimeisbrokendownintofourcategories:orderreceipttime;orderwaitingtime;ordermanufacturingtime;andorderdeliverytime.Activity-basedmanagementhelpstoreducecustomerresponsetimebyidentifyingactivitiesthatconsumethemostresources—bothindollarsandtime,andbyidentifyingnonvalue-addedactivities.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter9269若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–7.1)Capacity-relatedcosts:Coststhatarefixedbymanagement’sdecisionstohaveaparticularsizeofstore,factory,hospital,orotherfacility.2)Product-andcustomer-levelcosts:Coststhatsupportcustomerrequestsandproductspecifications.3)Batch-relatedcosts:Costsrelatedtoproducingproductsinbatches.4)Unit-levelcosts:Coststhatcanbeassociatedwithspecificunits.9–8.Capacity-sustainingcostsarefixedbymanagement’sdecisionstohaveaparticularsizeofstore,factory,hospital,orotherfacility.Unit-levelcostsareassociatedwithspecificunits.Managerscanusethehierarchyofcoststobetterunderstandwhichactivities(andthecoststheactivitiescause)canbemanipulatedintheshort-runandwhichactivitiescanbemanipulatedonlyinthelong-run(capacity-sustainingcosts).SolutionstoCriticalAnalysisandDiscussionQuestions9–9.Answerswillvary.1)University:Litterpickupandequipmentstorage.2)Restaurant:Throwingoutspoiledfoodandturnoverofpersonnel.9–10.Answerswillvary.1)Hospital:Storageofsuppliesandon-dutynurseswithoutpatients.2)Bicyclerepairshop:Sendingincorrectpartbacktosupplierandcustomerreturnsresultingfromfaultyassembly.9–11.Answerswillvary.1)Automobiles:Reworkoncarsintheproductionprocessandwarrantyclaims.课后答案网2)Computers:Inventorystoragecostsandmaterialsscrap.9–12.www.hackshp.cnAnswerswillvary.1)Lumber:Inventorymovementandscraplumbermaterials.2)Furniture:Inventorystorageandrepairofdefectiveproducts.©TheMcGraw-HillCompanies,Inc.,1997270CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–13.Answerswillvary.1)Clothingretailstore:Returningdefectiveproducttosuppliersandcustomerreturns.2)Recordstore:Shrinkage(inventorytheft)andinventorystorage.9–14.Nursesareemployedinshiftsofseveralhours,notinincrementsofminutes.Areductionofafewminutesforapatientdidnoteliminateafewminutesofnursetime.9–15.Unusedresourcesaretypicallyfoundincapacity-sustainingactivitiesbecausetheyaretheleastchangeableintheshort-run.9–16.Usedresourcesarefoundbytakingthecostdriverrateandmultiplyingitbythecostdrivervolume.9–17.Unusedresourcecapacityismeasuredbysubtractingresourcesusedfromresourcessupplied.Thisrepresentsthecostofidlecapacitywithindifferentactivitiesofthebusiness.9–18.Atraditionalincomestatementonlyshowsmanagementresourcessuppliedbutgivesnoindicationoftheresourcesusedandunusedresourcecapacity.Managementhasnowayofknowingtheamountofunusedresourcecapacityorthecostofunusedresourcecapacity.Theactivity-basedincomestatementprovidesmanagementwithresourcessuppliedinformation(asdoesthetraditionalincomestatement)andincludesresourcesusedandunusedresourcecapacity.Italsoincludesthetypeofcost(unit,batch,product&customersustaining,andcapacitysustaining)whichallowsmanagementtoassessitsflexibilityincontrollingcosts.9–19.Activity-basedmanagementlookedatactivitieswithinChryslerthatlikelyhadneverbeenscrutinizedbefore.Asaresult,inefficientprocesseswereidentifiedwhichmayhavebeenhiddenbythepreviouscostaccountingsystem.Thisistheequivalentof“changingtherulesofthegame”whichcancauseemployeesto课后答案网resistimplementingactivity-basedmanagement.Chryslercouldmitigatetheresistanceofemployeesbyshowingthemthebenefitsofactivity-basedmanagementandprovidingtheproperincentives(forexample,givingbonusesforefficiencyimprovementwww.hackshp.cnideasandprovidingprofitsharingtoemployeestherebytellingemployees“ifthecompanybenefits,theemployeesbenefit”).©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter9271若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises9–20.(15min.)Resourcesusedvs.resourcessupplied:GreatLakesCorp.ResourcesResourcesUnusedResourceUsedSuppliedCapacityEnergy...................$3,000$3,300$300($0.6×5,000)(given)($3,300–$3,000)Repairs..................$5,000$6,000$1,000($1.00×5,000)(given)($6,000–$5,000)9–21.(15min.)Resourcesusedvs.resourcessupplied:SteamboatIndustries,Inc.ResourcesResourcesUnusedResourceUsedSuppliedCapacitySetups....................$8,750$8,925$175($175×50)(given)($8,925–$8,750)Clerical...................$6,000$6,300$300($30×200)(given)($6,300–$6,000)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997272CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–22.(40min.)Resourcesusedvs.resourcessupplied:EagleProducts,Corp.ResourcesResourcesUnusedResourceUsedSuppliedCapacityMaterials.................$48,000$48,000$—($6×8,000)(given)Energy....................$8,160$9,120$960($24×340)(given)Setups....................$12,000$12,600$600($150×80)(given)Purchasing.............$9,600$11,000$1,400($120×80)(given)Customerservice...$4,000$4,800$800($80×50)(given)Long-termlabor......$12,800$13,250$450($40×320)(given)Administrative.........$12,600$13,500$900($30×420)(given)Unusedresourcecapacityisthedifferencebetweenresourcessuppliedandresourcesused.Unit-relatedcoststypicallyhavelittleornounusedresourcessincetheyvarydirectlywithoutput.Attheotherendofthecostspectrumarecapacity-relatedcostswhichtypicallyhaveunusedresources(unlessthecompanyisoperatingatfullcapacity)sincethesecostsarelong-termcostsandcannotbechangedquicklyintheshort-term.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter9273若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–23.(45min.)Resourcesusedvs.resourcessupplied:EagleProducts,Corp.a.Sales.........................$150,000Materials................$48,000Energy...................9,120Setups....................12,600Purchasing.............11,000Customerservice...4,800Long-termlabor.....13,250Administrative........13,500Totalcosts.................112,270Operatingprofit..........$37,730b.Sales................................................$150,000UnusedResourcesResourceResourcesUsedCapacitySuppliedCostsUnitMaterials........................................$48,000$—$48,000Energy...........................................8,1609609,12056,16096057,120BatchSetups...........................................12,00060012,600Purchasing....................................9,6001,40011,00021,6002,00023,600ProductandcustomersustainingCustomerservice..........................课后答案网4,0008004,800CapacitysustainingLong-termlabor.............................12,80045013,250Administrative................................www.hackshp.cn12,60090013,50025,4001,35026,750Totalcosts............................................107,1605,110112,270112,270Operatingprofit.....................................$37,730©TheMcGraw-HillCompanies,Inc.,1997274CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–24.(30min.)Resourcesusedvs.resourcessupplied:EagleProducts,Corp.a.Atraditionalincomestatementonlyshowsmanagementresourcessuppliedbutgivesnoindicationoftheresourcesusedandunusedresourcecapacity.Managementhasnowayofknowingtheamountofunusedresourcecapacityorthecostofunusedresourcecapacity.Theactivity-basedincomestatementprovidesmanagementwithresourcessuppliedinformation(asdoesthetraditionalincomestatement)andincludesresourcesusedandunusedresourcecapacity.Italsoincludesthetypeofcost(unit,batch,product&customersustaining,andcapacitysustaining)whichallowsmanagementtoassessitsflexibilityincontrollingcosts.Forexample,unitcostsaretypicallyeasiertocontrolintheshort-runthancapacity-sustainingcosts.b.Thememotomanagementshouldincludethepointsoutlinedin(a)aboveandperhapsexpandonthedefinitionsofresourcesused,resourcessupplied,andunusedresourcecapacity.Thememoshouldalsoexplainthecosthierarchy(unit,batch,product&customer-sustaining,andcapacity-sustaining)andhowitallowsmanagementtoassesstheaffectmanagement’sdecisionshaveonthesecosts.Threecostshaverelativelyhighunusedcapacityresources—purchasing,energy,andadministration.Managementshouldlookattheseareascarefullyanddecidewhetherthisunusedcapacityisnecessary.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter9275若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–25.(30min.)Resourcesusedvs.resourcessupplied:Inntell,Corp.UnusedResourcesResourcesResourceUsedSuppliedCapacityMaterials......................................$16,500$16,500$—($22×750)(given)Energy.........................................$3,825$4,400$575($15×255)(given)Setups..........................................$17,600$18,750$1,150($80×220)(given)Purchasing...................................$12,000$16,500$4,500($75×160)(given)Customerservice.........................$3,600$5,500$1,900($30×120)(given)Long-termlabor...........................$37,500$51,650$14,150($30×1,250)(given)Administrative..............................$21,000$26,250$5,250($50×420)(given)Unusedresourcescapacityisthedifferencebetweenresourcessuppliedandresourcesused.Unit-relatedcoststypicallyhavelittleornounusedresourcessincetheyvarydirectlywithoutput.Attheotherendofthecosthierarchyspectrumarecapacity-relatedcostswhichtypicallyhaveunusedresources(unlessthecompanyisoperatingatfullcapacity)sincethesecostsarelong-termcostsandcannotbechangedquicklyintheshort-term.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997276CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–26.(45min.)Resourcesusedvs.resourcessupplied:Inntell,Corp.a.Sales............................................$215,000Materials...................................$16,500Energy......................................4,400Setups......................................18,750Purchasing...............................16,500Customerservice.....................5,500Long-termlabor........................51,650Administrative...........................26,250Totalcosts...................................139,550Operatingprofit............................$75,450b.Sales.................................................$215,000UnusedResourcesResourceResourcesUsedCapacitySuppliedCostsUnitMaterials....................................$16,500$—$16,500Energy.......................................3,8255754,40020,32557520,900BatchSetups........................................17,6001,15018,750Purchasing.................................9,6006,90016,50027,2008,05035,250ProductandcustomersustainingCustomerservice.......................课后答案网3,6001,9005,500CapacitysustainingLong-termlabor.........................37,50014,15051,650Administrative............................www.hackshp.cn21,0005,25026,25058,50019,40077,900Totalcosts........................................109,62529,925139,550139,550Operatingprofit.................................$75,450©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter9277若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–27.(30min.)Resourcesusedvs.resourcessupplied:Inntell,Corp.a.Atraditionalincomestatementonlyshowsmanagementresourcessuppliedbutgivesnoindicationoftheresourcesusedandunusedresourcecapacity.Managementhasnowayofknowingtheamountofunusedresourcecapacityorthecostofunusedresourcecapacity.Theactivity-basedincomestatementprovidesmanagementwithresourcessuppliedinformation(asdoesthetraditionalincomestatement)andincludesresourcesusedandunusedresourcecapacity.Italsoincludesthetypeofcost(unit,batch,product&customersustaining,andcapacitysustaining)whichallowsmanagementtoassessitsflexibilityincontrollingcosts.Forexample,unitcostsaretypicallyeasiertocontrolintheshort-runthancapacitysustainingcosts.b.Thememotomanagementshouldincludethepointsoutlinedin(a)aboveandperhapsexpandonthedefinitionsofresourcesused,resourcessupplied,andunusedresourcecapacity.Thememoshouldalsoexplainthecosthierarchy(unit,batch,product&customersustaining,andcapacitysustaining)andhowitallowsmanagementtoassesstheaffectmanagement’sdecisionshaveonthesecosts.Threecostshaverelativelyhighunusedcapacityresources—long-termlabor,purchasing,andadministration.Managementshouldlookattheseareascarefullyanddecidewhetherthisunusedcapacityisnecessary.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997278CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–28.(30min.)Resourcesusedvs.resourcessupplied:ArtherConsultantsUnusedResourcesResourcesResourceUsedSuppliedCapacityEnergy...........................$32,520$35,500$2,980($6×5,420)(given)Humanresources..........$30,000$40,000$10,000($1,000×30)(given)Customerservice..........$5,500$9,800$4,300($20×275)(given)Long-termlabor.............$450,000$560,000$110,000($90×5,000)(given)Administrative................$21,000$22,750$1,750($50×420)(given)Unusedresourcecapacityisthedifferencebetweenresourcessuppliedandresourcesused.Unit-relatedcoststypicallyhavelittleornounusedresourcessincetheyvarydirectlywithoutput.Attheotherendofthecosthierarchyspectrumarecapacity-relatedcostswhichtypicallyhaveunusedresources(unlessthecompanyisoperatingatfullcapacity)sincethesecostsarelong-termcostsandcannotbechangedquicklyintheshort-term.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter9279若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–29.(45min.)Resourcesusedvs.resourcessupplied:ArtherConsultantsa.Sales$825,000Energy..............................35,500Humanresources.............40,000Customerservice..............9,800Long-termlabor................560,000Administrative...................22,750Totalcosts............................668,050Operatingprofit.....................$156,950b.Sales............................................$825,000UnusedResourcesResourceResourcesUsedCapacitySuppliedCostsUnitEnergy...................................$32,520$2,980$35,500ProductandcustomersustainingCustomerservice...................5,5004,3009,800Capacitysustaining...................Humanresources..................30,00010,00040,000Long-termlabor.....................450,000110,000560,000Administrative........................21,0001,75022,750501,000121,750622,750Totalcosts....................................539,020129,030668,050668,050Operatingprofit.............................课后答案网$156,950www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997280CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–30.(30min.)Resourcesusedvs.resourcessupplied:Inntell,Corp.a.Atraditionalincomestatementonlyshowsmanagementresourcessuppliedbutgivesnoindicationoftheresourcesusedandunusedresourcecapacity.Managementhasnowayofknowingtheamountofunusedresourcecapacityorthecostofunusedresourcecapacity.Theactivity-basedincomestatementprovidesmanagementwithresourcessuppliedinformation(asdoesthetraditionalincomestatement)andincludesresourcesusedandunusedresourcecapacity.Italsoincludesthetypeofcost(unit,batch,product&customersustaining,andcapacitysustaining)whichallowsmanagementtoassessitsflexibilityincontrollingcosts.Forexample,unitcostsaretypicallyeasiertocontrolintheshort-runthancapacitysustainingcosts.b.Thememotomanagementshouldincludethepointsoutlinedin(a)aboveandperhapsexpandonthedefinitionsofresourcesused,resourcessupplied,andunusedresourcecapacity.Thememoshouldalsoexplainthecosthierarchy(unit,batch,product&customersustaining,andcapacitysustaining)andhowitallowsmanagementtoassesstheaffectmanagement’sdecisionshaveonthesecosts.Asonemightexpectwithaserviceorganization,thelargestunusedresourcecapacityisintheareaoflong-termlabor.Managementshouldlookatthisareacarefullyanddecidewhetherthisamountofunusedresourcecapacityisnecessary.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter9281若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems9–31.(50min.)BeamCorporationa.Sales....................................$85,000Partsmanagement...............3,500Energy..................................5,000Qualityinspections...............5,000Long-termlabor....................3,500Short-termlabor...................2,400Setups..................................10,000Materials...............................15,000Depreciation.........................10,000Marketing..............................7,500Customerservice.................2,000Administrative.......................7,000Engineeringchanges............2,500Outsidecontracts.................3,000Totalcosts............................76,400Operatingprofit.....................$8,600课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997282CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–31.(continued)b.Sales$85,000UnusedResourcesResourceResourcesUsedCapacitySuppliedCostsUnitPartsmanagement....................$3,000$500$3,500Energy.......................................5,00005,000Short-termlabor........................2,0004002,400Materials...................................15,000015,000Outsidecontracts......................3,00003,00028,00090028,900BatchQualityinspections....................4,5005005,000Setups.......................................7,0003,00010,00011,5003,50015,000ProductandcustomersustainingMarketing..................................7,0005007,500Customerservice......................1,0001,0002,000Engineeringchanges................2,50002,50010,5001,50012,000CapacitysustainingLong-termlabor.........................2,5001,0003,500Depreciation..............................6,0004,00010,000Administrative...........................5,0002,0007,00013,5007,00020,500Totalcosts.......................................课后答案网63,50012,90076,40076,400Operatingprofit................................$8,600c.Atraditionalincomestatementshowsonlymanagementresourcessuppliedbutgiveswww.hackshp.cnnoindicationoftheresourcesusedandunusedresourcecapacity.Managementhasnowayofknowingtheamountofunusedresourcecapacityorthecostofunusedresourcecapacity($12,900).Theactivity-basedincomestatementprovidesmanagementwithresourcessuppliedinformation(asdoesthetraditionalincomestatement)andincludesresourcesusedandunusedresourcecapacity.Italsoincludesthetypeofcost(unit,batch,product&customersustaining,andcapacitysustaining)whichallowsmanagementtoassessitsflexibilityincontrollingcosts.Basedontheinformationin(a)and(b),wecanseethatdepreciationandsetupsprovidethemajorityofunusedresourcecapacity($4,000and$3,000,respectively).Thisisusefulformanagersinthatitindicateswhatactionsmightbetakentoreducecosts(forexample,reduceexcessmachinecapacitybyeliminatinganyunneededmachinery).©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter9283若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–32.(50min.)AlmayCorporationa.Sales...........................................$375,000Marketing.....................................30,000Depreciation................................40,000OutsideContracts........................12,000Materials......................................60,000Setups.........................................20,000Energy.........................................21,000Partsmanagement......................16,000Engineeringchanges...................12,000Short-termlabor..........................7,000Long-termlabor...........................14,000Administrative..............................26,000Qualityinspections......................22,000Customerservice........................8,000Totalcosts...................................288,000Operatingprofit............................$87,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997284CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–32.(continued)b.Sales$375,000UnusedResourcesResourceResourcesUsedCapacitySuppliedCostsUnitOutsidecontracts......................$12,000$—$12,000Materials...................................60,000060,000Energy.......................................20,0001,00021,000Short-termlabor........................7,00007,00099,0001,000100,000BatchSetups.......................................14,0006,00020,000Qualityinspections....................20,0002,00022,00034,0008,00042,000ProductandcustomersustainingMarketing..................................28,0002,00030,000Partsmanagement....................15,0001,00016,000Engineering...............................10,0002,00012,000Customerservice......................6,0002,0008,00059,0007,00066,000CapacitysustainingDepreciation..............................24,00016,00040,000Long-termlabor.........................10,0004,00014,000Administrative...........................20,0006,00026,000课后答案网54,00026,00080,000Totalcosts.......................................246,00042,000288,000288,000Operatingprofit................................www.hackshp.cn$87,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter9285若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–32.(continued)c.Atraditionalincomestatementshowsonlymanagementresourcessuppliedbutgivesnoindicationoftheresourcesusedandunusedresourcecapacity.Managementhasnowayofknowingtheamountofunusedresourcecapacityorthecostofunusedresourcecapacity($42,000).Theactivity-basedincomestatementprovidesmanagementwithresourcessuppliedinformation(asdoesthetraditionalincomestatement)andincludesresourcesusedandunusedresourcecapacity.Italsoincludesthetypeofcost(unit,batch,product&customersustaining,andcapacitysustaining)whichallowsmanagementtoassessitsflexibilityincontrollingcosts.Basedontheinformationin(a)and(b),wecanseethatdepreciation,setupsandadministrationprovidethemajorityofunusedresourcecapacity($16,000,$6,000,and$6,000,respectively).Thisisusefulformanagersinthatitindicateswhatactionsmightbetakentoreducecosts(forexample,reduceexcessmachinecapacitybyeliminatingunneededmachinery).课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997286CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–33.(50min.)AllbriteCorporationa.Sales.....................................$650,000Marketing..............................70,000Depreciation..........................52,250Materials...............................145,000Setups...................................35,000Energy..................................42,000Partsmanagement...............16,000Short-termlabor....................14,000Long-termlabor....................88,000Administrative.......................52,000Qualityinspections................44,000Customerservice..................10,000Totalcosts............................568,250Operatingprofit.....................$81,750课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter9287若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–33.(continued)b.Sales$650,000UnusedResourcesResourceResourcesUsedCapacitySuppliedCostsUnitMaterials...................................$145,000$—$145,000Energy......................................40,0002,00042,000Short-termlabor........................14,000014,000199,0002,000201,000BatchSetups......................................28,0007,00035,000Qualityinspections...................40,0004,00044,00068,00011,00079,000ProductandcustomersustainingMarketing..................................56,00014,00070,000Partsmanagement...................15,0001,00016,000Customerservice......................8,2501,75010,00079,25016,75096,000CapacitysustainingDepreciation.............................50,5001,75052,250Long-termlabor........................80,0008,00088,000Administrative...........................40,00012,00052,000170,50021,750192,250Totalcosts.......................................516,75051,500568,250568,250Operatingprofit................................课后答案网$81,750c.Atraditionalincomestatementshowsonlymanagementresourcessuppliedbutgivesnoindicationoftheresourcesusedandunusedresourcecapacity.Managementhaswww.hackshp.cnnowayofknowingtheamountofunusedresourcecapacityorthecostofunusedresourcecapacity($51,500).Theactivity-basedincomestatementprovidesmanagementwithresourcessuppliedinformation(asdoesthetraditionalincomestatement)andincludesresourcesusedandunusedresourcecapacity.Italsoincludesthetypeofcost(unit,batch,product&customersustaining,andcapacitysustaining)whichallowsmanagementtoassessitsflexibilityincontrollingcosts.Basedontheinformationin(a)and(b),wecanseethatmarketingandadministrationprovidethemajorityofunusedresourcecapacity($14,000and$12,000,respectively).Thisisusefulformanagersinthatitindicateswhatactionsmightbetakentoreducecosts(forexample,reduceexcessmarketingcapacitybyeliminatingsalespeoplewithoverlappingsalesterritories).©TheMcGraw-HillCompanies,Inc.,1997288CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–34.(50min.)FreefallEngineeringCorporationa.Sales$1,350,000Marketing120,000Depreciation89,500Trainingpersonnel54,000Energy85,500Short-termlabor310,000Long-termlabor425,000Administrative79,000Qualityinspections42,000Totalcosts1,205,000Operatingprofit$145,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter9289若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–34.(continued)b.Sales$1,350,000UnusedResourcesResourceResourcesUsedCapacitySuppliedCostsUnitEnergy......................................80,0005,50085,500Short-termlabor........................245,00065,000310,000325,00070,500395,500BatchQualityinspections...................37,5004,50042,00037,5004,50042,000ProductandcustomersustainingMarketing..................................112,0008,000120,000Trainingpersonnel....................45,0009,00054,000157,00017,000174,000CapacitysustainingDepreciation.............................87,0002,50089,500Long-termlabor........................415,00010,000425,000Administrative...........................70,0009,00079,000572,00021,500593,500Totalcosts.......................................1,091,500113,5001,205,0001,205,000Operatingprofit................................$145,000c.Atraditionalincomestatementshowsonlymanagementresourcessuppliedbutgives课后答案网noindicationoftheresourcesusedandunusedresourcecapacity.Managementhasnowayofknowingtheamountofunusedresourcecapacityorthecostofunusedresourcecapacity($113,500).Theactivity-basedincomestatementprovideswww.hackshp.cnmanagementwithresourcessuppliedinformation(asdoesthetraditionalincomestatement)andincludesresourcesusedandunusedresourcecapacity.Italsoincludesthetypeofcost(unit,batch,product&customersustaining,andcapacitysustaining)whichallowsmanagementtoassessitsflexibilityincontrollingcosts.Basedontheinformationin(a)and(b),wecanseethatshort-termlaborprovidesmuchoftheunusedresourcecapacity($65,000).Thisisusefulformanagersinthatitindicateswhatactionsmightbetakentoreducecosts(forexample,byreducingtheshort-termlaborforce).©TheMcGraw-HillCompanies,Inc.,1997290CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–35.(50min.)InvestmentAdvisoryServices,Inc.a.Sales..............................$345,000Marketing.......................5,000Depreciation...................19,500Training..........................28,000Energy...........................16,500Short-termlabor.............36,000Long-termlabor.............107,000Administrative................22,000Customerservice...........9,000Totalcosts.....................243,000Operatingprofit..............$102,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter9291若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–35.(continued)b.Sales$345,000UnusedResourcesResourceResourcesUsedCapacitySuppliedCostsUnitEnergy......................................14,0002,50016,500Short-termlabor........................32,0004,00036,00046,0006,50052,500ProductandcustomersustainingMarketing..................................5,00005,000Training.....................................25,0003,00028,000Customerservice......................7,8751,1259,00037,8754,12542,000CapacitysustainingDepreciation.............................15,0004,50019,500Long-termlabor........................94,00013,000107,000Administrative...........................19,0003,00022,000128,00020,500148,500Totalcosts.......................................211,87531,125243,000243,000Operatingprofit................................$102,000c.Atraditionalincomestatementshowsonlymanagementresourcessuppliedbutgivesnoindicationoftheresourcesusedandunusedresourcecapacity.Managementhasnowayofknowingtheamountofunusedresourcecapacityorthecostofunusedresourcecapacity($31,125).Theactivity-basedincomestatementprovidesmanagementwithresourcessuppliedinformation(asdoesthetraditionalincome课后答案网statement)andincludesresourcesusedandunusedresourcecapacity.Italsoincludesthetypeofcost(unit,batch,product&customersustaining,andcapacitysustaining)whichallowsmanagementtoassessitsflexibilityincontrollingcosts.www.hackshp.cnBasedontheinformationin(a)and(b),wecanseethatlong-termlaborprovidesmuchoftheunusedresourcecapacity($13,000).Thisisusefulformanagersinthatitindicateswhatactionsmightbetakentoreducecosts(forexample,byreducingthelong-termlaborforce).©TheMcGraw-HillCompanies,Inc.,1997292CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn9–36.(45minutes)KurtCorporationa.CustomerCustomerplacesreceivesorderproductOrderreadyOrderisProductforsetupsetupcompletedOrderOrderOrderOrderreceiptwaitingmanufacturingdeliverytimetimetimetime1173249685121513101617111814Totalcustomerresponsetimeb.Answerswillvary.Thefollowingitemsareexamplesofactionsthatcanbetakentoreducecustomerresponsetime:·Shipordersimmediatelyuponcompletionratherthanqueuingordersforshipment.·Sendorderstotheproductiondepartmentimmediatelyuponreceiptoftheorder课后答案网ratherthanattheendoftheday.·Takecall-inordersfromon-sitesalespeoplethroughoutthedayratherthanatthewww.hackshp.cnendofeachday.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter9293若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter10AllocatingJointCostsSolutionstoReviewQuestions10–1.Jointcostallocationsareusuallymadetoassignacosttoaproductafterthesplit-offpoint.Thisisusuallydoneforexternalreporting,tax,orrate-makingpurposesortosatisfycontractrequirements.Becausethejointcostsarecommontotheoutputs,itisnotpossibletofindadirectwayofrelatingthecosts.Rather,thecostsarerelatedtoeconomicbenefitsonthebasisofsomemeasureofrelativeoutputs.10–2.Becausenetrealizablevaluesoftheoutputproductprovideameasureoftheeconomicbenefitreceivedfromeachoutputfromtheproductionprocess,thismethodisusuallypreferredwhenitcanbeimplemented.10–3.Itmaybepreferabletouseaphysicalquantitiesmeasureifitreflectstheeconomicbenefitultimatelyobtainablefromtheproductionprocess,particularlyifthereisnoobjectivesellingpriceforjointproducts.Someexamplesincludepublicutilityratesetting,energypriceregulation,newmarketsetting,andnewproductpricesetting.Inallofthesecasesitisnotpossibletousetherelativesalesvaluemethod.Ofcourse,thephysicalquantitymeasureusedmustmakesense.Thus,ouncesofleadshouldnotbeaddedtoouncesofsilverforjointcostallocationpurposes.10–4.Forjointproducts,costsoftheinputsuptothesplit-offpointareallocatedtoeachoftheproducts.Costspriortosplit-offarenotallocatedtoby-products.10–5.课后答案网Anoutputfromajointproductionprocessshouldbetreatedasaby-productifithasarelativelylowvalueand/orisnottheprimaryproductthecompanyintendedtoproduce.www.hackshp.cn10–6.Thetwocommonmethodsofallocationare:netrealizablevaluemethodandphysicalquantitiesmethod.Netrealizablevaluemethodcanbeusedifameasureofnetrealizablevalueisreadilyavailable.Physicalquantitiesmethodcanbeusedwhenitisdifficulttoarriveatafairmeasureofnetrealizablevalue.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter10295若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–7.Thejointcostsarethesameregardlessofwhetheronesellsorprocessesfurther.Thus,nomatterhowthecostsareallocated,theywillcanceloutinthesellorprocessfurtherdecision.Totestthis,onecouldusetheexampleinthetextandtryalternativeallocationstoGradeAALumberorGradeBLumber.Evenifoneoftheseproductsischargedwithall$180,000ofjointcosts,thesellorprocessfurtherdecisionisunchanged.10–8.Jointproductsrepresentamajorpartoftherelativevalueoftheoutputfromtheproductionprocess.By-productsrepresentaminorpartofthevalueoftheoutput,andalwayshavepositivenetrealizablevalues.Scrapisalsoaminorpartoftheoutput.Itmaytakeonanegativenetrealizablevalue,suchaswhentherearecostsofdisposal.SolutionstoCriticalAnalysisandDiscussionQuestions10–9.Somepeopleusefullyallocatedcostnumbersforlong-runpricingandotherlong-rundecisions.10–10.Thetwosituationsaresimilarinthattheconceptualtreatmentoftheallocationproblemisthesame:thecostscannotbeseparatelyidentifiedforeachdepartmentorproduct;therefore,anallocationmethodmustbechosenwhichreflectstothebestpossibleextentamatchingofthecostsincurredwiththebenefitsreceived.Theresultingallocatedcostsmustbeusedwithcare,ifatall,inanydecision-makingcontext.10–11.Examplesincludetimber,livestock,petroleum,realestatedevelopment(produceslots),railroad(manycarsonthesametrain),andmanyotherprocessingindustries.10–12.Thecostsofdisposingofscrapcanbereducedoreliminated.Infact,woodscrapmayprovideincrementalrevenueforthecompany.Also,theimageofthecompanybeingsensitivetotheenvironmentwilllikelyaddvaluetothecompany’sreputation.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997296CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises10–13.(15min.)Netrealizablevaluemethod.Totaljointcostsare$150,000(basedonthe$50,000materialsplus$100,000conversion).Thesecostsareallocatedasfollows:ToOutputL:$200,000x$150,000=$120,000$250,000ToOutputT:$250,000–$200,000x$150,000=$30,000$250,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter10297若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–14.(20min.)Netrealizablevaluemethod:DurangoCorporation.Althoughnotrequired,theprocessmaybediagrammedasfollows:$40,000Lead($12,000)$100,000Ore$80,000Copper($10,000)$60,000Manganese($18,000)Thediagramcanbeusedtohelporganizethesolutionwhichfollows:LeadCopperManganeseTotalSellingprice........................................$40,000$80,000$60,000$180,000Additionalprocessing..........................(12,000)(10,000)(18,000)(40,000)Approximatesalesvalueatsplit-off....$28,000$70,000$42,000$140,000%oftotalsalesvaluesatsplit-off........20%a50%a30%a100%CostAllocation:20%x$100,000..............................$20,00050%x$100,000..............................$50,00030%x$100,000..............................$30,000Check:Totalallocated=$100,000=$20,000+$50,000+$30,000课后答案网a$28,000$70,000$42,00020%=;50%=;30%=$140,000$140,000www.hackshp.cn$140,000©TheMcGraw-HillCompanies,Inc.,1997298CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–15.(20min.)Netrealizablevaluemethodtosolveforunknowns:GreenProducts,Inc.Sincethesalesvalueofeachproductatthesplit-offpointisavailable,theappropriatebasisforallocationusingthenetrealizablevaluemethodis$17,500(whichis$10,500+$7,000).LetXequaltheunknowntotalcosts.Theallocationof$6,000toleprechaunsmusthavebeentheresultoftheallocationequation:$10,500timesX=$6,000$10,500+$7,000So,solvingforX,weobtain:10,500X=$6,00017,500X=$10,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter10299若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–16.(20min.)Netrealizablevaluemethod:multiplechoice.a.Theansweris4.Netrealizablevalueatsplit-offisusedtoallocatejointcoststojointproducts.Forjointproductssaleableatthesplit-offpoint,thenetrealizablevalueisthesellingpriceatsplit-off.Iffurtherprocessingisneeded,thenetrealizablevalueisapproximatedbysubtractingtheadditionalprocessingcostsfromthefinalsalesvalue.b.Theansweris3.Thenetrealizablevalueforeachproductisusedtoallocatejointcosts.Thecostsbeyondthesplit-offpointcanbeidentifiedandthusassignedtoeachproduct.Therefore,noallocationisneeded.c.Theansweris2.Todeterminethenetrealizablevalueatsplit-off,itissometimesnecessarytoworkbackwardsfromthepointofsale.Forjointproductssaleableatthesplit-offpoint,netrealizablevalueisthesellingpriceatsplit-off.Iffurtherprocessingisneeded,thenetrealizablevalueisapproximatedbysubtractingadditionalprocessingcostsfromthefinalsalesvalue.d.Theansweris1.Thenetrealizablevaluemethodproducesthesamegrossmarginratio.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997300CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–17.(30min.)Netrealizablevaluemethod:multiplechoice.a.Theansweris3.Thenetrealizablevaluemethodallocatesjointcostsinproportiontothenetrealizablevalueoftheindividualproducts.Giventotaljointcostsof$120,000andtotalsalesvalueatsplit-offof$200,000($140,000productC+$60,000productR),thecalculationis:140/200x$120,000=$84,000b.Theansweris3.Thenetrealizablevaluemethodallocatesjointcostsinproportiontothenetrealizablevalueoftheindividualproducts.Giventotaljointcostsof$117,000andthetotalsalesvalueatsplit-offformainproductsof$225,000($125,000productA+$100,000productB),thecalculationis:100,000/225,000x$117,000=$52,000c.Theansweris4.Thenetrealizablevaluemethodisacostallocationmethodthatallocatesjointcostsinproportiontothenetrealizablevalueoftheindividualproducts.Thecalculationis:NetRealizableValueatJointCostsSplit-OffAllocationAllocatedW$70,00070/200x$80,000$28,000X60,00060/200x80,00024,000Y40,00040/200x80,00016,000Z30,00030/200x80,00012,000$200,000$80,000Note:Thecostsincurredaftersplit-offarenotjointcostsandarethereforenot课后答案网included.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter10301若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–18.(20min.)Physicalquantitiesmethod:TheRoteCo.a.Theansweris4.TotalunitsofX=14,000unitsTotalunitsproduced=28,000unitsJointproductcosts=$63,000Amountallocatedfromjointcosts:14,000x$63,000=$31,50028,000Additionalprocessingcosts.........18,000TotalcostsofProductX..............$49,500b.Theansweris2.NetrealizablevalueofYatsplit-off=$70,000Totalnetrealizablevalueatsplit-off=$200,000Jointproductcosts=$63,000Amountallocatedfromjointcosts:70,000x$63,000=$22,050$200,000Additionalprocessingcosts......14,000TotalcostsallocatedtoY.........$36,050课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997302CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–19.(20min.)Physicalquantitiesmethodwithby-product:FriendlyFertilizerCorporation.Thenetrealizablevalueofthemethane($2,000)isdeductedfromthetotalprocessingcosts($90,000)toobtainthenetprocessingcoststobeallocated($88,000).Theallocationcomputationsare:ToNitro:50,000unitsx$88,000=$35,20050,000units+75,000unitsandtoPhospho:75,000unitsx$88,000=$52,80050,000units+75,000units课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter10303若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–20.(40min.)By-products:LeatherProducts,Inc.Method1Method2Salesrevenue................................................$70,000$70,000Otherincome.................................................-0-175($225–$50)Totalrevenue.................................................$70,000$70,175Costofgoodssold:Unadjusted.................................................36,00036,000Less:By-productnetrealizablevalue........(175)Adjustedcostofgoodssold...........................$35,825$36,000Grossmargin.................................................$34,175$34,17510–21.(25min.)By-products:multiplechoice:SeinfeldCorp.a.Theansweris3.Netamountfromby-product=$9,600[=2,400unitsx($5–$1)]Costofgoodssold=$200,000–$9,600=$190,400Grossmargin=$400,000–$190,400=$209,600b.Theansweris1.Grossmarginwouldnotbeaffected.Sales......................$400,000Otherincome..........9,600409,600COGS.....................200,000课后答案网Grossmargin..........$209,600c.Theansweris1.www.hackshp.cnTherewouldbenoeffectonthecompany’sprofits.©TheMcGraw-HillCompanies,Inc.,1997304CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–22.(35min.)Sellorprocessfurther:YubaSawmill,Inc.First,determinethenormalvolumeofbarkchips:$900,000/$12perhundredcubicfeet=75,000hundredcubicfeet(ccf)Second,computetherevenuefromsalesofhorticulturalbark:Large75,000ccfx30%x$32/ccf=$720,000Medium75,000ccfx60%x$16/ccf=$720,000Mulch75,000ccfx10%x$4/ccf=$30,000whichresultsintotalrevenueof$1,470,000($720,000+$720,000+$30,000).Thecontributionfromadditionalprocessingequals:Revenue....................................................$1,470,000Incrementalprocessingcosts....................520,000Contributionfromadditionalprocessing.....$950,000Thiscontributioniscomparedtotheforegonebarksalesof$900,000.Werecommendprocessingfurther.10–23.(30min.)ConstantGrossMarginMethod:DurangoCorp.LeadCopperManganeseTotalSalesvalue...........................$40,000$80,000$60,000$180,000Jointcosts............................19,11152,22228,667100,000Additionalprocesscosts.......12,00010,00018,00040,000Grossmargin........................课后答案网8,88917,77813,33340,000Grossmarginpercentage.....22.222%22.222%22.222%22.222%www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter10305若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems10–24.(45min.)Netrealizablevalueofjointproducts—multiplechoice:BryceManufacturingCompany.a.Theansweris3.Sincethereisnofurtherprocessingforargonaftersplit-off,thenetrealizablevalueissimplythesalesvalueofallunitsproduced.$60,000Priceperunit==$4.0015,000unitssoldUnitsproduced=25,000aunitsTotalnetrealizablevalue=$100,000(=25,000unitsx$4.00)a15,000sold+10,000inendinginventory=25,000unitsb.Theansweris2.Thejointcoststobeallocatedareallcostsuptosplit-off,thatis,allcostsinDepartment1.Costofzeon.........$192,000Directlabor...........48,000Overhead..............40,000Total..................$280,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997306CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–24.(continued)c.Theansweris1.Netrealizablevalueofargon.......$100,000aNetrealizablevalueofxon...........60,000bNetrealizablevalueofneon........140,000cTotal.........................................$300,000Allocationofjointcoststoxon:$60,000dx$280,000=$56,000$300,000Additionalprocessingcosts:Directlabor........................................................90,000Overhead...........................................................42,000Totalcostofxon.............................................$188,000a$60,000x25,000units=$100,00015,000unitsb$192,000–$90,000–$42,000=$60,000c$283,500(x60,000units)–$130,000–$108,000=$140,00045,000unitsd$192,000+$48,000+$40,000=$280,000d.Theansweris2.Usinginformationfromcabove,theallocationtoargonis:$100,000x$280,000=$93,333课后答案网$300,000$93,333Costperunit=www.hackshp.cn=$3.733/unit25,000aunitsproducedCostofendinginventory:10,000unitsx$3.733=$37,333a15,000sold+10,000inendinginventory=25,000units©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter10307若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–25.(40min.)Netrealizablevalueandeffectsofprocessingfurther:MillerManufacturingCo.a.DepartmentsProductionCostsABCRawmaterials.............................$112,000——Directlabor.................................48,00080,900191,750Manufacturingoverhead.............20,00021,10073,250Total............................................$180,000$102,000$265,000Adiagramoftheproblemfollows:X,140,000poundsat$.75apound*Separablecosts=$102,000Y,118,000poundsJointCostat$1.50apound*of$180,000Separablecosts=$265,000Z,220,000poundsat$1.75apound*split-offpoint*$.75=$30,000/40,000lbs;$1.50=$177,000/118,000lbs;$1.75=$245,000/140,000lbs.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997308CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–25.(continued)ProductProductProductTotalXYZ1.Sellingpriceperpound:X:$30,000¸40,000..........................$.75Z:$245,000¸140,000......................$1.75Multiplybypoundsproduced:X:40,000+100,000..........................140,000Z:140,000+80,000..........................220,000Grosssalesvalues................................$105,000$177,000*$385,000**Lesscostsofseparateprocessing:X:—..................................................———Y:$80,900+$21,100........................—102,000—Z:$191,750+$73,250......................——265,000Estimatednetrealizablevaluesatsplit-offpoint......................................$105,000$75,000$120,000$300,000Percentageoftotal................................35%25%40%100%*Given110,000**Or:$245,000x=$385,00070,0002.Totaljointcosts:$112,000+$48,000+$20,000=$180,000Allocation:X:35%x$180,000=$63,000Y:25%x$180,000=45,000Z:40%x$180,000=课后答案网72,000www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter10309若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–25.(continued)3.and4.TotalCostofEndingCostsGoodsSoldInventoryProductX:Jointcostsallocated...............................$63,000Sold:(40,000¸140,000)x$63,000.......$18,000Inventory................................................$45,000ProductY:Jointcostsallocated...............................$45,000Separateprocessingcosts.....................102,000Total,allsold.............................................$147,000147,0000ProductZ:Jointcostsallocated...............................$72,000Separateprocessingcosts.....................265,000TotalcostsofZ......................................$337,000Sold:(140,000¸220,000)x$337,000...214,455Inventory................................................122,545Totals.........................................................$547,000$379,455$167,545Proofoftotal:RawmaterialcostDept.A.....................$112,000Directlaborcost—A...............................48,000Directlaborcost—B...............................80,900Directlaborcost—C...............................191,750Manufacturingoverhead—A......................20,000Manufacturingoverhead—B......................21,100Manufacturingoverhead—C.....................73,250Totalcostsaccountedfor..........................$547,000课后答案网b.Incrementalrevenueoffurtherprocessingwww.hackshp.cnX:($4.30–$.75forgone)x140,000............................$497,000IncrementalcostsoffurtherprocessingX:$2.00x140,000.......................................................280,000IncrementalincomefromfurtherprocessingX................$217,000c.ThememoshouldrecommendthatMillerprocessproductXfurther.Bydoingso,profitwillincrease$217,000.©TheMcGraw-HillCompanies,Inc.,1997310CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–26.(35min.)Findmissingdata:Netrealizablevalue:AirExtracts,Inc.AirExtractsmustusenetrealizablevaluemethodbecausetheratioofnitrogen’sjointcoststothetotaldoesnotequaltheratioofnitrogen’sphysicalunitstothetotal.1.Allocatejointcoststohydrogen:$15,000hydrogennetrealizablevalue/$100,000x$60,000jointcosts=$9,000(answertob)2.Jointcostsallocatedtooxygen:$60,000total–$30,000tonitrogen–$9,000tohydrogen=$21,000(answertoa)3.Theratioofsalesvalueatsplit-offforeachproducttototalsalesvalueatsplit-offequalsthejointcostratio:Nitrogen:($30,000/$60,000)x$100,000=$50,000(answertoc)Oxygen:($21,000/$60,000)x$100,000=$35,000(answertod)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter10311若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–27.45min.)Jointcostallocations:ExoticAromaCompany.a.JointReductionProcess$400,000Splitoff220,000180,000SeductionJointCosts:$800,000RomanceSecondPressingAdditionalCosts$44,000100,00080,000$224,000CalculationofNetRealizableValueatSplit-off:SeductionRomanceTotalRevenue..........................................$1,800,000a$2,646,000bPackagingCosts..............................120,000308,000AdditionalProcessingCost..............—224,000NetRealizableValueatSplit-off......$1,680,000$2,114,000$3,794,000a$1,800,000=10,000x$180.00b$2,646,000=42,000x$63.00课后答案网SeductionRomancePercentofNetRealizable$1,680,000$2,114,000=44.3%=55.7%ValueatSplit-offwww.hackshp.cn$3,794,000$3,794,000AllocationofJointCostsIncurredinJuly:Seduction...............44.3%x$800,000=$354,400Romance...............55.7%x$800,000=$445,600100%$800,000©TheMcGraw-HillCompanies,Inc.,1997312CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–27.(continued)b.Physicalquantitiesmethod.SeductionRomance10,00042,000PercentofTotalUnitsCompleted=19.2%=80.8%52,00052,000AllocationofJointCosts:Seduction..........................$800,000x19.2%=$153,600Romance..........................$800,000x80.8%=646,400100%$800,000c.Physicalquantitiesmethod:Seduction,whichhasahighsalesprice,incurredverylittleofthejointcostbecausesofewouncesareproduced.Romance,ontheotherhand,hasamuchlowersalespricebuthasalargevolume.Therefore,Romanceisallocatedalargeportionofthejointcostsandlooksrelativelylessprofitable.Estimatednetrealizablevaluemethod:EventhoughSeductionhasrelativelyfewouncesproduced,itssalespriceissignificantlyhigherthanRomance.Thus,Seductionisallocatedagreatershareofjointcostsiftheallocationisbasedonsalesvalue.However,theseresultsaremerelyfromthejointallocationmethodandhavenosoundeconomicbasis.d.NetRealizableValueMethod:TotalCostsinJointReductionProcess......................................................$800,000LessNetRealizableValuefromSqueezedPetals(12,000lbs.x$1.50)...18,000CosttoAllocate..........................................................................................$782,000Seduction....................................................................$782,000x44.3%=$346,426课后答案网Romance....................................................................$782,000x55.7%=435,574www.hackshp.cn100%$782,000PhysicalQuantitiesMethod:Seduction....................................................................$782,000x19.2%=$150,144Romance....................................................................$782,000x80.8%=631,856100%$782,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter10313若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–28.(30min.)CostflowsthroughT-accounts:ExoticAromaCo.WorkinProcessWorkinProcessInventoryInventory(Reduction)(SecondPressing)FinishedGoodsInventoryCostofGoodsSold800,000435,574435,574659,574659,5741,434,0001,434,000(Romance)346,426224,000346,426(Seduction)18,000428,000WorkinProcessInventory(Packaging)120,000428,000308,000By-ProductRevenue18,000b18,000aCashorAccts.Rec.18,000aaEntrymadewhenby-productwassold.课后答案网bEntrymadetocreditby-productrevenuetowork-in-processinventory.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997314若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–29.(50min.)NinjaTurtleCompany.Jointcostinginaprocesscostingcontext:Estimatednetrealizablevaluemethod:Itishelpfultodiagramtheflowofunitsbeforeattemptingtosolvetheproblem.46,200Alpha(DeptIV)70%66,00060%(Dept.II)30%110,000units19,800BetaRho40%(Dept.I)44,00040,000Gamma,(DeptIII)goodoutputaa40,000goodoutput=44,000/110%ThenextstepistodeterminethenetrealizablevaluesofAlphaandGammaatthefirstsplit-off.AlphaGammaSalesvalueaftercompletion.....$462,000(=46,200@$10)$960,000(=40,000@$24)Separateprocessingcosts:DepartmentII.........................$(76,000)DepartmentIII........................(330,000)DepartmentIV.......................(32,960)SalesrevenuefromBeta.......83,160(=19,800@$4.20)AdditionalprocessingcostforBeta.......................(16,200)Approximatenetrealizablevalues................$420,000$630,000Costallocation:课后答案网ToAlpha:$420,000x$290,000=$116,000$420,000+$630,000www.hackshp.cnToGamma:$630,000x$290,000=$174,000$420,000+$630,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter10315若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–30.(35min.)Findmaximuminputprice:Netrealizablevaluemethod:HarrisonCorporation.Adiagramoftheoperationappearsasfollows:Additional$56,250ProductJProcessingcosts$332,000(=8,000units@$41.50)$275,750estimatednetrealizablevalue$114,075($332,000–$56,250)jointcosts$360,000netrealizablevalue(=30,000units@$12)ProductMThetotalallowablematerialscostswouldthenbe:SalesvalueofJatsplit-off..................$275,750SalesvalueofMatsplit-off................360,000Jointconversioncosts........................(114,075)Balance(maximummaterialscost)........$521,675Maxmaterialspriceperunit=$13.728(=$521,675/38,000units).b.Giventhecurrentproductmix(30,000unitsofProductMand8,000unitsofProductJ),Harrisonshouldpaynomorethan$13.728perunitofmaterial.Ifthematerialspriceexceedsthisamount,thecompanywillincuranoperatingloss.Seecalculationsin(a)forfurtherdetail.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997316CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–31.(30min.)Effectofby-productversusjointcostaccounting:RamblingRoseCorporation.a.(1)Accountedforasajointproduct.Allocation:Michaelangelo:60%x$365,500=$219,300Raphael:30%x$365,500=$109,650Donatello:10%x$365,500=$36,550(2)Allocatedforasaby-product.Allocation:60%Michaelangelo:x$327,900a=$218,60060%+30%30%Raphael:x$327,900a=$109,30060%+30%Donatello:NojointcostisallocatedtoDonatello.a$327,900=$365,500–$37,600netrealizablevalueofDonatello.b.Thenetrealizablevalueoftheby-product(Donatello)reducesthejointcostsoftheothertwoproducts.Thus,thereisnoneedtoallocatejointcoststotheby-product.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter10317若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–32.(30min.)Jointcostallocationsandproductprofitability:SiliconMaterials,Inc.Totalcost=$60,000+$25,600=$85,600a.AllocationonthebasisofunitsofoutputPurifiedwafers45,000x$85,600=$64,20045,000+15,000Chips15,000x$85,600=$21,40045,000+15,000Total$85,600b.AllocationonthebasisofmarketvaluePurifiedwafers$20,000x$85,600=$10,700$20,000+$140,000Chips$140,000x$85,600=$74,900$20,000+$140,000Total$85,600c.Itisnotpossibletodeterminewhichproductismoreprofitable.Onecannotbeproducedwithouttheother—henceonlytheprofitabilityofthetotaloutputisrelevant.UseofthephysicalquantitiesmeasuredinPart(a)wouldsuggestthatthereisalossonpurifiedwafers.Thislosswouldbecalculatedas:课后答案网Revenuefrompurifiedwafers.........$20,000Allocatedcostofpurifiedwafers.....(64,200)Lossonpurifiedwafers...................$(44,200)www.hackshp.cnHowever,ifpurifiedwaferswerenotsold,the$20,000revenuewouldbelostbuttotalcostswouldbeunchanged.Hence,netincomewouldfallifthis“losing”productwerediscontinued.Thisillustratesthepotentiallymisleadingeffectsofcostallocations.©TheMcGraw-HillCompanies,Inc.,1997318CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–33.(60min.)Effectofcostallocationonpricingandmakeversusbuydecisions:Ag-Coop.a.Output:OutputMixKwh/lb.Kwh/100lbs.InputGreenup.................50321,600Maintane................3020600Winterizer...............20408003,000Maximumprocessing:750,000kwh3,000kwh/100lbs.=25,000lbs.ofinputFixedcostallocation......$81,250¸25,000=$3.25perlb.Feedstockcost...............1.50Jointcosts......................$4.75perlb.Allocatedcostperlb.=$4.75forGreenup,Maintane,andWinterizer.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter10319若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–33.(continued)b.Totaljointcostincurredinprocessing30,000lbs.ofinput=$81,250+(25,000x$1.50)=$118,750Quantitiesofeachproductproduced:Greenup.............25,000x.5=12,500Maintane.............25,000x.3=7,500Winterizer...........25,000x.2=5,00025,000SellingCost/lb.Sales(20%ofNumberTotalPrice/lb.SalesPrice)NRV/lb.ofLbs.NRVGreenup..............$10.50$2.10$8.4012,500$105,000Maintane..............9.001.807.207,50054,000Winterizer............10.402.088.325,00041,600$200,600Allocatedcost/lb.ofGreenup$105,000=$118,750x[$200,600]¸12,500lbs.=$4.97Allocatedcost/lb.ofMaintane$54,000=$118,750x[$200,600]¸7,500lbs.=$4.26课后答案网Allocatedcost/lb.ofWinterizer$41,600=$118,750x[$200,600www.hackshp.cn]¸5,000lbs.=$4.93©TheMcGraw-HillCompanies,Inc.,1997320CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn10–33.(continued)c.TheprofitundercurrentproductionscheduleAis:Totalnetrealizablevalue=$200,600(frombabove)Lessjointcostsincurred118,750$81,850OutputsunderalternativeproductionscheduleB:ProductOutputMixUnitkwhUsageUsage/100Lbs.ofInputGreenup60321,920Maintane1020200Winterize30401,2003,320750,000kwhPoundsofinputprocessed==22,590pounds3,320kwhperhundredpoundsAmountofGreenupproduced=22,590x.6=13,554AmountofMaintaneproduced=22,590x.1=2,259AmountofWinterizerproduced=22,590x.3=6,77722,590ThemarginunderalternateproductionscheduleBis:($8.40x13,554)+($7.20x2,259)+($8.32x6,777)–($1.50x22,590)–$81,250=$113,853.60+$16,264.80+$56,384.64–$33,885–$81,250=$71,368.04CurrentproductionscheduleAyieldsahigheroperatingprofitof$81,850versus$71,368.04forscheduleB.课后答案网d.Thedecisionwouldnotbedifferent,evenifjointcostsareallocatedbasedonthenetrealizablevaluemethod,becausethejointcostsarethesameforeitherproductionwww.hackshp.cnschedule.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter10321若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter11VariableCostingSolutionstoReviewQuestions11–1.Underfull-absorptioncosting,allmanufacturingcosts—fixedandvariable—areassignedtounitsproduced.However,undervariablecostingonlyvariablemanufacturingcostsareassignedtounitsproduced,fixedcostsaretreatedasperiodcosts.11–2.Underbothfull-absorptionandvariablecosting,allmarketingandadministrativecostsaretreatedasperiodcosts.11–3.Variablecostingprofitsequalfull-absorptionprofitswhenunitsproducedequalunitssold.(Iftheunitcostofinventorydiffersfromperiodtoperiod,thennotonlymustproductionvolumeequalsalesvolume,butalsothesameunitsmustbeproducedandsoldinaparticularperiod.)Variablecostingprofitsaresmallerwhenproductionexceedssales.Variablecostingprofitsarelargerwhensalesexceedproduction.11–4.Variablecostingisvaluableasanaidinmanagerialdecisions;forexample,(1)actualfixedcostsarereported,increasingthelikelihoodofbettercontrolofthosecosts;(2)profitsaremoredirectlycorrelatedwithsales.Ingeneral,variablecostingtendstofitmanagerialdecisionmakingbetterthanfull-absorptioncosting.Itfocusesattentiononvariablecostsasunitcostsandfixedcostsasperiodcosts.Themaincriticismsofvariablecostingare:课后答案网1.Theemphasisonvariablecostsmaycausemanagerstoignorefixedcosts.2.Variablecostingappearstopenalizethosecompaniesthatincreaseinventoryinanticipationofhigherfuturesales.www.hackshp.cn11–5.Whenacompanyproducesmorethanitsells,itdeferstheexpensingofitsfixedmanufacturingcostsbecausetheyarecarriedininventory.Hence,byincreasingproduction,reportedprofitscanincreasewithoutacorrespondingincreaseinsales.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11323若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–6.MultipleChoicea.Theansweris4.Undervariablecosting,fixedmanufacturingcostsareexpensedduringtheperiodinwhichtheyareincurred.Therefore,theyareaperiodcost.b.Theansweris2.Allvariablemanufacturingcostsareconsideredproductcostsundervariablecosting.Thesecostsincludeprimecosts(directmaterialanddirectlabor)andalsovariableoverhead.Variablemarketingcostsarenotconsideredproductcosts.11–7.a.Theansweris2.Variablecostingincludesallvariablemanufacturingcosts:directmaterials,directlabor,andvariablefactoryoverhead.b.Theansweris1.Variablecostingrequiresthatfixedcostsbeseparatedfromvariablecosts.11–8.a.Whensalesexceedproduction,thedecreaseininventoryislargerunderfull-absorptioncosting.b.Conversely,whenproductionexceedssales,theincreaseininventoryissmallerundervariablecosting.Inventoryvariationsarelargerunderfull-absorptioncosting.11–9.Themanager"sdecisiontoincreaseproductiontoincreaseprofitsinthecurrentperiodwasunethicalbecauseheintendedtodeceivehissuperiorsanddidnotfullydisclosehowprofitswereincreased.Increasingendinginventorycouldhurtthecompanyifthecostofstoringorinsuringinventoryishigh.However,increasingendinginventorycouldalsohelpthecompanyifthecostsofproductionareexpectedtoincreasedramaticallyinthefollowingperiod.11–10.Full-absorptioncostingisnomoreorlessethicalthanvariablecosting(althoughitcanallowmoremanipulationofprofits).Full-absorptioncostingisrequiredforexternalreportingunderGAAP.However,variablecostingismoreappropriateforinternalreportingsinceitisconsistentwiththecost-behaviorassumptionsusedinmanagerialdecisionmaking.课后答案网11–11.AnanalysisatAmericanNationalBankrevealedthatfew,ifany,oftheindirectcostsallocatedtotheproductlineswouldbesavedifthecheckprocessingservicewasdropped.Furthermore,someoftheprocessingwww.hackshp.cncostsincludeddepreciationandothercoststhatwouldnotbeacashsavingiftheservicewasdiscontinued.Finally,theanalysisindicatedthatthebankcouldloseseveralmilliondollarsincontributionmarginiftheservicewasdropped.©TheMcGraw-HillCompanies,Inc.,1997324CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises11–12.(30min.)Variablecostingversusfull-absorptioncosting:Comparisonofoperatingprofit:Jarrard,Inc.UnitCosta.Directmaterials.....................................................$6.50aDirectlabor...........................................................3.75bVariablemanufacturingoverhead.........................1.50cTotalvariableunitcost..........................................$11.75b.Salesrevenue.......................................................$2,236,000dLess:Variablecostofgoodssold.........................1,222,000eVariablemarketingandadministrative........140,000Contributionmargin..............................................874,000Less:Fixedmanufacturingcosts..........................180,000Fixedmarketingandadministrative............120,000Operatingprofit.....................................................$574,000c.Salesrevenue.......................................................$2,236,000Less:Costofgoodssold.......................................1,378,000fGrossmargin........................................................858,000Less:Marketingandadministrativecosts.............260,000Operatingprofit.....................................................$598,000a$6.50=$780,000/120,000unitsb$3.75=$450,000/120,000units课后答案网c$1.50=$180,000/120,000unitsd$2,236,000=$21.50x104,000unitse$1,222,000=$11.75x104,000unitswww.hackshp.cnfCostofgoodssold$780,000+$450,000+$180,000+$180,000=104,000unitssoldx(120,000unitsproduced)=$1,378,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11325若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–13.(25min.)Comparisonofvariableandfull-absorptioncosting—multiplechoice:LarueCorporation.a.Theansweris1.Rawmaterials...................$2.40Directlabor.......................1.60Variableoverhead..............80Fixedoverhead.................2.40a$7.20a$240,000$2.40=100,000unitsproducedb.Theansweris3.Undervariablecosting,fixedfactoryoverheadisnotincludedininventory,onlyvariablecostsare.Rawmaterials...................$2.40Directlabor.......................1.60Variableoverhead..............80$4.80c.Theansweris3.Revenue(80,000unitsx$12.00)......................$960,000Variablecosts:Costofgoodssold(80,000unitsx$4.80).....384,000Marketingandadmin.(80,000unitsx$.80)..课后答案网64,000Contributionmargin...........................................512,000Fixedcosts:Manufacturing................................................$240,000www.hackshp.cnMarketingandadmin.....................................128,000368,000Operatingprofit..................................................$144,000©TheMcGraw-HillCompanies,Inc.,1997326CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–13.(continued)d.Theansweris2.Revenue(80,000x$12.00)...........................$960,000Costofgoodssold(80,000x$7.20)..........576,000Grossmargin.................................................384,000Marketingandadmin:Variable......................................................$64,000Fixed..........................................................128,000192,000Operatingprofit..............................................$192,000e.Theansweris2.Unitcostunderfull-absorptioncostingis$7.20.Thereare20,000unitsinendinginventory.Thevalueofendinginventoryis$144,000($7.20x20,000units).f.Theansweris4.Unitcostundervariablecostingis$4.80.Thereare20,000unitsinendinginventory.Thevalueofendinginventoryis$96,000($4.80x20,000units).课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11327若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–14.(20min.)Comparisonofvariableandfull-absorptioncosting:Analyzingprofitperformance:TammariEnterprises.a.Full-AbsorptionYear1Year2Salesrevenue.....................................$10,000,000$10,000,000Lesscostofgoodssold.......................6,860,000a6,625,000bGrossmargin.......................................3,140,0003,375,000Less:Variablemarketingandadmin...600,000c600,000cFixedmarketingandadmin.......840,000840,000Operatingprofit....................................$1,700,000$1,935,000b.VariableCostingSalesrevenue.....................................$10,000,000$10,000,000Less:Variablecostofgoodssold........6,000,000d6,000,000dVariablemarketingandadmin...600,000c600,000cContributionmargin.............................3,400,0003,400,000Less:Fixedmanufacturing..................860,000860,000Fixedmarketingandadmin.......840,000840,000Operatingprofit....................................$1,700,000$1,700,000c.DespitetheappearanceofhigherprofitonTammari"sfull-absorptionincomestatement,theywerenomoreprofitableinYear2thantheywereinYear1.Theyhavemerelyshiftedpartoftheirfixedcostsintoinventory.The$235,000differenceinprofitsinYear2occursbecause$235,000einfixedcostsareincludedininventoryunderfull-costingwhereasundervariablecosting,allofthefixedcostsareexpensedduringtheperiod.a$860,000fixed$6,860,000=($24variable+课后答案网[250,000unitsproduced])x250,000unitssoldb$860,000$6,625,000=[$24+(344,000www.hackshp.cn)]x250,000unitssoldc$600,000=$2.40x250,000unitssoldd$6,000,000=$24x250,000unitssolde$860,000fixed$235,000=x94,000unitsinendinginventory344,000unitsproduced©TheMcGraw-HillCompanies,Inc.,1997328CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–15.(25min.)Comparisonofcostflowsunderfull-absorptionandvariablecosting:H2OProducts.a.VariableCostingDirectMaterialsWorkinProcessFinishedGoods300,000300,000a637,500637,500510,000WagesPayable127,500262,500262,500VariableVariableO.H.CostofGoodsSold75,00075,000b75,000510,000FixedOverhead$165,000ccb.Full-AbsorptionCostingDirectMaterialsWorkinProcessFinishedGoodsd300,000300,000802,500802,500642,000160,500WagesPayable262,500262,500CostofGoodsSoldVariableO.H.642,00075,00075,000b75,000FixedO.H.165,000165,000c165,000a$510,000=课后答案网$637,500x80,000unitssold100,000unitsproducedb$75,000=$40,000supplies+$20,000repairs+$15,000othermfgwww.hackshp.cnc$165,000=$85,000+$60,000+$20,000fixedmanufacturingcostsfromproblemd$802,500$642,000=x80,000unitssold100,000unitsproduced©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11329若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–16.(25min.)Comparisonoffull-absorptionandvariablecostflowsusingnormalcosting:Jumpin’JimminyProducts.a.VariablecostingDirectMaterialsWorkinProcessInventoryFinishedGoods100,000100,000448,000448,000426,496bDirectLabor21,504252,000252,000VariableVariableManufacturingCostofGoodsSoldOverhead426,496(Actual)(Applied)104,00096,000aUnder/Over96,0008,000cAppliedOverheadc8,000FixedManufacturingOverhead(Actual)116,000Note:Thecompanyused30,000laborhours(30,000hours=$252,000/$8.40perhour).a$96,000=$3.20x30,000laborhoursb$448,000$426,496=x47,600units50,000unitscClosingentry课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997330CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–16.(continued)b.FullabsorptioncostingDirectMaterialsWorkinProcessInventoryFinishedGoods100,000100,000568,000568,000540,736b27,264DirectLabor252,000252,000VariableManufacturingCostofGoodsSoldOverhead540,736(Actual)(Applied)104,00096,000aUnder/Over96,000cAppliedOverhead8,0008,000c4,000cFixedManufacturingOverhead(Actual)120,000a120,000116,000a4,000ca$120,000=$4.00x30,000laborhoursb$568,000$540,736=x47,600units50,000unitscClosingentry课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11331若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–17.(20min.)Comparisonoffull-absorptionandvariablecostingincomestatementsusingnormalcosting:Jumpin’JimminyProducts.a.SalesRevenue$952,000Less:Variablecostofgoodssold......................426,496Under/overappliedoverhead...................8,000*Variablemarketingandadministrative.....90,000Contributionmargin...........................................427,504Less:Fixedmanufacturingcosts.......................116,000Fixedmarketingandadministrative.........56,000Operatingprofit..................................................$255,504b.SalesRevenue..................................................$952,000Less:Costofgoodssold...................................540,736Under/overappliedoverhead...................4,000**Grossmargin.....................................................407,264Less:Variablemarketingandadministrative.....90,000Fixedmarketingandadministrative.........56,000Operatingprofit..................................................$261,264*Underapplied**Netunderapplied($8,000underappliedvariable;$4,000overappliedfixed)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997332CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–18.(25min.)Comparisonoffull-absorptionandvariablecosting—incomestatementformats.Variablecosting:Contributionmarginformat(000omitted)Year1Year2TotalSales.............................................................$150$450$600Variablecostofgoodssold:Beginninginventory...................................–0–112.5–0–aCurrentperiodmanufacturingcosts..........225225450Lessendinginventory................................112.5–0––0–bVariablecostofgoodssold...........................112.5337.5450Totalcontributionmargin...............................37.5112.5150Fixedmanufacturingcosts............................5050100Nonmanufacturingcosts...............................252550Operatingprofits(Loss).................................$(37.5)$37.5$–0–Full-absorptioncosting:Traditionalincomestatementformat(000omitted)Year1Year2TotalSales.............................................................$150$450$600Fullcostofgoodssold:Beginninginventory...................................–0–137.5–0–aCurrentperiodmanufacturingcosts..........275275550Lessendinginventory................................137.5–0––0–bFull-absorptioncostofgoodssold................137.5412.5550Grossmargin.................................................课后答案网12.537.550Nonmanufacturingcosts...............................252550Operatingprofits............................................$(12.5)www.hackshp.cn$12.5$–0–aBeginningofYear1bEndofYear2©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11333若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–19.(40min.)Compareincomestatementamountsusingactualcosting:Barrett,Inc.a.Salesrevenue............................................$2,600,000Less:Variablecostofgoodssold...............1,729,000aVariablemarketingandadmin...........135,200bContributionmargin....................................735,800Less:Fixedmanufacturingoverhead.........140,000cFixedmarketingandadmin...............91,000dOperatingprofit...........................................$504,800b.Sincesalesexceedproduction,profitsreportedundervariablecostingwillbegreater,asshownbycomparingthevariablecostingresultsinawiththefollowingfull-absorptionresults.Salesrevenue............................................$2,600,000Less:Costofgoodssold............................1,911,000eGrossmargin..............................................689,000Less:Variablemarketingandadmin..........135,200bFixedmarketingandadmin...............91,000dOperatingprofit...........................................$462,800Note:Full-absorptioncostingexpenses$21,000(=1,500unitsx$14)inthisperiodfrompriorperiod’sproductionthatvariablecostingalreadyexpensedinthepriorperiod.a$1,729,000=6,500unitsx$266=6,500unitsx($164+$70.80+$31.20),including1,500unitsfrombeginninginventory.b$135,200=6,500unitsx$20.80c$140,000=5,000unitsx$28课后答案网d$91,000=6,500unitsx$14e$1,911,000=6,500unitsx$294=6,500unitsx($164+$70.80+$31.20+$28),www.hackshp.cnincluding1,500unitsfrombeginninginventory.©TheMcGraw-HillCompanies,Inc.,1997334CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–20.(40min.)Conversionofvariabletofull-absorptioncosting:HathawayCompany.a.Sales.......................................................................................$1,200,000Variablecostofgoodssold(20,000times$30.00).................$600,000Underappliedvariablemanufacturingoverhead.....................8,000608,000Contributionmargin................................................................592,000Lessperiodcosts:Production...........................................................................180,000Sellingandadministrative...................................................200,000380,000Operatingprofit.......................................................................$212,000b.Sales.......................................................................................$1,200,000Costofgoodssold(20,000times$36.00)a.............................$720,000Underappliedfixedandvariablemanufacturingoverhead......44,000b764,000Grossmargin..........................................................................436,000Lesssellingandadministrativecosts......................................200,000Operatingprofit.......................................................................$236,000a$180,000$36=$30variablemfg.+fixed.30,000unitsb$44,000=$8,000+$36,000$180,000$36,000=[(30,000units–24,000units)x(30,000)]$36,000=6,000unitsx$6perunit.c.Inventoryincreased4,000units.Eachaddedunitabsorbs$6.00infixedoverhead,oratotalof$24,000.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11335若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–21.(60min.)Variablecostingoperatingprofitandreconciliationwithfull-absorption:EmersonCorporation.EmersonCorporationa.Revenues...............................................................................$415,000Costofgoodssold:Beginninginventory($22,000x45%).................................$9,900aCostofgoodsmanufactured($315,000x70%).................220,500Endinginventory($86,000x70%)......................................(60,200)a170,200Variablemarketingcosts($83,000x80%).............................66,400Variableadmin.costs($49,800x40%)..................................19,920Contributionmargin................................................................158,480Fixedmanufacturingcosts($315,000x30%)........................94,500Fixedmarketingcosts($83,000x20%).................................16,600Fixedadministrativecosts($49,800x60%)...........................29,880Operatingprofitbeforetax(variablecosting)......................$17,500aAmountsgiveninfootnotetoannualincomestatement.Theycanalsobederivedfromknowingwhatpercentofmanufacturingcostsarevariablelastyearandthisyear.b.(1)Reconciliationoffull-absorptionoperatingprofittovariablecostingoperatingprofit.Operatingprofitbeforetax—full-absorptioncosting................................$31,200Addfixedcostsinbeginninginventory($22,000x55%)........................12,100Deductfixedcostsinendinginventory($86,000x30%)........................(25,800)Operatingprofitbeforetax—variablecosting..........................................$17,500(2)Operatingprofitusingfull-absorptioncostingishigh(relativetovariablecosting)becausefixedmanufacturingcostsareassignedbothtogoodssoldandgoodsininventoryattheendoftheperiod.Althoughsomeofthefixedmanufacturingcosts课后答案网aredeferredontheincomestatement,theyarelikelypaidforwithcashinthecurrentperiod.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997336CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–22.(40min.)Full-absorptionversusvariablecosting:KoronaCompany.a.Full-absorptionoperatingprofit:2yearYear1Year2TotalSalesrevenue(10,000x$46).................................$460,000$460,000$920,000Costofgoodssold:Beginninginventory.............................................–0–75,000–0–Currentproduction..............................................225,000225,000450,000Endinginventory..................................................(75,000)–0––0–Costofgoodssold...........................................150,000300,000450,000Grossmargin..........................................................310,000160,000470,000Marketingandadmin.costs....................................140,000140,000280,000Operatingprofit.......................................................$170,000$20,000$190,000b.Variablecostingoperatingprofit:2yearYear1Year2TotalSalesrevenue(10,000x$46).................................$460,000$460,000$920,000Variablecosts.........................................................–0––0––0–Contributionmargin................................................460,000460,000920,000Fixedmanufacturingcosts......................................225,000225,000450,000Fixedmarketingandadmin.costs..........................140,000140,000280,000Operatingprofit.......................................................$95,000$95,000$190,000c.Reconciliation:Year1Year2Full-absorptionoperatingprofit...............................$170,000课后答案网$20,000Addfixedcostsinbeginninginventory....................–0–75,000Lessfixedcostsinendinginventory.......................75,000–0–Variablecostingoperatingprofit.............................$95,000www.hackshp.cn$95,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11337若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–23.(40min.)Effectofchangesinproductionandcostingmethodonoperatingprofit(“IEnjoyChallenges”):BrassinniCompany.Thisisaclassicprobleminfull-absorptioncostingthatisbasedonactualpracticeinalargemanufacturingcompany.a.TheYear2incomestatementisbasedontheaccountingconventionoffull-absorptioncosting.Thismaynotbethemostappropriateincomestatementtouseforinternalperformanceevaluationbecausetwo-thirdsofthecurrentfixedmanufacturingcostsaredeferredinendinginventory.Avariablecostingincomestatementwouldbeabettermeasureofperformance.Thefixedcostsdeferredininventoryamountto$32,000,000.Undervariablecosting,thesewouldbeperiodcostsandtheYear2operatingprofitwouldbean$18,000,000loss,asshownbelow.Underthesecircumstances,thepresidentisnotentitledtoabonus.b.Year1Year2Sales......................................................................$60,000,000$60,000,000Variablecostofgoodssold....................................20,000,00020,000,000Contributionmargin................................................40,000,00040,000,000Fixedmanufacturingcosts.....................................48,000,00048,000,000Marketingandadmin.costs...................................10,000,00010,000,000Operatingprofit(loss)beforebonus.......................(18,000,000)(18,000,000)Bonus.....................................................................1,400,000Operatingprofit(loss)afterbonus..........................$(18,000,000)$(19,400,000)EndinginventoryvalueatendofYear2=20,000,000unitsnotsoldx$2variablemanufacturingcostperunit课后答案网=$40,000,000www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997338CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–24.(25min.)”IEnjoyChallenges”normalcosting:BrassinniCompany.Full-absorption—normalcosting.Hereishowthepresidentcouldhavereallymademoney(forhimself)!Year2Sales.......................................................................................$60,000,000Costofgoodssolda.................................................................68,000,000Grossmargin...........................................................................(8,000,000)Adjustmentforoverappliedfixedmanufacturingcostsb..........96,000,000Adjustedgrossmargin............................................................88,000,000Marketingandadministrative..................................................10,000,000Operatingprofit.......................................................................$78,000,000aVariablecostperunit=$2.00Appliedfixedmanufacturingcostperunit=$4.80Costperunitofproduction=$6.80$6.80x10,000,000units=$68,000,000costofgoodssoldbAppliedfixedmanufacturingoverhead($4.80x30,000,000)=$144,000,000Actualfixedmanufacturingoverhead=48,000,000Totaloverappliedfixedmanufacturingoverhead=$96,000,000Becareful.Thisworkstothepresident’sadvantageonlyifoverappliedoverheadisnotproratedtoinventoryandtocostofgoodssold.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11339若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–24.(continued)DiagramofCostFlowsWorkinProcessInventoryFinishedGoodsInventoryCostofGoodsSoldVariable60,000,00060,000,00060,000,00068,000,00068,000,000Fixedoverhead144,000,000144,000,000144,000,000136,000,000FixedManufacturingUnder/OverOverheadAppliedOverheadActualApplied96,000,000c48,000,000144,000,00096,000,000ccreferstoclosingentry课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997340若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–25.(65min.)Comparisonoffull-absorptionandvariablenormalcostinginaprocessoperation:DevonelliCompany.Note:Thisproblemrequiresanelementaryknowledgeofprocesscosting.a.FlowofunitsDirectMaterialsInventoryWorkinProcessDirectMaterialsFinishedGoodsInventory(1/1)5,000(1/1)10,000(1/1)10,00090,000120,000115,000115,000110,000110,000(12/31)10,000(12/31)15,000(12/31)30,000WorkinProcessConversionCostsCostofGoodsSold(1/1)10,000(0.4)110,00090,000115,000(12/31)15,000(0.2)EquivalentunitsofDirectMaterials=115,000=sameasunitstransferredfromMaterialsInventoryEquivalentunitsofConversionCosts=109,000:Completed:10,000x(1–.4).................6,000Startedandcompleted:Started................................115,000LessEndinginventory.......15,000课后答案网100,000Endinginventory:15,000x.2................3,000Equivalentunits.....................................109,000www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997341若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–25.(continued)b.Flowofdollars.DirectMaterialsInventoryWorkinProcessInventory(1/1)20,000M40,000b480,000460,000L8,000b(1/1)b(12/31)40,000VOH12,000bFinishedGoodsFOH8,000440,000c110,000DirectLaborCosts460,000220,000c990,000218,000218,0001,210,000330,000c330,000VariableManufacturing327,000a220,000cOverheada218,000CostofGoodsSoldActualApplied81,000330,000327,000990,0003,000(a)FixedManufacturingUnder/overAppliedOverheadOverhead3,000(a)8,000(b)ActualApplied210,000218,000(b)8,000aEquivalentunits,115,000formaterialsand109,000forothercosts,timesunitcostsgivenintheproblem.课后答案网bEquivalentunits,10,000formaterialsand4,000forothercosts,timesunitcostsgivenintheproblem.c110,000unitstransferredouttimesunitcostgivenintheproblem.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997342若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–25.(continued)c.FullAbsorptionCostingSalesRevenue...............................................$1,800,000Less:Costofgoodssold................................990,000Under/overappliedoverhead...............(5,000)Grossmargin.................................................815,000Lessmarketingandadministrative................580,000Operatingprofit..............................................$235,000VariableCostingSalesRevenue...............................................$1,800,000Less:Variablecostofgoodssold..................810,000Under/overappliedoverhead...............3,000Contributionmargin.......................................987,000Less:Fixedmanufacturingoverhead.............210,000Marketingandadministrative...............580,000Operatingprofit..............................................$197,000Note:ProblemstatesthatFinishedGoodsbeginninginventorycosts$11perunit.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11343若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–26.(50min.)Incompleterecords:SolanoCompany.a.Comparativeincomestatements.VariableCostingSales............................................................$450,000Variablecostofgoodssold..........................270,000aVariablemarketingandadministrativecosts–0–Contributionmargin......................................180,000Fixedmanufacturingcosts...........................66,000Fixedmarketingandadministrativecosts....21,000Operatingprofit.............................................$93,000Full-AbsorptionSales............................................................$450,000Costofgoodssold........................................369,000bGrossmargin................................................81,000Fixedmarketingandadministrativecosts....21,000Operatingprofit.............................................$60,000Calculations:aSales–contributionmargin=$450,000–$180,000=$270,000bSales–grossmargin=$450,000–$81,000=$369,000Variablecostofgoodssoldb.(1)Unitssold=Variablemanufacturingcost$270,000=$3/unit课后答案网=90,000unitswww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997344CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–26.(continued)$369,000(2)Full-absorptioncostperunit=$4.10=90,000unitsFixedcostperunit=$1.10(=$4.10–$3.00variablecosts)Differenceinincome=$33,000.Sincevariablecostingoperatingprofitis$33,000higherthanfull-absorptioncosting,salesmusthaveexceededproductionby30,000$33,000units(=)Therefore,productionwas60,000units(=90,000–30,000).$1.10/unitsFixedmfg.costsAlso,Fixedmanufacturingcostperunit=Unitsproduced$66,000$1.10=UnitsproducedUnitsproduced=60,000units(3)Lastyear"scostswerethesameasthisyear"scosts.Therefore,thecostperunitforlastyearforvariablecostsis$3.00perunit,and$4.10perunitforfull-absorption.c.Seepart(2)ofbabove.Wealsoreconcilebyaskingstudentswhatfixedmanufacturingcostsareexpensedundereachmethod:Variablecosting:Fixedmanufacturingcostsexpensed=$66,000Full-absorption:Fromcurrentperiod"sproduction60,000unitsx$1.10=66,000Frombeginninginventory课后答案网30,000unitsx$1.10=33,000$99,000Difference(excessoffull-absorptioncostingwww.hackshp.cnexpensesovervariablecosting)$33,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11345若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–27.(40min.)Comparativeincomestatements:TennaCompany.a.TennaCompanyProjectedIncomeStatementFortheMonthofJune(Full-AbsorptionCosting)Sales(7,500unitsx$80)................................................................$600,000Costofgoodssoldbeforeadjustment(7,500x$60a)....................450,000Adjustmentforunderappliedoverhead(“normal”productionis10,000unitsbutprojectedactual=9,000.So1,000unitsunderappliedx$5fixedmanufacturingoverhead).......................5,000Costofgoodssold..........................................................................455,000Grossmargin..................................................................................145,000Variableselling,general,andadministrative(7,500unitsx$4).....30,000Fixedselling,general,andadministrative(10,000unitsx$2.80)...28,000b58,000Projectedoperatingprofit...............................................................$87,000a$60=Directmaterials+directlabor+variableoverhead+fixedoverhead=$30+$19+$6+$5b$28,000isafixedcost.The$2.80wasderivedforavolumeof10,000units.b.TennaCompanyProjectedIncomeStatementFortheMonthofJune(VariableCosting)Sales(7,500unitsx$80)................................................................$600,000Variablecostofgoodssold(7,500x$55a).....................................412,500Variablenonmanufacturing(7,500unitsx$4)................................30,000课后答案网Totalvariablecosts........................................................................442,500Contributionmargin........................................................................157,500Fixedmanufacturingoverhead(10,000unitsx$5)........................50,000www.hackshp.cnFixednonmanufacturing(10,000unitsx$2.80).............................28,000Totalfixedcosts.............................................................................78,000Projectedoperatingprofit...............................................................$79,500a$55=Directmaterials+directlabor+variableoverhead=$30+$19+$6Note(NotRequired):Thedifferenceinthetwoprojectedprofitfigures($87,000–$79,500)equals$7,500.Thisisaccountedforastheincreaseininventorytimesthefixedmanufacturingoverheadapplicationrate(1,500unitsx$5).The$7,500offixedmanufacturingoverheadisincludedinendinginventoryunderfull-absorptioncosting,butitisexpensedundervariablecosting.©TheMcGraw-HillCompanies,Inc.,1997346CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–28.(30min.)Evaluatefull-absorptionandvariablecosting;normalcosting:LockardCompany.a.Firstfindunitssold.Unitssold=VariablecostofgoodssolddividedbyVariablemanufacturingcostperunit=$1,200,000/$12=100,000units.(1)LockardCo.IncomeStatement:Full-AbsorptionCostBasisFortheMonthofNovemberSales(100,000units@$24perunit)..................$2,400,000Costofgoodssold.............................................$1,600,000aUnderappliedoverhead(5,000bunits@$4)....20,0001,620,000Grossmargin........................................................780,000Less:Fixednonmanufacturingcosts....................400,000Operatingprofit.....................................................$380,000aCostxvolume=($12+$4)x100,000=$1,600,000bEstimatedvolume=150,000;actualvolume=145,000(2)ReconciliationofVariableandFull-AbsorptionOperatingProfits($000omitted)VariableFull-CostingAbsorptionCostingReportoperatingprofitbeforetaxes$200$380Difference:Increaseininventoryof45,000unitsduringNovember@$4fixedcostperunit=$180Full-absorptioncostingattachesa$4fixedmanufacturingcostperunittoeachunitproducedinNovember.BecausetheproductionduringNovember(145,000units)课后答案网exceededsalesofNovember(100,000units),thefixedcostassignedtothe45,000unitincreaseintheinventorybalanceresultsin$180,000(45,000units@$4fixedcostperunit)lessfixedcostsbeingchargedtotheincomestatementinNovemberandwww.hackshp.cntheresultantincreaseof$180,000inoperatingprofitbeforetaxes.b.TheVicePresidentforSalesshouldfindthevariablecostingapproachtoprofitdeterminationdesirableformanyreasons,including:·Variablecostingincomevarieswithunitssold,notunitsproduced.·Fixedmanufacturingcostsarechargedagainstrevenuesintheperiodinwhichtheywereincurred;consequently,manufacturingcostperunitdoesnotchangewithachangeinproductionlevels.·Thecontributionmarginoffersausefultoolformakingdecisions.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11347若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoIntegratedCases11–29.(90min.)Comprehensiveproblemonprocesscosting,variablecosting,andfull-absorptioncosting:SegaCorporation.a.andb.Note:Thisproblemrequiresanelementaryknowledgeofprocesscosting.Thefollowingflowofunitsandcosts,andcalculationsanswerrequirementsaandb.UnitsWorkinProcessMaterialsInventoryInventory—MaterialsFinishedGoodsCostofGoodsSold50,000*10,000*17,000*115,000115,000220,000*230,000*x1/2a=115,000*110,000*110,000*40,000*15,000*12,000*WorkinProcessInventory—Conversion10,000(1/2complete)*115,000110,00015,000(1/3课后答案网complete)*EquivalentProduction:Materials=115,000unitsProcessing=110,000units:www.hackshp.cnCompleted10,000x(1–1/2)=5,000Startedandcompleted100,000Endinginventory15,000x1/3=5,000110,000E.U.*Unitsgivenintheproblem.aToconvertfrom2unitsofHarshrequiredtomakeoneunitofJink.©TheMcGraw-HillCompanies,Inc.,1997348若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–29.(continued)DollarsWorkinProcessFinishedCostofGoodsMaterialsInventory—MaterialsGoods(FA)Sold(FA)75,000*345,000*30,000*188,7001,276,5001,276,500330,000*345,000*330,000*1,221,00060,000*45,000*133,200WorkinProcessInventory—Conversion(FA)40,500*891,000891,000*40,500*WorkinProcessInventory—ConversionFinishedCostofGoods(VC)Goods(VC)Sold(VC)35,000*770,000170,0001,150,0001,150,000770,000*1,100,00035,000*120,000FAreferstofull-absorption;VCreferstovariablecosting*Dollarsgivenintheproblem.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11349若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–29.(continued)c.ComparativeIncomeStatementsFull-AbsorptionVariableCostingSales.............................................................$2,300,000$2,300,000Costofsales:Manufacturingcosts:Beginningworkinprocess.....................$70,500$65,000Currentperiodcosts...............................1,236,0001,115,000Endingworkinprocess..........................(85,500)(80,000)Manufacturingcosts...................................1,221,0001,100,000Beginningfinishedgoods...........................188,700170,000Endingfinishedgoods...............................(133,200)(120,000)Costofgoodssold.........................................1,276,5001,150,000Fixedconversioncosts..................................——121,000Under/overappliedoverhead........................–0–—–0–Grossmargin..........................................1,023,5001,029,000Marketing&administrative............................145,000145,000Netincome.............................................$1,878,500$884,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997350若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–29.(continued)d.AssumeFIFOflow.ReconciliationofVariableandFull-AbsorptionCostingFixedcostsexpensedthisperiodunderVariableCosting......$121,000AddpreviousperiodfixedcostsExpensedunderFull-Absorption.........................................24,200aLesscurrentperiodfixedcostsRetainedininventoryunderFull-Absorption.......................18,700bFixedcostsexpensedunderFull-Absorption..........................$126,500ca(WIP+FG)x$1.10=(5,000+17,000)x$1.10=$24,200b(WIP+FG)x$1.10=(5,000E.U.+12,000E.U.)x$1.10=$18,700c$1.10x115,000=$126,500课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11351若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–30.(45min.)Fullabsorptionandvariablecosting—Importingdecisions:Cotierre.Thekeytothisproblemistorealizethatthepurchaseanddutycostsforthelotof1,000dressesareessentiallyfixed,eventhoughonemightnormallythinkthatthesecostsarevariable.Thereasonthecostsarefixedisthatitisnecessarytoacquirethefull1,000dresseseventhoughonlyafractionofthelotwillbesold.Inthissituation,neitherfull-absorptionnorvariablecostinggivesatotallysatisfactoryanswer.Partdofthecasecallsfordevelopmentofamethodthatwillrelatecostsandrevenuesbetterthaneitherfull-absorptionorvariablecostingeventhoughthemethodmaynotbesuitableforexternalreportingpurposes.a.Underfull-absorptioncosting,theinventoriablecostofeachdressis:Purchaseprice................$25,000Importduty......................5,000Totalcost.........................$30,000¸#ofdresses..................1,000unitsCostperdress.................$30b.Revenues:300dresses@$75$22,500Costs:Costofgoodssold300@$309,000Commissions300@$72,100Totalcosts$11,100Operatingprofits$11,400c.Revenues:100dresses@$75$7,500300dresses@$37.5011,250Totalrevenues$18,750Costs:Costofgoodssold课后答案网400@$3012,000Commissions400@$72,800Disposalcosts300@$3900Inventorylosswww.hackshp.cn300@$309,000Totalcosts$24,700Operatingloss($5,950)©TheMcGraw-HillCompanies,Inc.,1997352CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–30.(continued)d.Onealternativeconsiderstheinventoriablecostofthedressestobezeroandchargesthefull$30,000tothefirstperiodsinceitisafixedcost.Thisgeneratesalossinthefirstperiodasfollows:Revenues:300dresses@$75$22,500Costs:Fixedcosts30,000Commissions300@$72,100Totalcosts$32,100Operatingloss($9,600)Inthesecondperiod,anoperatingprofitiscomputedasfollows:Revenues:100dresses@$75$7,500300dresses@$37.5011,250Totalrevenues$18,750Costs:Commissions400@$72,800Disposalcosts300@$3900Totalcosts$3,700Operatingprofit$15,050Thissolutionisnotmuchbetterthanthepreviousone.Analternativewouldbetorelatethe$30,000costtotherevenueexpectedfromthedressesthatareexpectedtobesold.Theinventoryvaluewouldnotbeastandardone,butitwouldtendtomatchtheexpecteddollarsrevenuewiththecostsofthelotofdresses.Provisioncouldalsobemadefortheexpecteddisposalcosts.Thus,thecompanycouldconsiderthatitincurred$30,900incoststoobtainthefollowingrevenues:Fullpricedresses课后答案网400@$75$30,000Halfpricedresses300@$37.5011,250Expectedrevenuewww.hackshp.cn$41,250$30,900¸$41,250=74.91%©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter11353若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn11–30.(continued)d.(continued)Foreachdollarofrevenue,74.91¢wouldbedeductedtocoverthecostofthedressesandthedisposalcosts.Eachperiod’soperatingprofitswouldappearasfollows:Revenues:300dresses@$75$22,500Costs:Dresscosts@74.91%16,855Commissions300@$72,100Totalcosts$18,955Operatingprofit$3,545Secondperiod:Revenues:100dresses@$75$7,500300dresses@$37.5011,250Totalrevenues$18,750Costs:Dresscosts$18,750x74.91%14,046Commissions400@$72,800Totalcosts$16,846Operatingprofit$1,904课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997354CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter12CostEstimationSolutionstoReviewQuestions12–1.Engineeringestimatesarebasedontheoperationsinthecompanyandindustrystandards.12–2.Therelevantrangemaybelimitedtotherangeofobservationsincludedinthedatasetbecauseextrapolationbeyondtheobservedactivitylevelsisaveryhazardousundertaking.Therelevantrangemayactuallybesmallerthantherangeofobservationsinthedataset.Thiswouldoccurif,forexample,atsomepointthereisabreakintheobserveddata–e.g.,thedatasetbecomesnonlinear.12–3.Engineeringestimatesareparticularlyhelpfulwhen:a.attemptingtocomparecompanyoperationswithstandards;b.tryingtoestimatecostsforprojectsthathavenotbeenundertakeninthepast(e.g.,newconstruction,majorspecialorderssuchasdefenseitems);c.consideringalternativestopresentoperations,suchasassemblylinereorganizationandsimilarchanges,whereitwouldbetoocostlytocarryoutthechangeandthenseeifitwascost-effective.12–4.Thebiggestproblemlikelytobeencounteredfromtheindiscriminateuseofregressionmethodsisthatthemodelmaynothaveanylogicalfoundation.Thismayresultinamodelthatappearssoundonastatisticalbasis,butwithnologicalrelationshipbetweenYandX’sthemodelmaynotcontinuetoprovidegoodpredictions.Anumberofspuriouscorrelationandregressionstudieshavebeenpresentedintheliterature.Forexample,asimplerunofcorrelationsbetweenaverageeducationlevelsintheU.S.andU.S.inflation课后答案网ratesmightleadonetoconcludethateducationcausesinflation.12–5.www.hackshp.cnThelongerthedataseriesusedintheanalysis,theeasieritistoseeatrendinthedatawhenusingthescattergraphmethod.Whenusinganymethod,thelongerthedataseries,thegreaterthelikelihoodofhavingthewidestpossiblerangeofobservations.Whenusingstatisticalmethods,themoreobservations,thesmallerthestandarddeviationsandthetightertheresultingestimates.Ontheotherhand,thelongerthedataseries,themorelikelythatoperatingconditions,technology,pricesandcostshavechanged.Thus,theorderdatamaynotbeveryrepresentativeoftheoperationsexpectedovertheperiodforwhichtheestimateismade.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter12355若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–6.(Appendix)First,selectthedesiredconfidencelevel(e.g.,95percent).Thencalculatethetvaluefortheconfidencelevelselected.Tofindtheupperandlowerlimits,usethefollowingformula:b±t×SE,wherebb=coefficientsoftheindependentvariables.SE=Standarderrorforbbbt=SEbRecognizetheconfidenceintervalassumesnormallydistributedresidualsandthegreaterthestandarderroroftheestimate(SEY)thewidertheconfidenceinterval.12–7.Accurateestimatesimprovedecisionmaking.Inaccurateestimatesresultininefficienciesandincreasenonvalue-addeddecisions.SolutionstoCriticalAnalysisandDiscussionQuestions12–8.a.Directlaborwouldbefixedifaunioncontractlimitedthecompany’sabilitytolayoffunneededpersonnelorifmanagementwerecontemplatingachangeinfacilitiesbutmaintainingthesamelaborforce.b.Equipmentdepreciationwouldbeavariablecostifcomputedonaunit-of-productionbasis.c.Utilitiesarevariableabovetheminimum,butifthecompany’susagefallstotheminimumorbelow,thecostswouldbefixed.d.Supervisorysalariesnormallyincreaseinsteps.Iftheactivityrangeisnarrow,thecostsarefixed;butiftherangeiswideenoughsothatseveral“steps”wouldfallwithintherange,thenthecostswouldappeartobevariable.e.Acertainlevelofspoilagemaybeafactoflifeinsomeoperations.12–9.Accountanalysisincorporatesthejudgmentoftheexecutivewhereexperiencewouldbequitehelpful.Asaresultitmayincludefactorsthatarenoteasilycapturedinstatisticalmodels.Inanapplicationsetting,thebestoverallcostestimatemaybederivedbyconsideringbothaccountanalysisresultsandstatistical课后答案网results.12–10.www.hackshp.cnDatainthehistoricalaccountingrecordsshouldonlybeusedinsofarastheyarelikelytocontinueinthefuture.Inperiodsofpriceinstabilityortechnologicalinnovation,useofthehistoricaldatawithoutadjustmentislikelytoresultinincorrectestimates.Abetteralternativeistousethecoststhatareexpectedtobeincurredduringtheperiodforwhichthecostestimateisprepared.12–11.Onemay:a.adjustthedatatopresentallcostsinsomecommondollarmeasure;b.useactivitymeasuresthatareexpressedindollarsthatmovewiththepricechangeeffectsinthecosttobeestimated,c.useamultipleregressionapproachwithasuitablepriceindexasoneofthepredictorvariables.©TheMcGraw-HillCompanies,Inc.,1997356CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–12.Thescattergraphcanbeusefulincheckingforoutliersinthedata—theregressionmodelwillnotpickthisup.Also,thescattergraphmaypointoutchangesinthedataseriesthatneedtobeconsideredwhenconstructingtheregressiondatabase.Iftheappendixhasbeenassigned,onecanaddthatscattergraphsareoftenusedtocheckforautocorrelationinresiduals(usingadiagramoftheresiduals)andtrendsinthevariancearoundtheregressionline(heteroscedasticity).12–13.Ifmorethanonefactorisused,multicollinearityisapotentialproblem.Ifthepredictorsarecorrelated(acommonproblemwithaccountingandcostdata),thenthereareoverlappingeffectswhicharebeingexplainedbythecorrelatedvariables.Thespecificeffectofonevariableonthecostestimatecannotbedeterminedindependently.12–14.Itispossibleforempiricaldatatoshowanegativeintercepteventhoughfixedcostscannotbenegative.Itmaybethattheslopeofthecostcurveisparticularlysteepoverthevaluesusedintheestimationprocess.Thiswouldbeparticularlylikelyifthecompanywereoperatingclosetocapacity.Negativeinterceptsusuallymeanthatthereissomeerrorinthespecificationofthecostestimate.Ifthecompanyisoperatingclosetocapacity,forexample,thentheassumptionofalinearcostfunctionmaybeinerror—ormayonlybeareasonableapproximationintherangeofactivityclosetocapacity.12–15.(Appendix)Howwelldefinedisthemodel?Thatis,doestheoneindependentvariableexplainvariationinthedependentvariable?Aretheresidualsnormallydistributed?课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter12357若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises12–16.(15min.)Methodsofestimatingcosts—accountanalysis.a.LastYear’sThisYear’sCostatThisYear’sCostatCostItemCostLastYear’sVolumeThisYear’sVolumeDirectmaterials..........$420,000$504,000(1.2x$420,000)$576,000($504,000x80,000/70,000)Directlabor.................350,000364,000(1.04x$350,000)416,000($364,000x80,000/70,000)Variableoverhead......308,000308,000352,000($308,000x80,000/70,000)Fixedoverhead..........480,000516,000(1.075x$480,000)516,000Totalcosts..................$1,558,000$1,692,000$1,860,000b.Costsperunit:Lastyear.........$22.257($1,558,000/70,000units)Thisyear.........$23.25($1,860,000/80,000units)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997358若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–17.(15min.)Methodsofestimatingcosts—accountanalysis.a.Year1Year2CostatYear2CostatCostItemCostYear1VolumeYear2VolumeDirectmaterials..........$307,500$338,250(1.1x$307,500)$439,725($338,250x65,000/50,000)Directlabor.................239,500275,425(1.15x$239,500)358,053($275,425x65,000/50,000)Variableoverhead......142,500142,500185,250($142,500x65,000/50,000)Fixedoverhead..........237,500249,375(1.05x$237,500)249,375Totalcosts..................$927,000$1,005,550$1,232,403b.Costsperunit:Year1.............$18.54($927,000/50,000units)Year2.............$18.96($1,232,403/65,000units)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997359若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–18.(10min.)Methodsofestimatingcosts—High-low:ContinentalCompany.Costathighestactivity–Costatlowestactivitya.Variablecosts=Highestactivity–Lowestactivity$1.6million–$1.2million=33,600miles–20,800miles$.4million=12,800=$31.25permileFixedcosts=Totalcosts–variablecosts=$1.6million–(33,600x$31.25)=$550,000=$1.2million–(20,800milesx$31.25)=$550,000b.Maintenancecost=$550,000+($31.25xmiles)=$550,000+($31.25x32,000miles)=$1,550,000=$550,000+($31.25x40,000miles)=$1,800,000Notethat40,000milesisoutsidetherangeofthecostobservations,sothisestimateissubjective.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997360CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–19.(25min.)Methodsofestimatingcosts—Highlow:NateCorporation.a.High-lowestimateMachineHoursOverhead(MH)CostsHighest(month9)..........420$5,475Lowest(month12)........290$3,975Costathighestactivity–CostatlowestactivityVariablecostestimate=Highestactivity–Lowestactivity$5,475–$3,975=420MH–290MH$1,500=130MH=$11.538perMHFixedcosts=Totalcosts–Variablecosts=$5,475–($11.538x420MH)=$5,475–$4,846=$629=$3,975–($11.538x290MH)=$3,975–$3,346=$629Thecostequationthenis:Overheadcosts=$629+($11.538perMHxMachinehours)课后答案网b.For380MH:Overheadcosts=$629+($11.538x380MH)=$5,013www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter12361若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–20.(15min.)Methodsofestimatingcosts—Scattergraph:NateCorporation.SCATTERGRAPH$5,475.05,136.04,797.04,458.04,119.03,780.0290.00316.00342.00368.00394.00420.00MachineHours课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997362CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–21.(15min.)Methodsofestimatingcosts—Scattergraph:NateCorporation.Scattergraph$5,4005,2505,100$4,9504,8004,6504,5004,3504,2004,0503,9003,750$3,8004,2004,6005,0005,4005,8006,000MaterialsCosts($)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter12363若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–22.(20min.)Estimatingcosts—Simpleregression:YamahondaMotorsCompany.SimpleregressionestimateOverhead=$348.17+($12.149xMH)=$348.17+($12.149x380)=$348.17+$4,616.62=$4,964.7912–23.(10min.)Estimatingcosts—Simpleregression:Ginfee,Inc.Theansweris(1).Q=$6,000+($5.25x1,000machinehours)=$6,000+$5,250=$11,25012–24.(20min.)Estimatingcosts—Multipleregression:NateCompany.Multipleregressionestimate:Overhead=$694.24+($4.5920xMH)+(.2392xMC)=$694.24+($4.5920x380)+(.2392x$5,000)=$694.24+$1,744.96+$1,196.00=$3,635.20课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997364CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–25.(20min.)Interpretingregressionresults—Multiplechoice:PentagCompany.a.(1)R2=.908,theexplanationofvariationinYfromtheXregressor.b.(4)$238,000.TheequationresultingfromthisregressionanalysisisTC=$110,000+($6.40xDLH)=$110,000+($6.40x20,000)=$110,000+$128,000=$238,000c.(1)$9.56.$1,200,000sellingprice($12x100,000)100,000directmaterials80,000directlabor64,000variableoverhead($6.40x10,000)$956,000contribution$956,000¸100,000=$9.56perunitd.(3)$2.44.Thevariablecostsperunitare:$1.00directmaterials($100,000¸100,000units).80directlabor($80,000¸100,000units).64overhead[($6.40x10,000hours)¸100,000units]$2.44Theregressionanalysisprovidesafigureof$6.40invariableoverheadperdirectlaborhour.Itisexpectedthat10,000directlaborhourswillbeneededtoproduce100,000units.e.(2)TC=$110,000+$2.44X.Thefixedcosts,givenbytheregressionanalysis,are$110,000.Thevariablecosts课后答案网fromdaboveare$2.44.*CMAadaptedwww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter12365若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–26.(15min.)Interpretingregressionresults:LeonineCompany.Thisproblemisfrequentlyencounteredwhenapplyinganalyticaltechniquestocertaincosts.Quiteoftentheadvertisingexpendituresresultinsalesbeinggeneratedinthefollowingmonthorso.Inaddition,manycompaniesincreasetheiradvertisingwhensalesaredecliningandcutbackonadvertisingwhenthereiscapacitybusiness.Abettermodelmightbedevelopedbyrelatingthismonth’ssalestolastmonth’sadvertising.Similarproblemsexistforrepairandmaintenancecostssincemachinesareusuallygivenroutinerepairsandmaintenanceduringslowperiods.Aninverserelationshipoftenexistsbetweensalespersons’travelexpensesandsalesbecausethesalespersonspendsmoretimetravelingwhenthesalesaremoredifficulttomake.12–27.(15min.)Interpretingregressionresults—simpleregression:Ben’sBigBurgers.a.Overhead=$37,650+(1.15xfoodcosts)b.At$25,000infoodcosts:Overhead=$37,650+(1.15x$25,000)=$37,650+$28,750=$66,400课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997366CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–28.(30min.)Interpretingregressiondata:ComadorCommercialBank.a.At4,200employees,thecostestimatewouldbe:Personnelcosts=$8,420+($492x4,200employees)=$8,420+$2,066,400=$2,074,820b.Theconfidenceintervalfortheslopecoefficientis:$492±(2.074x$34.25)Sotheupperconfidencelimitis:$492+(2.074x$34.25)=$563andthelowerconfidencelimitis:$492–(2.074x$34.25)=$421课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter12367若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–29.(20min.)Learningcurves:ParadigmStainlessSteelCompany.CumulativeNumberofAverageManufacturingTotalUnitsProduced,XCostsperUnitManufacturing1$4,000$4,00023,0006,00042,250($3,000x75%)9,00081,687.50($2,250x75%)13,500161,265.62($1,687.50x75%)20,25012–30.(30min.)Learningcurves:DianeticsManufacturing.UnitsAverageTotalperunit(Y)hours1100100280160(Y=100x2–.322=80)464256(Y=100x4–.322=64)Costof2unitsDirectmaterials.............$1,500($750x2)Directlabor....................2,400($15x160)Var.Overhead...............2,000[($100x2)+($2,400x.75)]Total..............................$5,900perunit..........................$2,950Costof4unitsDirectmaterials.............$3,000($750x4)Directlabor....................课后答案网3,840($15x256)Var.Overhead...............3,280[($100x4)+($3,840x.75)]Total..............................$10,120perunit..........................$2,530www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997368CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems12–31.(40min.)Methodsofestimatingcosts—high-low,scattergraph,andregression:NilsineCompany.a.High-lowestimateMachineOverheadHours(MH)CostsHighest(Month2)..........25,000$99,000Lowest(Month8)...........10,00064,500Costathighestactivity–CostatlowestactivityVariablecostestimate=Highestactivity–Lowestactivity$99,000–$64,500=25,000MH–10,000MH=$34,500¸15,000MH=$2.30perMHFixedcosts=Totalcosts–Variablecosts=$99,000–($2.30x25,000MH)=$99,000–$57,500=$41,500Check:Fixedcosts=$64,500–($2.30x10,000MH)=$64,500–$23,000=$41,500Thecostequation,thenis:课后答案网Overheadcosts=$41,500+($2.30xMachinehours)www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter12369若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–31.(continued)b.ScattergraphN=24outof24$99,000***92,100****85,200***78,300*******71,400******64,500*+----+----+----+----+----+----+----+----+----+----+10,000课后答案网13,00016,00019,00022,00025,000MachineHoursc.Theregressionresultsindicateanequationoftheform:www.hackshp.cnOverheadcosts=$39,859+($2.1549xMachinehours)Whichfor22,500hourswouldbe:Overheadcosts=$39,859+($2.1549x22,500)=$39,859+$48,485=$88,344©TheMcGraw-HillCompanies,Inc.,1997370CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–32.(60min.)Methodsofcostestimation—accountanalysis,simpleandmultipleregression:DellilaUnderseaGearCorporation.a.Accountanalysisapproach:CostItemTotal=Fixed+VariableIndirectmaterial....................$37,500$37,500Indirectlabor.........................194,200$171,00023,200Buildingoccupancy...............236,420236,420Power....................................27,21027,210Equipmentdepreciation........181,000181,000Equipmentmaintenance.......24,3308,50015,830Personalpropertytaxes........14,1006,3507,750Dataprocessing....................11,2209,4701,750Technicalsupport.................16,94016,940Totals................................$742,920$629,680$113,240Costequation:Overhead=$629,680+($113,240/80,000units)=$629,680+$1.4155perunitb.High-lowmethod:(Note:Roundingaffectstheanswers.)Costathighestactivity–CostatlowestactivityVariablecostestimate=Highestactivity–Lowestactivity$777,640–$717,670=课后答案网98,000units–56,900units$59,970=www.hackshp.cn41,100units=$1.459perunit(rounded)Fixedcosts=Totalcosts–Variablecosts=$777,640–($1.459x98,000)=$777,640–$142,982=$634,658Check:Fixedcosts=$717,670–($1.459x56,900)=$717,670–$83,017=$634,653(allowingroundingerror)©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter12371若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–32.(continued)b.(continued)For80,000units,estimatedcostsare:$634,658+($1.459x80,000)=$634,658+$116,720=$751,378(Note:Youranswermaydiffersomewhatbecauseofrounding.)c.Simpleregressionestimate:Overhead=$626,547+($1.504xProductionunits)=$626,547+($1.504x80,000units)=$626,547+$120,320=$746,867d.Multipleregressionestimate:Overhead=$632,640+($1.501x80,000units)–($59.067x113indexlevel)=$632,640+$120,080–$6,675=$746,045e.Themultipleregressiondoesnotimprovethefitoverthesimpleregression(R2isvirtuallyunchanged).Hence,multipleregressionbenefitsmaynotjustifydatacollection,analysis,andinterpretationcosts.Sincethehigh-lowmethodusesonlytwodatapoints,itsresultsaresubjecttosomequestion.Thesimpleregressionhasahighcorrelationcoefficientandseemsto“makesense.”Itwouldappeartoofferthebestestimatebasedonprojectionsfrompastdata.Theaccountanalysisapproachisbasedonconsiderationsoffuturepricesandcosts.Acombinationofaccountanalysisandeithersimpleormultipleregressionwouldprobablyprovidethebestestimatedrelation课后答案网betweencostsandactivity.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997372CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–33.(45min.)Interpretingregressionresults—simpleregression.Inthefirstplace,thecorrelationcoefficientof.82impliesthatapproximately67%ofthevariationinoverheadisexplainedbytheequation.TheunadjustedR-squareis.67(i.e.,.82squared).Ofcourse,thisisnotabadcorrelationforrealdata.Ifweweretoruntheregressionwiththedatagiven,theresultswouldbeasGearldreportedthem.However,itwouldbehelpfultoseeifthedatameettherequirementsofregression.Plottingthedataonascattergraphwillshowthefollowing:$6,783.0***6,366.6****5,950.25,533.8*5,117.4***课后答案网*4,701.0*375.00www.hackshp.cn404.40433.80463.20492.60522.00Units©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter12373若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–33.(continued)Ascanbeseenfromaninspectionofthescattergraph,observationnumberfiveappearstobeanoutlier.Suchanoutlierhasaffectedtheregressionresults.YourcommenttoGearldshouldbethattheregressioncouldberecomputedexcludingtheoutlier.Ifthisisdone,thefollowingregressionresultswouldbeobtained(notrequired):*****RegressionResults*****Equation:Overhead=$326+$11.686perunitStatisticaldata:Correlationcoefficient................992AdjustedR-square.....................983Standarderroroftheslope........466t-statisticfortheslope...............25.077Thisestimateissubstantiallydifferentthantheinitialregression.Itindicatestheeffectthatonesubstantialoutliercanhaveontheresultsofaregression.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997374CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–34.(30min.)Interpretingregressionresults—Multiplechoice:Lerner,Inc.*a.(4)Variablecostcoefficientb.(2)Dependentvariablec.(1)Independentvariable$1,650$4,470–$2,820d.(2)V=$7.50=220hours=(520hours–300hours);F=$570=$4,470–(520hoursx$7.50)e.(4)$3,746=$684.65+($7.2884x420hours)f.(3)Ö.99724g.(1)99.724%课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter12375若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–35.(45min.)Learningcurves:Jammin’Corporation.a.Thebasicpremiseofthelearningcurveisthatoperatingefficiencyand/orproductivityincreasesasexperienceisgainedintheperformanceofrepetitivetasks.Variousinputstotheproductionprocessmaybeusedmoreefficientlyascumulativeoutputincreases,butinmostproductionprocessesthemajorityofcostsavingsassociatedwithalearningphenomenoninvolvetheuseofhumanlabor.b.InthecaseofdirectlaborhoursusedintheproductionofInexcess,i.e.,lotsof8units,thisquantitycanbecalculatedas:(3,200+2,240)/16340averagedirectlaborhours=3,200/8400averagedirectlaborhours=85%c.Assumingthislearningrateuptoacumulativeoutputof32units,averagedirectlaborhoursusedtoproducethese32unitsshouldequal85%oftheaveragedirectlaborhoursusedtoproducethefirst16units.Inshort,averagehoursemployedforeachunitwhen32unitsarecompletedshouldequal:340x.85=289hoursperunit.Thisimpliesatotalof289x32=9,248hoursusedintheproductionofthefirst32units,or9,248–(3,200+2,240)=3,808hoursusedintheproductionofunits17through32.Iftheaveragehoursperunitinthisproductionbatchistakenasthedirectlaborstandard,thestandardperunitbecomes:3,808hours=238hoursperunit.课后答案网16unitswww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997376CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–35.(continued)d.GiventhedirectlaborstandarddeterminedaboveandJammin’sbidpriceformula,thebidpricefortheadditional96unitscanbecalculatedasfollows:QuantityperCostperCostperInputElectrocalUnitInputUnitElectrocalUnitMaterials.................................................50sq.feet$30$1,500Directlabor.............................................238hours255,950Variableoverhead...................................238hours409,520Totalvariablemanufacturingcost.......$16,970Markup(30%)......................................5,091Bidpriceperunit.................................$22,061x96units.............................................x96Totalbidprice......................................$2,117,856e.Someapplicationsofthelearningcurveintheplanningandcontrollingofbusinessoperationsarepreparingcostestimatesincompetitivebidding,determiningbudgetallowancesforlaborandlabor-relatedcosts,schedulinglaborrequirements,anddeterminingperformanceevaluationsinwhichperiodicprogressreportsarecomparedwithaccomplishmentsexpectedunderthecurve.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter12377若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–36.(40min.)Learningcurves:KrylonCompany.a.Theanalysispreparedbytheengineering,manufacturing,andaccountingdepartmentsofKrylonCompanywasnotcorrectunlessthepotentiallaborcostimprovementsareignored.Adifferentialcostanalysissimilartotheoneshownbelowshouldhavebeenpreparedtodeterminewhetherthegaugesshouldbepurchasedormanufactured.Intheanalysisbelow,fixedfactoryoverheadcostsandgeneralandadministrativecostshavenotbeenincludedbecausetheyarenotrelevant;thesecostswouldnotincreasebecausenoadditionalequipment,space,orsupervisionwouldberequiredifthegaugesweremanufactured.Therefore,ifpotentiallaborcostimprovementsareignored,KrylonCompanyshouldpurchasethegaugesbecausethepurchasepriceof$68.00islessthanthe$72.00differentialcosttomanufacturethem.DifferentialCostAnalysisCostof10,000UnitPerAssemblyRunUnitPurchasedcomponents............$120,000$12.00Assemblylabor.........................300,00030.00Variablefactoryoverhead........300,00030.00Totalincrementalcost...........$720,000$72.00课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997378CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn12–36.(continued)b.Thefollowinglaborcostandvariableoverheadcostbehaviorbylotswouldoccur(assuming80%learningcurve).QuantityCumulativeTotalAverageLaborCumulativePerLotCumulativeCostperUnitLaborCost10,00010,000$30.00$300,00010,00020,00024.00(=30x.8)480,00020,00040,00019.20(=24x.8)768,00040,00080,00015.36(=19.2x.8)1,228,800Thismeanstheaveragecumulativecostoftheassemblylaborforthefirst80,000gaugesis$15.36pergauge.Arevisedanalysiswhichconsidersan80%learningfactorisshownbelow:CostperUnitTotalDifferentialcoststomanufacture80,000gaugesPurchasedcomponents..................................$12.00$960,000Assemblylabor...............................................15.361,228,800Variablefactoryoverhead..............................15.361,228,800Totalincrementalcost.................................$42.723,417,600Costtopurchase................................................68.005,440,000Savingsifgaugesaremanufactured.................$25.28$2,022,400(Note:Weusethe80%learningcurvehereonlyasanexample;otherlearningpatternsexistinpractice.)IfKrylonCompanycanexperiencealearningfactor,itprobablyshouldmanufacturethegaugesratherthanpurchasethem.Thetotalincrementalcosttomanufacturethegaugesis$3,417,600or$42.72pergaugeascomparedtothepurchasepriceof课后答案网$68.00perunitoratotalcostof$5,440,000(=$68x80,000).Thisresultsinatotalsavingsof$2,022,400or$25.28pergaugeinthefirstyear.With(say)an80%learningcurvebylot,Krylon’sassemblylaborandvariableoverheadcostsshouldwww.hackshp.cndecreaseby20%everytimethereisadoublingofcumulativeproduction.Thereductionispossibleasthelaborersbecomemoreefficientinperformingthetasks.(Asteady-statephasewillprobablyoccurafteratimeastheoperationsbecomemoreroutineortheproductionlifeissufficientlylong.)©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter12379若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter13Cost-Volume-ProfitAnalysisSolutionstoReviewQuestions13–1.p=TR–TC=PX–VX–F=(P–V)X–Fwherep=operatingprofit,TR=totalrevenue,TC=totalcosts,P=averageunitsellingprice,V=averageunitvariablecost,X=quantityofunits,F=totalfixedcostsfortheperiod.13–2.Totalcosts=Totalvariablecostsplustotalfixedcosts.13–3.Thetotal“contributionmargin”istheexcessoftotalrevenueovertotalvariablecosts.Theunitcontributionmarginistheexcessoftheunitpriceovertheunitvariablecosts.13–4.Totalcontributionmargin:TotalSellingprice–variablemanufacturingcostsexpensed–variablenonmanufacturingcostsexpensed=Totalcontributionmargin.课后答案网Grossmargin:TotalSellingprice–variablemanufacturingcostsexpensed–fixedmanufacturingcostsexpensed=Grossmargin.www.hackshp.cn13–5.Profit-volumeanalysisplotsonlythecontributionmarginlineagainstvolume,whilecost-volume-profitanalysisplotstotalrevenueandtotalcostsagainstvolume.Profit-volumeanalysisisasimpler,butlesscomplete,methodofpresentation.13–6.Bothunitpricesandunitvariablecostsareexpressedonaperproductbasis,as:p=(P1–V1)X1+(P2–V2)X2+...+(Pn–Vn)Xn–F,forallproducts1ton.(Thetermsaredefinedinthesolutionto13–1.)©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13381若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–7.Aconstantproductmixisassumedtosimplifytheanalysis.Otherwise,theremaybenouniquesolution.13–8.Contributionmargin=Wi(Pi–Vi)fori=1...n:thatis,W1(P1–V1)+W2(P2–V2)+...+Wn(Pn–Vn),whereWreferstotheweightassignedtoeachproduct.Usuallythisweightiseachproduct’spercentoftotalvolume.13–9.Thedifferenceis:Economicprofits=Accountingnetincomeminustheopportunitycostofowner-investedcapital.13–10.Assumptions:1.Revenueschangeproportionatelywithvolume.2.Variablecostschangeproportionatelywithvolume.3.Fixedcostsdonotchangeatallwithvolume.(Otherassumptionsmayincludeconstantproductmixand/orallCVPcostsareexpensed.)13–11.Coststhatare“fixedintheshortrun”areusuallynotfixedinthelongrun.Infactfew,ifany,costsarefixedoveraverylongtimehorizon.13–12.Stepcostsincludedadvertising,instructor’sfees,roomrentandaudio-visualequipmentrent.Thesecostswouldnotbeaffectedbythenumberofpeopleattendingtheseminar(withintherelevantrange).If,however,morepeoplethananticipatedattendtheseminarthenthesecostsmightincrease,orstepup,toahigherlevel.Forexample,atacertainpointnewinstructorswillhavetobehiredandnewspaceandequipmentwillhavetoberented.SolutionstoCriticalAnalysisandDiscussionQuestions课后答案网13–13.Acompanyoperatingat“break-even”isprobablynotcoveringcostswhicharenotrecordedintheaccountingrecords.Anexampleofsuchacostistheopportunitycostofowner-investedcapital.Insomewww.hackshp.cnsmallbusinesses,owner-managersmaynottakeasalaryaslargeastheopportunitycostofforgonealternativeemployment.Hence,theopportunitycostofownerlabormaybeexcluded.13–14.Intheshortrun,withoutconsideringassetreplacement,netoperatingcashflowswouldbeexpectedtoexceednetincome,becausethelatterincludesdepreciationexpense,whiletheformerdoesnot.Thus,thecashbasisbreak-evenwouldbelowerthantheaccrualbreak-evenifassetreplacementisignored.However,ifassetreplacementcostsaretakenintoaccount,(i.e.,ona“cradletograve”basis),thelong-runnetcashflowsequallong-runaccrualnetincome,andthelong-runbreak-evenpointsarethesame.©TheMcGraw-HillCompanies,Inc.,1997382CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–15.Iftherelativeproportionsofproducts(i.e.,theproduct“mix”)isnotheldconstant,productsmaybesubstitutedforeachother.Thus,theremaybealmostaninfinitenumberofwaystoachieveatargetoperatingprofit.Asshownfromthemultipleproductprofitequation,thereareseveralunknownsforoneequation:p=(P1–V1)X1+(P2–V2)X2+...+(Pn–Vn)Xn–F,forallproducts1ton.13–16.Thesumofthebreak-evenquantitieswouldnotbethebreak-evenpointforthecompanyiftherearecommonfixedcostswhichhavenotbeenallocatedtotheproducts.13–17.Aforecastedcost-volume-profitlinecanbeusedastheflexiblebudget.Itwouldshowexpectedcostsandrevenuesforarangeofvolumelevels.Theseexpectedcostscouldlaterbecomparedtoactualresultsforperformanceevaluation.13–18.Theremaybeadifferencebetweencostsusedincost-volume-profitanalysisandcostsexpensedinfinancialstatements.Acommonexampleisfixedmanufacturingcosts.Cost-volume-profitanalysisassumesfixedmanufacturingcostsareperiodcosts,whiletheyaretreatedasproductcostsforfinancialreporting.Ifpartofcurrentproductionisinventoried,somefixedmanufacturingcostswouldnotbeexpensedforfinancialreporting.Ontheotherhand,ifcurrentsalesincludeallofcurrentproductionplussomefrominventory,allfixedcostsfromthisperiodplussomefrompreviousperiodswouldbeexpensedforfinancialreporting.13–19.Theaccountantmakesuseofalinearrepresentationtosimplifytheanalysisofcostsandrevenues.Thesesimplifyingassumptionsaregenerallyreasonablewithinarelevantrangeofactivity.Withinthisrange,itisgenerallybelievedthattheadditionalcostsrequiredtoemploynonlinearanalysiscannotbejustifiedintermsofthebenefitsobtained.Thus,withinthisrange,thelinearmodelisconsideredthe“best”inacost-benefitsense.13–20.Asvolumerises,itislikelythatproductmarketswillbesaturated,leadingtoaneedtocutpricestomaintainorincreasevolume.Thispricecuttingwouldresultinacurvilinearrevenuefunction.Moreover,asactivity课后答案网increasesandapproachescapacityconstraints,coststendtorisemorethanproportionately.Overtimepremiumsandshiftpaydifferentialsincreasetheunitlaborcosts.Similarcostsmaybeincurredintermsofexcessmaintenancecostsforrunningmachinesbeyondtheiroptimalperformancelevels,highermaterialswww.hackshp.cncostsforanyinputcommoditythatisinshortsupply,andsimilarfactors.Thesefactorstendtocausecoststorisemorethanproportionatelywithanincreaseinactivity.13–21.CVPanalysisisusuallyconductedonashort-termbasis.Intheshortrun,thereisusuallynotmuchthatcanbedonetochangetheleveloffixedcosts.Forthisreason,fixedcostsareusuallyacceptedasgiveninaCVPsetting.However,whenmanagementwishestoseetheeffectofachangeinacompany’scoststructure(suchaswouldarisefromthepurchaseoflabor-savingequipment),thefixedcostchangeswouldbecomeofinteresttotheanalysisinconjunctionwiththechangesinvariablecosts.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13383若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–22.Undercertaincircumstances,theuseofverysimplerepresentationsofcomplexprocessesmaybebothusefulandnecessary.Insightscanbegainedbyviewingaprofit-volumegraphthatarenotreadilyobtainedbylookingatdetailedincomestatements.ThesimplificationsofCVPanalysisareintentionalsothatthedecisionmakerwillnotbelostindetails.However,thereareanumberofsimplifyingassumptionsthatshouldbenotedwhenemployingCVPanalysis.Forexample,extrapolationbeyondtherelevantrangecanresultinerroneousconclusionsaboutprobableprofitlevels.Sucherrorsshouldbeavoidedwhenusingthismethod.Moreover,ifamorecomplexanalysisiscalledfor,thenCVPanalysisshouldnotbeemployed.13–23.IftheU.S.autocompaniesareunabletoraisepricesthentheycoulddecreasecostsorchangetheproductmixtowardhighercontributionmargincarsinordertobreakeven.Forcostreduction,eitherreducefixedcosts,orreducevariablecoststoincreasethecontributionmargin.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997384CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises13–24.(15min.)Profitequation—Components.Break-evenpointfSlope=VariablecostperunitdTotalvariablecostarea.cTotalfixedcostarea.eLossProfitvolumevolumehg13–25.(15min.)Profitequations—Components.a.Totalfixedcosts(lossatzerovolume)b.Break-evenpointc.Slope=contributionmarginperunitd.Profitline课后答案网e.Profitareaf.Netlossareawww.hackshp.cng.Zeroprofitline©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13385若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–26.(20min.)Cost-volume-profitanalysis:GalaxyCinema.a.$3,600,000¸800,000tickets=$4.50perticketb.$2,400,000¸800,000tickets=$3perticketc.$4.50–$3=$1.50perticketd.p=($4.50–$3)X–$750,000Letp=00=($4.50–$3)X–$750,000$750,000X==500,000tickets($4.50–$3)e.Letp=$2,000,000$2,000,000=($4.50–$3)X–$750,000$2,750,000X==1,833,333tickets($4.50–$3)13–27.(10min.)CVPanalysis—Planninganddecisionmaking.a.(1)Unitsellingpricemustbeincreased.b.(2)Decreasebythesameamount.c.(4)Anincreaseinvariablecosts.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997386CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–28.(25min.)CVPanalysis—Planninganddecisionmaking:AirpowerCorporation.a.7,000units:(7,000)($8,000)$56,000,000PX(7,000)($4,800)33,600,000VX(7,000)($3,200)22,400,000(P–V)X24,000,000F$(1,600,000)p10,000units:(10,000)($8,000)$80,000,000PX(10,000)($4,800)48,000,000VX(10,000)($3,200)32,000,000(P–V)X24,000,000F$8,000,000pb.Break-evenpoint:p=(P–V)X–F$0=($3,200)X–$24,000,000$3,200X=$24,000,000$24,000,000X=$3,200X=7,500units课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13387若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–29.(25min.)CVPanalysis—Planninganddecisionmaking:Esmark,Inc.a.p=(P–V)X–F0=($100–$60)X–$150,000$150,000X==3,750units($100–$60)b.$100,000=($100–$60)X–$150,000$250,000X==6,250units($100–$60)13–30.(15min.)CVPanalysis—Planninganddecisionmaking:Plume,Inc.a.p=($100–$60)8,000–$150,000=$170,000b.10%pricedecrease.NowP=$90p=($90–$60)8,000–$150,000=$90,000.pdecreasesby$80,00020%priceincrease.NowP=$120p=($120–$60)8,000–$150,000=$330,000.pincreasesby$160,000c.10%variablecostdecrease.NowV=$54课后答案网p=($100–$54)8,000–$150,000=$218,000.pincreasesby$48,000www.hackshp.cn20%variablecostincrease.NowV=$72p=($100–$72)8,000–$150,000=$74,000.pdecreasesby$96,000d.p=($100–$66)8,000–$135,000=$137,000.pdecreasesby$33,000©TheMcGraw-HillCompanies,Inc.,1997388CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–31.(20min.)CVPanalysis—Planninganddecisionmaking.a.(2)b.(4)c.(4)Cannotbedeterminedwithoutknowingvariablecostperunit.(Forexample,ifV=$.10,break-evenincreases;ifV=$.90,break-evendecreases;ifV=$.50,break-evenisnotchanged.)13–32.(20min.)Extensionsofthebasicmodel—Semifixed(step)costs:LuressCo.a.Break-evenpoints:FX=P–V$84,000X(Level1)==14,000units$15–$9$123,000X(Level2)==20,500units$15–$9$162,000X(Level3)==27,000units$15–$9Thebreak-evenforLevel3islessthantheminimumproductionforthatlevel.Level3providesaprofitforitsentirerangeofactivity;hence,thereisnobreak-evenpointforLevel3.b.Optimallevelofproduction.Level1:p=($15–$9)16,000–$84,000=$12,000课后答案网Level2:p=($15–$9)28,000–$123,000=$45,000Level3:p=($15–$9)38,000–$162,000=$66,000www.hackshp.cnLuressCompanyshouldoperateatLevel3andearnamaximumprofitof$66,000permonth.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13389若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–33.(15min.)Extensionsofthebasicmodel—Taxes:MelborneSurfboardShop.$984,000a.(3)30,000units=($80.00–$47.20)b.(4)55,000units$492,000=[($80.00–$47.20)X–$984,000](1–.4)$492,000=$32.80X(.6)–$984,000(.6)$32.80X(.6)=$492,000+$984,000(.6)$19.68X=$492,000+$590,400$492,000+$590,400X=$19.68$1,082,400=$19.68=55,000units课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997390CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–34.(20min.)Extensionsofthebasicmodel—Taxes:LuxuriousHairProducts.SalesPrice:$8perunitV:$2perunitF:$216,000peryeara.p=(P–V)X–F0=($8–$2)X–$216,000$216,000=($8–$2)X$216,000X=($8–$2)=36,000units$216,000+$60,000b.X=($8–$2)=46,000unitsc.pa=[(P–V)X–F](1–t)$60,000=[($8–$2)X–$216,000](1–.40)$60,000=($6X–$216,000)(.60)$60,000=$6X–$216,000.60$60,000$216,000+=$6X.60$6X=$216,000+$100,000课后答案网X=$316,000$6X=52,667units(rounded)www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13391若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–35.(30min.)UsingCVPanalysistomeasurevolume:Hose’sHerbalRemedies.Break-evenpointinsalesdollars:Fa.PX=CMratio$56,000PX=1/31/3PX=$56,000PX=$168,000Fb.PX=CMratioPX=$56,000/(4/10)PX=$56,000x(10/4)PX=$140,000Note:CMratioreferstocontributionmarginratio.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997392CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13-36.(30min.)CVPanalysis–multipleproducts:Lorocette’sSandwichShop.a.6-Inch12-InchSandwichSandwich(10,000)($4)+(15,000)($6)=$130,000PX(10,000)($2)+(15,000)($3.50)=72,500VX(10,000)($2)+(15,000)($2.50)$57,500(P–V)X34,500F$23,000pb.Computeweighttimescontributionmarginsforeachproduct.(10,000)(15,00010,000+15,000$2)+(10,000+15,000)($2.50)=(0.4)($2)+(0.6)($2.50)=$.80+$1.50WeightedaverageCM=$2.30Computebreak-even:p=(P–V)X–F$0=$2.30X–$34,500$2.30X=$34,500$34,500X=$2.30X=15,000totalunits6-inch:produce(0.4)(15,000)=6,000units12-inch:produce(0.6)(15,000)=9,000units课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13393若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–36.(continued)c.Newweights:(4)(14+1$2)+(4+1)($2.50)=(0.8)($2)+(0.2)($2.50)=$1.60+$.50=$2.10Break-even:p=(P–V)X–F$0=$2.10X–$34,500$2.10X=$34,500$34,500X=$2.10X=16,429totalunits6-inch:produce(0.8)(16,429)=13,143units12-inch:produce(0.2)(16,429)=3,286units课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997394CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–37.(30min.)CVPanalysis—Multipleproducts:Almay.a.Tocomputebreak-evensalesdollars,findweighted-averageprice(P*)andvariablecosts(V*):P*=(1/2x$6)+(1/3x$10)+(1/6x$16)=$9V*=(1/2x$4)+(1/3x$6)+(1/6x$10)=$5.66$9.00–$5.66Break-evensales=$80,000/($9.00)$80,000=.371(rounded)=$215,633课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13395若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–37.(continued)b.Cost-Volume-ProfitGraph$215,633BreakevenpointTotalcostlineTC=$80,000+$5.66xbTotalrevenuelineTR=$9.00xa$80,000Totalfixedcosts23,959cVolume课后答案网aWeighted-averagerevenues=(50%x$6)+(33.3%x$10)+(16.7%x$16)=$9.00.bWeighted-averagecosts=(50%x$4)=(33.3%x$6)+(16.7%x$10)=$5.66www.hackshp.cn.c$215,63323,959=$9.00©TheMcGraw-HillCompanies,Inc.,1997396CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–38.(30min.)AnalysisofCostStructure.MeribellCo.vs.ForshiemCo.MeribellCo.ForshiemAmountPercentageAmountPercentageSales$1,000,000100$1,000,000100Variablecosts700,00070200,00020Contributionmargin300,00030800,00080Fixedcosts60,0006560,00056Operatingprofit$240,00024$240,00024b.Meribellprofitsincreaseby$30,000[=.30x($1,000,000x.10)]andForshiemprofitsincreaseby$80,000[=.80x($1,000,000x.10)].13–39.(15min.)ThymeCorporation.Contributionmargina.Contributionmarginratio=Sales$800,000=$2,000,000=40%$800,000b.Contributionmarginperunit==$1.60500,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13397若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems13–40.(35min.)CVPanddecisions:SchillEducationCorporation.SalesPrice:$90perunitFixedcosts:$800,000officeandadministration$720,000publishingVariablecosts:$15promotion$6administration$12materialsPresentunitssold:25,000peryeara.Break-evenPrice$90perunitVar.costs33perunitCont.margin$57perunitSales:p=(P–V)X–F0=($90–$33)X–$1,520,000$1,520,000=($90–$33)X$1,520,000X=$57X=26,667units课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997398CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–40.(continued)b.ProfiteffectPresentprofitSales........................................25,000x$90=$2,250,000VariableCosts..........................25,000x$33=825,000Contributionmargin..................1,425,000Fixedcosts...............................1,520,000Operatingprofit(loss)...............$(95,000)WithRepresentativeSales........................................35,000x$90=$3,150,000Promo.(new)............................10,000x$20=200,000Salescom.................................10,000x$90x25%=225,000Promo.(old).............................25,000x$15=375,000Admin.......................................35,000x$6=210,000Materials...................................35,000x$12=420,000Cont.margin.............................1,720,000Fixedcosts...............................1,520,000Operatingprofit........................$200,000Improvedprofitperformanceby$295,000.c.Profiteffectatsalesof25,000unitsSales............................................25,000x$90=$2,250,000Promo...........................................25,000x$15=375,000Admin...........................................25,000x$6=150,000Publishercost...............................25,000x$40=1,000,000Cont.margin.................................725,000Fixedcosts...................................课后答案网800,000Operatingprofit............................$(75,000)Profitimproves(losslessens)by$20,000overpresentprofit(loss).www.hackshp.cnProfiteffectatsalesof40,000unitsSales............................................40,000x$90=$3,600,000Promo...........................................40,000x$15=600,000Admin...........................................40,000x$6=240,000Pub.cost......................................40,000x$40=1,600,000Cont.margin.................................1,160,000Fixedcosts...................................800,000Operatingprofit............................$360,000Improvedprofitperformanceby$455,000.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13399若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–41.(35min.)CVPanalysisandpricechanges:Knoll’sManufacturing.a.Variablecosts.Newvariablecostperunit:LaborMaterialsOverhead(110%)(25%)($8)+(115%)(50%)($8)+(105%)(25%)($8)=$8.90Price:Newprice=(108%)($15)=$16.20Fixedcosts:Newfixedcosts=(102%)($1,120,000)=$1,142,400Sales:Profittarget=$280,000p=(P–V)X–F$280,000=($16.20–$8.90)X–$1,142,400$1,142,400+$280,000X=$16.20–$8.90=194,849units(rounded)orsalesof(194,849)($16.20)=$3,156,554b.Profittarget=($280,000)(106%)=$296,800p=(P–V)X–F$296,800=($16.20–$8.90)X–$1,142,400$1,142,400+$296,800X=$16.20–$8.90=197,151units,orsalesof(197,151)($16.20)=$3,193,846c.p=PX–VX–F$296,800=P(200,000)–($8.90)(200,000)–$1,142,400课后答案网$296,800+$1,780,000+$1,142,400P=www.hackshp.cn200,000P=$16.10(rounded)ora7.3%increase©TheMcGraw-HillCompanies,Inc.,1997400CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13-42.(20min.)CVPanalysis:SoftcushCompany.$468,000a.(1)97,500units=($25.00–$20.20a)b.(1)$25.51($25.00–$19.80)Currentcontribution-marginratio:=.208$25.00Newsalesprice:(X–$20.20)=.208XX–$20.20=(.208)X(1–.208)X=$20.20$20.20X=.792=$25.51aReflects8%increaseindirectlabor.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13401若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–43.(35min.)CVPanalysiswithchangesincoststructure:PallamerPrefab.PresentFacilitiesSemiautomaticMachineFullyAutomaticMachineBreak-evenpoint:p=(P–V)X–Fp=(P–V)X–Fp=(P–V)X–F0=($1.50)X–$300,0000=($2.75)X–$550,0000=($4.00)X–$800,000$300,000=$1.50X$550,000=$2.75X$800,000=$4.00X$300,000$550,000$800,000X=X=X=$1.50$2.75$4.00=200,000units=200,000units=200,000units175,000unitsSales(175,000)($6)=$1,050,000$1,050,000$1,050,000Var.costs(175,000)($4.50)=787,500(175,000)($3.25)=568,750(175,000)($2)=350,000Cont.margin(175,000)($1.50)=262,500(175,000)($2.75)=481,250(175,000)($4)=700,000Fixedcosts300,000550,000800,000Operatingprofit$(37,500)$(68,750)$(100,000)250,000unitsAlt.1课后答案网Alt.2Alt.3Sales(250,000)($6)=$1,500,000$1,500,000$1,500,000Var.costs(250,000)($4.50)=1,125,000www.hackshp.cn(250,000)($3.25)=812,500(250,000)($2)=500,000Cont.margin(250,000)($1.50)=375,000(250,000)($2.75)=687,500(250,000)($4)=1,000,000Fixedcosts300,000550,000800,000Operatingprofit$75,000$137,500$200,000©TheMcGraw-HillCompanies,Inc.,1997402若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–44.(35min.)CVPanalysiswithsemifixedcosts:LeMuirPreschool.a.Operatingprofit=[($400–$100)30students]–[$1,200x6teachers]–$1,000=$9,000–$7,200–$1,000=$800b.p=($400–$100)X–$1,200Q–$1,000,whereX=numberofstudentsandQ=numberofteachers.(Note:AnincorrectbutcommonmethodistosubstitutetheratioX/6forQandsolveforX.Thisgives9students,butitassumes11/2teachersareemployed.)Thispartdemonstratestheimpactofstepcostsoncost-volume-profitanalysis.0–6students:p=$300X–$1,200–$1,000$2,200=71/3students,whichisinfeasibleX=$3007–12students:p=$300X–$2,400–$1,000$3,400=111/3studentsX=$30013–18students:p=$300X–$3,600–$1,000$4,600=151/3studentsX=$300TheCentershowsaprofitat12students,butalossat13,14,or15students,thenshowingaprofitagainat16students.c.p=$300X–$1,200Q–$1,000,whereX=thenumberofstudentsandQ=thenumberofteachers.0–10students:课后答案网p=$300X–$1,200–$1,000$2,200=71/3studentsX=www.hackshp.cn$30011–20students:p=300X–$2,400–$1,000$3,400=111/3studentsX=$300Thatis,at10students,thecenterwouldshowaprofitof$800(i.e.,($300x10)–$1,200–$1,000),butat111/3studentsitwouldjustbreakeven.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13403若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–44.(continued)d.Yes.TheCenterwouldincreaseprofitby$1,800.Twomethodsarepresentedhere:1)Totalmethod:Statusquo:p=$800,(FromParta)Alternative:p=($300x36students)–($1,200x6teachers)–$1,000=$10,800–$7,200–$1,000=$2,6002)Differentialmethod:Increaseintotalcontribution=$300x6=$1,800.Nochangeinfixedorstepcosts.e.Profitwoulddecreaseby$900.Althoughthetotalcontributionwouldincreaseby$300,anotherteacherwouldbehiredatacostof$1,200,ifthemaximum6:1student-teacherratioistobemaintained.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997404CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–45.(40min.)Profit-targets:MausandCompany.a.pa=[(P–V)X–F](1–t)pa=[($25–$13.75)(20,000)–$135,000](1–.4)=$54,000b.pa=[(P–V)X–F](1–t)0=[($25–$13.75)X–$135,000](1–.4)=[$11.25X–$135,000](.6)=$6.75X–$81,000$81,000=$6.75X$81,000X=$6.75=12,000unitsc.pa=[(P–V)X–F](1–t)pa=[($11.25)(22,000)–$135,000–$11,250](1–.4)=$60,750d.pa=[(P–V)X–F](1–t)0=[($11.25)X–$135,000–$11,250](1–.4)0=$6.75X–$87,750$87,750X=$6.75=13,000units(13,000)($25)=$325,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13405若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–45.(continued)e.pa=[(P–V)X–F](1–t)$54,000=[($11.25)X–$146,250](1–.4)$54,000=$6.75X–$87,750$141,750=$6.75X$141,750X=$6.75=21,000units(21,000)($25)=$525,000f.pa=[(P–V)X–F](1–t)$60,000=[($11.25)(22,000)–F](1–.4)$60,000=$148,500–.6F$88,500=.6F$88,500F=.6=$147,500Subtractingfixedcostsof$135,000from$147,500leaves$12,500availableforadvertising.Note:Partsdandecanalsobesolvedusingthecontributionmarginratio.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997406CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–46.(40min.)CVPanalysiswithsemifixedcostsandchangingunitvariablecosts:Theloneous&Company.Firstfindthevariablecostlastyear:p=PX–VX–F–$20,000=($50)(12,000units)–(V)(12,000units)–$200,000(level1)–$20,000=$600,000–V(12,000units)–$200,000$420,000V=12,000=$35.00perunita.Level1:P–V=$50–$35=$15perunitLevel2:P–(1.2)V=$50–1.2($35)=$50–$42=$8.00perunitF$200,000b.Level1:X===13,333units(rounded)P–V$50–$35Level2:0=($15)(15,000units)+$8(X–15,000)–$264,000=$225,000+$8X–$120,000–$264,000$8X=$120,000+$264,000–$225,000$8X=$159,000X=19,875unitsc.Level1:p=(P–V)X–Fp=($50–$35)15,000–$200,000=$25,000Level2:p=($50–$35)15,000+($50–$42)10,000–$264,000=$41,000课后答案网ThecompanyismoreprofitableinLevel2at25,000units.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13407若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutiontoIntegrativeCase13–47.(60min.)Convertingfull-absorptioncostingincomestatementstoCVPanalysis:CrandellProducts.*Hereisaversionoftheincomestatementusingacontributionmarginformat.a.CrandellProductsIncomeStatementFortheYearEndedApril30,Year4(inthousands)BreakfastDogCerealsBarsFoodTotalSalesinpounds......................................2,0005005003,000Revenuefromsales...............................$1,000$400$200$1,600VariablemanufacturingcostsDirectmaterials...................................$330$160$100$590Directlabor.........................................904020150Factoryoverhead................................2712645Totalvariablemanufacturingcosts.........447212126785Manufacturingcontributionmargin.........55318874815OthervariablecostsCommissions......................................504020110Contributionmargin................................50314854705DirectoperatingcostsAdvertising..........................................503020100Licenses..............................................50201585Totaldirectoperatingcosts....................课后答案网1005035185Productcontribution...............................$403$98$19520Fixedcosts.............................................Factoryoverheada..............................www.hackshp.cn135Salessalaries&benefits.....................60G&Asalaries&benefits....................100Totalfixedexpenses..............................295Operatingprofitbeforetaxes..................$225CMAadaptedaAssumessupervisoryandplantoccupancycostsarefixed.©TheMcGraw-HillCompanies,Inc.,1997408CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn13–47.(continued)b.(1)AdvantageswhichCVPanalysiscouldprovidewouldinclude:·Determiningthemarginalcontributionofproductswhichcanassistmanagementinplanningsalesvolumeandprofitabilityincludingthecalculationofabreak-evenpoint.·Identifyproductswhichcansupportheavysalespromotionexpenditures.·Assistindecisionsrelatingtoeliminatingaproduct.·Acceptingaspecialorderatadiscountedprice.(2)DifficultiesCrandellProductscouldexpecttohaveontheCVPcalculationsinclude:·Separatingmixedcostsintotheirfixedandvariablecomponents.·Determininghowtotreatjointorcommoncosts.·Determiningefficiencyandproductivitywithintherelevantrange.·Determiningaconstantsalesmixwithintherelevantrange.(3)CrandellProductsshouldbeawareofthefollowingdangerswhenusingCVPanalysis:·Theuseofinaccurateassumptionsforthecalculations.·CVPanalysistendstofocusontheshortterm.·CVPanalysistendstofocusonincrementalvariablecosts,butfixedcostsmustalsobemanagedandcontrolled.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter13409若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter14DifferentialCostandRevenueAnalysisSolutionstoReviewQuestions14–1.Fixedcostsaredifferentialifcapacityischangedorinothercaseswhenfixedcostscanbeeliminated.Forexample,atransportationauthoritymightdecidethattheyneedtoaddanotherbustoaheavilyusedroute.Thefixedcostsoftheadditionalbuswouldbedifferential.14–2.Asunkcosthastakenplaceinthepastandcannotbechanged.Adifferentialcostisonethatwillchangewithagivendecision.14–3.Strictlyspeaking,sunkcostscanneverbedifferentialcosts.However,sunkcostscandeterminetheamountsofcertaindifferentialcosts.Forexample,federalincometaxesarebasedonhistorical(sunk)costs.Thedisposalofafixedassetmayresultinataxbasedonthedifferencebetweenthesalesproceedsandtheundepreciatedsunkcost.Manycontractsarebasedonsunkcostsaswell.Decisionsmayhavecontractimplicationsthatarisewithchangesinplans.14–4.(10min.)MultipleChoice.*a.(5)Thedifferentialcostofproducingtheorder.b.(2)Depreciation.*CPAadapted课后答案网14–5.Short-rundecisionsaffectoperationswithinoneyear(forexample,thedecisiontoacceptaspecialorder).Long-rundecisionsaffectoperationsforgreaterthanoneyear(forexample,expansionofplantcapacity).www.hackshp.cn14–6.Thefullcostofaproductisthesumofallfixedandvariablecostsofmanufacturingandsellingaunit.Fullcostisnotalwaysappropriateformakingdecisions—especiallyshort-rundecisions.Fixedcostsareoftenirrelevantforshort-rundecisions(i.e.,fixedcostsoftenremainunchangedfromthestatusquotothealternative).14–7.Thethreemajorinfluencesonpricingarecustomers,competitors,andcosts.Ifcustomersarenotwillingtopayapriceabovethecompany"scost,orifcompetitorsareabletoselltheproductbelowacompany"scost,thenusingcosttosetpricesmayresultinlowsalesandunprofitableproductlines.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter14411若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–8.Theproductlifecyclecoversthetimefrominitialresearchanddevelopmenttothetimeatwhichsupporttothecustomeriswithdrawn.Managersestimaterevenuesandcoststhroughouttheproduct’slifecycletomakepricingdecisions.14–9.Cost-pluspricingismostlikelytobeusedforuniqueproductswherenomarketpriceinformationexists—areaslikeconstructionjobs,defensecontracts,andcustomorders.14–10.Targetcostisthetargetpriceminussomedesiredprofitmargin.Targetpriceisapricesetbymanagementbasedoncustomers’perceivedvaluefortheproductandthepricecompetitorscharge.Therearefourstepstodevelopingtargetpricesandtargetcosts:1.Developaproductthatsatisfiestheneedsofpotentialcustomers.2.Chooseatargetpricebasedonconsumers’perceivedvalueoftheproductandthepricescompetitorscharge.3.Deriveatargetcostbysubtractingthedesiredprofitmarginfromthetargetprice.4.Performvalueengineeringtoachievetargetcosts.SolutionstoCriticalAnalysisandDiscussionQuestions14–11.Variablecostsareusuallyrelevantwhentalkingaboutchangesinproductionvolumes.However,ifthechangeinproductionvolumeextendsbeyondthe“relevantrange,”somefixedcostsmayalsobedifferential.Inaddition,thereareopportunitycoststhatmaybedifferentialforacertaindecision.Insomecasestheremaybenochangeinvariablecosts.Forexample,ifacompanyweretoaddasecondcopierintheofficeworkroomtoexpeditecopying,thenumberofcopiesproducedwouldbeunchanged,butthefixedcostsoftheequipmentwouldapproximatelydouble.14–12.Intheshort-run,salesrevenuesneedonlycoverthedifferentialcostsofproductionandsale.So,fromashort-runperspectivesolongasthesaledoesnotaffectotheroutputpricesornormalsalesvolume,a课后答案网“belowcost”salemayresultinanetincreaseinincomesolongastherevenuescoverthedifferentialcosts.However,inthelong-runallcostsmustbecoveredormanagementwouldnotreinvestinthesametypeofassets.Ifthecompanymustcontinuallysellbelowthefullcostofproductionthentheywillmostlikelygetoutofthatparticularbusinesswhenitcomestimetoreplacethosefacilities.www.hackshp.cn14–13.Variablecosts:FuelWearandtearrelatedtomilesdrivensuchastires,mileage-relatedmaintenance,lubeandoilParkingandtolls,ifanyCarwashifneededduetothetripRiskofcasualtiesthatvarywithmileageOthercoststhatvarywithmileage©TheMcGraw-HillCompanies,Inc.,1997412CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–14.Differentialcosts:CostofthecarForgoneinterestincomeonfundspaidforthecarInterestondebtonthecarInsuranceMaintenancethatistime-relatedLicenseandtaxesThesecostsaredifferentthanthecostsin14-13.Thecostsin14-13arethoserequiredtooperatethecarforanadditionalfewmiles.Thecoststhatvarywiththenumberofcarsdonotvarywithmileage.Thecostsin14.14varywiththenumberofcarsandnotwiththemileagedriven.Ofcourse,thereisthepossibilitythatifyoubuyanewcaryouwillbeaskedtodriveyourfriendsaroundmoreoftenthanotherwise.14–15.Activity-basedcostingmayactuallyprovidebettercostinformationthancostingsystemsthatallocateindirectcostsbasedononevolume-basedcostdriver.Activity-basedcostingprovidesmoredetailedcostdatathatmightleadtomoreinformeddecisionmakingregardingprices.Sincemarketpricesaretypicallynotavailableforcustomorders,manycompaniesusecost-pluspricing.Sincethiscompanyusesactivity-basedcosting,ithasthecostinformationnecessarytouseacost-pluscostingapproach.14–16.Themostdifficultpartofthistaskwilllikelybeassigningindirectcoststoeachcustomer.Forexample,howwillfixedcosts(rent,salaries,insurance,etc.)beallocatedtoeachcustomer?Whatevertheallocationbase,therewillbesomelevelofarbitrarinesstotheallocation.Also,iftheaccountingsystemdoesnoteasilytrackrevenuesanddirectcostsbycustomer,thisprojectwillbedifficulttocarryout.14–17.First,ifthecustomersaredroppedwilloverallcompanyprofitsincrease?(Theamountofindirectcostsallocatedtoeachcustomerthatwillnotnecessarilybeeliminatedbydroppingthesecustomerswillbetheprimaryfactorinansweringthisquestion.)Ifoverallcompanyprofitsdonotincreasebydroppingthesecustomers,theyshouldberetained.课后答案网Next,othernonfinancialfactorsmustbeconsideredindecidingwhethertodropthesecustomers:Willthecompany’sreputationbetarnished?Willthesecustomersbeprofitableinthefuture?www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter14413若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises14–18.(15min.)Usingdifferentialanalysis:PetersonPublishingMachinery.Revenue.............................................$4,500Less:Costtoremachine..............................2,500Opportunitycostofscrapsale...........1,500Contributionfromremachining............$500Itisoptimaltoretoolthebindingmachines.Alternativepresentation:StatusQuoAlternative(ScrapSale)(Remachining)DifferenceRevenue........................$1,500$4,500$3,000(higher)Costtoremachine..........–0–2,5002,500(higher)Contribution...................$1,500$2,000$500(higher)The$10,000originalcostissunk.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997414CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–19.(25min.)Specialorders:TorousCompany.StatusQuoAlternative400,000Units450,000UnitsDifferenceRevenues......................$8,000,000$8,650,000$650,000(higher)Variablecosts:Manufacturinga..........3,600,0004,050,000450,000(higher)Marketingb.................400,000400,000–0–Contributionmargin.......4,000,0004,200,000200,000(higher)Fixedcosts....................3,000,0003,000,000–0–Operatingprofit.............$1,000,000$1,200,000$200,000(higher)a$6,400,000–$2,800,000$16x=$9.00unit$6,400,000$9.00perunitx50,000=$450,000additionalcost.bNoadditionalmarketingcostsaccordingtotheexercise.Alternativepresentation.Per50,000UnitUnitsRevenues........................................$13.00$650,000Variablecosts:Manufacturingcosts:$6,400,000–$2,800,000$16x=9.00450,000$6,400,000Contributiontooperatingprofit$4.00$200,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter14415若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–20.(40min.)Specialorders:PralinaProductsCompany.*a.Thedifferenceinunitcostwascausedbythedifferenceinaverageunitcostoffactoryoverhead.Thecomputationsforcostsperunitfollow:CostperUnit100,000Units160,000UnitsofOutputofOutputDirectmaterial:$150,000/100,000units........$1.50$240,000/160,000units........$1.50Directlabor:$150,000/100,000units........1.50$240,000/160,000units........1.50Factoryoverhead:$400,000/100,000units........4.00$496,000/160,000units........$3.10Costperunit.............................$7.00$6.10Thereasonforthedifferenceinaverageunitcostoffactoryoverheadprobablywasbecausesomeoftheoverheadwasfixedwithinthegivenlevelsofoutput.Inthisinstancethefixedcomponentoffactoryoverheadmaybeestimatedusingthefollowingreasoning.Changeincost($496,000–$400,000)$96,000=Changeinoutput(160,000–100,000)60,000Variablecostsperunit=$1.60Ifvariablefactoryoverheadisincurredat$1.60perunit,theamountoffixedcostswouldbecomputedasfollows:$400,000factoryoverhead–($1.60x100,000units)variableoverhead课后答案网=$240,000fixedfactoryoverheadorwww.hackshp.cn$496,000factoryoverhead–($1.60x160,000units)variableoverhead=$240,000fixedfactoryoverheadAt100,000unitsofoutputthefixedportionoffactoryoverheadis$2.40perunit($240,000¸100,000units).Andat160,000unitsofoutputthefixedportionoffactoryoverheadis$1.50perunit($240,000¸160,000units).Thus,the$.90perunitdecreaseinaverageunitcostapparentlyresultsfromspreadingthefixedcostsoveranincreasednumberofunitsofproduction.*CPAadapted©TheMcGraw-HillCompanies,Inc.,1997416CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–20.(continued)b.Yes,theordershouldbeaccepted.Usingdifferentialanalysis,therewillbeanincreaseinprofitsasfollows:Increaseinrevenue...................................$360,000Increaseincosts:Directmaterials......................................90,000Directlabor.............................................90,000Factoryoverhead(probablyvariable)....96,000Increaseinprofits......................................$84,00014–21.(20min.)Pricingdecisions:LuckyLocks.Differentialcosts:PerUnit20,000UnitsVariablemanufacturingcosts...$1.00$20,000Variablemarketingcosts..........2.0040,000Profittarget...............................1.5030,000Requiredrevenue.....................$4.50$90,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter14417若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–22.(30min.)Pricingdecisions:Ben&Jerry’s.a.StatusQuoAlternative20,000quarts20,400quartsDifferenceSalesrevenue..........................$60,000a$60,900b$900(higher)Lessvariablecosts:Materials...............................20,00020,400400(higher)Labor.....................................10,00010,200200(higher)Variableoverhead.................5,0005,100100(higher)Totalvariablecost.............35,00035,700700(higher)Contributionmargin..................25,00025,200200(higher)Lessfixedcosts........................20,00020,000–0–(higher)Operatingprofit.........................$5,000$5,200$200(higher)Operatingprofitswouldbehigherwiththeadditionalorderby$200.a$60,000=20,000quartsx$3.00perquartb$60,900=(20,000quartsx$3.00perquart)+(400quartsx$2.25perquart)b.Thelowestpricetheicecreamcouldbesoldwithoutreducingprofitsis$1.75perquart,whichwouldjustcoverthevariablecostsoftheicecream.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997418CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–23.(25min.)Costanalysispricingdecisions:Easton,Inc.a.StatusQuoAlternative$50Price$25PriceDifferenceSalesrevenue10,000@$50...................$500,00050,000@$25...................$1,250,000$750,000(higher)Variablecosts10,000@$19.50a.............195,00050,000@$19.50..............975,000780,000(higher)Contributionmargin...........$305,000$275,000$30,000(lower)a$7.50+$10+(.25x$8)=$19.50perunit.b.Thetotalcontributionisgreaterifthelowervolumeisaccepted.Bothalternativesresultinanetloss,butthelossislessifEastonholdsthepriceat$50percase.14–24.(15min.)DifferentialCustomerAnalysis:Hillson&Brady.StatusQuoAlternativeTotalDropSuper6DifferenceRevenues(feescharged)......................$580$350$230(lower)OperatingcostsCostofservices(variable).................517305212(lower)Salaries,rent,andgeneraladministration(fixed)....................课后答案网50500Totaloperatingcosts.......................567355212(lower)Operatingprofits.....................................www.hackshp.cn$13$(5)$18(lower)H&BshouldnotdroptheSuper6accountintheshortrunasprofitswoulddropby$18,000.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter14419若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–25.(15min.)DifferentialCustomerAnalysis:HowClean.StatusQuoAlternativeTotalDropHospitalDifferenceRevenues(feescharged)......................$2,320$1,400$920(lower)OperatingcostsCostofservices(variable)..................2,0681,220848(lower)Salaries,rent,andgeneraladministration(fixed)......................2002000Totaloperatingcosts.......................2,2681,420848(lower)Operatingprofits.....................................$52$(20)$72(lower)HowCleanshouldnotdroptheHospitalaccountintheshortrunasprofitswoulddropby$72,000.14–26.(15min.)DifferentialCustomerAnalysis:WeeOne’s.StatusQuoAlternativeTotalDropHospitalDifferenceRevenues(feescharged)......................$290$185$105(lower)OperatingcostsCostofservices(variable)..................259153106(lower)Salaries,rent,andgeneraladministration(fixed)......................25250Totaloperatingcosts.......................284178106(lower)Operatingprofits.....................................课后答案网$6$7$1(higher)WeeOne’sshoulddroptheHospitalaccountintheshortrunasprofitswouldincreaseby$1,000.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997420CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–27.(15min.)SpecialOrder:Sam’sSportShop.StatusQuoAlternativeDifferenceRevenues......................................$40,000b$41,440a$1,440(higher)VariableCosts...............................30,000d31,200c1,200(higher)ContributionMargin.......................10,00010,240240(higher)Fixedcosts....................................7,0007,0000Operatingprofit.............................$3,000$3,240$240(higher)Sam’sshouldaccepttheorderbecauseitwillincreaseprofitsby$240fortheperiod.a$41,440=(2,000jerseys´$20)+(80jerseys´$18)b$40,000=(2,000jerseys´$20)c$31,200=(2,000jerseys+80jerseys)($12+$3)d$30,000=2,000jerseysx($12+$3)14–28.(10min.)TargetCostingandPricing:Brown’sWheels.Price=HighestacceptablecostsCosts+20%$6.00=$5.001.2ThehighestacceptablemanufacturingcostsforwhichBrown’swouldbewillingtoproducethewheelsis$5.00课后答案网14–29.(10min.)TargetCostingandPricing:DurhamIndustries.www.hackshp.cnPrice=HighestacceptablecostsCosts+10%$11=$10.001.1ThehighestacceptablemanufacturingcostsforwhichDurhamwouldbewillingtoproducethelinesis$10.00afoot.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter14421若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems14-30.(20min.)Specialorder:GilbertCompany.a.StatusQuoAlternativeDifferenceRevenue......................................$1,200,000$1,920,000a$720,000(higher)Variablecosts..............................780,0001,560,000b780,000(higher)Contributionmargin.....................420,000360,00060,000(lower)Fixedcosts..................................600,000600,0000Operatingprofit............................$(180,000)$(240,000)$60,000(lower)a$1,920,000=(300,000tubes´$2.40)+$1,200,000b$1,560,000=(300,000tubes´$2.60)+$780,000AlternativeSolution:($2.40–$2.60)300,000tubes=$(60,000).b.Disagree.Thedifferentialcostsoftheorderaregreaterthantheincrementalrevenues,thereforelosseswillbeincreasedby$60,000.14-31.(20min.)TargetCostingandPricing:MarkleeIndustries.a.CostXII(1+.10)=Cost-plusprice$42(1.10)=$46.20b.Price=$46课后答案网Price$46==$41.82HighestcostacceptableCost+10%1.1www.hackshp.cnc.No.Thecostof$42perunitishigherthanthehighestacceptablecostof$41.82,soMarkleewouldnotmakeanacceptableprofit.Howeverotherfactors,suchasexcesscapacity,futuregrowthindemand,etc.,couldchangethedecisionifincluded.©TheMcGraw-HillCompanies,Inc.,1997422CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14-32.(50min.)SpecialOrder:Marshall’sElectronics,Inc.a.Directlabor=XBP400LaborHoursperunitWageRate$750=37.5hoursperunit$2037.5hours´40units=1,500hourstoproduce40units.Capacitywouldnotneedtobeexpandedtoaccepttheorder.IncrementalRevenues($3,000´40units)......$120,000Differentialcosts($2,200*´40units)..............88,000Increaseinprofits.............................................$32,000*Totalvariablecostsperunit.b.37.5hours´60units=2,250hourstoproduce60unitsBP041LaborhrsHoursavailabletoCapacity–($600/$20=30hrseach;=XBP400production21,000hrs30hrs´400units=)12,000hrs.9,000hrsXBP400hrsSpecialorderhrsHoursavailablefor–=9,000hrs2,250hrscurrentsales6,750hrs6,750Currentsaleshrs/37.5Hoursperunit=180unitsToacceptthespecialorderMarshall’swouldhavetocutbackcurrentsalesofXBP400to180unitsduetocapacityconstraints.XBP400XBP400课后答案网StatusQuoAlternativeDifferenceRevenues.....................................$780,000b$882,000a$102,000(higher)Variablecosts...............................www.hackshp.cn440,000d528,000c88,000(higher)Contributionmargin......................340,000354,000e14,000(higher)Fixedcosts...................................150,000150,0000Operatingprofits...........................$190,000$204,000$14,000(higher)a$882,000=(180units´$3,900)+(60units´$3,000)b$780,000=200units´$3,900c$528,000=(180units+60units)x$2,200d$440,000=200units´$2,200e$150,000=$750´200units©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter14423若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–32.(continued)b.(continued)AlternativeSolution:Specialorderincreaseinprofits=(60units´$3,000)–(60units´$2,200)=$48,000Lostprofitsduetocutbackofcurrentsales(20units´$3,900)–(20units´$2,200)=$34,000Totalincreaseinoperatingprofits$14,000c.Ascalculatedin(b),acceptingthespecialorderpluscurrentproductionis20unitsovercurrentcapacity.Therefore,thedifferentialcostsforthe20unitswouldbe:DLH=20units´37.5hrs´$30=$22,500DM=20units´$550=11,000VO=20units´$900(1.5)=27,000Totaldifferentialcostsof20unitsovercapacity$60,500In(b)wecalculatedthealternativebasedonacceptingthespecialorderandcuttingbackcurrentsalesat$3,900perunit.Sothe20unitsovercapacitywouldbesoldat$3,900perunit.Differentialrevenues=$3,900´20units=$78,000Differentialrevenues...........................$78,000Differentialcosts..................................60,500Totalincreaseinoperatingprofitsfor20unitsovercapacity.................$17,500Ifthespecialorderisacceptedandcurrentsalesmaintained,thetotaloperatingprofitwouldbe$221,500($204,000+$17,500).Atotalincreaseof$31,500($14,000+课后答案网$17,500).www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997424CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–33.(30min.)Specialordercosts:GoldenCompany.a.DifferentialCosts10,000PerRobesUnitSalesrevenue....................................................$160,000$16Less:Variablecosts:...................................................Manufacturing................................................125,00012.50Marketing.......................................................27,0002.70aContributiononlostsales[2,000unitsx($25.00–$12.50–$3.60)]......17,8001.78Decreaseincontributionfromspecialorder......$(9,800)$(.98)a$3.60x.75=$2.70Alternativepresentation:StatusQuoAlternativeDifferenceRevenue.................................................$2,500,000($2,500,000+$160,000–$50,000a)..$2,610,000$110,000(higher)Variablemfg.costs.................................1,250,000($1,250,000+$125,000–$25,000)....1,350,000100,000(higher)Variablemarketingcosts.........................360,000($360,000+$27,000b–$7,200c)........379,80019,800(higher)Fixedcosts($350,000+$290,000)........................640,000640,000–0–Operatingprofit.......................................$250,000$240,200$9,800(lower)a$50,000=2,000unitsx$25.00课后答案网b$27,000=10,000unitsx(.75)(3.60)c$7,200=2,000units´$3.60www.hackshp.cnb.GoldenCompanyshouldnottakethespecialorderbecauseoverallcompanyprofitswouldfallfrom$250,000to$240,200.Thecontributionmarginfromthespecialorderof$8,000doesnotexceedthelostcontributionmargin(for2,000unitsinlostsales)of$17,800.Thus,profitswoulddecreaseby$9,800(=$17,800–$8,000)ifthespecialorderisaccepted.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter14425若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–34.(20min.)Pricingbasedoncosts—multiplechoice:CruizersUnlimited.a.(2)40%=($150,000–$90,000)¸$150,000b.(3)10%=25%x40%(Totaloverheadapplicationratetimesvariablepercentagefroma)c.(4)$1,200Differentialcostsassociatedwithacceptingtheorderare:Salesprice.....................$15,000Directmaterials.............5,000Directlabor....................8,000Variableoverhead.........800(10%xdirectlabor)Impactonprofit..............$1,200d.(1)$13,800(=$5,000+$8,000+$800)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997426CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–35.(40min.)Specialorder:R.A.Ro.OnthebasisofthedatainthequestionitwouldpayJacksontoaccepttheorder.Newsales(10,000units´$7).......$70,000Less:standardsales......................12,500Differentialrevenue........................$57,500Differentialcostsa...........................49,050Netadvantagetospecialunits.......$8,450Otherfactorsmustbeconsideredsuchasthelong-runconsequencesoffailingtosatisfystandardpartscustomers,thereliabilityofthecostestimates,andtheimportanceofthisvaluedcustomer.aDifferentialcostoftheorderis:Costsincurredtofillorder*Material(10,000units´$2)................$20,000Labor(10,000units´$3.60)...............36,000Specialoverhead................................2,000$58,000CostsreducedforstandardproductsMaterial...............................................$4,000Labor...................................................4,500Other...................................................450$8,950TotalDifferentialCosts....................$49,050*Depreciation,rent,andheatandlightarenotaffectedbytheorder.Powermightbedependentupontheparticularrequirementsofthespecialunits.Itisassumedhere课后答案网thatthesameamountofpowerwillbeusedineachcase.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter14427若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–36.(40min.)Specialorder:Multiplechoice—AggieEnterprises,Inc.a.(4)$8,000=$8perunit´1,000unitsb.(2)$6,000=($4+$2)´1,000unitsc.(1)$0Totalfixedcostsdonotchangeasaresultofthespecialorder.d.(4)Decrease$0.25;Fixedcostsperunitwithoutthespecialorder($10,000+$8,000)¸8,000units$2.25Fixedcostsperunitwiththespecialorder($10,000+$8,000)¸9,000units2.00Decreaseasaresultofspecialorder$0.25e.(1)Increase;Differentialrevenues(from(a))$8,000(higher)Differentialcosts(from(b))6,000(higher)Increaseinoperatingprofit$2,000(higher)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997428CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–37.(90min.)Comprehensivedifferentialcostingproblem:GardenBay,Inc.Thisproblemgivesstudentsagoodunderstandingofthefixed/variablecostdichotomy.Itisworthwhiletoemphasizetostudentsthatfixedcostsmaybe“unitized”(i.e.,allocatedtoindividualunitsofproduct)forcertainpurposes,andthatthisallocationproceduremaymakesuchcostsappeartobevariable.Indeed,manystudentstreatthe$120perunitfixedmanufacturingoverheadand$140perunitfixedmarketingcostsasthoughtheywerevariablecosts,despitethefactthattheyareclearlylabeled“fixed.”Thisproblemcanbeusedtointroducetheconceptofopportunitycost.Questionbcanbeusedinthisway,ascanQuestiondifyoupostulateascrapvaluefortheobsoletehoists.a.Recommendation:Loweringpricesreducesoperatingprofit.Otherfactors,suchasthereductionofavailablecapacityandtheimpactonmarketshare,couldalsoaffectthedecision.BeforeAfterPricePriceReductionReductionImpactPrice...........................$740$650Quantity......................3,0003,500Revenue.....................$2,220,000$2,275,000$55,000Var.mfg.costs...........900,0001,050,000150,000Var.mktg.costs.........150,000175,00025,000Cont.margin...........1,170,0001,050,000120,000decreaseFixedmfg.costs.........360,000360,000—noteFixedmktg.costs.......420,000420,000—equalityIncome.......................$390,000课后答案网$270,000$120,000decreasewww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter14429若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–37.(continued)b.Recommendation:Don’tacceptcontract.Impact:WithGovernmentContractWithoutGovt.ContractRegularGovernmentTotalImpactRevenue$2,960,000$2,590,000$245,000a$2,835,000$125,000Var.Mfg.Costs1,200,0001,050,000150,0001,200,000—Var.Mktg.Costs200,000175,000—175,00025,000ContributionMargin1,560,000$1,365,000$95,0001,460,000100,000decreaseFixedMfg.Costs360,000360,000—FixedMktg.Costs420,000420,000—Income$780,000$680,000$100,000decreaseaGovernmentrevenue500x$300+1/8($360,000)+$50,000=$245,000,assumingthegovernment’s“share”ofMarchfixedmanufacturingcostsis12.5%(=500units¸4,000units).Alternativesaretoget1/6x$360,000fixedmanufacturingcosts,whichwouldincreaserevenuefrom$245,000to$260,000;orgetnoreimbursementforfixedmanufacturingcosts,whichwouldreducerevenueto$200,000.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997430若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn14–37.(continued)b.(continued)AshorterapproachtoRequirementb(butharderforsomestudentstounderstand)isthis:Forgonecontribution(equalsforgoneincome)onregularsalesifgovernmentcontractisaccepted........................................................500x$390=$(195,000)lostProfitfromgovernmentcontract:Fixedfee.......................................................50,000gainedShareoffixedmfg.costs(1/8x$360,000)....45,000gainedGain..................................................................95,000gainedDifferentialprofitifcontractaccepted................$(100,000)c.Minimumprice=variablemfg.costs+shippingcosts+ordercosts=$300+$75+$4,000/1,000=$379.Atthispriceperunit,the$379,000ofdifferentialcostscausedbythe1,000unitorderwilljustberecovered.Somestudentssolveforthispriceusingthebreak-evenformula:F=XP–V$4,000=1,000unitsP–$375$4,000=1,000P–$375,000$379,000=1,000P课后答案网$379=Pd.Themanufacturingcostsaresunk;therefore,anypriceinexcessofthedifferentialcostsofsellingthehoistswilladdtoincome.Inthiscase,thosedifferentialcostsareapparentlythe$50perunitvariablemarketingcosts,sincethehoistsaretobesoldwww.hackshp.cnthroughregularchannels;thustheminimumpriceis$50.(Iftheinstructorwishestoreinforcetheconceptofopportunitycost,themostgeneralanswertothisquestionisthatthepriceshouldexceedthesumof1)thedifferentialmarketingcostsand2)thepotentialscrapproceeds,whichareanopportunitycostofsellingthehoistsratherthanscrappingthem.)©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter14431若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter15UsingDifferentialAnalysisforProductionDecisionsSolutionstoReviewQuestions15–1.Unitgrossmarginsaretypicallycomputedwithanallocationoffixedcosts.Totalfixedcostsgenerallywillnotchangewithachangeinvolumewithintherelevantrange.Unitizingthefixedcostsresultsintreatingthemasthoughtheyarevariablecostswhen,infact,theyarenot.Moreover,whenmultipleproductsaremanufactured,therelativecontributionbecomesthecriterionforselectingtheoptimalproductmix.Fixedcostsallocationscandistorttherelativecontributionsandresultinasuboptimaldecision.15–2.Managementwillwanttomaximizetheprofitobtainablefromthescarceresource.Thiswillnecessitateanalyzingthecontributionperunitofscarceresourcefromeachproductwhichthecompanymanufactures.Profitwillbemaximizedifthecompanyproducestheoutputwhichgivesthegreatestcontributionperunitofscarceresource.15–3.Thefeasibleproductionregionistheareawhichcontainsallpossiblecombinationsofproductionoutputs.Itisboundedbytheconstraintsimposedonproductionpossibilities.Theproductionschedulewhichmanagementchoosesmustcomefromthefeasibleproductionregion.15–4.Cornerpointsareimportantforanalyticalpurposesbecausetheoptimalproductionschedulewillbelocatedatoneormoreofthesecornerpoints.课后答案网15–5.Theopportunitycostofaconstraintisthecostofnothavingadditionalavailabilityoftheconstrainedwww.hackshp.cnresources.Thisisalsocalledashadowprice.15–6.Thethreefactorsare:1)Throughputcontribution:Salesdollarsminusdirectmaterialsandothervariablecosts.2)Investments:Inventories,equipment,buildings,andotherassetsusedtogeneratethroughputcontribution.3)Operatingcosts:Alloperatingcostsotherthandirectmaterialsandothervariablecosts.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15433若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoCriticalAnalysisandDiscussionQuestions15–7.Thisapproachwillmaximizeprofitsonlyiftherearenoconstraintsonproductionorsales,orifbothproductsuseallscarceresourcesatanequalrate.Otherwisemanagementwouldwanttomaximizethecontributionperunitofscarceresource.15–8.Fixedcostsarerelevantanytimetheychangewiththeproduct-mixdecision.Forexample,iftherearefixedcoststhatcanbeeliminatedwiththeeliminationofoneormoreoftheindividualproducts,thenthosefixedcostsmightberelevantinamulti-productsetting.Theywouldberelevantifthecontributionfromproductionofanyoneproductwasinsufficienttocoverthefixedcoststhatcouldbeeliminated.15–9.Performancecanbeimprovedatthebottleneckbyincreasingcapacityorshiftingresourcesfromnon-bottleneckareastothebottleneck.15–10.Profitscanbeincreasedbydecreasinginvestments,increasingthroughput,anddecreasingoperatingexpenses.Mostwhosubscribetothetheoryofconstraintsfocusonincreasingthroughputcontribution.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997434CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises15–11.(20min.)Make-or-buydecisions:DabellesCompany.The$25,000savingscouldnotbeachieved.Infact,TriceCompany’sofferismoreexpensivethanmakingthepart.aStatusQuoAlternativeDifferenceTrice’soffer...........................$–0–$600,000$600,000(higher)Materials................................70,00070,000(lower)Labor.....................................300,000300,000(lower)Variableoverhead.................120,000120,000(lower)Fixedoverheadapplied.........160,00060,000b100,000(lower)Totalcosts......................$650,000$660,000$10,000(higher)aBasedon20,000units.b($8–$5)´20,000=$60,000;or$160,000–$100,000=$60,000Alternativepresentation.Differentialcoststomake:Directmaterials.....................$3.50Directlabor...........................15.00Variableoverhead.................6.00Avoidablefixedoverhead......5.00(=$100,000/20,000units)$29.50Thisislessthanthe$30purchasepricefromTriceCompany.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15435若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–12.(25min.)Make-or-buydecisions:Collins,Inc.Itislesscostlytobuy.MakeBuyPart#10541Part#10541DifferenceDirectmaterials,directlaborandvariableoverhead[5,000´($6+$22+$8)]..........$180,000$–0–$180,000(saved)Fixedoverhead............................60,000a40,000b20,000(saved)Totalmanufacturingcosts........240,00040,000200,000(saved)ContributionfromRAC.................–0–30,00030,000(earned)Netmfg.costwithcont’n..........240,00010,000230,000(saved)Costtopurchase(5,000´$44)...–0–220,000220,000(incurred)Total......................................$240,000$230,000$10,000(netsaved)a5,000x$12=$60,000b5,000x$12x2/3=$40,00015–13.(20min.)Make-or-buydecisions:CasioCompany.DifferentialCosttoMakeDirectmaterials.......................20,000units´$3$60,000Directlabor.............................20,000units´$10.50210,000Variableoverhead...................20,000units´$480,000Fixedoverhead.......................40%´20,000units´$540,000Totalcosttomake..................课后答案网$390,000Costtobuy..............................20,000units´$21$420,000Itcosts$30,000lesstomakethepart.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997436CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–14.(15min.)Makeorbuydecisions:Columbus.Samcouldsave$100persailbymakingthesailsratherthanbuyingthem.StatusQuoAlternativeDifference(Buy)(Make)(Buy–Make)Costtobuy.................$560$–0–$560(higher)Directmaterial............–0–180180(lower)Directlabor.................–0–160160(lower)VariableOH................–0–120120(lower)$560$460$100(higher)15–15.(10min.)Makeorbuywithopportunitycosts:Columbus.No.Heshouldcontinuetobuythesails.Thecostofmaking1,500sailsis$690,000(=$460´1,500sails).Thecostofbuyingthesailsandrentingoutthespaceis$680,000[($560´1,500sails)–$160,000].15–16.(20min.)Droppingproductlines:CampusBookstore.CampusBookstoreComparisonofThreeAlternatives(inthousands)Alternative1:DropgeneralmerchandiseAlternative2:Dropgeneralmerchandise,increasebooksalesStatusAlternativeAlternative课后答案网Quo12Salesrevenue..............................$400$280$435Costofgoodssold(variable).......www.hackshp.cn300205325Contributionmargin......................10075110LessfixedcostsRent..........................................181832Salaries.....................................404040Marketingandadministrative....363034$6$(13)$4BestWorst©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15437若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–17.(30min.)Droppingproductlines:SierraSkiCompany.DropDifferenceStatusCross-(alllowerunderQuoCountrySkisthealternative)Revenue....................$253,200$167,600$85,600LessVariableCosts...(201,400)(124,200)(77,200)ContributionMargin...$51,800$43,400$8,400aLessFixedCosts.......(35,600)(30,260)(5,340)OperatingProfit..........$16,200$13,140$3,060SierraSkiCompanyshouldkeepcross-countryskisbecausethelossofitscontributionmarginisgreaterthanthereductioninfixedcosts.a$30,260=$35,600´.85课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997438CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–18.(20min.)Droppingproductlines:Cliff&Bassman.Statusquo:Keepallthreeservices,audit,tax,andconsultingAlternative1:DropconsultingAlternative2:Dropconsulting,increasetaxStatusQuoAlternativeAlternative12Salesrevenue......................$1,400,000a$1,100,000d$1,325,000gVariablecosts.......................900,000b650,000e785,000hContributionmargin..............500,000450,000540,000Fixedcosts...........................190,000c165,000f177,000iOperatingprofit....................$310,000$285,000$363,000worstbesta$1,400,000=$300,000+$500,000+$600,000b$900,000=$250,000+$300,000+$350,000c$190,000=$50,000+$60,000+$80,000d$1,100,000=$500,000+$600,000e$650,000=$300,000+$350,000f$165,000=$190,000–(50%´$50,000)g$1,325,000=(1.45´$500,000)+$600,000h$785,000=(1.45´$300,000)+$350,000I$177,000=(1.2´$60,000)+$80,000+(.5´$50,000)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15439若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–19.(15min.)Theroleofaccountingdata:Burnett,Inc.Computethecontributionfromeachproduct.ABCSellingprice...................$15$20$25Manufacturingcosts:Materials.....................2.503.003.50Directlabor.................3.503.505.50Variableoverhead......1.501.503.00Variablemarketing.........2.253.003.75Variableadministrative..0.500.500.50Totalvariablecosts........$10.25$11.50$16.25Contribution...................$4.75$8.50$8.75MaximizeTotalContributionMargin=$4.75A+$8.50B+$8.75C课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997440CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–20.(30min.)Theroleofaccountingdata:QuicksilverCorporation.a.Necklaceproduction=120hrs./.5perhour=240unitsProfit=(240unitsx$20/unit)–$2,500=$2,300b.ContributionperUnitofMaximumProfitMachiningTimeObtainable$20Contribution$40x120=$4,800Necklaces=$40.000.5Lessfixedcosts2,500Profit$2,300$15Contribution$60x120=$7,200Bracelets=$60.000.25Lessfixedcosts2,500Profit$4,700$10Contribution$33.33x120=$4,000Rings=$33.330.3Lessfixedcosts2,500Profit$1,500Themaximumprofitobtainableis$4,700,whichisobtainedbyproducingandsellingbraceletsexclusively.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15441若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–21.(30min.)Theoryofconstraints:Racketeer,Inc.a.Yes.Operatingprofitwouldincreaseby$2,000(asshownbelow).Differentialrevenues($100´200units)$20,000Differentialcosts:Fixed(10,000)Variable($40´200units)(8,000)Netdifferentialoperatingprofit$2,000b.No.Operatingprofitwoulddecreaseby$8,000(asshownbelow).Differentialrevenues($100´200)$20,000Differentialcosts:Fixed(20,000)Variable($40´200)(8,000)Netdifferentialoperatingprofit(loss)$(8,000)15–22.(30min.)Theoryofconstraints:Bud’sBakery.a.No.Operatingprofitwoulddecreaseby$50.Differentialrevenues($9´10units)$90Differentialcosts:Fixed(100)Variable($4´10units)(40)Netdifferentialoperatingprofit(loss)$(50)b.Yes.Operatingprofitwouldincreaseby$10.课后答案网Differentialrevenues($9´10)$90Differentialcosts:Fixedwww.hackshp.cn(40)Variable($4´10)(40)Netdifferentialoperatingprofit$10©TheMcGraw-HillCompanies,Inc.,1997442CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–23.(15min.)Linearprogramming:ClassicCorporation.Maximize:TotalContributionMargin=3Small+4LargeSubjectto:Machining-hours=1Small+4Large£100Polishing-hours=2Small+3Large£9015–24.(15min.)Linearprogramming:SneadCompany.a.Theansweris(4).Forprocess1themaximumavailablehoursare1,000.Therefore,theconstraintis:2Zeta+1Beta£1,000hoursb.Theansweris(3).ForBeta,thelaborconstraintlimitsproductionto400units.Therefore,theconstraintis:Beta£400c.Theansweris(2).Sneadwantstomaximizetotalcontributionmargin.Therefore,theobjectivefunctionis:Maximize$4.00Zeta+$5.25Beta15–25.(15min.)Sensitivityofcostdata:ServoCompany.No,theydidn’tmaketherightdecision.Theyincludedfixedcostswhichdonotdifferintheshortrun.Iftheyhadusedcontributionmargininsteadofgrossmargin,theywouldhavehad$4forG1and$5.50forG2,thereforetheywouldhavedecidedtoproduceG2exclusively.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15443若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–26.(60min.)Decisionwhethertoaddordropaproduct:JustaCorporation.a.Theregionalmarketshouldnotbedroppedasthismarketnotonlycoversallthevariablecostsandseparablefixedcostsbutalsogivesnetmarketcontributionof$65,000towardthecommonfixedcosts.Sales=$300,000Variablemanufacturingcosts=(.6´$100,000)+(.7´$100,000)+(.6´$100,000)=$190,000Marketingcosts=$45,000Netmarketcontribution=$65,000(=$300,000–$190,000–$45,000)b.Quarterlyincomestatement(inthousands):ProductAProductBProductCTotalSalesrevenue.....................................$500$400$400$1,300Lessvariablecosts:Manufacturing.................................300280240820Marketing........................................158831Totalvariablecost.......................315288248851Contributionmargin............................185112152449Lessfixedcosts:Manufacturing($1,010–$820)......190Marketing($105–$31)..................74Administrative..................................52Totalfixedcosts...........................316Operatingprofit...................................$133c.Thenewproductmustcontributeatleast$162,000(=$152,000+$10,000)perquartersoasnottoleavethecompanyworseoffwhenproductCisreplaced.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997444CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–27.(60min.)Decisionwhethertomakeorbuyaproduct:HospitalSupply,Inc.a.Whatpriceisequivalenttoin-housecostofproduction?AllProduction1,000UnitsIn-houseContractedTotalrevenue....................................$2,220,000$2,220,000Totalvariablemanufacturingcosts...900,000600,000aTotalvariablemarketingcosts..........150,000140,000bTotalcontributionmargin..................1,170,0001,480,000Totalfixedmanufacturingcosts........360,000252,000cTotalfixedmarketingcosts...............420,000420,000Paymenttocontractor...................—(X)Income.......................................$390,000$808,000–X$808,000–X=$390,000X=$418,000or$418perunitmaximumpurchasepriceTherefore,a$425purchasepriceisnotacceptable;itwoulddecreaseincomeby$7,000[=($425–$418)x1,000units].Ashorter(butmoredifficult)approachusestheconceptofopportunitycosts:Variablemanufacturingcost.....................................$300Variablemarketingopportunitycost($50–$40).....10Fixedmanufacturingopportunitycost.......................108dEquivalentin-housecost...........................................$418a$600,000=2/3´3,000units´$300/unit.b$140,000=(2,000units´$50perunit)+(1,000units´.8´$50perunit)c$252,000=$360,000–(.3课后答案网´$360,000)d$108=($360,000–$252,000)¸1,000unitswww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15445若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–27.(continued)b.3,000RegularContract1,000RegularHoists;HoistsProducedProduce800ModifiedHoistsand2,000RegularHoistsIn-houseRegular(In)Regular(Out)ModifiedTotalRevenue..........................$2,220,000$1,480,000$740,000$720,000$2,940,000Var.mfg.costs................900,000600,000—440,0001,040,000Mar.mktg.costs..............150,000100,00040,00080,000220,000Cont.margin................1,170,000$780,000$700,000$200,0001,680,000Fixedmfg.costs..............360,000360,000Fixedmktg.costs............420,000420,000Paymenttocontractor.....——(X)—(X)Income.....................$390,000$900,000–XMaximumpayment=$510,000,or$510perunit.Nowtheproposalshouldbeacceptedatapriceof$425.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997446若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–28.(50min.)Analyzealternativeproducts:OceanCompany.OceanCompanyAnalysisofEffectofAlternativeonProjectedTotalOperatingProfitAlternative:AdditionalunitsofZee(125,000´150%).............187,500Revenue,Zee($575,000´150%)........................$862,500Totalvariablecosts($150,000+$80,000)´150%...........................345,000Contributionmargin...............................................517,500Totalfixedcosts(allocated)..................................245,000Operatingprofit:ProductZee.......................................................272,500ProductWhy......................................................25,000Rentalincome.......................................................157,500Total......................................................................455,000Lessunallocatedtotalfixedcosts,Ex.a($430,000–$30,000).......................................400,000Projectedcompanyoperatingprofit......................$55,000aThe$155,000ofallocatedrentcontinuestobeincurredandisthereforenotrelevanttothedecision.The$30,000offixedcostsareeliminated.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15447若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–29.(45min.)DifferentialcostsandCVPanalysis:ArcadiaCorporation.a.ArcadiaCorporationComputationofEstimatedProfitfromOperationsafterExpansionofMontanaFactoryMontanafactory—Sales.....................................................................$2,100,000Fixedcosts:Factory...............................................................$336,000Administration....................................................121,000aVariablecosts.......................................................672,000Allocatedhomeofficecosts...................................175,000Total...................................................................1,304,000Estimatedoperatingprofit.....................................796,000Texasfactory—estimatedoperatingprofit................540,000Lesshomeofficeexp.allocatedtoMainefactory.....100,000Estimatedoperatingprofit.........................................$1,236,000a$2,100,000Revenue$672,000=$8perunitx$25Salespriceperunitb.ArcadiaCorporationComputationofEstimatedProfitfromOperationsafterNegotiationofRoyaltyContractEstimatedoperatingprofit:Texasfactory...................................................................$540,000Montanafactory..............................................................410,000Estimatedroyaltiestobereceived(30,000课后答案网´$4)............120,0001,070,000LesshomeofficeexpenseallocatedtoMainefactory........100,000Estimatedoperatingprofit...................................................$970,000www.hackshp.cnc.ArcadiaCorporationComputationofEstimatedProfitfromOperationsafterShutdownofMaineFactoryEstimatedoperatingprofit:Texasfactory................................................................$540,000Montanafactory...........................................................410,000950,000LesshomeofficeexpenseallocatedtoMainefactory.....100,000Estimatedoperatingprofit................................................$850,000©TheMcGraw-HillCompanies,Inc.,1997448CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems15–30.(40min.)ProductMix–graphicanalysis.7,0006,0005,0004,0003,000bcd2,0001,000ae1,0002,0003,0004,0005,0006,0007,0008,0009,00010,00011,00012,000Units-OfficeChairs课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15449若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–30.(continued)ContributionaKitchenOfficeMargina–0––0––0–b3,000–0–24,000c3,000b3,000b$39,000d2,500c4,500c$42,500*e–0–7,000$35,000*OptimalSolutionaContributionmargin=$8kitchen+$5officebSolvesimultaneously:3kitchen+1office=12,000kitchen=3,0003(3,000)+office=12,000office=3,000unitscSolvesimultaneously:kitchen+office=7,0003kitchen+office=12,0003kitchen+7,000–kitchen=12,0002kitchen=5,000kitchen=2,500units2,500+office=7,000office=4,500units课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997450CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–31.(60min.)Determiningoptimumproductmix:JacksonEnterprises.a.BearsCowsDogsTotalrevenuea...................................................$300,000$320,000$2,850,000Lessvariablemanufacturingcosts:Directmaterialsb.............................................100,00030,000180,000Directlaborc....................................................112,000160,0001,680,000Variableoverheadd.........................................28,00040,000420,000Variablemarketinge........................................30,00032,000285,000Totalcosts..................................................270,000262,0002,565,000Contributionmargin...........................................$30,000$58,000$285,000Totalcontributionmarginf...................................$373,000Totalfixedcostsg...............................................37,000Totaloperatingprofit..........................................$336,000aRevenue:Bears$300,000=$15x20,000unitsCows$320,000=$32x10,000unitsDogs$2,850,000=$95x30,000unitsbDirectmaterials:Bears$100,000=$10x.5yardsx20,000unitsCows$30,000=$10x.3yardsx10,000unitsDogs$180,000=$10x.6yardsx30,000unitscDirectlabor:Bears$112,000=$8x.7hoursx20,000unitsCows$160,000=$8x2hoursx10,000unitsDogs$1,680,000=$8x7hoursx30,000units课后答案网dVariableoverhead:Bears$28,000=$2x.7hoursx20,000unitsCows$40,000=$2x2hoursx10,000unitswww.hackshp.cnDogs$420,000=$2x7hoursx30,000unitseVariablemarketing:Bears$30,000=10%x$300,000revenueCows$32,000=10%x$320,000revenueDogs$285,000=10%x$2,850,000revenuefTotalcontributionmargin:$373,000=$30,000+$58,000+$285,000gTotalfixedcosts:$37,000=$18,000+$4,000+$15,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15451若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–31.(continued)b.Contributionmarginperconstrainedresource,labor:Bears$2.143=$30,000/20,000units/.7hoursCows$2.9=$58,000/10,000units/2hoursDogs$1.357=$285,000/30,000units/7hoursTheCowswouldbethemostprofitableproductlinegiventheconstrainedresource,directlabor.c.ThemostprofitablecombinationistoproduceuptothedemandofCowswithacontributionof$2.9,andtheremaininghoursspentonBearswithacontributionof$2.143.10,000Cowsx2hoursperCow=20,000hours10,000hoursa/.7hoursperBear=14,285BearsTherefore,Farsideshouldproduce10,000Cowsand14,285Bears.a10,000hours=30,000hours–20,000hours.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997452CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–31.(continued)d.BearsCowsTotalrevenuea.................................$214,275$320,000Lessvariablemanufacturingcosts:Directmaterialsb...........................71,42530,000Directlaborc..................................79,996160,000Variableoverheadd.......................19,99940,000Variablemarketinge......................21,42832,000Totalcosts................................192,848262,000Contributionmargin.........................$21,427$58,000Totalcontributionmarginf.................$79,427Totalfixedcostsg.............................37,000Totaloperatingprofit........................$42,427aRevenue:Bears$214,275=$15x14,285unitsCows$320,000=$32x10,000unitsbDirectmaterials:Bears$71,425=$10x.5yardsx14,285unitsCows$30,000=$10x.3yardsx10,000unitscDirectlabor:Bears$79,996=$8x.7hoursx14,285unitsCows$160,000=$8x2hoursx10,000unitsdVariableoverhead:Bears$19,999=$2x.7hoursx14,285unitsCows$40,000=$2x2hoursx10,000unitseVariablemarketing:课后答案网Bears$21,428=10%x$214,275revenueCows$32,000=10%x$320,000revenuefTotalcontributionmargin:www.hackshp.cn$79,427=$21,427+$58,000gTotalfixedcosts:$37,000=$18,000+$4,000+$15,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15453若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–31.(continued)e.Atanincreaseinthecostoflaborfrom$8to$9.50,thecontributionmarginsperconstrainedresourceoflabor(10,000additionalhours)wouldbeasfollows:Contributionmarginsbeforelaborcostincrease:Bears$1.50=$30,000/20,000unitsCows$5.80=$58,000/10,000unitsDogs$9.50=$285,000/30,000unitsAdditionallaborcostswouldchangecontributionmarginsasfollows:Bears$.45=$1.50–(.7hoursx$1.50additionallaborcost/hour)Cows$2.80=$5.80–(2hoursx$1.50additionallaborcost/hour)Dogs$(1.00)=$9.50–(7hoursx$1.50additionallaborcost/hour)Thecontributionperunitofconstrainedresourcewouldbeasfollows:Bears$.643=$.45/.7hoursCows$1.40=$2.80/2hoursDogs$(.14)=$(1.00)/7hoursSinceFarsidewouldalreadybeproducingasmanyCowsasdemandallows,theadditionalproductionwouldbeBears.Farsidecouldproduceanadditional5,715Bears(20,000annualdemandminus14,285alreadybeingproduced).FarsideshouldnotproduceDogsbecausethecontributionfromDogsisnegative.Theadditiontoprofitwouldbe$2,571.75(5,715Bearsx$.45).课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997454CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–32.(45min.)Theoryofconstraints:UniversityHospital.AlternativesabcRevenues......................$60,000$60,000$60,000Variablecosts................30,000a26,000b18,000cContributionmargin.......30,00034,00042,000Fixedcosts....................–0–2,00015,000Operatingprofit.............$30,000$32,000$27,000a$30,000=($300x30)+($700x30)b$26,000=($300x40)+($700x20)c$18,000=$300x60ThemostprofitablealternativeistorebuildtherecoveryroomssothatsomeofthePhaseIIspacecouldbeusedforPhaseIrecovery(asshownin(b)above).Thisapproachwouldincreaseoperatingprofitby$2,000perdayfrom$30,000to$32,000.15–33.(30min.)Interpretingcomputeroutput—oneconstraint.a.Objectivefunction:MaximizeContributionmargin=$50.00X+$40.00Y+$25.00Zb.OptimalproductionlevelforProductX=600unitsc.Totalcontributionis$30,000课后答案网$30,000=$50x600unitsofProductXd.Theywouldbewillingtopay$166.67sinceitistheopportunitycostofmachining.www.hackshp.cne.IfadecisiontoproduceoneunitofProductYwasmade,thetotalcontributionmarginwoulddecreaseby$1.67.f.TheoptimalproductionlevelforProductYwouldstillbezero,sincetheincreaseof$1($41–$40)iswithintheallowableincreaserangeoftheobjectivefunctioncoefficient.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15455若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–34.(30min.)Interpretingcomputeroutput–multipleconstraints.a.TheoptimalproductionlevelforP1is500units.TheoptimalproductionlevelforP2is500units.b.Thetotalcontributionmarginobtainedattheoptimalproductionlevelis$38,500.00($41.50x500)+($35.50x500)=$38,500.00c.250ofthe2,000availablemachininghoursareunused.Noneofthe3,000availableassemblyhoursareunused.d.Sincethemachiningconstraintisnotbinding,thecompanystillhasavailablemachinehoursandthereforewouldpay$0.00formoremachininghours.Thecompanywouldbewillingtopay$13.83foranadditionalhourofassembly.Fromtheprintout,thisistheopportunitycostforanhourofassembly.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997456CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–35.(30min.)Productmixchoice:RupeeCorporation.a.Maximize:TotalContributionMargin=$0.40aPaper+$0.47aPlasticSubjectto:0.04bPaper+0.08bPlastic£10,000Plastic£60,000Plastic(in000s)250200150100(d)(c)50课后答案网(a)www.hackshp.cn(b)Paper50100150200250(in000s)aComputationofcontributions:PaperboardPlasticNetsales............................................................$212,000$212,250Variablemfg.costs(allexceptdepreciation).....153,000153,750Variablenonmfg.costs,inc.commissions.........19,00023,250Totalcontribution...............................................$40,000$35,250Amountperunit.................................................$0.40$0.47b.04=4,000laborhours/100,000containers;.08=6,000laborhours/75,000containers.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15457若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–35.(continued)Produce&SellTotalContributionCriticalPointsPaperPlasticMarginb(a)–0––0––0–(b)250,000–0–$100,000*(aac)130,00060,000$80,200(d)–0–60,000$28,200*OptimalSolutiona0.04Paper+0.08Plastic=10,000Plastic=60,000Solvingsimultaneously:0.04Paper+0.08(60,000)=10,000Paper=130,000bTotalContributionMargin=$0.40Paper+$0.47Plasticb.Theoptimalproductmixiscalculatedgiventwoconstraints:(1)maximumlaborhoursavailableof10,000;and(2)limiteddirectmaterialstoproduceplasticcontainers(enoughfor60,000containers).Papercontainersprovidethehighestcontributionmarginperscarceresourceof$10perlaborhour($40,000¸4,000hrs.)versusplasticcontainers($5.88perlaborhour=$35,250¸6,000hrs.).Thus,theoptimalproductmixistoproduce250,000unitsofpapercontainersand0unitsofplasticcontainers.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997458CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–36.(25min.)Multiplechoice.a.Theansweris(3).Thecompanywantstomaximizeitstotalcontributionmargin.AlphaisX1,GammaisX2.Maximize$5X1+$4X2=Totalcontributionmarginb.Theansweris(5).ThetotaluseofDmustbelessthan16,000gallons.Constraint:.8X1+.4X2£16,000gallonsc.Theansweris(5).ThetotaluseofKmustbelessthan6,000gallons.Constraint:.2X1+.6X2£6,000gallonsd.Theansweris(4).24,00022,00020,00018,000bc16,00014,00012,00010,000课后答案网8,0006,000www.hackshp.cn4,0002,000ad2,0006,00010,00014,00018,00022,00026,00030,00034,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15459若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–36.(continued)d.(continued)ProduceTotalContributionPointX1X2Marginaa–0––0––0–b20,000–0–$100,000c18,000b4,000b$106,000*d–0–10,000$40,000*OptimalSolutiona5X+4X=Totalcontributionmargin12b.8X1+.4X2=16,000–(4)(.2X1+.6X2=6,000)0–2X2=–8,000X2=4,000SubstituteX2backintoequation8X1+.4(4,000)=16,0008X1=14,400X1=18,000e.Theansweris(4).Sincetheconstraintsdonotchange,thepossibleoptimalsolutionsremainthesame.Thecalculationoftotalcontributionmarginchangesto:7X1+9X2=TotalcontributionmarginProduce课后答案网TotalContributionPointX1X2Margina–0––0–www.hackshp.cn–0–b20,000–0–$140,000c18,0004,000$162,000*d–0–10,000$90,000*Optimalsolution©TheMcGraw-HillCompanies,Inc.,1997460CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–37.(35min.)Analyzealternativeactionswithmultipleproducts:EssenCorporation.Contributionperunitisfirstcomputed:AverageDeluxeaRevenues....................$135$200VariableCosts:Manufacturing..........(25)(50)Marketing.................(27)(40)ContributionMargin.....$83$110Problemformulation:Maximize:TotalContributionMargin=$83Average+$110DeluxeSubjectto:10Average+15Deluxe£22,000Average£1,800Deluxe£1,200Avoidablefixedcosts:Average=$45,000Deluxe=$50,000a$200=$160,000/800units;$50=$40,000/800;$40=$32,000/800.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15461若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–37.(continued)Deluxe240020001600(e)(d)1200800(c)400(a)(b)4008001200160020002400课后答案网Averagewww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997462CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–37.(continued)TotalCriticalProduce&SellContributionPointAverageDeluxeMargincProfitda–0––0––0––$45,000b1,800–0–$149,400$59,400*c1,800a267a$178,770$38,770d400b1,200b$165,200$25,200e–0–1,200$132,000$37,000*OptimalSolutiona10Average+15Deluxe=22,000Average=1,800Solvingsimultaneously:10(1,800)+15Deluxe=22,000Deluxe=267b10Average+15Deluxe=22,000Deluxe=1,20010Average+15(1,200)=22,000Average=400cTotalcontributionmargin=$83Average+$110DeluxedTotalContributionAdministrativeRelevantUnavoidableProfit=––MarginFixedCostsFixedCosts课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15463若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–38.(30min.)Analyzealternativeproductswithdifferentialfixedcosts:EdmontonCompany.a.ModelMountaineeringTouringSellingPrice.......................$88.00$80.00VariableCosts...................52.8052.80ContributionMargin...........$35.20$27.20ProductionAlternatives:Produce&SellContributionOperatingMountaineeringTouringMarginProfit12,000–0–$422,400a$52,800b–0–12,000$326,400c$9,600da$35.20(12,000)=$422,400b$422,400–$369,600=$52,800c$27.20(12,000)=$326,400d$326,400–$316,800=$9,600EdmontonwillchoosetoproducetheMountaineeringmodel,earninganoperatingprofitof$52,800.b.LetXbethebreak-evennumberofunits.$35.20X–$369,600=$27.20X–$316,800$35.20X–$27.20X=$369,600–$316,800$8.00X=$52,800X=6,600unitsEdmontonwillbeindifferentat6,600units.课后答案网c.ProductionAlternatives:Produce&Sellwww.hackshp.cnContributionOperatingMountaineeringTouringMarginProfit6,000–0–$211,200a($158,400)b–0–12,000$326,400c$9,600da$35.20(6,000)=$211,200b$211,200–$369,600=–$158,400c$27.20(12,000)=$326,400d$326,400–$316,800=$9,600EdmontonwillchoosetoproducetheTouringmodel,earninganoperatingprofitof$9,600.©TheMcGraw-HillCompanies,Inc.,1997464CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–39.(35min.)Formulateandsolvelinearprogram:Baxter,Inc.a.Theerrorsintheformulationofthelinearprogrammingequationsare:1.Theobjectivefunctionshouldrelatetothemaximizationofprofit(thatis,contributiontoprofit)nottheminimizationofcosts.2.ThecoefficientsforX-10(variableA)andY-12(variableB)intheobjectivefunctionshouldbethecontributionmarginofthetwoproducts(salespricelessvariablecosts),notthefullcostofeachproduct.3.Theconstraintonthemachinetimeinthetwodepartmentswasnotrecognized.b.LetA=numberofunitsofX-10.LetB=numberofunitsofY-12.Objectivefunction:Maximize:$16.5A+$35.0BSubjectto:DirectMaterial4A+2B£1,800poundsDirectLabor–Department12/3A+B£400hoursDirectLabor–Department211/4A+B£600hoursMachineTime–Department11/2A+1/2B£250hoursMachineTime–Department2B£300hours课后答案网SupportingCalculationsX-10Y-12Unitsalesprice.........www.hackshp.cn$90.00$85.00Variablecosts...........Directmaterial......4lb@$12=$48.002lb@$12=$24.00DirectlaborDepartment1....2/3hr@$6=4.001hr@$6=6.00Department2....11/4hr@$8=10.001hr@$8=8.00Variableoverhead....1.9167hr@$6=11.5073.502hr@$6=12.0050.00Contributionmargin..$16.50$35.00©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15465若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–39.(continued)c.InitialTableObjectivefunction:Maximize$16.50A+$35.00BConstraints:Material...............4.00A+2.00B<1,800Labor(1).............0.66667A+1.00B<400Labor(2).............1.25A+1.00B<600Machine(1).........0.50A+0.50B<250Machine(2).........1.00B<300Note:ThefollowinganswersmaydifferduetoroundingoftheconstraintLabor(1)forvariableA.SummaryofProblemVariablesValueReducedValueA149.9993—B300.0000—ConstraintsShadowPriceMaterial600.0030—Labor(1)—$24.7499Labor(2)112.5009—Machine(1)25.0004—Machine(2)—10.2501OptimalValueofSolutionis$12,975ObjectiveFunctionCoefficientRangesAllowable课后答案网AllowableCurrentVariableIncreaseDecreaseCoefficientA6.83www.hackshp.cn16.516.5BInfinity10.2535©TheMcGraw-HillCompanies,Inc.,1997466CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn15–39.(continued)c.(continued)RightHandSideRangesAllowableAllowableCurrentConstraintDecreaseIncreaseRHSMaterialInf.6001,800Labor(1)33100400Labor(2)Inf.112.5600Machine(1)Inf.25250Machine(2)100100300Lookingattherangesofobjectivefunctioncoefficients,wefindthatifthecontributionmarginofAdropsto$0,thentheoptimalproductmixwillchange.Theincreaseinthepriceofdirectmaterialsthatwouldberequiredtochangetheproductmixis:$16.50–0=$4.125/lb.4lbs.ForProductB,ifthecontributionmargindropsto$24.75,thenthemixwillchange.Therequiredmaterialspricechangewouldbe:$35.00–$24.75=$5.125/lb.2lbs.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter15467若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter16ManagingQualityandTimeSolutionstoReviewQuestions16–1.Seetextorglossaryattheendofthebook.16–2.Thethreefactorsthatrelatetomeetingcustomerrequirementsaredefinedbelow.1)Service:Aproduct’stangiblefeatures(performance,functionality,etc.)andintangiblefeatures(courtesyofsalespeople,on-timedeliveries,etc.).2)Quality:Theorganization’sabilitytodeliveronitsservicecommitments(i.e.tomeetorexceedcustomerexpectations).3)Cost:Thecompany’sabilitytoefficientlyuseresourcestoobtainitsobjectives—andtoprovideacompetitivepricetoitscustomers.16–3.Thequality-basedviewholdsthatifqualityisestablishedpriortoinspections,thenthereisnoneedtoinspectdefect-freegoods.Thetraditionalviewisthatproductinspectionsaretheonlywaytoensurequality.16–4.Thequality-basedviewholdsthathighqualityleadstoloyal,repeatcustomers,thusmaximizinglong-runprofits.16–5.课后答案网Servicereferstotheproduct’sfeatures(bothtangibleandintangible)includingperformance,functionality,knowledgeofsalespeople,andnumberofon-timedeliveries.Qualityreferstothecompany’sabilitytomeetorexceedcustomerexpectationsoftheproduct’sfeatures.www.hackshp.cn16–6.Thetwocostsofcontrollingqualityare:preventioncosts(costsincurredtopreventdefectsintheproductsorservicesbeingproduced)andappraisalcosts(costsincurredtodetectindividualunitsofproductsthatdonotconformtospecifications).16–7.Thetwocostsoffailingtocontrolqualityare:internalfailurecosts(costsincurredwhennonconformingproductsandservicesaredetectedbeforebeingdeliveredtocustomers)andexternalfailurecosts(costsincurredwhennonconformingproductsandservicesaredetectedafterbeingdeliveredtocustomers).©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter16469若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoCriticalAnalysisandDiscussionQuestions16–8.Servicereferstotheproduct’sfeatures(bothtangibleandintangible)includingperformance,functionality,knowledgeofsalespeople,andnumberofon-timedeliveries.Thesefeaturesareultimatelydefinedbycustomers’expectations.Ifcustomers’donotexpectaspecificproductfeature,andarejustassatisfiedwithoutcertainfeatures,thentheirexpectationshavelikelybeenmetandtheappropriateamountofservicehasbeenprovided.16–9.Answerswillvarybutshouldincludereasonswhytheelementsarenotimportant.Forinstance,whenpurchasingalowcostitem,likefingernailpolish,servicemaynotbeimportant.Thecolorisvisiblethroughthebottle,soassistance(“intangible”service)maynotberequired.16–10.Answerwillvary.Oneexamplefollows.Thequality-basedviewwouldencouragecontinuousimprovementoftheproductionprocessandmightofferincentives(i.e.cashbonuses)forproductionemployeestomakerecommendationsabouthowtheproductionprocesscanbeimproved.Theresultwouldbefewerproductdefectsandmoreefficientoperations.Conversely,thetraditionalviewwouldassumethatdefectiveproductsareanaturalpartoftheproductionprocessandareverydifficulttoeliminate.Thus,thoroughinspectionsthroughouttheproductionprocessarenecessarytoensureminimaldefects.16–11.Answerswillvarybutmayincludeanyofthefollowing.Ifacompanyonlyhasonesupplierandinventoryofthesuppliedpartsisrelativelylow(asisthegoalofJIT),andthesupplierisunabletosupplythepart(employeesgoonstrike,downtimeofproductionmachinery,etc.),thenthecompanyisunabletocontinueproductionuntilanothersuppliercanbefound.Anotherproblemmightexistifdemandsuddenlysurgesforacompany’sproduct.Itmaybedifficulttomeetcustomerdemandifinventoriesarerelativelylowandproductioncapacityisinadequate.16–12.Acontrolchartshowstheresultsofastatisticalprocesscontrolmeasuredesignedtoprovidewarningsignalsthatsomethingiswrong.Cause-and-effectanalysisandParetochartsareusedtoprovidediagnosticsignals.课后答案网16–13.Answerswillvary,butshouldaddressthemonitoringofaproductionprocess.Anytimevariationsexceedsomepredeterminedlevel,awarningsignalissentthatsomethingmaybewrong.Forexample,whenwww.hackshp.cnmachiningavalveforanautomobileengine,ifthepartsizefallsoutsideofaspecifiedrange,thecontrolchartwouldsendawarningsignalthataproblemexistswiththeproductionprocess.16–14.Just-in-time(JIT)requiresthehighlyefficientcoordinationofpurchasingandproductionprocesses.Totalqualitymanagement(TQM)seekstocontinuouslyimprovetheproductionprocess.JITisverydifficulttoimplementwithoutTQMsincebothapproachestoqualityhavethesamegoal—tomaketheproductionprocessasefficientaspossiblewhileproducingthebestproductpossible.©TheMcGraw-HillCompanies,Inc.,1997470CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn16–15.Timeisimportantbecausesuccessincompetitivemarketsisincreasinglybasedonshorternewproductdevelopmenttimeandmorerapidresponsetocustomers.Companiesthatarenotabletoquicklyrespondtocustomerneedsandwantswillhaveadifficulttimecompetingintoday’shighlycompetitiveglobalmarket.16–16.Majorimprovementsinresponsetimewilllikelyrequiremakingimprovementsintheproductionprocess,whichinturnwilltypicallyimproveproductivityandquality.Forexample,theautomobileindustryisbeginningtorealizetheneedtoquicklyrespondtocustomerdemands.Asaresult,theindustryhasshortenedthetimeittakestodevelopandproduceautomobiles.Theonlywaytodothisistoimprovetheefficiencyofboththedesignphaseandproductionprocesses.16–17.Improvingon-timearrivalsincreasescustomersatisfaction,notonlyforthepassengersontheon-timeflight,butalsoforthepassengersonsubsequentflightswhowouldotherwisebedelayed.Thisimprovesthereputationoftheairlinewhichencouragesrepeatbusinessandattractsnewcustomers.On-timearrivalsalsoreducecostsbecausedelaysincreasepersonnelovertimeandothercosts.16–18.Thecompanyismeasuringcustomersatisfactionandprovidingincentivesforitsclaimsadjustersandprocessorstoprovidequalityservice.16–19.Courseevaluationswereintroducedtohelpassessteachingperformanceandtoprovidefeedbacktoteachersandadministrators.Theywereintroducedinthe1960spartlybecauseitwasaperiodofstudentactivism;courseevaluationswerepartoftheresponsetoprotestsbystudents.(Therewereotherreasons,too,oftenreflectinglocalconditionsandpersonalities.)16–20.Answerswillvarybutshouldincludehowbeingcompensatedbyaccountingperformancemaynotcreategoalcongruenceforqualitymanagement.Forexample,ifmanagers’areevaluatedstrictlyonminimizingcosts,totalqualitymanagementwouldnotlikelybetheirprimaryconcern(i.e.,theincentivesystemdoesnotpromoteTQM).课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter16471若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises16–21.(15min.)Qualityaccordingtothecustomer.Answerswillvarybutmayinclude:(a)style,timeliness,andfit.(b)safety,looks,andsize.(c)qualityofprofessor,personableprofessor,andtimeoffered.(d)length,destination,andactivitiesoffered.(e)taste,cost,andsize.16–22.(15min.)Qualityaccordingtothecustomer.Answerswillvarybutmayinclude:(a)fit,design,andcost.(b)size,channelcapacity,andcost.(c)taste,friendlywait-persons,andatmosphere.(d)accuracy,cost,andcomprehensiveness.(e)cost,quietness,andenergyefficiency.16–23.(15min.)Qualityaccordingtothecustomer.课后答案网Answerswillvarybutmayinclude:www.hackshp.cn(a)brandcompatibility,cost,andnumberofkeys.(b)lifespan,disccapacity,andclarityofsound.(c)accuracy,interestrate,andaccessibility.(d)qualityofcar,honestyofdriver,anddrivercompetence.(e)cost,stitchcapabilities,andattachmentcapabilities.©TheMcGraw-HillCompanies,Inc.,1997472CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn16–24.(20min.)Costsofquality:VedralIndustries.a.Prevention:Preventivemaintenance,materialsinspection,processinspection,qualitytraining.Appraisal:Fieldtesting,testingequipment.Internalfailure:Scrap,rework.Externalfailure:Customercomplaints,warrantyrepairs.b.Year1Year2Prevention$414,500/$2,450,000...........16.9%$291,800/$2,200,000...........13.3%Appraisal$164,000/$2,450,000...........6.7%$194,000/$2,200,000...........8.8%Internalfailure$188,500/$2,450,000...........7.7%$204,300/$2,200,000...........9.3%Externalfailure$71,000/$2,450,000.............2.9%$82,000/$2,200,000.............3.7%课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter16473若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn16–25.(20min.)Costsofquality:OwenborroghCorporation.a.Prevention:Processinspection,preventivemaintenance,materialsinspection,qualitytraining.Appraisal:Testingequipment,fieldtesting.Internalfailure:Scrap,rework.Externalfailure:Warrantyrepairs,customercomplaints.b.Year1Year2Prevention$331,200/$1,960,000........16.9%$234,000/$1,760,000........13.3%Appraisal$131,000/$1,960,000........6.7%$155,000/$1,760,000........8.8%Internalfailure$150,800/$1,960,000........7.7%$163,500/$1,760,000........9.3%Externalfailure$56,500/$1,960,000..........2.9%$65,200/$1,760,000..........3.7%课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997474CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn16–26.(15min.)Costsofquality:RamirezCorporation.a.Prevention:Processinspection,qualitytraining,preventivemaintenance,materialsinspection.Appraisal:Testingequipment,fieldtesting.Internalfailure:Rework,Scrap.Externalfailure:Customercomplaints,warrantyrepairs.b.Year1Year2Prevention$656,400/$3,920,000........16.7%$477,000/$3,520,000........13.6%Appraisal$265,000/$3,920,000........6.8%$315,000/$3,520,000........8.9%Internalfailure$300,800/$3,920,000........7.7%$225,100/$3,520,000........6.4%Externalfailure$114,500/$3,920,000........2.9%$129,200/$3,520,000........3.7%课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter16475若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn16–27.(15min.)Tradingoffcostsofquality:VedralIndustries.VEDRALINDUSTRIESCostofQualityReportYear1%Year2%Sales..............................................................$2,450,000$2,200,000Preventioncosts:Preventivemaintenance.............................135,00095,000Materialsinspection...................................65,00048,000Processinspection.....................................16,50018,800Qualitytraining...........................................198,000130,000Totalpreventioncosts....................................414,50016.9%291,80013.3%Appraisalcosts:Fieldtesting................................................94,000124,000Testingequipment......................................70,00070,000Totalappraisalcosts......................................164,0006.7194,0008.8Internalfailurecosts:Scrap..........................................................18,50019,300Rework.......................................................170,000185,000Totalinternalfailurecosts..............................188,5007.7204,3009.3Externalfailurecosts:Customercomplaints.................................28,00034,000Warrantyrepairs.........................................43,00048,000Totalexternalfailurecosts:...........................71,0002.982,0003.7TotalCostsofQuality....................................$838,00034.2%$772,10035.1%课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997476CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn16–28.(15min.)Tradingoffcostsofquality:OwenborroghCorp.OWENBORROGHCORPORATIONCostofQualityReportYear1%Year2%Sales.................................................................$1,960,000$1,760,000Prevention:Processinspection.........................................13,20015,000Preventivemaintenance................................108,00076,000Materialsinspection.......................................52,00038,000Qualitytraining...............................................158,000105,000Totalpreventioncosts.......................................331,20016.9%234,00013.3%Appraisal:Fieldtesting...................................................75,00099,000Testingequipment.........................................56,00056,000Totalappraisalcosts.........................................131,0006.7155,0008.8Internalfailure:Scrap.............................................................14,80015,500Rework..........................................................136,000148,000Totalinternalfailurecosts.................................150,8007.7163,5009.3Externalfailure:Warrantyrepairs............................................34,00038,000Customercomplaints.....................................22,50027,200Totalexternalfailurecosts................................56,5002.965,2003.7TotalCostsofQuality........................................$669,50034.2%$617,70035.1%课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter16477若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn16–29.(15min.)Trading-offcostsofquality:RamirezCorporation.RAMIREZCORPORATIONCostsofQualityReportYear1%Year2%Sales................................................................$3,920,000$3,520,000Prevention:Processinspection.......................................26,40030,000Qualitytraining.............................................305,000220,000Preventivemaintenance...............................220,000152,000Materialsinspection.....................................105,00075,000Totalpreventioncosts......................................656,40016.7%477,00013.6%Appraisal:Testingequipment........................................115,000115,000Fieldtesting..................................................150,000200,000Totalappraisalcosts........................................265,0006.8315,0008.9Internalfailure:Scrap............................................................28,80030,100Rework.........................................................272,000195,000Totalinternalfailurecosts................................300,8007.7225,1006.4Externalfailure:Warrantyrepairs...........................................70,00075,000Customercomplaints...................................44,50054,200Totalexternalfailurecosts...............................114,5002.9129,2003.7TotalCostsofQuality......................................$1,336,70034.1%$1,146,30032.6%课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997478CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn16–30.(20min.)Qualityversuscosts:CanadianSeltzers.NewMixAdditionalPresentRegulatorEmployeeCosts:Waste.....................$3,000$1,000$1,500Lostbusiness..........2,500500700Lease......................4,000Wages....................2,500Total...........................$5,500$5,500$4,700Canadianisindifferentbetweenmaintainingthestatusquoandleasingthenewmixregulator.Canadianwouldlikelyhireanadditionalemployeetomanuallymonitortheexistingregulatorsincethisapproachistheleastcostly.16–31.(20min.)Qualityversuscosts:HillmanIndustries.NewMixAdditionalPresentRegulatorEmployeeCosts:Waste.....................$5,000$1,500$2,500Lostbusiness..........3,5001,5001,500Lease......................3,500Wages....................3,000Total...........................$8,500$6,500$7,000Hillmanshouldleasethenewmixregulatorsincethisapproachistheleastcostly.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter16479若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn16–32.(20min.)Qualityversuscosts:CarlsonCorporation.NewAdditionalPresentWelderEmployeeCosts:Waste.....................$3,000$1,500$500Lostbusiness.........1,500500500Lease.....................3,500Wages....................3,000Total...........................$4,500$5,500$4,000Carlsonshouldhireanadditionalemployeesincethisapproachistheleastcostly.16–33.(10min.)Break-eventime:DallasOilCompany.InvestmentTimeperiodfromapprovalBreak-eventime=+Annualdiscountedcashflowtoprovidingproduct$300million=+3years$125million=2.4years+3years=5.4years课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997480CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn16–34.(10min.)Break-eventime:NuggetCompany.InvestmentTimeperiodfromapprovalBreak-eventime=+Annualdiscountedcashflowtoprovidingproduct$500,000=+2years$200,000=2.5years+2years=4.5years16–35.(10min.)Break-eventime:PeugeotCorporation.InvestmentTimeperiodfromapprovalBreak-eventime=+Annualdiscountedcashflowtoprovidingproduct$8million=+2years$1.5million=5.33years+2years=7.33years课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter16481若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems16–36.(90min.)Just-in-time.Answerswillvary.Companieswithcomputerizedinventorysystemsaremorelikelytologinanorderatthepointofsale.Studentsshouldnotassumearetailstoreusesjust-in-timeinaliteralsense,butshouldrecognizethedifferencebetweenkeepingastockofitemsthatarereplenishedascustomersorderthem(perpetualapproach)comparedtolookingatinventoryfromtimetotimetoseewhatneedstobeordered(thesupplycabinetapproach).16–37.(90min.)Totalqualitymanagement.Lookformanagementobservation,questionnaires,logsofcustomercomplaints,evaluationsbycompanyemployeesposingascustomersandmeasuresofrepeatbusiness.16–38.(90min.)Theoryofconstraints.Lookforquestionnaires,logsofcustomercomplaints,managementbywalkingaboutandmeasuresofrepeatbusiness.Recommendationsastohowtousecontrolcharts,Paretocharts,andcause-and-effectanalysiswillvary.16–39.(25min.)Break-eventime:DallasOilCompany.课后答案网Answerswillvary,buttheprimaryfocuswilllikelybeonreducingtheresearch,development,anddesigntimetogettheproducttothemarketassoonaspossible.Thiswww.hackshp.cnmightmeaninvestingmoreinyears1and2sotheproductcanbeintroducedinyear3.16–40.(25min.)Break-eventime:NuggetCompany.Answerswillvary,buttheprimaryfocuswilllikelybeonreducingtheresearch,development,anddesigntimetogettheproducttothemarketassoonaspossible.Thismightmeaninvestingmoreinyear1sotheproductcanbeintroducedinyear2.©TheMcGraw-HillCompanies,Inc.,1997482CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn16–41.(50min.)Qualitycontrol:NorskFerries.a.GallonsOOSUpperControlLimitO180OOSO170NSSONS160NOOSNN150SSNAverageOSN140NSNN130LowerControlLimitTrip12345678910S=SeaQuillN=NeptuneO=OrcasAnswersareinterpretational.However,somegeneralitiesmaybe:TheNeptuneappearstohaverandomvariationwithinthelimitsandshouldnotbeinvestigated.TheSeaQuillhasonefuelusageabovetheuppercontrollimit.Investigatingthecausewouldbeappropriate.TheOrcashasthreeoccurrencesoffuelusageabovethecontrollimit.Investigatingthecausewouldbeappropriate.b.Theadvantageofusingdollarfuelcostsisthatitfocusesonaprimaryconcernoftopmanagers(operatingcosts).Thedisadvantagesmayincludedifferentpeoplebeingresponsibleforusageandpurchasing,andthedifficultyinidentifyingthecauseofchangesincosts(pricepergallonand/orgallonspertrip).课后答案网16–42.(25min.)Break-eventime,workingbackward:TijuInstruments.www.hackshp.cna.Withamaximumbreak-eventimeoffouryearsthecashinvestmentwouldbe:Sales–Costs=CashInflow$5million–$3million=$2million$2millionx4years=$8millionmaximuminvestment.b.Tijumightmakesuchapolicybecauseoftheshortproductlifecycle.Rapidtechnologicalchangesmightmaketheproductobsoleteafterafouryearperiod.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter16483若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn16–43.(40min.)Qualityimprovement:BillingtonCorporation.a.$2increaseindirectmaterialscosts.b.PresentAlternative(Newmaterial)Difference(90,000units)(100,000units)Sales($50each)..............................$4,500,000$5,000,000$500,000(higher)Costs:Design...........................................220,000220,000Inspection......................................85,00085,000Manufacturing($35each)............3,150,0003,500,000350,000(higher)Scrap($35each)..........................350,0000350,000(lower)Newmaterial($2each)................0200,000200,000(higher)Operatingprofit.............................$695,000$995,000$300,000(higher)Thebenefitisthedifferencebetweenthepresentandthealternative$300,000(=$3,495,000–$3,195,000).c.Yes,Billingtonshouldspendtheadditional$200,000onnewmaterialsasthiswouldincreaseoperatingprofitsby$300,000.d.Billingtonshouldconsiderotherbenefitsofimprovingquality.ImprovedqualitywillenhanceBillington’sreputationwithcustomersandmakethecompanymorecompetitivewithitsindustrycounterparts.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997484CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter17PlanningandBudgetingSolutionstoReviewQuestions17–1.Moredetailappearsinthecurrentbudgetbecauseitiscloserintimethanthelonger-rangeforecasts.Thebudgetplanisablueprintforoperationsinthecomingperiod.Itmustbesufficientlydetailedsothatitprovidesadequatedirectiontothevariouspeopleresponsibleforoperations.17–2.Cashreceiptsanddisbursementsoftentakeplaceindifferenttimeperiodsfromwhenitemsarerecognizedintheincomestatementandbalancesheet.Thus,acompanyneedstoprepareacashbudgettoensurethatcashneedswillbemet.17–3.a.Econometricmethods;b.Delphitechnique;c.Estimatesfromsalespeopleandotherknowledgeablepersonnel;d.Trendanalysis;e.Marketresearch.17–4.Organizationgoalsarebroad-basedstatementsofpurpose.Strategicplanstakethebroad-basedstatementsandexpressthemintermsofdetailedstepsneededtoattainthosegoals.Budgetsaretheshort-termplansusedtoimplementthestepsincludedinthestrategicplans.课后答案网Forexample,acompanymayhaveagoalof"Becomingthenumber1companyintheindustry."Thestrategicplanswouldincludesuchstatementsas:"Increasesalesvolumeby20%peryear."Themasterbudgetwouldstatethenumberofunitsthatareneededtobeproducedandsoldinthecomingperiodtowww.hackshp.cnmeetthe20%volumeincreaseaswellastheproductionandmarketingcostsnecessarytoattainthatobjective.Themasterbudgetwouldalsoincludeestimatesofthelevelsofcash,accountsreceivable,inventories,andfixedassetsneededtosupportthebudgetedlevelofactivity.17–5.Sincemiddlemanagementhasbetterknowledgeaboutoperationsatlowerlevelsintheorganization,andsincebudgetsareusuallyusedtoevaluateperformanceorcomputebonusesformiddlemanagement,middlemanagementmayhaveatendencytounderestimaterevenuesandoverestimatecosts.Thisbiasarisesbecauseifthebiasedplansareadopted,middlemanagementwillfinditeasiertomeettargetsandtoachievebonusawards.Ofcourse,ifuppermanagementalways"tightens"thebudgetplanssuggestedbymiddlemanagement,gamingmayresult.Thedisadvantageofthisgamingisthattheplanningeffectivenessmaybereduced.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17485若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–6.Budgetingaidsincoordinationinanumberofways.Byrelatingsalesforecaststoproductionactivitiesitispossibletoreducethelikelihoodofoverorunderproduction.Itcoordinatesproductionsothatplantsmakingsubassembliesaremakingtheappropriatenumberattherighttimeasneededbytheplantmakingthefinalassemblies.Inaddition,thebudgetprocessisusedtomakecertainthatadequatecashisonhandtofinancecompanyactivitiesforthecomingperiod.Guidelinesaresetforadministrativeandsellingdepartmentssothattheircostsarecommensuratewiththecompany’sincomeandoutputgoals.17–7.Zero-basebudgetingrequiresthatallexpendituresbejustifiedasifthecompanyordivisionisnew.Mostotherbudgetingpracticesonlyrequirethatincrementalexpendituresbejustified.SolutionstoCriticalAnalysisandDiscussionQuestions17–8.Strategicplansarelong-runtargetsforacompany.Theyusuallyincludetargetedsales,productionandincomelevels.Theyareusuallyexpressedinveryhighlyaggregatedlevels.Thebudgetplanrepresentsnextyear’soperatingplan.Itisexpressedinagreaterlevelofdetailthanthestrategicplan.Eachoneyearbudgetplanmaybeviewedasastepinachievingthelong-runstrategicplansofthecompany.17–9.Aslongastheemployeesarewillingtohavealldirectioncomedownfromabove,theremaybenoproblemwiththisexecutive’sapproach.However,employeesthroughouttheorganizationgenerallyareperceivedtoprefersomeinputintoorganizationdecisions.Indeed,managersatlowerlevelsoftheorganizationusuallyhavemoretechnicalexpertiseabouttheirspecificorganizationsubunitthanthechiefexecutiveofficerhas.Therefore,inputsfromthelowerranksmayimproveorganizationoperationsbecauseplanswillbebasedonbetterinformation.Inaddition,employeeswillbemorelikelytosupportaplanthattheyhaveparticipatedinpreparing.17–10.Sinceinventorieswouldbeeliminated,thetimingofpurchaseswouldbeclosertothetimeofproduction.Thiswouldminimizethedifferencesbetweenthetimingofcashoutflowsformaterialspurchases,workinprocessandfinishedgoods,andthetimewhentherelatedcostsarerecognizedintheproductionbudget.课后答案网17–11.Behavioralstudiesindicatethatwhenthebudgetisanupperlimitonexpenditures,employeeswillhaveastrongincentivetocreatebudgetslack.Thus,inagovernmentalsetting,wewouldexpectastrongincentivetooverestimatecoststoprovideacushionforfutureexpenditures.www.hackshp.cn17–12.Firstthereisanincentiveformembersofvarioussubunitstooverestimatecostsinordertoachievebonusawards.Ofcourse,ifthetargetsaresetsotightthattheycannotbereasonablyachievedthentheremaybeaproblemfortheentireincentivesystem.Inaddition,theremaybeadisincentivetoincreasesalesifitmeansincreasingcosts.©TheMcGraw-HillCompanies,Inc.,1997486CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–13.Frequentlymanagerswillwaituntilneartheendofthebudgetperiodtomakediscretionaryexpenditures.Sometimesmanagerswilluse"excess"fundsfromoneperiodtostockuponsuppliesandotheritemsthatwouldnormallybeapartofthenextbudgetperiod’scosts.(Managershaveincentivestospendthemoneyrequestedtomaintainthecredibilityoftheirrequests.)Theseactivitiesaresometimesconsidereddetrimentaltotheorganizationbecausetheyresultinawasteofresourcesandimpropertimingofexpenditures.Nonetheless,inmanysituationsthecostofcontrollingthesepotentiallyadverseactivitiesexceedsthebenefits.17–14.Thebudgetedincomestatementwouldnormallybemoreusefultomanagementtoplanandcontroloperationsandtocoordinatevariousactivities,suchaspurchasingandplanningproductionlevels.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17487若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises17–15.(15min.)Estimatesalesrevenues:Orcutt&Daughter..85=marketvolumeinthecomingyear(asapercentoflastyear).90=numberoftradesinthecomingyear(asapercentoflastyear)1.20=averagecommissionpertradeinthecomingyear(asapercentoflastyear)60,000tradesx$220pertradex.85x.90x1.20=$12,117,60017–16.(15min.)Estimatesalesrevenues:JacksonCityBank.PortfolioInterestAmountRateIncomeCommercialloans.................$19million11%$2,090,000Consumerloans....................17million162,720,000Securities..............................5million8400,000Total...............................$5,210,00017–17.(15min.)Estimatesalesrevenues:ReiserCo.225,000unitsMarketsizelastyear==1,125,000units.2Marketsizenextyear=1.05x1,125,000units课后答案网=1,181,250unitsCompanyshare=24%x1,181,250units=283,500unitswww.hackshp.cnSalesrevenue=283,500unitsx$2.10perunit=$595,350©TheMcGraw-HillCompanies,Inc.,1997488CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–18.(15min.)Estimateproductionlevels:CordeliasCorporation.CordeliasCorporationProductionBudgetFortheYearEndedDecember31(inunits)ExpectedSales...............................................................960,000unitsAdd:Desiredendinginventoryoffinishedgoods2months(12monthsx960,000)160,000Totalneeds.....................................................................1,120,000Less:Beginninginventoryoffinishedgoods...................52,000Unitstobeproduced.......................................................1,068,000unitsAlternativemethod:BB+P=Sales+EB252,000+P=960,000+()(960,000)12P=960,000+160,000–52,000=1,068,000units课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17489若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–19.(25min.)Estimateproductionandmaterialsrequirements:Visions,Inc.Visions,Inc.ProductionBudgetFortheYearEndedDecember31(inunits)ExpectedSales....................................................................................320,000unitsAdd:Desiredendinginventoryoffinishedgoods.................................40,000Totalneeds..........................................................................................360,000Less:Beginninginventoryoffinishedgoods........................................80,000Unitstobeproduced............................................................................280,000unitsVisions,Inc.DirectMaterialsRequirementsFortheYearEndedDecember31(inunits)Unitstobeproduced............................................................................280,000Directmaterialsneededperunit..........................................................5feetTotalproductionneeds(amountperunittimes280,000units)...........1,400,000feetAdd:Desiredendinginventory3months(12monthsx320,000x5)400,000Totaldirectmaterialsneeds.................................................................1,800,000Less:Beginninginventoryofmaterials................................................200,000Directmaterialstobepurchased.........................................................1,600,000feetAlternativeMethodProduction(assumesfinishedgoodsininventoryreducedto40,000unitsattheendof课后答案网thisyear):BB+P=Sales+EBwww.hackshp.cn80,000+P=320,000+40,000P=280,000unitsMaterialsRequirements:BB+P=Usage+EB3200,000+P=(5)(280,000)+(12)(320,000)(5ft)P=1,400,000+400,000–200,000=1,600,000ft.©TheMcGraw-HillCompanies,Inc.,1997490CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–20.(25min.)Estimatepurchasesandcashdisbursements:LazarusCompany.a.LazarusCompanyMerchandisePurchasesBudgetForthePeriodEndedAugust31(inunits)JuneJulyAugustEstimatedsales..............................................6,2008,9006,600Add:Estimatedsalesinventory......................15,50013,70011,900Totalmerchandiseneeds...........................21,70022,60018,500Less:Beginninginventory..............................14,00015,50013,700Merchandisetobepurchased.......................7,7007,1004,800Estimatedcostperunit..................................$.70$.70$.70Totalestimatedcostofmerchandise.............$5,390$4,970$3,360Alternativemethod:Junepurchases:P=Sales+EB–BB=6,200+(8,900+6,600)–14,000=7,700unitsJulypurchases=7,100=SeptemberproductionrequirementsAugustpurchases=4,800=Octoberproductionrequirements.b.Cashrequired:June:$5,390=7,700x$.70July:$4,970=7,100x$.70August:$3,360=4,800x$.70课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17491若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–21.(25min.)Estimatepurchasesandcashdisbursements:OleanderProducts.a.OleanderProductsMerchandisePurchaseBudgetForthePeriodEndedMay31(inunits)FebruaryMarchEstimatedsales......................................8,6007,000Add:Estimatedendinginventory............7,0007,400Totalmerchandiseneeds.......................15,60014,400Less:Beginninginventory......................8,0007,000Merchandisetobepurchased................7,6007,400Alternativemethod:Purchasesareasfollows:February:BB+P=Sales+EB8,000+P=8,600+7,000=15,600–8,000=7,600=FebruarypurchasesMarch:7,000+P=7,000+7,400P=(7,000–7,000)+7,400P=7,400=Marchpurchases=Aprilsalesb.Paymentsforthesepurchasesaremadeasfollows:MonthofDeliveryMonthofPaymentTotalJanuaryFebruaryMarchFebruary...................$2,492,400课后答案网$1,160,000a$1,322,400bMarch.......................2,169,200881,600c$1,287,600da$1,160,000=40%x$290x10,000units.www.hackshp.cnb$1,322,400=60%x$290x7,600units.c$881,600=40%x$290x7,600units.d$1,287,600=60%x$290x7,400units.©TheMcGraw-HillCompanies,Inc.,1997492CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–22.(15min.)Estimatecashdisbursements:WalshCompany.WalshCompanyScheduleofCashDisbursementsForthePeriodEndedMay31MonthMayBeginningaccountsreceivable,April1.........$10,000Aprilsales......................................................55,000Maypurchases..............................................154,000aTotalcashdisbursements.............................$219,000a$154,000=$220,000´70%17–23.(15min.)Estimatecashcollections:47thStreetCompany.Thecorrectansweris(4):$342,00047thStreetCompanyScheduleofCashCollectionsFortheMonthEndedJuly31MonthJulyBeginningaccountsreceivable,June1.............$32,000Junesales.........................................................$210,000aJulysales..........................................................100,000bTotalcashcollections........................................$342,000课后答案网a$210,000=$300,000x70%b$100,000=$400,000x25%www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17493若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–24.(20min.)Estimatecashcollections:KingstonsProducts.Thecorrectansweris(3):$89,650.KingstonsProductsScheduleofCashCollectionsFortheMonthEndedSeptember30MonthSeptemberJunesales...........................................$2,850aJulysales............................................4,800bAugustsales.......................................54,000cSeptembersales.................................28,000dTotalcashcollections.........................$89,650a$2,850=$95,000x3%b$4,800=$80,000x6%c$54,000=$90,000x60%d$28,000=$100,000x28%课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997494CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–25.(30min.)Estimatecashreceipts:BrideToBe.a.Revenuesareasfollows:January$16,000=5weddingsx$3,200February$9,600=3weddingsx$3,200March$6,400=2weddingsx$3,200April$12,800=4weddingsx$3,200May$16,000=5weddingsx$3,200June$35,200=11weddingsx$3,200b.Cashreceiptsareasfollows:BridetoBeMultiperiodScheduleofCashReceiptsTotalCashCashReceiptsinMonthof:ReceiptsforJanuaryFebruaryMarchAprilPeriodJanuarysales.................$4,800a$4,800Februarysales...............4,800b$2,8807,680Marchsales...................1,280c3,200$1,9206,400Aprilsales......................2,5606,400$3,84012,800Maysales.......................3,2008,00011,200Junesales......................7,0407,040Totalcashcollections$10,880$8,640$11,520$18,880$49,920a$4,800=16,000x30%b$4,800=$9,600x50%c$1,280=$6,400x20%课后答案网Thispatternisrepeatedforsubsequentmonths.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17495若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–26.(30min.)Estimatecashreceipts:WaterWorks.a.Revenuesareasfollows:March$2,500=.5callsx100subscribersx$50April6,000=1.0callx120subscribersx$50May23,400=1.8callsx260subscribersx$50June33,000=2.2callsx300subscribersx$50July30,000=2.0callsx300subscribersx$50August23,800=1.7callsx280subscribersx$50Collectionsoftheserevenuesareexpectedaccordingtothefollowingschedule:WaterWorksMultiperiodScheduleofCashReceiptsTotalCashCashReceiptsinMonthof:ReceiptsMayJuneJulyAugustforPeriodMarchsales.......................$450a$450Aprilsales..........................3,600b$1,0804,680Maysales..........................4,680c14,040$4,21222,936Junesales.........................6,60019,800$5,94032,340Julysales...........................6,00018,00024,000Augustsales......................4,7604,760Totalcashcollections.....$8,730$21,720$30,012$28,700$89,162a$450=18%x$2,500b$3,600=60%x$6,000c$4,680=20%x$23,400课后答案网Thispatternisrepeatedforsubsequentmonths.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997496CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–27.Preparebudgetedfinancialstatements:WaterWorks.WaterWorksBudgetedIncomeStatementFortheMonthofSeptemberCalculationsRevenues......................................................$17,136(90%x280)x(80%x1.7)x$50Lessmanufacturingcosts:Variablecosts............................................3,398(.72ax$4,720)Maintenanceandrepair.............................4,242(1.01x$4,200)Depreciation..............................................2,200(nochange)Totalmanufacturingcosts.............................9,840Marketingandadministrative:Marketing(variable)..................................1,800(.72ax$2,500)Administrative(fixed)................................2,416(1.05x$2,300)Totalmarketingandadministrativecosts......4,216Totalcosts.....................................................$14,056Operatingprofit.............................................$3,080aRatioofSeptembertoAugustvolume:September:(90%x280)x(80%x1.7)=342.72August:280x1.7=476Ratio=.72=342.72/476orRatio=.80x.90=.72课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17497若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–28.Preparebudgetedfinancialstatements:Hampton,Inc.Hampton,Inc.BudgetedIncomeStatementFortheYear,Year2CalculationsRevenues(120units@$225/unit)......................$27,000($25,000x1.20x.90)LessManufacturingcosts:Variable.........................................................4,499($3,640x1.20x1.03)Depreciation(fixed)......................................1,325(unchanged)Totalmanufacturingcosts.....................................5,824Grossprofitmargin...............................................21,176Less:MarketingandAdministrativeFixedcosts(cash)........................................4,829($4,390x1.10)Depreciation(fixed)......................................675(unchanged)Totalmarketingandadministrativecosts.............$5,504Operatingprofits...................................................$15,672课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997498CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–29.(20min.)EthicsandBudgeting:ElDoradoCompany.a.Theirmethodsareahedgeagainsttheuncertain,butmoreimportantlyitisamethodofallowingemployeestoexceedexpectations.Byartificiallyreducingsales,andincreasingcosts,onecansurelyexcelwhencomparedtothebudget.Thiscanbepersonallyrewardingifreviews,promotions,bonuses,etc.arebasedonactualversusbudgetedperformance.b.Theuseofabudgettomotivateemployeestotopperformanceislimitedifsalesfiguresarelowerandcostsarehigherthanexpected.BarryandMariawilllosecredibilityintheeyesofuppermanagementiftheycontinuouslypresentpoorbudgets.Furthermore,managementmayusethesebudgetsforimportantdecisionssuchasdeterminingstaffinglevelsortheprofitabilityofproductsorproductlines.Submittingabudgetwithlowersalesandhighercosts(reducedcontributionmargins)couldhaveadverseeffectsoncontinuedemployment.c.MariaandBarryhaveanethicalresponsibilitytopreparereportsusingrelevantandreliableinformation.Clearlytheyarenotdoingthis.Thebudgetstheyaresubmittingwerenotpreparedobjectively.ThereisalsoaquestionofintegritysinceMariaandBarryhopetobenefitfromtheuseofbudgetaryslack.Bysubmittingerroneousbudgetstheyaresubvertingthelegitimategoalsofthecompany.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17499若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems17–30.(30min.)Preparebudgetedfinancialstatements:ParkerProducts.ParkerProductsBudgetedIncomeStatementForYear2CalculationsRevenues..........................................................$812,725a$725,000x1.18x.95Manufacturingcosts:Materials........................................................45,595$42,000x.92x1.18Othervariablecosts......................................41,168$35,600x.98x1.18Fixedcashcosts...........................................85,995$81,900x1.05Depreciation(fixed)......................................249,750unchangedTotalmanufacturingcosts.................................422,508Marketingandadministrativecosts:Marketing(variable,cash)............................124,608$105,600x1.18Marketingdepreciation..................................37,400unchangedAdministrative(fixed,cash)..........................140,030$127,300x1.10Administrativedepreciation...........................18,700unchangedTotalmarketingandadministrativecosts.........320,738Totalcosts........................................................743,246Operatingprofits...............................................$69,479a$812,725=118,000unitsx(.95x$7.25perunit)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997500CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–31.(10min.)Estimatecashreceipts:ParkerProducts.ParkerProductsCashBasisBudgetedIncomeStatementForYear2Revenues.........................................................$812,725Manufacturingcosts:Materials.......................................................45,595Othervariablecosts......................................41,168Fixedcashcosts...........................................85,995Totalmanufacturingcosts................................172,758Marketingandadministrativecosts:Marketing(variable,cash)...........................124,608Administrative(fixed,cash)..........................140,030Totalmarketingandadministrativecosts.........264,638Totalcosts........................................................437,396Operatingprofits...............................................$375,329Cashfromoperationswouldequalrevenueslesscashcosts,whichexcludesdepreciation.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17501若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–32.(30min.)Preparebudgetedfinancialstatements:QuinnElectronics.QuinnElectronicsBudgetedIncomeStatementForYearEndedXXXCalculationsRevenues..........................................................$885,651$746,000x1.12x1.06Manufacturingcosts:Materials........................................................163,856$133,000x1.12x1.10Variablecashcosts.......................................194,504$180,900x1.12x.96Fixedcashcosts...........................................66,960$72,000x.93Depreciation(fixed)......................................93,300$89,000–$9,700+$14,000Totalmanufacturingcosts.................................$518,620Marketingandadministrativecosts:Marketing(variable,cash)............................106,400$95,000x1.12Marketingdepreciation..................................22,600unchangedAdministrative(fixed,cash)..........................97,319$90,110x1.08Administrativedepreciation...........................8,400unchangedTotalmarketingandadministrativecosts.........234,719Totalcosts........................................................753,339Operatingprofits...............................................$132,312课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997502CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–33.(10min.)Estimatecashreceipts:QuinnElectronics.QuinnElectronicsCashBasisBudgetedIncomeStatementFortheYearEndedXXXRevenues...........................................................$885,651Manufacturingcosts:Materials.........................................................163,856Variablecashcosts.........................................194,504Fixedcashcosts.............................................66,960Totalmanufacturingcosts..................................425,320Marketingandadministrativecosts:Marketing(variable,cash).............................106,400Administrative(fixed,cash)............................97,319Totalmarketingandadministrativecosts...........203,719Totalcosts..........................................................629,039Operatingprofits.................................................$256,612Cashfromoperationswouldequalrevenueslesscashcosts,whichexcludesdepreciation.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17503若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–34.(25min.)Prepareaproductionbudget:Sevi,Inc.Sevi,Inc.ProductionBudgetFortheYearEndedDecember31(inunits)ExpectedSales............................................................18,000unitsAdd:Desiredendinginventoryoffinishedgoods.........7,000Totalneeds..................................................................25,000Less:Beginninginventoryoffinishedgoods................4,000Unitstobeproduced....................................................21,000unitsAlternativemethod:First,computetheestimatedproduction:P=Sales+EB–BBP=Sales+(7,000–4,000)=18,000+3,000=21,000unitsNextestimatethecosts:DirectmaterialsZ-Astyrene21,000x1lb.x$.40.......................$8,400Vasafinish21,000x2lbs.x$.80x1.10............36,960Totaldirectmaterials..........................................$45,360Directlabor:21,000x1/4hr.x$8.60.....................................$45,150Overhead:Indirectlabor............................21,000x$.12......课后答案网2,520Indirectmaterials......................21,000x$.03......630Power.......................................21,000x$.07......www.hackshp.cn1,470Equipmentcosts.......................20,000x$.36......7,200Buildingoccupancy..................20,000x$.19......3,800Totaloverhead...................................................$15,620Totalbudgetedmanufacturingcosts.....................$106,130©TheMcGraw-HillCompanies,Inc.,1997504CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–35.(25min.)Salesexpensebudget:GeminiCorporation.BudgetedItemJanuaryAdjustmentsTypicalMonthSalescommissions............$135,000x1.05x1.10=$155,925Salesstaffsalaries............32,000x1.04=33,280Telephone&mailing.........16,200x1.08x1.05=18,371Buildingleasepayment.....20,000none=20,000Heat,light&water.............4,100x1.12=4,592Packaging&delivery.........27,400x1.05=28,770Depreciation......................12,500+($1,900x1/10)=12,690Marketingconsultants.......–0–x$35,000=35,000Totalbudgetedcosts.....$308,628课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17505若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–36.(30min.)Budgetedpurchasesandcashflows–multiplechoice:WarnerCorporation.a.Thecorrectansweris(3)$225,000BB+TI=TO+EB(130%x11,900)+TI=11,900+(130%x11,400)15,470+TI=11,900+14,820TI=11,900+14,820–15,470=11,250units11,250x$20=$225,000b.Thecorrectansweris(2)$243,600BB+TI=TO+EB(130%x11,400)+TI=11,400+(130%x12,000)14,820+TI=11,400+15,600TI=11,400+15,600–14,820=12,180units12,180x$20=$243,600c.Thecorrectansweris(4)$333,87660%x$363,000x97%=$211,26625%x$363,000=90,7509%x$354,000=31,860$333,876课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997506CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–36.(continued)d.Thecorrectansweris(1)$285,379MaypurchasespaidinJune:$225,000*x46%=$103,500MaysellinggeneralandadministrativeexpensespaidinJune:[($357,000x15%)–$2,000]x46%=$23,713JunepurchasespaidinJune:$243,600**x54%=$131,544Juneselling,generalandadministrativeexpensespaidinJune:[($342,000x15%)–$2,000]x54%=$26,622$103,500+$23,713+$131,544+$26,622=$285,379*Fromparta.ofthisproblem**Frompartb.ofthisprobleme.Thecorrectansweris(3)12,260BB+TI=TO+EB(130%x12,000)+TI=12,000+(130%x12,200)TI=12,000+15,860–15,600=12,260units课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17507若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–37.(40min.)Comprehensivebudgetplan:Tipless,Inc.*a.(1)Tipless,Inc.ScheduleComputingProductionBudget(Units)ForOctober,November,andDecember19X0OctoberNovemberDecemberBudgetedSales—Units........................................120,00090,000120,000InventoryRequiredatEndofMontha...................18,00024,00024,000TotaltoBeAccountedfor.....................................138,000114,000144,000LessInventoryonHandatBeginningofMonth....24,00018,00024,000BudgetedProduction—Units................................114,00096,000120,000aOctober:90,000x.2=18,000November:120,000x.2=24,000December:120,000x.2=24,000(2)ScheduleComputingRawMaterialsInventoryPurchaseBudget(Pounds)ForOctoberandNovember19X0OctoberNovemberBudgetedProduction—Pounds(1/2lb.perUnit)a...........57,00048,000InventoryRequiredatEndofMonthb...............................19,20024,000TotaltoBeAccountedfor.................................................76,20072,000LessInventoryonHandatBeginningofMonth...............22,80040,800cBalanceRequiredbyPurchase........................................53,400课后答案网31,200BudgetedPurchases—Pounds(BasedonMinimumShipmentsof25,000lbs.Each).....75,00050,000www.hackshp.cnaOctober:114,000x.5=57,000November:96,000x.5=48,000bOctober:96,000x.4x.5=19,200November:120,000x.4x.5=24,000c22,800+75,000–57,000=40,800*CPAadapted.©TheMcGraw-HillCompanies,Inc.,1997508CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–37.(continued)b.Tipless,Inc.ProjectedIncomeStatementFortheMonthofNovember19X0Sales(90,000Unitsat$2)...............................................................$180,000Less:CashdiscountsonSales.........................................................$1,800EstimatedBadDebts(1/2PercentofGrossSales)..............9002,700NetSales..........................................................................................$177,300CostofSales:$110,000VariableCostperUnit(=x90,000Units)....................$99,000100,000FixedCost....................................................................................10,000109,000GrossProfitonSales.......................................................................$68,300Expenses:Selling(10PercentofGrossSales).............................................$18,000Administrative($33,000perMonth)............................................33,000InterestExpense(.01x$100,000)..............................................1,00052,000OperatingProfit................................................................................$16,300课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17509若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–38.(60min.)Comprehensivebudgetplan:EagleCorporation.*EagleCorporationBudgetedIncomeStatement(inthousands)ActualBudgetedFortheYearEndedFortheYearEndedDecember31,December31,(LastYear)(ThisYear)Revenue:Sales..................................................$450,000$600,000Otherincome.....................................15,0009,000TotalRevenue................................$465,000$609,000Expenses:CostofGoodsManufacturedandSold:Materials............................................132,000213,000DirectLabor...................................135,000218,000VariableOverhead.........................81,000130,000FixedOverhead.............................12,00012,750360,000573,750BeginningInventory.......................48,00048,000408,000621,750EndingInventory............................48,000360,000114,750507,000Marketing:Salaries..............................................13,50016,000Commissions.....................................15,00020,000PromotionsandAdvertising...............31,50060,00045,00081,000Administrative:课后答案网Salaries..............................................14,00016,000Travel.................................................www.hackshp.cn2,0002,500OfficeCosts.......................................8,00024,0009,00027,500IncomeTaxes(credit)..........................8,400(2,600)TotalExpenses..................................452,400612,900OperatingProfit(Loss).............................$12,600$(3,900)*CMAadaptedNote:ActualforDecember31,LastYearnotrequiredbutincludedforcomparison.©TheMcGraw-HillCompanies,Inc.,1997510CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–38.(continued)EagleCorporationBudgetedBalanceSheet(inthousands)BudgetedDecember31,ThisYearCash..............................................................$1,200AccountsReceivable.....................................80,000Inventory........................................................114,750aIncomeTaxReceivable.................................2,600bTotalCurrentAssets..................................$198,550PlantandEquipment.........................................130,000Less:AccumulatedDepreciation...................41,00089,000TotalAssets...............................................$287,550CurrentLiabilitiesAccountsPayable..........................................$45,000AccruedPayable............................................23,250NotesPayable...............................................50,000TotalCurrentLiabilities..............................$118,250Shareholders’EquityCommonStock..............................................70,000RetainedEarnings.........................................99,300TotalShareholders’Equity.........................169,300TotalLiabilitiesandShareholders’Equity..$287,550Additionalcomputations:aInventory课后答案网Units:$360,000,000Beginninginventory$48,000¸=40,000unitswww.hackshp.cn300,000,000Addedtoinventory450,000–400,000=50,000unitsEndinginventory90,000unitsCost:Manufacturingcosts..........................................$573,750Unitsmanufactured...........................................450,000Costperunit($573,750¸450,000)..................$1.275Endingunits.......................................................90,000Costofendinginventory....................................$114,750Note:Footnotebappearsonthenextpage.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17511若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–38.(continued)bIncometax:Sales&otherincome.................................$609,000Costofgoodssold......................................$507,000Sellingexpense..........................................81,000General&administrativeexpense..............27,500Totalcost................................................$615,500Taxloss......................................................$(6,500)Taxrate......................................................40%Taxreceivable............................................$2,600课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997512CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoIntegrativeCases17–39.(40min.)Preparecashbudgetforserviceorganization:Triple-FHealthClub.Theincomestatementisonacashbasis,hencewestartwithabudgetedincomestatement.a.Triple-FHealthClubBudgetedStatementofIncome(CashBasis)FortheYearEndedOctober31,19X8CashrevenueAnnualmembershipfees$355,000x1.1x1.03...............................................$402,215234Lessonandclassfees(180x$234,000)..................................................304,2002.0Miscellaneous(1.5x$2,000)......................................................2,667Totalcashreceived........................................................................................$709,082CashcostsManager’ssalaryandbenefits($36,000x1.15)...............................................$41,400Regularemployees’wagesandbenefits($190,000x1.15)..............................218,500Lessonandclassemployeewagesandbenefits...............................................291,525Towelsandsupplies($16,000x1.25)...............................................................20,000Utilities(heatandlight)($22,000x1.25)...........................................................27,500Mortgageinterest($360,000x.09)a...................................................................32,400Miscellaneous($2,000x1.25)...........................................................................2,500Totalcashexpenses.......................................................................................$633,825Cashincome..........................................................................................................$75,257AdditionalCashFlowsCashpayments:课后答案网Mortgagepayment..............................................................................................$30,000Accountspayablebalanceat10/31/19X7..........................................................www.hackshp.cn2,500Accountspayableonequipmentat10/31/19X7.................................................15,000Plannednewequipmentpurchase.....................................................................25,000Totalcashpayments.......................................................................................72,500Cashinflowsfromincomestatement.....................................................................75,257Beginningcashbalance.........................................................................................7,300Cashavailableforworkingcapitalandtoacquireproperty....................................$10,057aOnNovember1,19X7,theunpaidbalanceafterannualpaymentis$360,000,computedasfollows:Balancesafterthe$30,000annualpaymentNovember1,19X4=$450,000;November1,19X5=$420,000;November1,19X6=$390,000;November1,19X7=$360,000.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17513若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–39.(continued)b.OperatingproblemswhichTriple-FHealthClubcouldexperiencein19X8include:·Thelessonsandclassescontributiontocashdecreasedbecausetheprojectedwageincreaseforlessonandclassemployeesisnotmadeupbytheincreasedvolumeoflessonsandclasses.·Operatingcostsareincreasingfasterthanrevenuesfrommembershipfees.·Triple-Fseemstohaveacashmanagementproblem.Althoughthereappearstobeenoughcashgeneratedfortheclubtomeetitsobligations,therearepastdueamountsonequipmentandregularaccounts.Perhapsthecashbalancemaynotbelargeenoughfordaytodayoperatingpurposes.c.Themanager’sconcernwithregardtotheBoard’sexpansiongoalsarejustified.The19X8budgetprojectionsshowonlyaminimalincreaseinthecashbalance.Thetotalcashavailableiswellshortofthecashneededforthelandpurchaseoverandabovetheclub’sworkingcapitalneeds.However,itappearsthatthenewequipmentpurchasescanbemadeonanannualbasis.IftheBoarddesirestopurchasetheadjoiningproperty,itisgoingtohavetoconsidersignificantincreasesinfeesorothermethodsoffinancingsuchasmembershipbonds,oradditionalmortgagedebt.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997514CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–40.RiverBeveragesCase.Note:Itisimportanttounderstandtheregionalstructureoftheorganization(Illustration17.40A)aswellastheproductionplantstructureforthecompany’sNonCarbonatedDrinkplantinSt.Louis(Illustration17.40B).Instructorsmaywanttopresentanoverviewofthiscasebeforeassigningittostudents.a.Salesprojectionsaremadeatthreelevels:•Divisionmanagerssubmitareporttothevicepresidentfortheregionthatincludesforecastsforcapital,sales,andincome.Thisreportisusedforstrategicplanningpurposes.•Thestrategicresearchteamdevelopssalesforecastsforeachdivisionwhileconsideringeconomicconditionsandcurrentmarketshareforeachregion.Thestrategicresearchteamreportsdirectlytothevicepresidentofeachregion(seeIllustration17.40A).Thisteamisabletomoreaccuratelyintegratedivisionproductsandassessdemandforcomplementaryproductsthantheindividualdivisionmanagers.•Oncethecorporateforecastiscompleted(usingtheinformationfromdivisionmanagersandthestrategicresearchteam),districtsalesmanagersestimatesalesfortheirdistrict.Thedistrictsalesmanagersreporttothedivisionsalesmanagersforeachdivision(seeIllustration17.40B).However,thedistrictsalesmanagersreturntheirforecaststothedivisionmanagersratherthantothedivisionsalesmanager.Thestrategicresearchteamanddivisioncontrollerreviewtheforecastspriortosendingtheforecastsontotopmanagement(probablytocheckforreasonableness—thestrategicresearchteamandcontrollerlikelyknowmoreaboutthedivision’smarketthantopmanagement).Afterthesalesbudgetisapprovedbytopmanagement,itisseparatedintoasalesbudgetforeachplant.Sincethesalesbudgetisalreadyestablished,plantmanagersareresponsibleforestablishingthebudgetforcostsandprofitgivenspecific课后答案网predeterminedsalesprojections.Theplantbudgetsareestablishedasfollows:•Eachdepartmentwithintheplantisrequiredtodevelopcoststandardsandcostreductiontargets.(Thedepartmentpersonnelwilllikelyknowmoreaboutthesewww.hackshp.cncoststhanuppermanagement.Thus,itisreasonabletohavethembeinvolvedintheprocess.)•Amemberofthestrategyteamandcontrollerreviewthebudgetprocesswiththeplantmanagertomakesurethebudgetisreasonable.•FinalbudgetsaresubmittedbyApril1.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter17515若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn17–40.(continued)ThefinalbudgetsarefinetunedbythevicepresidentsandCEOandsubmittedtotheboardofdirectorsforapprovalinearlyJune.(ThevicepresidentsandCEOmustbeabletojustifythebudgetstotheboard,andthus,reviewitandmakeanynecessarychangesbeforesubmittingit.)b.Thequestionis“shouldtheplantsbetreatedasprofitcenters(responsibleforsalesandcosts),orascostcenters(responsibleonlyforcosts)?”Theplantmanagershaveverylittlecontrol(ifany)oversalesprojections.AsshowninIllustration17.40B,thedivisionanddistrictsalesmanagersreportseparatelytothedivisionmanager,anddonotdiscussthesalesbudgetwiththeplantmanagers.Itisverydifficulttomakeacasethatplantmanagersshouldberesponsibleforsales.However,plantmanagersareresponsibleforcontrollingcostsandaredirectlyinvolvedinestablishingbudgetedcosts.Thus,itisreasonabletotreattheplantasacostcenterandholdplantmanagersresponsibleforcosts.Ifmanagementwantstocontinuetreatingtheplantasaprofitcenter,plantmanagersshouldbeinvolvedinthesalesbudgetingprocess.c.Theprimaryquestionis“whatbehavioristopmanagementtryingtopromotewiththebudgetingprocess?”Ingeneral,RiverBeverages’managementwantsitsemployeestomaximizeproductionefficiency(thusminimizingproductioncosts),andmaximizeprofits.Answersconcerningtheadvantagesanddisadvantagesofthebudgetprocesswillvary.Oneexamplefollows:•Plantmanagersareheldresponsibleforsalesandcostseventhoughtheyonlyhavecontrolovercosts.Salesdepartmentscancutpricesorofferpromotionalcampaignsthatnegativelyaffectaplantmanager’sprofit.Inthisexample,itisnotadvantageoustoassignresponsibilityforsalestoplantmanagerswithoutcontrol课后答案网overpricingandpromotionaldecisions.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997516CostAccounting,4/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter18FlexibleBudgetingandPerformanceEvaluationSolutionstoReviewQuestions18–1.Aresponsibilitycenterisasubunitofanorganizationthathascontrolovercertaincostsand/orrevenues.Theaccountingsystemisdesignedtorelatecontrollablecostsandrevenuestotheappropriateresponsibilitycenter.18–2.Someresponsibilitycentersareresponsibleonlyforcosts.Theassemblyunitofamanufacturingplantwouldbeagoodexample.Ontheotherhand,someresponsibilitycenters,suchassalesoffices,areresponsibleforrevenues.Otherresponsibilitycenterssuchascorporatedivisionsareresponsibleforbothrevenuesandcosts.Finally,someresponsibilitycentersareresponsibleforrevenues,costs,andinvestmentincompanyassets.Thechiefexecutiveofficeristheprimeexampleofthis.Thedesignationofresponsibilitycentersdependsonthespecificorganizationalstructureandmanagementsystemintheorganization.18–3.Forperformanceevaluationpurposes,thecostingformatshouldidentifytheactualcostsforcomparisonwithexpectedcostsduringtherelevantperiod.Underabsorptioncosting,themanufacturingfixedcostsareallocatedonaperunitbasis.Anincreaseinproductionresultsinalowerperunitcost.Ifalloftheproductionissold,allofthefixedcostwillbechargedagainstprofit.However,ifsomeofthecostsareassignedtoinventory,theresultcanbeadeferralofcoststhatshouldbeevaluatedatthistime.Thisproblemishighlightedbythesuggestionthatonecanincreaseproductionintimesofdecliningsalesinorderto“helpthebottomlinebyspreadingfixedcostsovermoreunits.”18–4.课后答案网Variablecostsandrevenues“flex”withchangesinactivity.Fixedcostsareexpectedtoremainthesamewhenoperationsareintherelevantrange.www.hackshp.cn18–5.Standardcostingestablishesstandardcosts—anticipatedcostsofproducingand/orsellingaunitofoutput,typicallybasedonhistoricaldataadjustedforcurrenttrends.Targetcostingisasystematicapproachtoestablishingproductcostgoalsbasedonmarket-drivenfactors.Targetcostingbeginswiththecustomerand“backsin”tothetargetcostbasedonthetargetsalespriceminusthetargetmargin(setbymanagement).18–6.Flexiblebudget—multiplechoicequestion.(d)Masterbudgetisbasedonapredictedlevelofactivityandaflexiblebudgetisbasedontheactuallevelofactivity.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter18517若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–7.Flexiblebudget—multiplechoicequestion.(d)Appropriateforanylevelofactivity.SolutionstoCriticalAnalysisandDiscussionQuestions18–8.Responsibilityisusuallyexpressedintermsofstandardsforunitsofoutput.Thatis,anassemblylineworkerisexpectedtoassembleagivennumberofunitsperhour,dayorweek.Acollegeinstructorisexpectedtoteachagivennumberofcoursesandstudents.Hence,theseworkersdonotavoidresponsibility,buttheirresponsibilityismeasureddifferently.18–9.Governmentsystemsareusuallynotabletorespondtochangesinactivitylevels.Forexample,anunemploymentcommissionisusuallystrappedforworkerswhentheunemploymentraterises.Bythetimetheneedsarepresentedtolegislatorsandtheneedsaremetthroughincreasedfunding,theunemploymentratemaywellhavedecreasedleadingtoover-fundinginasubsequentperiod.Inpartthisproblemisduetotheelaboratecontrolsthathavebeeninstitutedovergovernmentalunits.18–10.Preparationoftheexpostbudgetallowsmanagementtocompareactualresultswiththebudgetthatwouldhavebeeninstitutedifcertainexanteunknownswereknown.Themostsignificantoftheseis,typically,volumeofactivity.Bycontrollingforthedifferencebetweenexanteexpectationsandtheexpostvolumes,comparisonsbetweenactualresultsandplanscanbemoremeaningful.Thecontrollablefactors(i.e.,costsperunit,efficiency,salesprices)canbeisolatedandevaluated.18–11.Theperformancemeasurementsystemshouldnotchangewiththedifferencesinfinancialreportingmethods.Forperformanceevaluationandcontrol,theimportantfactoriscostsincurred,nottheaccountingtreatmentofthosecosts.18–12.ThemanagementatMiniScribewastryingtocreatetheillusionofmoresalesthantherereallywere.Invoicesdatedinthenextfiscalyearwouldnotbeincludedinthecurrentfiscalyear.Backdatinginvoices课后答案网allowsthecompanytorecordsalesinthecurrentyearthatoccurredinthefollowingyear.Thiswouldtendtooverstaterevenuesandmakethecompanylookmoreprofitablethanitreallyis.Shippingdiskdrivestocustomerswhohadnotorderedthemwasaveryexpensivewayofcontinuingtheillusionofincreasedsaleswww.hackshp.cnwhentruesalesweremuchsmaller.18–13.Aflexiblebudgetindicatesbudgetedrevenues,costsandprofitsforvirtuallyallfeasiblelevelsofactivity.So,managerscanusetheflexiblebudgettodeterminewhatcostsshouldbeassumingdifferentlevelsofactivity.Sincechangesinvolumeofproductionmaynotbewithintheparticularmanager’scontrol,theflexiblebudgetallowssupervisorymanagerstoisolatetheeffectofchangesinvolumeontheoverallcostsofadepartmentinquestion.Theflexiblebudgetalsoseparatesfixedandvariablecosts.Generally,fixedcostsarelesscontrollableintheshortrunthanvariablecosts.©TheMcGraw-HillCompanies,Inc.,1997518CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises18–14.(20min.)Flexiblebudgeting:Davidson,Inc.Calculations:MasterbudgetdollaramountSalesrevenue:18,000unitsx$12perunit=$216,000Variablecosts:18,000unitsx$5perunit=$90,000Fixedcosts:$54,000Davidson,Inc.FlexibleBudgetSalesrevenue.....................................$220,800(=$12x18,400)Less:Variablemanufacturingcosts..........92,000(=$5x18,400)Contributionmargin.............................$128,800Less:Fixedmanufacturingcosts...............54,000Operatingprofits..................................$74,80018–15.(30min.)Salesactivityvariance:Davidson,Inc.MasterBudgetFlexibleBudgetSales(basedon(basedonactualActivitybudgetedof18,400units)Variance18,000units)Salesrevenue.....................................$220,800$4,800F$216,000Less:Variablemanufacturingcosts..........课后答案网92,0002,000U90,000Contributionmargin.............................128,8002,800F126,000Less:www.hackshp.cnFixedcosts......................................54,00054,000Operatingprofits..................................$74,800$2,800F$72,000©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter18519若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–16.(30min.)Profitvarianceanalysis:Davidson,Inc.FlexibleMasterActualSalesBudgetBudget(18,400ManufacturingPrice(18,400Activity(18,000Units)VariancesVarianceUnits)VarianceUnits)Salesrevenue.................................$223,560a$2,760F$220,800b$4,800F$216,000cLess:Variablemanufacturingcosts......108,560d$16,560U92,000e2,000U90,000fContributionmargin.........................115,00016,560U2,760F128,8002,800F126,000Less:Fixedmanufacturingcosts...........54,00054,00054,000Operatingprofits..............................$61,000$16,560U$2,760F$74,800$2,800F$72,000a18,400unitsx$12.15b18,400unitsx$12c18,000unitsx$12d18,400unitsx$5.90e18,400unitsx$5f18,000unitsx$5课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997520若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–17.(20min.)Flexiblebudgeting—Serviceorganization:Wright&Allen.ActualBudgetBillableHours23,00020,000Wright&AllenFlexibleBudgetCalculationsRevenue...............................$1,725,000$1,500,000x23,000hrs./20,000hrs.Costs:Professionalsalaries.........862,500$750,000x23,000hrs./20,000hrs.Othervariablecosts..........230,000$200,000x23,000hrs./20,000hrs.Fixedcosts.......................300,000Totalcosts.....................1,392,500Departmentprofit.................$332,50018–18.(45min.)Salesactivityvariance—Serviceorganization:Wright&Allen.FlexibleBudgetMasterBudget(basedonSales(basedonactualofActivitybudgeted23,000hours)Variance20,000hours)Revenue...............................$1,725,000225,000F$1,500,000Costs:Professionalsalaries.........862,500112,500U750,000Othervariablecosts..........230,00030,000U200,000Fixedcosts.......................300,000300,000Totalcosts.....................课后答案网1,392,500142,500U1,250,000Departmentprofit.................$332,50082,500F$250,000www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter18521若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–19.(30min.)Profitvarianceanalysis:Wright&Allen.(1)(2)(3)(4)(5)(6)FlexibleSalesMasterActualCostPriceBudgetActivityBudget(23,000hrs.)VariancesVariances(23,000hrs.)Variance(20,000hrs.)Revenue............................$1,650,000$75,000U$1,725,000a$225,000F$1,500,000Professionalsalaries.........925,000$62,500U862,500b112,500U750,000Othervariablecosts..........212,50017,500F230,000c30,000U200,000Fixedcosts........................290,00010,000F300,000300,000Departmentprofit..............$222,500$35,000U$75,000U$332,500$82,500F$250,000a23,000hrs.x1,500,00020,000hrs.b23,000hrs.x$750,00020,000hrs.c23,000hrs.x$200,00020,000hrs.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997522若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–20.(20min.)Flexiblebudget.a.$2,000,000b.$32perunitVC=(TC–FC)/X=($6,000,000–$2,000,000)/125,000unitsc.$5,200,000TC=F+VX=$2,000,000+($32x100,000units)d.$8,400,000TC=F+VX=$2,000,000+($32x200,000units)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter18523若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–21.(25min.)Fillinamountsonflexiblebudgetgraph.Flexible$budgetFlexiblelinebudgetoperatingprofit=$22,500Masterbudgetoperatingprofit=$8,0000MasterFlexibleUnitssoldbudgetbudgetactivitylevelactivitylevel=10,000units=12,500units(b)Slope=contributionmarginperunit=$5.80Fixedcosts(a)=$50,000Computations:(a)Profit=(P–V)X–FC$8,000=(a)(10,000units)–$50,000课后答案网$58,000a==$5.80perunit10,000unitswww.hackshp.cn(b)$22,500=$5.80X–$50,000$5.80X=$22,500+$50,000$72,500X==12,500units$5.80©TheMcGraw-HillCompanies,Inc.,1997524CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–22.(25min.)Flexiblebudget.Flexible$budgetMasterlinebudgetoperatingprofit=$36,000Flexiblebudget(a)(b)Unitssold0operating(b)=Masterprofit(loss)budget=($6,000)activitylevel(a)=Flexible=13,250unitsbudgetactivitylevel=8,000unitsSlope=contributionmarginperunit=$8.00Fixedcosts=$70,000Computations:(a)Profit=(P–V)X–FC课后答案网–$6,000=$8X–$70,000$8X=–$6,000+$70,000$64,000X==8,000unitswww.hackshp.cn$8(b)$36,000=$8X–$70,000$8X=$36,000+$70,000$106,000X==13,250units$8©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter18525若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–23.(35min.)Prepareflexiblebudget:Graphix,Inc.FlexibleBudget(basedonactualof850,000Calculationsunits)(000omittedforunits)Salesrevenue............................................$4,250,000$4,000,000x850/800Variablecosts:Blankdisks.............................................1,275,0001,200,000x850/800Directlabor.............................................297,500280,000x850/800Variableoverhead..................................552,500520,000x850/800Variablemarketingandadministrative...425,000400,000x850/800Totalvariablecosts....................................$2,550,000Contributionmargin...................................$1,700,000Fixedcosts:Manufacturingoverhead........................$800,000Marketing...............................................240,000Administrative.........................................150,000Totalfixedcosts.........................................$1,190,000Operatingprofits........................................$510,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997526CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–24.(45min.)Salesactivityvariance:Graphix,Inc.FlexibleMasterBudgetBudget(basedon(basedonactualofSalesbudgeted850,000Activity800,000units)Varianceunits)Salesrevenue............................................$4,250,000$250,000F$4,000,000Variablecosts:Blankdisks..............................................1,275,00075,000U1,200,000Directlabor.............................................297,50017,500U280,000Variableoverhead..................................552,50032,500U520,000Variablemarketingandadministrative....425,00025,000U400,000Totalvariablecosts....................................$2,550,000$150,000U$2,400,000Contributionmargin....................................$1,700,000$100,000F$1,600,000Fixedcosts:Manufacturingoverhead.........................$800,000—$800,000Marketing................................................240,000—240,000Administrative.........................................150,000—150,000Totalfixedcosts.........................................$1,190,000$1,190,000Operatingprofits.........................................$510,000$100,000F$410,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter18527若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–25.(30min.)Profitvarianceanalysis:Graphix,Inc.FlexibleMasterActualBudgetBudget(basedonMarketingand(basedonSales(basedon850,000ManufacturingAdministrativeSalesPrice850,000Activity800,000units)VariancesVariancesVarianceunits)Varianceunits)Salesrevenue.......................$3,860,000$390,000U$4,250,000$250,000F$4,000,000Blankdisks............................1,200,00075,000F1,275,00075,000U1,200,000Directlabor...........................330,00032,500U297,50017,500U280,000VariableManufacturing..........478,00074,500F552,50032,500U520,000VariableMarketingandadministrative.....................410,000$15,000F425,00025,000U400,000Totalvariablecosts................$2,418,000$117,000F$15,000F$2,550,000$150,000U$2,400,000Contributionmargin................$1,442,000$117,000F$15,000F$390,000U$1,700,000$100,000F$1,600,000Fixedcosts:ManufacturingOverhead.....776,00024,000F800,000800,000Marketing...........................240,000-0-240,000240,000Administrative....................130,00020,000F150,000150,000Totalfixedcosts.....................1,146,00024,000F20,000F-0-1,190,000-0-1,190,000Operatingprofits....................$296,000课后答案网$141,000F$35,000F$390,000U$510,000$100,000F$410,000www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997528若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–26.(15min.)Assigningresponsibility:Berg&Jordan.Thissituationisanormalpartofataxdepartment’sbusinessandwouldprobablybechargedtothetaxdepartment.Infutureassignmentsitwouldbebeneficialforthetaxdepartmenttobeabletorelyontheauditdepartment’sworkwithreasonableassurance.Theauditdepartmentshouldbechargedfortheerrorifthemistakewasduetonegligenceonthepartoftheauditdepartmenttogivethemincentivestodothejobright.18–27.(15min.)Assigningresponsibility.Itappearsthatthestartstationmanageractedagainstthebestinterestsofthecompanybyrefusingtoshutdownproductiontemporarily.Thisrefusalcostthecompany$50,000andmuchtimeandeffortincludingtheopportunitycostoflostprofitsduetostoppedproduction.However,managementisalsotoblameforgivingthestartstationmanagerthewrongincentives.Hopefullythisincidentwillnothappenagainandproductionmanagerswillbegivenproperincentivestocooperate,sothe$50,000couldbewrittenoffasanabnormalexpensefortheperiod.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter18529若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems18–28.(30min.)Solveformasterbudgetgivenactualresults:KentronEnterprises.a.MasterBudgetComputationsSalesvolume...............................108,000unitsSalesrevenue.............................$540,000108,000unitsx$5Variablecosts:Manufacturing..........................106,000$540,000–$54,000–$380,000Marketingandadministrative...54,00010%x$540,000Contributionmargin.....................380,000(given)Fixedcosts:Manufacturing..........................216,000$2x108,000unitsMarketingandadministrative...56,000$380,000–$216,000–$108,000Operatingprofit............................$108,000$1x108,000units课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997530CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–28.(continued)b.MarketingandFlexibleMasterActualManu-Adminis-SalesBudgetSalesBudget(120,000facturingtrativePrice(120,000Activity(108,000Units)VariancesVariancesVarianceUnits)VarianceUnits)Salesrevenue............................$672,000$72,000F$600,000a$60,000F$540,000Variablecosts:Manufacturing.........................147,200$29,422U117,778d11,778U106,000Marketingandadministrative..61,400$1,400U60,000c6,000U54,000Contributionmargin....................463,40029,422U1,400U72,000F422,222b42,222F380,000Fixedcosts:Manufacturing.........................205,00011,000F216,000—216,000Marketingandadministrative..113,20057,200U56,000—56,000Operatingprofit..........................$145,200$18,422U$58,600U$72,000F$150,222$42,222F$108,000a120,000unitsx$5b$380,000x120,000units108,000unitsc10%x$600,000课后答案网dSolvedafterdeterminingflexiblebudgetsalesrevenue,contributionmargin,andvariablemarketingandadministrative.Also,$117,778=$106,000x120,000units/108,000units.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997531若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–29.(30min.)Findmissingdataforprofitvarianceanalysis.MarketingFlexibleManu-&Adminis-SalesBudgetSalesMasterActualfacturingtrativePrice((a)750ActivityBudget(750Units)VarianceVarianceVarianceUnits)Variance(800Units)Salesrevenue.............................$1,950(b)$75U$2,025(c)$135U(d)$2,160Variablemanufacturingcosts........(e)510$60F(f)57038F(g)608Variablemarketingandadministrative..........................(h)200(i)$25F(j)225(k)15F240Contributionmargin......................$1,240(l)$60F(m)$25F(n)$75U(o)$1,230(p)$82U(q)$1,312Note:Seecomputationsonnextpage.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997532若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–29.(continued)AdditionalcomputationsforProblem18-29:(a)750unitsfromactualcolumn.(b)$75U=$2,025–$1,950.(c),(d)Budgetedsalespriceperunit=$2,025/750units=$2.70.Masterbudget=$2.70x800units=$2,160(d).Activityvariance=$2,160–$2,025=$135U(c).(e),(f),(g)Budgetedvariablemanufacturingcostperunit=$38/(800–750units)=$.76.Flexiblebudgetvariablemanufacturingcosts=$.76x750units=$570(f)(=$38/$135x$2,025).Masterbudgetvariablemanufacturingcosts=$.76x800units=$608(g)(=$38/$135x$2,160).Actualvariablemanufacturingcosts=$570–$60=$510(e).(h)Variablemarketingandadministrativecosts=$1,950–$510–$1,240=$200.(i),(j),(k)Budgetedvariablemarketingandadministrativecostsperunit=$240/800units=$.30.Flexiblebudgetmarketingandadministrativecosts=$.30x750units=$225(j).Variablemarketingandadmin.coststhatarepartoftheactivityvariance=$.30x50units=$15F(k)=$240–$225.Marketingandadministrativecostvariance=$225–$200=$25F(i).(l),(m),(n),(o),(p),and(q)arecolumntotals.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter18533若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–30.(40min.)Finddataforprofitvarianceanalysis.MasterMarketingFlexibleBudgetActualandBudget(basedon(basedonManufac-Adminis-(basedonbudgetedactualsalesturingtrativeSalesPriceactualsalesSalesActivitysalesvolume)VarianceVarianceVariancevolume)Variancevolume)Units.............................(a)12,000(b)12,0002,000F10,000Salesrevenue...............(g)$198,000$18,000F(h)$180,000(i)$30,000F$150,000Less:Variablemanu-facturingcosts........(n)105,000(o)$9,000U96,000(j)16,000U80,000Variablemarketingandadministrativecosts.....................21,600(p)$2,400F24,0004,000U(c)20,000Contributionmargin........(q)71,4009,000U(s)2,400F(x)18,000F60,000(k)10,000F50,000Less:Fixedmanufacturingcosts.....................(r)23,0002,000F(m)25,000(d)25,000Fixedmarketingandadministrative课后答案网costs.....................18,000(v)3,000U15,000(e)15,000Operatingprofits............(t)$30,400(u)$7,000Uwww.hackshp.cn(w)$600U$18,000F$20,000(l)$10,000F(f)$10,000Note:Seecomputationsonnextpage.©TheMcGraw-HillCompanies,Inc.,1997534若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–30.(continued)Calculations:a.12,000units.Sameasb.b.12,000units.10,000units+2,000unitsc.$20,000$150,000–$80,000–$50,000d.$25,000Sameasm.e.$15,000Fixedcostsinflexiblebudgetarethesameasthefixedcostsinthemasterbudget.f.$10,000$50,000–$25,000–$15,000g.$198,000$180,000(fromh.)+$18,000h.$180,00012,000unitsx$150,000/10,000unitsAlternativecomputation:$96,000+$24,000+$60,000i.$30,000F$180,000–$150,000Alternativecomputation:2,000unitsx$15j.$16,000U$96,000–$80,000k.$10,000F$60,000–$50,000Alternativecomputation:$30,000F–$16,000U–$4,000Ul.$10,000FSameask.m.$25,000$60,000–$15,000–$20,000n.$105,000$96,000+$9,000(fromo.)o.$9,000UTotalmanufacturingvarianceonthecontributionmarginlinep.$2,400F$24,000–$21,600q.$71,400$198,000–$105,000–$21,600r.$23,000$25,000–$2,000课后答案网s.$2,400FSameasp.t.$30,400$71,400(q.)–$23,000(r.)–$18,000u.$7,000U$9,000U–$2,000Fwww.hackshp.cnv.$3,000U$18,000–$15,000w.$600U$2,400–$3,000Ux.$18,000FSalespricevariance©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter18535若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–31.(20min.)Ethicalissuesinmanagingreportedprofits:HeraldCo.Maryistryingtoimprovetheprofitonnextyear’sincomestatement.Sheknowsthatarevisedbudgettoreflectchangesinproductlinesmightmakeithardertogetabonusnextyear.Sinceshehasreachedaplateauonthisyear’sbonus,anythingshecandotoincreasenextyear’sprofitwillhelphergetabonusnextyear.Thisisanunethicalpractice.Marymustperformherprofessionaldutieswithcompetence.Shemustpreparereportsinaccordancewithtechnicalstandardsandgenerallyacceptedaccountingprinciples.Revenuesandexpensesmustbematchedtothecorrectperiodtowhichtheybelong.Maryfacesaconflictofinterestbetweencommunicatinginformationfairlyandobjectivelyandachievinghighbonuses.Sheshouldmeetwithhersuperiors,pointouttheconflict,andtrytochangetheincentivesystem.Ifthisisnotpossible,sheshouldcommunicateherperformancetruthfully.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997536CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–32.(20min.)Prepareflexiblebudget:IshimaCorporation.FlexibleBudgetaCalculationsSalesrevenue..............................$9,000$10,000x90/100Variablecosts:Manufacturingdirectlabor........1,3501,500x90/100Manufacturingmaterials...........1,2601,400x90/100Manufacturingoverhead...........9001,000x90/100Marketing..................................540600x90/100Administrative...........................450500x90/100Totalvariablecosts......................4,500Contributionmargin......................4,500Fixedcosts:.................................Manufacturingoverhead...........500Marketing..................................1,000Administrative...........................1,000Totalfixedcosts...........................2,500Operatingprofit............................$2,000aSalesrevenueandthevariablecostsare90percent(90units¸100unitsx100%)ofthemasterbudgetamounts.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter18537若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–33.(45min.)Salesactivityvariance:IshimaCorporation.FlexibleMasterBudgetBudget(basedonSales(basedonactualofActivitybudgeted90units)Variance100units)Salesrevenue...................$9,000$1,000U$10,000Lessvariablecosts:Manufacturingcosts:Directlabor................1,350150F1,500Materials....................1,260140F1,400Variableoverhead.....900100F1,000Marketing......................54060F600Administrative................45050F500Totalvariablecosts...........$4,500$5,000Contributionmargin..........$4,500500U$5,000Lessfixedcosts:Manufacturing............500-0-500Marketing...................1,000-0-1,000Administrative............1,000-0-1,000Totalfixedcosts................$2,500-0-$2,500Operatingprofits...............$2,000$500U$2,500课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997538CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–34.(30min.)Profitvarianceanalysis:IshimaCorporation.Marketing&FlexibleSalesMasterActualManufacturingAdministrativeSalesPriceBudgetActivityBudget(90Units)VarianceVarianceVariance(90Units)Variance(100Units)Salesrevenue............$9,200$200F$9,000$1,000U$10,000Variablecosts:ManufacturingDirectlabor..........1,420$70F1,350150F1,500Materials..............1,20060F1,260140F1,400Overhead............82080F900100F1,000Marketing................530$10F54060F600Administrative.........50050U45050F500Contributionmargin....4,73070F40U200F4,500500U5,000Fixedcosts:Manufacturing.........48515F500—500Marketing................1,04040U1,000—1,000Administrative.........9955F1,000—1,000Operatingprofit..........$2,210$85F$75U$200F$2,000$500U$2,500课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997539若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–35.(20min.)Deriveamountsforprofitvarianceanalysis:CheckerCabCo.Hint:Uselastmonth’sactualasmasterbudget.Actual(basedFlexibleBudgetMasterBudgetonactualVariableSales(basedonSales(basedonaactivityofCostPriceactualactivityActivitypredictionof16,100trips)VarianceVarianceof16,100trips)Variance14,000trips)Salesrevenue............$152,000$21,650U$173,650a$22,650F$151,000Less:Variablecosts.........43,500$430F43,930b5,730U38,200Contributionmargin....$108,500$430F$21,650U$129,720$16,920F$112,800a$151,000Lastmonthprice==$10.785714,000trips$173,650=$10.7857x16,100tripsbLastmonthunitvariablecost=$38,200/14,000trips=$2.7286$43,930=$2.7286x16,100tripsAlthoughthetwomonths’contributionmarginsaresimilar,therearesignificantvariances.Thisillustratestheneedto课后答案网considervarianceanalysisevenifbottom-linedollaramountsaresimilartobudget.Activitylevels,prices,andotherfactorsmayoffseteachother,butindividuallybesignificant.Thenumberoftripsincreasedby2,100,whichincreasedprofitby$22,650.However,theaveragepricepertripdecreasedwww.hackshp.cnby$1.3447($10.7857less$9.441),whichdecreasedprofitby$21,650.©TheMcGraw-HillCompanies,Inc.,1997540若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–36.(20min.)Flexiblebudget—multiplechoice:TheCityofDixon.Flexiblebudgetisbasedonactualactivityof63,000milesforcoststhatvarypermile.a.(4)$3,780$20over$3,000x(63,000mi./50,000mi.)=$3,780b.(3)$378$2over$300x(63,000mi./50,000mi.)=$378c.(4)$2,500equaltobudgetTheassumptionisthat,withintherelevantrange,thisisafixedcost.d.(1)Decreasedunitfixedcosts.Assumingthatinsurance,salariesandbenefits,anddepreciationarefixedcosts,thebudgetedamountis$0.104permile[($500+$2,500+$2,200)/50,000miles].Theactualamountis$0.085permilefor63,000actualmiles,whichisadropof$0.019.Thisis83.7%ofthetotaldecreasefrom$0.1745to$0.1518.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter18541若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–37.(40min.)Analyzeperformanceforarestaurant:Arbuckles.Hintforworkingtheproblem:Usesalesrevenueasthebasisformeasuringvolume.(inthousands)Marketing&PurchasesAdministrativeFlexibleActivityMasterActualVariancesVariancesBudgetVarianceBudgetSalesrevenuea.....................$1,200$1,200$200F$1,000Variablecosts:Purchases.........................780$60U720b120U600Hourlywages....................6060c10U50Franchisefee....................3636d6U30Utilities..............................76$8F84e14U70Totalvariablecosts...............952900150U750Contributionmargin..............24860U8F30050F250Fixedcosts:.........................Advertising........................100100100Depreciation......................505050Lease................................303030Salaries.............................303030Totalfixedcosts....................210210210Operatingprofit.....................$38课后答案网$60U$8F$90$50F$40aSalesrevenueisusedasthebasisofvolumemeasurementbecausetherearenopricechanges.b$600x$1,200$1,000www.hackshp.cnc$50x$1,200$1,000d$30x$1,200$1,000e$70x$1,200$1,000©TheMcGraw-HillCompanies,Inc.,1997若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoIntegrativeCases18–38.(30min.)Analyzebudgetplanningprocess–Behavioralissues:RVIndustries.*a.Divisionandplantpersonnelbiaseswhichmaybeincludedinthesubmissionofbudgetestimatesinclude:·Budgetsalesestimatesprobablywouldtendtobelowerthanactuallyexpectedbecauseofthehighvolatilityinproductdemandandthecurrentreward/penaltysystemforexceedingormissingthebudget.·Budgetcostestimateswillbehigherthanactuallyexpectedinordertoprotectthedivisionsagainsttheeffectsofdown-sideriskofbusinessslumpsandthepossibilityofhighercosts.Thereward/penaltysystemencouragesthisaction.·Plantanddivisionmanagementcanincorporate“slackandpadding”intothebudgetwithoutthelikelihoodthatitwillberemovedbecausecorporateheadquartersdoesnotappeartogetactivelyinvolvedintheactualbudgetpreparation.b.Sourcesofinformationthattopmanagementcanusetomonitordivisionalbudgetestimatesinclude:·industryandtradeassociationsalesprojectionsandperformancedata.·prioryearperformancebyreportingunitsasmeasuredbytheirfinancial,productionandsalesreports.·performancesofsimilardivisionsandplants.·regionalandnationalleadingeconomicindicatorsandtrendsinconsumerpreferenceanddemand.*CMAadapted.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter18543若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–38.(continued)c.Serviceswhichcouldbeofferedbycorporatemanagementinthedevelopmentofbudgetestimatesareasfollows:·Providenationalandregionalindustrysalesforecastsforproductsasdevelopedbycorporatemanagementorobtainedbymanagementfromothersources.·Sponsortrainingprogramsforplantanddivisionalpersonnelonbudgetingtechniquesandprocedures.·Informdivisionsofoverallcorporategoalsintermsofsales,marketshareandnetincome.·Provideeconomicforecastswithregardtoexpectedinflationarytrendsandoverallbusinesscycles.d.Topmanagementshouldweighthecostsandbenefitsandtheresultingbehavioraleffectsofitsactionsbeforegettingmoreinvolvedinthebudgetingprocess.Thecoststobeevaluatedwouldinclude:·increasedcostsatthecorporatelevelbecausemoretimeandperhapsadditionalstaffwillberequired.·lowerprofitsduetoanunfavorablechangeindivisionandplantmanagementattitudesandmotivation.Thebenefitstobeconsideredwouldincludeimprovedprofitsfrom:·moreaccuratebudgetestimateswhichmightreducelostsalesand/orreducecostsincurred.·moreeffectivemanagementbecauseofmorerealisticbudgets.·improvedcoordinationandcontrolofthebudgetprocess.Thebehavioralvariablestobeconsideredwouldinclude:·theeffectongoalcongruence.课后答案网·theeffectonthecommunicationchannelsbetweentopmanagementanddivisionalmanagement.www.hackshp.cn·theeffectofrestrictingauthorityoverthebudgetprocessatthedivisionallevel.·thepossiblenegativeeffectonmotivationandmoraleduetolossofauthorityandautonomy.·theeffectonperformanceduetoapotentialreductioninbonuses.©TheMcGraw-HillCompanies,Inc.,1997544CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–39.(40min.)Adaptbudgetcontrolconceptstoresearchorganization:ArgoCo.Theapprovedactivitymaybeconsideredtheequivalentofmasterbudgetactivity.Activityachievedwouldbetheequivalentoftheflexiblebudget.Analysiscanthenbecarriedoutasfollows:(inthousands)CostFlexibleActivityMasterActualaVariancesBudgetVarianceBudgetaDirectcosts:Project4–1................$40$20U$20-0-$205–3(ph.3)b...440140U300-0-300(ph.4)....-0--0-100Fc1008–1................300-0-U300-0-F3008–2................22020U200-0-F2008–3................-0--0-U-0-80F80Totaldirectcosts..........1,000180U820180F1,000Indirectcosts:Administrationd..........522U50—F50Facilitiesd..................1188U110—F110$1,170$190U$980$180F$1,160aEachfigureintheapprovedactivityandactualcostcolumnsintheproblemincludetheproratashareoftheindirectcosts.Thesecostsmustberemovedinordertoevaluatetheindividualprojects.Fortheapprovedactivity(masterbudget),eachcost($1,160–$160)shouldbemultipliedby.Fortheactualcolumn,eachcostshould$1,160bemultipliedby($1,170课后答案网–$170).$1,170bPhase4wasbudgetedfor$100,000,butnoworkwasperformed.Therefore,thewww.hackshp.cnremainingpartofthebudget,andalltheactualcostsmusthavebeenforanearlierphase.cThesecostsare“favorable”onlyinthesensethattheywerenotincurred.Sincetheworkwasalsonotdone,theydonotsignalafavorableoutcomefortheyear.Itisimportant,nevertheless,toseparatethesevariancescausedbynoactivityfromtheothercostvariances.dThesecostsarelikelytobefixed.*CMAadapted©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter18545若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn18–40.(30min.)Analyzeactivityvariances—FIFOprocesscosting:Fellite,Inc.a.Equivalentunitcomputations:MasterActualBudgetUnitsUnitsTocompletebeginninginventory........200500Startedandcompleted:Completed.......................................2,5003,200Less:beginninginventory................(1,000)(1,000)1,5002,200Tostartendinginventory.....................500400Equivalentunitsthisperiod.................2,2003,100b.Analysisofdifferencesbetweenactualandmasterbudget:ManufacturingCostFlexibleActivityMasterActualVariancesBudgetVarianceBudgetEquivalentunits..........2,2002,2003,100Directmaterials.......$30,000$6,935U$23,065a$9,435F$32,500Directlabor.............24,6005,439U19,161b7,839F27,000Variableoverhead..16,2005,910U10,290c4,210F14,500Fixedoverhead.......24,1001,900F26,000—26,000Totalcosts..............$94,900$16,384U$78,516$21,484F$100,000a$32,500()x2,2003,100unitsb$27,000课后答案网()x2,2003,100unitsc$14,500()x2,200www.hackshp.cn3,100units©TheMcGraw-HillCompanies,Inc.,1997546CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter19PerformanceEvaluation:CostVariancesSolutionstoReviewQuestions19–1.Astandardisrelatedtoacostperunit.Budgetsfocusontotals.19–2.Responsibilityreportingsystemsidentifyvariancesorexceptionstobudgetplansand,further,relatethoseexceptionstothemanagerresponsibleforthem.Thereportedvariances(andtheanalysisthereof)furtherisolatesandidentifiesthecauseofexceptionstobudgetplans.19–3.Thethreeprimarysourcesofvariancesare:a.pricevarianceswhicharisebecausefactorinputpricesdifferfromstandards;b.efficiencyvarianceswhichoccurwhentherelationshipbetweentheusageofinputfactors(labor,materials,variableoverhead)differsfromthatwhichwouldbeexpectedtoproduceagivenlevelofoutput;andc.activityvarianceswhichrepresentdifferencesbetweenplanned(masterbudget)outputlevelsandtheoutputlevelsactuallyattainedduringtheperiod.19–4.Thefixedcostvariancesdifferfromvariablecostvariancesbecausefixedcostsdonotvarywiththelevelofproductionactivity.Therefore,thefixedcostsintheflexiblebudgetwillbethesameasinthemasterbudget(withintherelevantrange).Additionally,therearenoefficiencyvariancesforfixedcostsbecausethereisnoinput-outputrelationshipthatcanbeapplied.课后答案网19–5.Variancesrepresentdifferencesbetweenplansandactualoutcomes.Capturingthesevariancescanprovidewww.hackshp.cnusefulinformationregardlessofwhetherinventoriesexist.Knowledgeaboutdifferencesbetweenplansandactualoutcomescanhelpmanagersimproveplanningortakestepstoimproveoperations.19–6.Astandardcostisacostthatmanagementexpectstoincurinproducingaproductorsupplyingaservice.Anactualcostisthetransactioncostforanitem.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19547若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–7.Variancesareusually“expensed”asaperiodcost(e.g.,chargedtoCostofGoodsSold).Variancesmayalsobeproratedtoaccountsaccordingtothestandardcostbalancesineachoftheaccounts.Hence,amaterialspricevariancerecordedatthetimeofpurchasewouldbeproratedtoMaterialsInventory,MaterialsEfficiencyVariance,WorkinProcess,FinishedGoodsandCostofGoodsSoldaccordingtothecurrentyearstandardcostbalancesinthoseaccounts.19–8.Bydefinitionfixedcostsdonotchangewithchangesinthelevelofoutputs(intherelevantrange).Hence,itisdifficulttorelatefixedcoststospecificunitsofoutput.SolutionstoCriticalAnalysisandDiscussionQuestions19–9.Theactionthatmanagementcantakeinresponsetopricevariancesisprobablyquitedifferentthantheactionthatcanbetakeninresponsetoefficiencyvariances.Thelatterisgenerallymoresubjecttomanagementcontrol.Also,differentdepartmentsmayberesponsibleforeachvariance.Forexample,purchasingmayberesponsibleforthematerialspricevarianceandproductionforthematerialsefficiencyvariance.19–10.Theflexiblebudgetisgenerallybasedonoutputunits.Thatis,theflexiblebudgetcontainsthecoststhatwouldhavebeenbudgetediftheactualoutputlevelhadbeenknownbeforehand.Inputspricedatstandardarethecoststhatwereexpectedtobeincurredforthematerials,laborandoverheadusedirrespectiveoftheoutputattainedfromthoseinputs.19–11.Thisproblemarisesmorefrequentlythanonewouldhope.Sincecostsareaccumulatedinresponsibilitycentersusuallyaccordingtowherethecostisincurred,itisquitelikelythattheproductiondepartmentwillbechargedwithacostthatoriginatedbytheactionofsomeother(e.g.,sales)department.Inacceptingtherushorder,thesalesdepartmentwouldeitherhaveraisedthesellingpricetocompensateforthespecialdeliveryorundertakentherushordertoavoidlosingasale.Theextracostsincurredinotherdepartmentsasadirectresultofthesalesdepartment"sactionshouldbechargeablebacktothesalesdepartment.课后答案网19–12.Typically,thelaborpricevariancesarerelativelysmallsincetheratesareusuallydeterminedinadvancethroughtheunionnegotiationprocess.However,ifalinemanagerusesworkersthataremoreskilled(andwww.hackshp.cnthushigherpaid)thanthelaborthatwasconsideredwhenpreparingthebudget,anunfavorablepricevariancewouldarisethatwouldbetheresponsibilityofthelinemanager.Presumably,themanagerwoulddothisonlywhenthemanagerexpectedefficiencyimprovementsatleastequaltotheunfavorablepricevariance.Ifovertimepremiumsarenotaccountedforseparately,thenunbudgetedovertimepremiumscouldbethecauseofpricevariances.©TheMcGraw-HillCompanies,Inc.,1997548CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–13.Theproductionvolumevariancerepresentstheresultofallocatingafixedsumofcostsoveradifferentlevelofactivitythanwasusedincomputingtheallocationrate.Sincethesumisfixed,thecashoutflowsassociatedwiththefixedcostswillbeunchangedregardlessoftheamountordirectionoftheproductionvolumevariance.19–14.Byrecognizingthematerialspricevarianceatthetimeofpurchase,managementcapturesanydifferencebetweenactualmaterialscostandthestandardcostsasreflectedinthebudgetasthosecostsareincurred.Ifthepricevarianceisnotreflecteduntilthetimeofuse,theeffectofpricechangesmaynotberecognizeduntilthematerialsareremovedfromtherawmaterialsinventoryandplacedintoworkinprocess.Thiscouldbeasubstantialtimedelay.Ifdecisionsneedtobemadetocompensatefortheeffectofmaterialspricechanges,itwouldseemthatthesoonertheinformationcomestomanagement"sattention,thebettertheopportunitiestoreacttotheinformation.19–15.Laborandmaterialcostsareenteredintoproductionasincurred.Thevariancesarealsorecordedasincurred.Overheadcostsareappliedtoproductiononthebasisofunitsofoutput.Thevariancesarecomputedattheendoftheperiodwhentheappliedcostsarereconciledwithactualcosts.19–16.Theproductionvolumevariancearisesbecausefixedoverheadisappliedoveragreaterorlessernumberofunitsthanwereusedinderivingthefixedoverheadapplicationrate.Hence,theproductionvolumevariancedoesnottelluswhetherwespentmoreorless,butratheronlythatweproducedmoreorlessthanexpected.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19549若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises19–17.(15min.)Variablecostvariances:EagleAirCharters.ActualInputsFlexibleBudgetActualPriceatStandardEfficiency(StandardCostsVariancePricesVarianceAllowed)$6.50x6,800hours$6.50x(72,000units10)$44,500=$44,200=$46,800$300U$2,600F19–18.(10min.)Variablecostvariances.ActualInputsActualPriceatStandardEfficiencyFlexibleBudgetCostsVariancePricesVariance(StandardAllowed)$5x3,900hours$5x2hrs.x1,900units$18,800=$19,500=$19,000$700F$500U19–19.(20min.)Variablecostvariances:Nugget,Inc.ActualInputsFlexibleBudgetActualPriceatStandardEfficiency(StandardCostsVariancePricesVarianceAllowed)$88,400$1,600$15,000x$6.20aDirectlabor$88,400课后答案网=$86,800=$93,000$1,600Uwww.hackshp.cn$6,200F$14,000hoursx$3.40$15,000x$3.40Variable$44,200=$47,600=$51,000Overhead$3,400F$3,400FaStandardlaborwagerate=(ActualDirectLabor–DirectLaborPriceVariance)/Actualhoursworked($88,400–$1,600)/14,000hrs.=$6.20©TheMcGraw-HillCompanies,Inc.,1997550CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–20.(15min.)Variablecostvariances:AlmayCorporation.ActualInputsFlexibleBudgetActualPriceatStandardEfficiency(StandardCostsVariancePricesVarianceAllowed)$4.20x30,000units$131,400=$126,000=$119,700$5,400U$6,300UReporttomanagement:Thetotalvariancefromtheflexiblebudgetis$11,700unfavorable.Thisvariancewascausedbyhigherthanexpectedprices($5,400)andtheuseofmoreunitsthanexpected($6,300).19–21.(30min.)Variancesfromactivitybasedcosts:CrucibleCompany.ActualInputsFlexibleBudgetActualPriceatStandardEfficiency(StandardallowedCostsVariancePricesVariancefor5,000unitsofoutput)Quality$1x10,000min.$1x(2min.x5,000)Testing$10,000=$10,000=$10,00000Energy$2x10,500hours$2x(2hrs.x5,000)$20,000=$21,000=$20,000$1,000F$1,000UIndirect课后答案网$1x14,000hours$1x(3hrs.x5,000)Labor$14,200www.hackshp.cn=$14,000=$15,000$200U$1,000F©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19551若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–22.(20min.)Variablecostvariances:BlarneyChemicals.ActualInputsFlexibleBudgetActualPriceatStandardEfficiency(StandardCostsVariancePricesVarianceAllowed)$90x1,200ounces$90x1,100ounces$103,000=$108,000=$99,000$5,000F$9,000U19–23.(15min.)Variablecostvarianceswherematerialspurchasedandusedarenotequal:DurangoCompany.ActualActualInputsFlexibleBudgetCostofPriceatStandardEfficiency(StandardPurchasesVarianceCostVarianceAllowed)$58,158$57,510$648U28,000unitsx$1.31$38,340=$36,680$1,660U课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997552CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–24.(20min.)Fixedcostvariances:CramdenCo.ProductionActualPriceVolumeOverheadCostsVarianceBudgetVarianceApplied$257,000$246,000$240,000$11,000U$6,000U$17,000U19–25.(20min.)Fixedcostvariances:MahaloCorporation.ProductionActualPriceVolumeCostsVarianceBudgetVarianceApplied$32,555$33,930$35,200a$1,375F$1,270F$2,645Fa$35,200=16,000unitsx$2.20课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19553若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–26.(45min.)Comprehensivecostvarianceanalysis:Miller,Inc.a.Variablecost:ActualInputsFlexibleActualPriceatStandardEfficiencyProduction(APxAQ)Variance(SPxAQ)VarianceBudget(SPxSQ)$1.80x240,000pounds$2x240,000pounds$2x230,000poundsDirect=$432,000=$480,000=$460,000Materials$48,000F$20,000U$9.20x44,000hours$9x44,000hours$9x46,000hours=$404,800=$396,000=$414,000DirectLabor$8,800U$18,000F$10x10,800hours$10x10,350hours$110,160=$108,000=$103,500VariableOverhead$2,160U$4,500U$946,960$984,000$977,500Totalvariable$37,040F$6,500Umanufacturingcostvariances$30,540Fb.Fixedoverheadvariances:课后答案网ProductionPriceVolumeActualVarianceBudgetVarianceApplied*www.hackshp.cn=$380x2,300tiresFixed$1,000,000$950,000=$874,000Overhead$50,000U$76,000U$950,000*Fixedoverheadrate==$380pertire2,500tires©TheMcGraw-HillCompanies,Inc.,1997554CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–27.(15min.)Fixedcostvariances:CramdenCo.$Applicationline257,000Price}Variance$11,000U246,000BudgetedCostsProductionVolume}Variance$6,000U240,000ActualBudgeted(Estimated)MonthlyActivityActivityActivity课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19555若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–28.(30min.)Comprehensivecostvarianceanalysis:Bryce,Inc.a.Variablecostvariances:FlexibleProductionActualInputsBudget(basedActualPriceatStandardEfficiencyon50,000exams)(APxAQ)Variance(SPxAQ)Variance(SPxSQ)Direct$39$36$36optometristx75,000hoursbx75,000hoursbx66,667hoursaservices=$2,925,000=$2,700,000=$2,400,000$225,000U$300,000UVariable$14$15$15overheadx120,000hoursx120,000hoursx110,000hoursand=$1,680,000=$1,800,000=$1,650,000support$120,000F$150,000UTotal$4,605,000$4,500,000$4,050,000variablecost$105,000U$450,000Uvariances$555,000Ua66,667(rounded)=4/6hoursx100,000examsb75,000(rounded)=45/60hoursx100,000exams课后答案网b.Fixedoverheadvariances:Actualwww.hackshp.cnBudgetaApplied$4x100,000exams$374,000$360,000=$400,000$14,000U$40,000FaFixedoverheadrate=$360,000/90,000exams=$4perexam©TheMcGraw-HillCompanies,Inc.,1997556CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–29.(30min.)Variancesfromactivitybasedcosts:Klien’s.ActualInputsFlexibleBudgetActualPriceatStandardEfficiency(StandardallowedCostsVariancePricesVariancefor50,000exams)$2.00x46,000$2.00x50,000purchasespurchasesPurchasing$100,000=$92,000=$100,000$8,000U$8,000F$10.00x52,000fittings$10.00x(1.2x50,000)Support$550,000=$520,000=$600,000StaffLabor$30,000U$80,000F$5.00x31,000pairsoflenses$5.00x(0.6x50,000)Special$145,000=$155,000=$150,000ContactLenses$10,000F$5,000U课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19557若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–30.(20min.)Two-wayandthree-wayoverheadvariances(AppendixB):Bryce,Inc.a.Actualoverhead................$2,054,000Overheadapplied:Variable..........................1,650,000($16.50x100,000exams)Fixed..............................400,000($4.00x100,000exams)Totaloverheadapplied......$2,050,000Underapplied.....................$4,000b.ProductionActualSpendingVolumeCostsVarianceBudgetVarianceApplied$2,010,000(=$1,650,000variable$2,054,000+$360,000fixed)$2,050,000$44,000U$40,000Fc.ActualInputsProductionActualPriceatStandardEfficiencyVolumeCostsVariancePricesVarianceBudgetVarianceApplied$2,160,000$2,010,000(=$1,800,000(=$1,650,000variablevariable$360,000+$360,000$2,054,000fixed)fixed)$2,050,000$106,000F课后答案网$150,000U$40,000Fwww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997558CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–31.(20min.)Overheadvariances:JasperCorporation.ActualInputsFlexibleBudgetActualPriceatStandardEfficiency(StandardCostsVariancePricesVarianceAllowed)Variable$6x3,300hours$6x3,500hoursOverhead$19,000=$19,800=$21,000$800F$1,200FActualPriceCostsVarianceBudgetFixedOverhead$7,600$7,800$200F课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19559若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–32.(30min.)Two-wayandthree-wayoverheadvariances(AppendixB):JasperCorporation.a.Actualoverhead................$26,600Overheadapplied:Variable..........................21,000($6x3,500)Fixed..............................9,100($2.60ax3,500hours)Totalapplied..................$30,100Overapplied.......................$3,500a$7,800budgetedcost$2.60=3,000budgetedhoursb.ProductionSpendingVolumeActualVarianceBudgetVarianceApplied$28,800(=$21,000variable$26,600+$7,800fixed)$30,100$2,200F$1,300Fc.ActualInputsProductionPriceatStandardEfficiencyVolumeActualVariancePricesVarianceBudgetVarianceApplied课后答案网$27,600$28,800(=$19,800(=$21,000variablevariablewww.hackshp.cn+$7,800+$7,800$26,600fixed)fixed)$30,100$1,000F$1,200F$1,300F©TheMcGraw-HillCompanies,Inc.,1997560CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–33.(30min.)Two-wayandthree-wayoverheadvariances(AppendixB):IndioCompany.a.Actualoverhead................$89,180Overheadapplied:Variable.........................29,563(=$13.75x2,150)Fixed.............................59,555(=$27.70x2,150)Totalapplied..................$89,118Underapplied....................$62b.Two-wayanalysisBudgetedhours=2,000="normalworkload."ProductionSpendingVolumeActualVarianceBudgetVarianceApplied$29,563+($27.70x2,000)$89,180=$84,963$89,118$4,217U$4,155Fc.ActualInputsProductionActualPriceatStandardEfficiencyVolumeCostsVariancePricesVarianceBudgetVarianceApplied($13.75x2,050)+($27.70x2,000)$89,180=$83,588$84,963$89,118$5,592U课后答案网$1,375F$4,155Fwww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19561若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–34.(35min.)Standardmaterialscosts:ArmadilloCorporation.1.MaterialsInventory.....................................................................65,000MaterialsPriceVariance.............................................................5,000AccountsPayable...................................................................70,000Torecordthepurchaseofdirectmaterialsatanactualcostof$70,000andtorecordthetransfertoMaterialsInventoryatthestandardcostof$1.30perunit.2.WorkinProcessInventory..........................................................62,400MaterialsInventory.................................................................58,500MaterialsEfficiencyVariance..................................................3,900Torecordtherequisitionof45,000unitsofmaterialfromMaterialsInventoryandtochargeWorkinProcessInventorywiththestandardusageof48,000units.3.FinishedGoodsInventory..........................................................49,920WorkinProcessInventory......................................................49,920Torecordthematerialscomponentofthetransferof80%ofthefinishedunitsfromWorkinProcesstoFinishedGoodsInventory.4.CostofGoodsSold....................................................................29,952FinishedGoodsInventory.......................................................29,952Torecordthematerialscomponentofthesaleof60%ofthefinishedunits.AccountsMaterialsWorkinProcessFinishedPayable课后答案网InventoryInventoryGoodsInv.70,000–0–58,500–0–49,920–0–29,95265,00062,40049,9206,500www.hackshp.cn12,48019,968Mat.PriceMat.Eff.CostofVarianceVarianceGoodsSold5,0003,90029,952©TheMcGraw-HillCompanies,Inc.,1997562CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–35.Proratevariances:ArmadilloCorporationReferto19–34.ProratevariancestoEndingInventoryandCostofGoodsSold:Variances:Materialspricevariance....................................$5,000UMaterialsefficiencyvariance.............................3,900FProratevariances:Materialspricevariance:(3)(1)(2)VariancetobeCostinAccountPercentofProratedAccountbeforeProrationTotalCost(Column2x$5,000)MaterialsInventory...................$6,50010$500UMaterialsEfficiencyVariance...(3,900)a(6)(300)FWorkinProcess.......................12,48019.2960UFinishedGoodsInventory........19,96830.721,536UCostofGoodsSold..................29,95246.082,304U$65,000b100$5,000Ua$3,900isafavorablevariance.b$65,000=50,000unitsx$1.30standardprice.Materialsefficiencyvariance:(3)(1)(2)VariancetoCostinAccountPercentofbeProratedAccount课后答案网beforeProrationTotalCost(Column2x$4,200a)WorkinProcess.......................$13,440b20$840FFinishedGoodsInventory........www.hackshp.cn21,504c321,344FCostofGoodsSold..................32,256d482,016F$67,200100$4,200Fa$4,200=$3,900favorablevariancebeforeprorationplus$300materialspricevarianceproratedtomaterialsefficiencyvariance.(The$300increasesthefavorablevariance).b$13,440=$12,480+$960c$21,504=$19,968+$1,536d$32,256=$29,952+$2,304©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19563若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–36.(30min.)Standardcostinginajust-in-timeenvironment:OtterCo.a.SeefollowingT-accountsandcomputations.b.SeecredittoStandardCostofGoodsSoldfor$5,202.StandardCostofGoodsSoldFinishedGoodsMaterials39,960a5,202e5,202eVariableOH68,672bFixedOH148,000cVariousAccountsStandardCostVariances38,000Mat.Matefficiency5402,500Mat.price69,341V.O.H.Var.OHefficiency1,8001,131Var.OHprice143,200F.O.H.2,800FixedOHprice2,000ProductionvolumeNote:Variancesandfootnotesshowingcomputationsareonthenextpage.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997564CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–36.(continued)VarianceCalculations:PriceEfficiencyAP&AQVarianceSP&AQVarianceSPxSQ$1.35x30,000Materials$38,000=$40,500$39,960a$2,500F$540UVariableOverhead$69,341$70,472c$68,672b$1,131F$1,800UProductionPriceVolumeActualVarianceBudgetVarianceAppliedFixedOverhead$143,200$146,000$148,000c$2,800F$2,000Fa$39,960=14,800unitsx2unitsofmaterialx$1.35b$68,672=$69,600x14,800actualunits/15,000budgetedunitsc$148,000=$10x14,800actualunitsd$70,472=$68,672x$1,800课后答案网eAdjustmentfromCostofGoodsSoldtoFinishedGoodsInventoryforremaining300units:$5,202=(300units/14,800units)x($39,960+$68,672+$148,000)www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19565若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–37.(30min.)Standardcostinginajust-in-timeenvironment:ArmadilloCo.StandardCostofGoodsSoldMaterialsInventory65,000a6,500bMaterials6,50012,480eToWIP19,968fToFGWIPMat.Eff.Var.3,90012,480FinishedGoods19,968StandardCostVariancesExpenseMaterialsprice5,000d3,900cMaterialsefficiencya$65,000=$1.30x50,000unitedpurchased.(Note:ThematerialspricevarianceisalreadyoutofthematerialsdebittoCostofGoodsSold.)b$6,500=$1.30x(50,000–45,000)c$3,900=(48,000–45,000)x$1.30d$5,000=$70,000–$65,000e$12,480=20%x(48,000x$1.30)f$19,968=40%x($62,400–$12,480)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997566CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems19–38.(30min.)Nonmanufacturingcostvariances:SeattleFinancial.Incidentalofficecostscomprisethevariablecosts.Salariesandthefixedofficecostsareallfixed.Varianceanalysisforthetwoclassesofoverheadisasfollows:Variablecosts:FlexibleBudgetActual(StandardCostsAllowed)$3,555x1.08=$3,839$3,555aCombinedPriceandEfficiencyVariances$284UActualBudget0.5bx($27,000+$23,800+$28,100$20,000+$58,000)=$51,900=$52,500Price(Spending)Variance$600FOptional:Ifcomputed,theproductionvolumevariancewouldbe课后答案网BudgetApplied$52,500x(79/75)$52,500www.hackshp.cn=$55,300ProductionVolumeVariance$2,800Fa$3,555=79loansx$45perloan.b0.5representsone-halfyear.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19567若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–39.(20min.)Directmaterials:StanleyCompany.ActualActualInputatCostsStandardPrices$345x420ouncesAPx420ounces=$144,900$2,950F420xAP=$144,900$2,950=$141,950AP=$337.9819–40.(20min.)Solvefordirectlaborhours:HarrisonCo.Setupvariancemodel:ActualActualFlexibleInputsatInputsatBudgetActualStandard(StandardPricesPriceAllowed)$7.00x1,400hoursEfficiency$7.20xAQ$7.00xAQ=$9,800VarianceLaborPrice$500UVarianceSolveforactualinputatstandardprices:$9,800+$500unfavorableefficiencyvariance=$10,300.SolveforAQ:课后答案网$7.00xAQ=$10,300AQ=$10,300/$7.00www.hackshp.cnAQ=1471.4hoursSolveforlaborpricevariance:Laborpricevariance=($7.20x1471.4hours)–$10,300=$10,594–$10,300Laborpricevariance=$294U©TheMcGraw-HillCompanies,Inc.,1997568CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–41.(20min.)Overheadvariances:Cyclaris,Inc.FlexibleActualInputsBudgetPriceatStandardEfficiency(StandardActualVariancePricesVarianceAllowed)$3x3,300hours$3x3,500hoursVariable$9,800=$9,900=$10,500Overhead$100F$600FActualBudgetFixed$4,900a$4,320Overhead$580Ua$4,900=$14,700–$9,800课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19569若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–42.(40min.)Manufacturingvariances:AdiamoCo.ActualInputsFlexibleBudgetActualPriceatStandardEfficiency(StandardCostsVariancePricesVarianceAllowed)Direct$.90x3,000$1x3,000Materialskilogramskilograms=$2,700=$3,000$300F$1x2,100$1x1,900kilogramskilograms=$2,100=$1,900$200U$5x3,200$4x3,200$4x2hoursDirecthourshoursx1,900unitsLabor=$16,000=$12,800=$15,200$3,200U$2,400F$1x3,200$1x2hoursVariablehoursx1,900unitsOverhead$4,500=$3,200=$3,800$1,300U$600F课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997570CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–43.(30min.)Alternativevariancecalculations(AppendixC):AdiamoCo.ActualPricesActualEfficiencyatStandardPriceFlexibleBudgetCostsVarianceInputQuantitiesVariance(StandardAllowed)$5x2hours$4x2hoursDirect$5x3,200hoursx1,900unitsx1,900unitsLabor=$16,000=$19,000=$15,200$3,000F$3,800UVariable$1.40625a$1.40625aOverheadx3,200hoursx3,800hours$1x3,800hours=$4,500=$5,344=$3,800$844F$1,544UaActualvariableoverhead$4,500==$1.40625Actualdirecthours3,200hours课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19571若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–44.(40min.)Overheadcostandvariancerelationships:SparkleCompany.a.ActualInputsFlexibleBudgetActualPriceatStandardEfficiency(StandardCostsVariancePricesVarianceAllowed)Variable10,600hoursx$3perOverhead$31,850houra=$31,800$32,100$50U$300Fb.ProductionActualPriceVolumeAppliedFixedCostsVarianceBudgetVarianceOverheadFixed10,700hoursx$2perhourdOverhead$22,500b$22,000c=$21,400$500U$600Ua$32,100flexiblebudget$3=10,700hoursb$22,500=$54,350–$31,850c$22,000=$22,500–$500Upricevariance.d$22,000$2=课后答案网11,000hourswww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997572CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–45.(20min.)Analysisofcostreports:CifloxoPlant.Threepossiblechangesthatcouldmakethecostinformationmoremeaningfulare:a.Useaflexiblebudgetratherthanastaticmasterbudgetformeasuringperformancesothatchangedconditions,volumechanges,andfixedversusvariablecostsarerecognizedinthereportingprocess.b.Usestandardcosts.c.Identifythoseelementsofthereportforwhichtheproductionmanagerisdirectlyresponsible.19–46.(25min.)Changeofpolicytoimproveproductivity:BichlorBikeCo.Currentlytheassemblypersonnelrarelycompletetheoperationsinlesstimethanthestandardallows.Assumingthattheassemblydepartmentisworkingefficiently,itisnotlikelythatthetighteningofthestandards(reducingtheallowedtimeperoperation)willresultinincreasedproductivity.Morelikelytheassemblypersonnelwillresenthavingthestandardstightenedwithouttheirinputintothedecisionmakingprocess.Theycurrentlyviewthestandardsasachievablesincetheydo,althoughrarely,completetheoperationsinlessthanthestandardtime.Tighteningthestandardswillresultindecreasedmotivationandmoraleastheystriveforwhattheywillviewasanunrealisticstandard.Improvedprofitmarginswillnotbeachieved.Theproductionmanagerfailstounderstandthatbytighteningthestandards(allotherthingsbeingequal)hewillsimplyincreasethenegativevariances.Simplyloweringthestandardtimeallowedperoperationdoesnotreducethecostofmanufacturingtheproduct,unlessanactualreductioninprocessingtimeoccursontheshopfloor.Asstatedabovethetighteningofthestandardswillprobablydecreasemoraleandmotivationresultinginanincreasedprocessingtime.Thiswilldecreaseproductivityandincreasethecostsofproduction.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19573若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–47.(20min.)Behavioralimpactofimplementingstandardcostsystem:Lavoy,Inc.a.Standardcostingallowsformanagementbyexception.Timelyreportingofvariancesallowsmanagementtotakecorrectiveactionbeforecostsgetoutofhand.Thebreakdownofvariancesintovariouscomponentshelpsmanagementtracethesourceofpotentialcostproblems.Standardcostingmayalsomotivateemployeestooperatemoreefficientlyiftheyareallowedtoparticipateinsettingthestandards.b.Thestandardcostsystemcanhaveanegativeimpactonthemotivationofemployeesifthestandardsaretooeasilyattainableortoodifficulttoreach.Ifthestandardsaretooeasythenemployeestendtoreduceproductivity.Iftheyaretoodifficultthenproductionworkersbecomefrustratedandignorethestandards.Also,standardsthataresetwithoutproductionemployeeinputmaynotbeacceptedasrealisticbythoseemployees.19–48.(20min.)Ethicsandstandardcosts:JamestownJoe’s.Larry"sbehaviorisunethical.Larryhasanobligationtocommunicateinformationfairlyandobjectively.Hemustpreparecompleteandclearreportsandrecommendations.Bymisrepresentingthecostsofthestrawberriesheishopingtobenefithisfriend"sstrawberryfarmattheexpenseofJamestownJoe’s.Larryshouldavoidsuchconflictsofinterest,andadviseallpartiesofanypotentialconflicts.HeshouldnotbesettingthestandardsandmandatingfromwhomJoe’sshouldpurchasethegoods.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997574CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–49.(40min.)Comprehensivevarianceproblem:SoundexManufacturingCompany.ActualInputsActualPriceatStandardEfficiencyFlexibleCostsVariancePricesVarianceBudgetDirect18,000metersx$.9218,000metersx$.90Materials=$16,560=$16,200$360U500unitsx20meters/unit9,500metersx$.90x$.90/meter=$8,550=$9,000$450F500unitsx4hoursDirect2,100hoursx$6.102,100hoursx$6/hourx$6/hourLabor=$12,810=$12,600=$12,000$210U$600UVariable2,100hoursx$3.75a500unitsx$15Overhead?=$7,875=$7,500$375UFixedProductionOverhead?VolumeApplied课后答案网BudgetVarianceFixedOverheadThevariableoverheadpriceand600unitsx$5b500unitsx$5fixedoverheadpricevariances=$3.000=$2,500cannotbecomputed.Thetotaloverheadpricevariance=$225Uwww.hackshp.cn=$11,100actual($7,875+$3,000)$500Ua$3.75/hour=$20standardoverheadperunitdividedby4directlaborhoursperunitmultipliedby3/4(ratioofvariabletofixedcosts)b$5.00/unit=$20times1/4(ratiooffixedcoststototaloverhead)©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19575若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–49.(continued)Note:IfAppendixBhasbeenassigned,thenthethree-wayoverheadvariance(price,efficiency,andproductionvolumevariances)canbecomputed.Three-wayvarianceforoverhead:ActualInputsProductionActualPriceatStandardEfficiencyFlexibleVolumeCostsVariancePricesVarianceBudgetVarianceApplied$7,875variable+$7,500variable+$3,000fixed$3,000fixed$20x500$11,100=$10,875=$10,500=$10,000$225U$375U$500UAgoodadditionalquestiontothisproblemis:"Whatadditionalinformationwouldyouneedtocomputealloverheadvariances?"(Answer:Abreakdownofactualoverheadintofixedandvariablecomponents.)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997576CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–50.(25min.)Findactualandbudgetamountsfromvariances:Nintendo.a.ActualInputsFlexibleBudgetatStandard(StandardActualCostsPricePricesEfficiencyAllowed)(APxAQ)Variance(SPxAQ)Variance(SPxSQ)26,000kilograms(kg)Direct@$1/kgMaterials$27,300=$26,000$1,300U4,000unitsx6kg$24,000+$1,000x$1/kg=$25,000=$24,000$1,000UDirect$15,200+$760$16,000$8004,000unitsx$4Labor=$15,960=$15,200=$16,000$760U$800Fb.Overhead:ActualApplied课后答案网CostsOverhead$12,000+$5004,000unitsx$3=$12,500www.hackshp.cn=$12,000$500UTotalVariance©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19577若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–51.(40min.)Variancecomputationswithmissingdata:ParamountCompany.Note:Thecalculationofthefixedoverheadbudgetamountmakesthisachallengingproblem.ActualInputsFlexibleBudgetatStandard(StandardActualCostsPricePricesEfficiencyAllowed)(APxAQ)Variance(SPxAQ)Variance(SPxSQ)Direct$1.85ax$1.65x5poundsMaterials102,000pounds$1.65x102,000x21,000units=$188,700pounds=$168,300=$173,250$20,400U$4,950FDirect$13.084bx$14x.5hoursLabor10,700hours$14x10,700x21,000units=$140,000hours=$149,800=$147,000$9,800F$2,800UVariable$11.90x.5hoursOverhead61%x$204,000$11.90x10,700x21,000units=$124,440hours=$127,330=$124,950$2,890F$2,380UProductionPriceVolumeActualVarianceBudgetVarianceAppliedFixed39%x$204,000$4dx21,000unitsOverhead=$79,560课后答案网$80,000c=$84,000www.hackshp.cn$440F$4,000F(Footnotesonnextpage)©TheMcGraw-HillCompanies,Inc.,1997578CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–51.(continued)a$188,700$1.85=102,000poundsb$140,000$13.084=10,700hourscThereare20,000unitsinthemasterproductionbudget,computedbydividingtotalmasterbudgetcostsbystandardunitcostasfollows:Materials:$165,000¸($1.65x5pounds)=$165,000¸$8.25=20,000units.Labor:$140,000¸($14.00x.5hours)=$140,000¸$7=20,000units.Thismeansthemasterbudgetvariableoverheadamountis$119,000=$11.90x.5hoursx20,000units.Sothefixedoverheadbudgetis$80,000=$199,000–$119,000.d$80,000budget$4=20,000units课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19579若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–52.(50min.)Comprehensivevarianceproblem:FlintcoCompany.Florimenea.ActualInputsActualPriceatStandardEfficiencyFlexibleCostsVariancePricesVarianceBudgetDirect3,100x$.903,100x$11,000x3x$1Materials=$2,790=$3,100=$3,000$310F$100UDirect4,900x$4.054,900x$41,000x5x$4Labor=$19,845=$19,600=$20,000$245U$400FVariable4,900x$3.201,000x5x$3.20Overhead$16,170=$15,680=$16,000$490U$320Fb.ProductionPriceVolumeActualVarianceBudgetVarianceAppliedFixed($22,356/1,150)x1,000Overhead$20,930课后答案网$22,356=$19,440$1,426Fwww.hackshp.cn$2,916U©TheMcGraw-HillCompanies,Inc.,1997580CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–52.(continued)Glyoxidea.ActualInputsActualPriceatStandardEfficiencyFlexibleCostsVariancePricesVarianceBudgetDirect4,700x$1.154,700x$1.101,200x4x$1.10Materials=$5,405=$5,170=$5,280$235U$110FDirect7,400x$5.107,400x$51,200x6x$5Labor=$37,740=$37,000=$36,000$740U$1,000UVariable7,400x$3.501,200x6x$3.50$25,234=$25,900=$25,200$666F$700Ub.ProductionPriceVolumeActualVarianceBudgetVarianceAppliedFixed($26,520/1,300)x1,200Overhead$26,400$26,520=$24,480课后答案网$120F$2,040Uwww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19581若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–53.(50min.)Two-way,three-wayandfour-wayoverheadvariances(AppendixB):FlintcoCo.Note:RefertoProblem19-52forcalculations.FlorimeneTwo-wayvariance:ProductionSpendingVolumeActualVarianceBudgetVarianceApplied$16,170variable$16,000variable1,000x5+$20,930fixed+$22,356fixedx($3.20+$3.888)=$37,100=$38,356=$35,440$1,256F$2,916UThree-wayvariance:ActualInputsProductionPriceatStandardEfficiencyVolumeActualVariancePricesVarianceBudgetVarianceApplied$16,170variable$15,680variable$16,000variable$1,000x5+$20,930fixed+$22,356fixed+$22,356fixedx($3.20+$3.888)=$37,100=$38,036=$38,356=$35,440$936F$320F$2,916U课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997582CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–53.(continued)FlorimeneFour-wayvariance:ActualInputsProductionPriceatStandardEfficiencyVolumeActualVariancePricesVarianceBudgetVarianceAppliedVariable$16,170$15,680$16,000$490U$320F1,000x5x$3.888Fixed$20,930$22,356=$19,440$1,426F$2,916UGlyoxideTwo-wayvariance:ProductionSpendingVolumeActualVarianceBudgetVarianceApplied$25,234variable$25,200variable1,200x6+$26,400fixed+$26,520fixedx($3.50+$3.40)=$51,634=$51,720=$49,680$86F$2,040UThree-wayvariance:课后答案网Pricevariance=$51,634–($25,900+$26,520)=$786F.Efficiencyvariance=$700U(seeproblem19–52).Productionvolumevariance=$2,040U.www.hackshp.cnFour-wayvariance:Sameasthree-wayexceptpricevarianceisdividedinto$666Fforvariableoverheadand$120Fforfixedoverhead.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19583若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–54.(30min.)Performanceevaluationinserviceindustries:Safe-CityInsuranceCo.ActualInputsMasterActualPriceatStandardEfficiencyFlexibleActivityProductionItemCostsVariancePricesVarianceBudgetVarianceBudget4,800x$725,000x$72New$358,400(ignored)=$345,600=$360,000Policies$12,800U$14,400F$12,100,000x.002a$10,800,000x.002aPolicy$23,200$22,900=$24,200=$21,600Maintenance$300U$1,300F$2,600Ua.002=$2per$1,000faceamountofinsurance课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997584若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoIntegrativeCases19–55.(35min.)Processcostingvariances:Cornwell,Inc.Note:Equivalentunitcomputationscanbehandedoutinadvanceifstudentshavenotcoveredequivalentunits.ActualInputsFlexibleBudgetActualPriceatStandardEfficiency(StandardCostsVariancePricesVarianceAllowed)11,000kilograms11,000kilograms10,000akilogramsDirectx$11.25x$10x$10Materials=$123,750=$110,000=$100,000$13,750U$10,000U$4perhour$4perhourDirectx25,000x2hoursLabor$105,575hours=$100,000x10,300bunits=$82,400$5,575U$17,600U$1.25cperhourVariablex25,000Overhead$30,350hours=$31,250$25,750$900F$5,500UFootnotesonnextpage.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19585若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–55.(continued)aEquivalentunitsofworkduringtheperiodwithrespecttomaterials:Tocompletebeginninginventory0EUUnitsstarted................................................................10,000Endinginventory..........................................................(2,000)Startedandcompleted................................................8,000Endinginventory2,000x100%..................................2,000Equivalentunitsofmaterial.........................................10,000EUbEquivalentunitsofdirectlaborandoverhead:Tocompletebeginninginventory2,500unitsx60%...1,500EUStartedandcompleted(fromfootnotea)....................8,000Endinginventory2,000unitsx40%............................800Equivalentproduction..................................................10,300EUcAssumesvariableoverheadisappliedonthebasisofdirectlaborhours(ordollars)becausebotharepartofconversioncosts.Standardvariableoverheadper$25,750$25,750==directlaborhouris$1.252hoursx10,300units20,600hours课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997586CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–56.Racketeer,Inc.(Comprehensiveoverviewofbudgetsandvariances).ThefollowingsolutionisbasedonareportbyTomTerpstra.Elmo"sproblemisthathethinksthatthegraphandtheincomestatementmeasurethesamething.Ottoshouldhavetoldhimthattheydonot.Theincomestatementpresentsactualcostsinafull-absorptioncostingformat,whiletheprofitgraphisbasedonstandardcostsinavariablecostingformat.Thesedifferencesaccountforthedifferenceintheprofitmeasurement.Becausetheprofitgraphisbasedonstandardcosts,theprofititshowswillbetheactualprofitonlyinthoseveryrarecaseswhenthevariancesnetouttozero.Racketeerhassomesignificantvarianceslistedontheincomestatement,soElmoshouldexpectthattheactualprofitwoulddifferfromtheprofitonthegraph.Thesevariancesare:Material...................................$490ULabor......................................392UOverhead................................190USellingandadministrative......300FTotal.......................................$772UTheoverheadamountdiffersfromthefigureontheincomestatement,becausetheincomestatementoverheadvarianceincludesaproductionvolumevarianceof$470(=$.47x1,000).Butthatvariancedoesnotreflectadifferencebetweenactualandbudgetorstandardcostswhenfixedmanufacturingcostsarenotunitized.Theotherpartofthedifferencebetweenthetwoprofitfiguresisexplainedbythedifferenceinaccountingmethods.Variablecostingexpensesfixedcostswhentheyareincurred.Withfull-absorption,thefixedcostsareassignedtotheunitsproduced,andthenexpensedintheperiodinwhichtheunitsaresold.Racketeertreatseachracketashavingafixedcostof$.47.Forthe10,000racketssold,thefixedcostexpenseis$4,700underfull-absorptioncosting.Additionally,theproductionvolumevarianceof$470isalso课后答案网expensedduringthisperiod.Thus,$5,170infixedcosts(asidefrompricevariances)wasdeductedfromincomeontheincomestatement.Undervariablecosting,theonlyfixedwww.hackshp.cncosttobeexpensedisthestandardcostfortheperiodof$3,760(alsoasidefrompricevariances).So,theuseofdifferentaccountingmethodsresultsinaprofitdifferenceof$1,410.(BeforeElmostartstocomplainabouttheaccountants"useoffull-absorption,oneshouldremindhimthat,inthosemonthswhenproductionexceedssales,thefull-absorptionmethodwouldexpenselessfixedcoststhanvariablecosting,soitevensoutinthelongrun.)©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19587若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–56.(continued)Nowthetworesultscanbereconciled:Profitperchart.............................................$20,940Less:Costvariances.........................................772Additionalfixedcostsinfull-absorption....1,410ProfitperIncomeStatement........................$18,758Besidesfailingtoexplaintheprofitgraph,Ottoalsofailedtosetupaformattotakeadvantageofthestandardshedeveloped.Thecompanyshouldsetupachartshowingtheactualresults,theflexiblebudget,andthemasterbudget.Thiswouldprovideinformationconcerningtheprofitchangesinrelationtothechangeinsalesvolume.Additionally,themanufacturingvariancescouldbeanalyzedingreaterdetail,asshowninExhibitsAandBonthefollowingpages.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997588CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–56.(continued)ExhibitAComparisonofMasterBudgettoActualResults.SellingandSalesManufacturingAdministrativePriceFlexibleActivityMasterActualVarianceVarianceVarianceBudgetVarianceBudgetSales........................................$90,000–0––0–$90,000$18,000F$72,000LessVariableCosts:Materials...............................37,990$490U37,5007,500U30,000Labor....................................19,392392U19,0003,800U15,200Overhead..............................1,440140U1,300260U1,040ContributionMargin..................31,1781,022U–0––0–32,2006,440F25,760LessFixedCosts:Manufacturing.......................3,81050U3,7603,760SellingandAdministrative....7,200$300F7,5007,500OperatingProfit........................$20,168$1,072U$300F–0–$20,940$6,440F$14,500课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997589若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–56.(continued)ExhibitBManufacturingCostVariances.ActualInputsActualPriceatStandardEfficiencyFlexibleCostsVariancePricesVarianceBudget175,000x$.025175,000x$.037,000x20x$.03String=$4,375=$5,250=$4,200$875F$1,050U7,100x$3.157,100x$3.157,000x$3.15Frames=$22,365=$22,365=$22,050-0-$315USkilled900x$9.80900x$9.60.125x7,000x$9.60Labor=$8,820=$8,640=$8,400$180U$240UUnskilled840x$5.80840x$5.60.125x7,000x$5.60Labor=$4,872=$4,704=$4,900$168U$196FVariableTotalvariable7,000x($.10+$.03)Overhead$1,050overheadvariance=$910$140UProduction课后答案网PriceVolumeActualVarianceBudgetVarianceAppliedFixed$.47x8,000$.47x7,000Overhead$3,810www.hackshp.cn=$3,760=$3,290$50U$470U©TheMcGraw-HillCompanies,Inc.,1997590CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn19–56.(continued)ThevariancebreakdowninExhibitsAandBhighlightstheareasthatElmoandOttoshouldresearch.Oneareainvolvesthestrings.Isthecombinationofafavorablepricevarianceandunfavorableefficiencyvarianceanindicatorthatlowqualitystringwaspurchased?Anotherpointforinvestigationistheapparentwasteof100racketframes.Istheresomethingintheproductionprocesswhichcausesframestobreak?Orarethestandardsunrealistic?Athirdareaisthelaborefficiencyvariances.Whyaretheskilledworkersspendingmoretimethanbudgeted,whiletheunskilledarespendingless?Finally,therelationshipbetweenlaborefficiencyandmaterialsefficiencyvariancesisworthinvestigating,becauseuseofsubstandardmaterialsmayresultinanunfavorablelaborefficiencyvariance.Thesearethetypesofquestionsthatshouldberaisedasaresultofthisvarianceanalysis.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter19591若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter20DecentralizationandPerformanceEvaluationSolutionstoReviewQuestions20–1.Thereexistsanumberofaccountingalternativesthatcanbechosenbymanagement.Moreover,financingdecisions(e.g.,leasevs.buy)mayalsobeselectedbymanagement.Thealternativechosencanhaveanimpactonthereportedaccountingnumbersandthereportedinvestmentbase.Ifmanagementcompensationisdependentupontheincomemeasure(and,possibly,inconjunctionwiththeinvestmentbase),managementmayhaveapecuniaryincentivetochooseaspecificalternativeeventhoughsuchachoicemaynotbeintheoptimallong-runinterestofthecompany.Bychoosingboththemeasurementsystemandtheoperatingdecisions,theremaybeaconflictofinterestfortheagent-manager.20–2.TopmanagersareviewedasagentsoftheBoardofDirectors.TheBoardofDirectorsisconsideredtheagentoftheshareholders.20–3.Middlemanagersareprincipalstotheirsubordinates(e.g.,linemanagers,supervisors).20–4.ROImeasuresscalethedivisionaccountingprofitbytheinvestmentrequired.Managerswouldhaveincentivestomaximizeaccountingmeasuresofprofitwithoutregardtotheinvestmentrequiredifonlyprofitsareevaluated.(Useofeconomicprofitswouldnothavethisproblem,ofcourse.)20–5.Ifthereturnonaspecificprojectisgreaterthanthecompany’scostofcapital,butthisreturnislowerthan课后答案网thedivision’saverageROI,adivisionmanagerwouldhaveanincentivetoavoidthatprojecteventhoughitwouldbenefitthecompanyasawhole.www.hackshp.cn20–6.UseofnetbookvaluewillresultintheROIrisingasthenetassetisreducedthroughdepreciation.ThismaybemitigatedifROIisbasedongrossbookvalue.Theproblemismostacuteifalldepreciableassetsintheinvestmentbasearethesameage.20–7.Inmanycasesmanagersarecontenttotakeastatedsalaryandperformoptimally.However,inotherorganizationsmanagersappeartoperformbetterwhengivenprofittargetsandotherincentivedevices.Lowerlevelmanagersarealsoclosertotheirrespectivemarkets.Withanincentivesystemthesemanagersaremorelikelytotakeactionstorespondtochangesintheirrespectivemarkets.However,anexecutivemanagerelectstheperformanceevaluationandincentivesystemthatisbestforthespecificorganization.Hence,theexecutive’scommentswouldmakesenseintherightorganizationsetting.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter20593若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoCriticalAnalysisandDiscussionQuestions20–8.Herethemanagersareencouragedtoincludeslackinthebudgetbyunderestimatingrevenuesandoverestimatingcosts.Thegreatertheslack,thegreaterthedivisionmanager’sbonus.20–9.Salespeoplemightbeencouragedtocutpricesortoincurmarketingcostsinexcessofthatrequiredformaximumprofit.Indeed,withthedescribedsystemsalespeoplecouldsellatpriceslessthanthecompany’svariablecostandstillbepaidabonus.Theproblemwiththesystemisthatitdependsonvolumeonlyanddoesnotholdthesalesmanagersresponsibleforanycosts.20–10.Twoproblemsusuallyarisehere:(a)Thedivisionmightbeencouragedtoproduceinvolumesinexcessofsales.Inthisway,thefixedproductioncostswouldbe“deferredininventory.”SeeChapter11onvariablecostingforanelaborationonthisphenomenon.(b)Therecouldbeagreatdealofgame-playingoverhowcostsareallocatedsinceamanager’sperformancewilldependinpartonhowfewcostsgetchargedtothedivision.20–11.Residualincomemeasuresdependupontheratechosenforchargingadivisionforitsinvestments.Differentratescanyielddifferentresidualincomerankings.Inaddition,residualincomemeasureswilltendtofavorlargedivisionsoversmalleronessincethemeasuresarebasedonanabsolutedollarvalue.20–12.Largedivisionsare,allotherthingsbeingequal,morelikelytorankintheupperhalf.Hence,alargedivisionmanagerwouldtendtoreceiveabonuswithperformancethatisjustbarelyabovethecostofcapitalwhereasasmallerdivisionmightneedtoearnareturnfarinexcessofthecostofcapitalinordertoearnabonus.Theapproachusedalsodoesnottakeintoaccountdifferencesincapitalchargesthatmightbeappropriatefordifferentdivisions.20–13.课后答案网·ResidualIncome(RI)isdefinedasfollows:Investmentcenteroperatingprofits—(Capitalcharge×Investmentcenterassets)Thecapitalchargeistheminimumacceptablerateofreturnwhichwilllikelybegreaterthanthewww.hackshp.cncompany’scostofcapital.·Economicvalueadded(EVA)isdefinedasfollows:After-taxoperatingprofits—(Costofcapital×Capitalemployed)·Comparison:Investmentcenteroperatingprofits(intheRIformula)canbeequatedtoafter-taxoperatingprofits(intheEVAformula).Investmentcenterassetscanbeequatedtocapitalemployed.However,thecapitalchargeisnotthesameasthecostofcapital.Thecapitalchargeisthecompany’sminimumacceptablerateofreturn,andthecostofcapitalistheweightedaveragecostofthecompany’sdebtandequity.Whileitispossiblethatthesepercentagesmightbethesameforagivencompany,thetermsclearlyhavedifferentmeanings.Therefore,althoughthetwomethods—RIandEVA—havemanysimilarities,theyarenottypicallyidentical.©TheMcGraw-HillCompanies,Inc.,1997594CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–14.Inboth(a)and(b)thereisaneedtoconsiderwhatroleaccountingissupposedtoplayinthesettlingofcontracts–whethertheybeloancontractsormanagementincentivecontracts.Itwouldseemreasonablethattheinfluenceofanoutsideparty(e.g.,theFASB)shouldbelimitedinthesesituations.Thepartiestothecontractapparentlydecidedonameasurementsystembasedonaccountingrulesineffectatthetimethecontractwasenteredinto.Subsequentchangesbroughtaboutbyoutsiders(orunilaterallybyonepartytothecontract)areprobablybeyondtheintentofthepartiesatthetimethecontractsweresignedand,hence,properlyignored.Inpractice,itseemsthatlenderstendtoignoresuchchangeswhileBoardsofDirectorstendtopayincentivebonusesbasedonrevisedincomenumbers.However,the“jury”isoutontheissue.Thereareanumberofcaseswhichcanbeusedtoillustratebothapproachesinbothtypesofsituations.20–15.Ifthedivisioncanrentandtherentdoesnothavetobecapitalizedforinclusionintheinvestmentbase,theresidualincomewillincreasesolongastheincomefromtheassetexceedstheleasepayment.20–16.ROIdoesnottakethetimevalueofmoneyintoaccount;whilethecostofcapitalisameasurewhichdoesconsiderthetimevalueofmoney.DifferencesbetweenROIandthecostofcapitalarelikelywhenassetshavedifferentlivesorarepurchasedatdifferenttimes.Sincethetwomeasuresarenotcomparable,tryingtorelatethetwowillnotbemeaningful.20–17.UsingROIasthesoleperformancemeasurementindexwilltendtodiscouragenewinvestmentandinnovation.Managerswilltendtofocusonshort-runperformance.Qualitytendstobesacrificedforquantity.BleakProspectscouldimproveitssituationbyadoptingaperformancesystemthatincludesnonfinancialmeasuresofperformancesuchasrequiringthatacertainlevelofsalescomefromnewproductsandthatdefectivegoodsandreworkratesbebelowacertainlevel.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter20595若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises20–18.(10min.)ComputeresidualincomeandROI:PlainsfieldDivision.$600,000a.=25%$2,400,000b.$600,000–.14($2,400,000)=$264,00020–19.(25min.)ROIversusresidualincome.$360,000Annualincome=$140,000–=$68,0005(a)(b)InvestmentROIResidualIncomeYearBase$68,000/Base$68,000–(25%xBase)1$360,000*18.9%($22,000)2288,00023.6%(4,000)3216,00031.5%14,0004144,00047.2%32,000572,00094.4%50,000*Basedecreasesbyannualdepreciationof$72,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997596CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–20.(10min.)Comparealternativemeasuresofdivisionperformance.a.Usingreturnoninvestmentmeasures:*East:$35,000$100,000=35%West:$195,000$750,000=26%Usingresidualincome:East:$35,000–(20%x$100,000)=$15,000*West:$195,000–(20%x$750,000)=$45,000b.Yes.*East:$35,000–(25%x$100,000)=$10,000West:$195,000–(25%x$750,000)=$7,500*Indicatesdivisionwith“better”performance.20–21.(10min.)Impactofnewprojectonperformancemeasures.a.ROIbefore:$390,000=30%$1,300,000b.ROIafter:$390,000+$46,500a=28.6%$1,300,000+$225,000课后答案网a$225,000$46,500=$84,000–[]www.hackshp.cn6©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter20597若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–22.(10min.)Impactofleasingonperformancemeasures.Withthelease,theincrementalincomeistheoperatingcashflowminustheleasepaymentor$10,000=$84,000–$74,000.ThenewROIis:$390,000+$10,000=30.8%$1,300,00020–23.(15min.)Residualincomemeasuresandnewprojectconsideration.a.$390,000–.2($1,300,000)=$130,000$225,000b.$130,000+$84,000––.2($225,000)=$131,5006or$225,000($390,000+$84,000–)–.2($1,300,000+$225,000)6=$131,500c.$130,000+$84,000–$74,000=$140,000or($390,000+$84,000–$74,000)–.2($1,300,000)=$140,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997598CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–24.(25min.)Comparehistoricalcost,netbookvaluetogrossbookvalue:OracleDivision.abNetBookValueGrossBookValueYear1($1,000,000–$400,000)($1,000,000–$400,000)($4,000,000–$400,000)$4,000,000$600,000$600,000==16.7%==15%$3,600,000$4,000,000Year2($1,000,000–$400,000)($1,000,000–$400,000)[$4,000,000–(2x$400,000)]$4,000,000$600,000$600,000==18.8%==15%$3,200,000$4,000,000Year3($1,000,000–$400,000)($1,000,000–$400,000)[$4,000,000–(3x$400,000)]$4,000,000$600,000$600,000==21.4%==15%$2,800,000$4,000,000Year4($1,000,000–$400,000)($1,000,000–$400,000)[$4,000,000–(4x$400,000)]$4,000,000$600,000$600,000==25%==15%$2,400,000$4,000,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter20599若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–25.(25min.)CompareROIusingnetbookandgrossbookvalues:OracleDivision.abNetBookValueGrossBookValueYear1($1,000,000–$400,000)($1,000,000–$400,000)$4,000,000$4,000,000$600,000$600,000==15%==15%$4,000,000$4,000,000Year2($1,000,000–$400,000)($1,000,000–$400,000)($4,000,000–$400,000)$4,000,000$600,000$600,000==16.7%==15%$3,600,000$4,000,000Year3($1,000,000–$400,000)($1,000,000–$400,000)[$4,000,000–(2x$400,000)]$4,000,000$600,000$600,000==18.8%==15%$3,200,000$4,000,000Year4($1,000,000–$400,000)($1,000,000–$400,000)[$4,000,000–(3x$400,000)]$4,000,000$600,000$600,000==21.4%==15%$2,800,000$4,000,000c.Ofcourse,thereisnochangeunderthegrossbookvaluemethod.Withthenetmethod,bothalternatives(usingend-of-yearassetvaluesversusbeginning-of-year课后答案网values)showthesametrendofrisingROIsastheassetsdepreciate.Thisistobeexpected.Theend-of-yearvalueisthenextyear’sbeginning-of-yearvalue.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997600CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–26.(30min.)Comparecurrentcosttohistoricalcost:OracleDivision.Partscanddcanbesolvedeasierifonefirstsetsupatableshowingthechangeinvalueofthedepreciableassets.(1)(2)(3)YearlyTotalDepreciationGrossDepreciableDepreciation(1)timesYearsoflifeaAssetValue(1)x25%4yearsYear1$1,600,000x1.1=$1,760,000$440,000$1,760,000x1/4=$440,000Year2$1,760,000x1.1=$1,936,000$484,000$1,936,000x2/4=$968,000Year3$1,936,000x1.1=$2,129,600$532,400$2,129,600x3/4=$1,597,200Year4$2,129,600x1.1=$2,342,560$585,640$2,342,560x4/4=$2,342,560aStartwithgrossassets=$4,000,000–$2,400,000salvagevalue=$1,600,000.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997601若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–26.(continued)ab.HistoricalCostHistoricalCostGrossBookValueNetBookValueYear1($1,100,000–$400,000)($1,100,000–$400,000)$4,000,000($4,000,000–$400,000)$700,000$700,000==17.5%==19.4%$4,000,000$3,600,000Year2($1,210,000–$400,000)($1,210,000–$400,000)$4,000,000[$4,000,000–(2x$400,000)$810,000$810,000==20.3%==25.3%$4,000,000$3,200,000Year3($1,331,000–$400,000)($1,331,000–$400,000)$4,000,000[$4,000,000–(3x$400,000)]$931,000$931,000==23.3%==33.3%$4,000,000$2,800,000Year4($1,464,100–$400,000)($1,464,100–$400,000)$4,000,000[$4,000,000–(4x$400,000)]$1,064,100$1,064,100==26.6%==44.3%$4,000,000$2,400,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997602CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–26.(continued)cd.CurrentCostCurrentCostGrossBookValueNetBookValueYear1($1,100,000–$440,000)($1,100,000–$440,000$4,400,000($4,400,000–$440,000)$660,000$660,000==15%==$16.7%$4,400,000$3,960,000Year2($1,210,000–$484,000)($1,210,000–$484,000)$4,840,000($4,840,000–$968,000)$726,000$726,000==15%==18.8%$4,840,000$3,872,000Year3($1,331,000–$532,400)($1,331,000–$532,400)$5,324,000($5,324,000–$1,597,200)$798,600$798,600==15%==21.4%$5,324,000$3,726,800Year4($1,464,100–$585,640)($1,464,100–$585,640)$5,856,400($5,856,400–$2,342,560)$878,460$878,460==15%==25%$5,856,400$3,513,840课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter20603若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–27.(25min.)Effectsofcurrentcostonperformancemeasures:OtterDivision.a.ROIYear1$30,000–(.25x$100,000)$5,000==5.0%$100,000$100,000Year2$34,000–(.25x$100,000)$9,000==9.0%$100,000$100,000Year3$38,000–(.25x$100,000)$13,000==13.0%$100,000$100,000Year4$40,000–(.25x$100,000)$15,000==15.0%$100,000$100,000b.ROIYear1$30,000–(.25x$100,000)$5,000==5.0%$100,000$100,000Year2$34,000–(.25x$110,000)$6,500==5.9%$110,000$110,000Year3$38,000–(.25x$121,000)$7,750==6.4%$121,000$121,000Year4$40,000–(.25x$133,100)$6,725==5.1%$133,100$133,100课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997604CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems20–28.(30min.)Equipmentreplacementandperformancemeasures:Juneau,Inc.$750,000a.=60%$800,000+$1,000,000–$300,000–$250,000$750,000–$700,000*b.=2.7%$800,000–$250,000+$1,300,000*Lossonoldequipmentequaltoits$1millioncostless$300,000depreciation.$1,005,000**c.=83.8%$800,000–(2x$250,000)+$1,300,000–$400,000*****Netincome:Revenues...............$3,520,000(up10%)Costs:Variable..............440,000(up10%)Fixed...................1,425,000(down5%)Depreciation:Equipment..........400,000***Other..................250,000$1,005,000$1,300,000–$100,000***$400,000=()3years课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter20605若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–29.(20min.)Evaluatetrade-offsinreturnmeasurement:Juneau,Inc.a.Themachineisgoingtoresultinapositivenetbenefitsoyouwouldwanttoacquireitasearlyintheyearaspossiblesoyoucouldobtainafullyear’sbenefits.b.Forthemanager,therelevantcostisthelostbonusthisyearifthemachineispurchasedthisyearversustheeffectonthemanager’sbonusthatwouldarisefromtheincreaseddepreciationcharge.Ifthemanagerwaitsuntilnextyear,thenthereturnoninvestmentforthisyearwouldbethe60%asindicatedinProblem20–28,parta.Forthecomingyear,theROIwouldbe:$940,000–$700,000$240,000==18.0%$800,000–(2x$250,000)+$1,495,000–$465,000$1,330,000assumingthatthenewequipmentisboughtatthebeginningoftheyear.Where:$1,495,000=$1,300,000x1.15$1,495,000–$100,000$465,000=3years$700,000=lossondisposaloftheoldequipment$940,000=$1,005,000+$400,000–$465,000Forthecompany,therelevantcostswouldbethe15%priceincreaseversusanysavingsthecompanymightrealizeonitscapitalcostsifitwaitsuntilnextyear.However,itisdifficulttoseehowthedivisionorcompanywouldbebetteroffbywaitingafewweeksandincurringanadded15%cost.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997606CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20-30.(40min.)Analyzeperformancereportfordecentralizedorganization:Ashwood.*a.AnevaluationoftheperformanceofPatricAndersonfortheninemonthsendingSeptember,Year3wouldappearfavorableifonlythedivisionalresidualincomefigurewereconsidered.Theactualresidualincomeiswellabovetheninemonthbudgetedfigure.However,closerexaminationofthereportrevealsthatoverallperformancecannotbeconsideredsatisfactoryforthefollowingreasons:·Variablecostofsales(directmaterialsandlabor)haveincreasedsignificantlyasapercentageofsales.·Themaintenanceandrepaircostsimpliedinthebudgetandprobablyneededhavenotbeenincurred.·Allocatedcorporatefixedcostsarebelowbudget.Whilethesecostsshouldhavenoeffectontheperformanceofthisdivision,itsinclusioninthereportdoesaffecttheresidualincomefigure.Corporatepolicydictatesthatdivisionmanagersminimizetheirinvestmentininventoriesandmaintaincontroloverplantfixedassets.Inthisrespect,PatricAndersonhasnotperformedaswellasexpectedforreasonsdescribedasfollows:·Inventorieshaveincreasedsignificantlyrelativetosalesvolumeandtodivisionalinvestment.·Budgetedadditionstoplantfixedassetshavenotbeenmade.Thedecisiontopostponeobtainingthesefixedassetsatthedivisionlevelcouldhavebeenmadeforthepurposeofreducingtheinvestmentbaseandtheimputedinterestcharge,ortoreducetheinvestmentbase.b.Aperformanceevaluationsystemshouldreflectthedivisionmanager’s(D.M.)responsibilities(i.e.,thosethingsthatarespecificallycontrollablebytheD.M.andforwhichtheD.M.isheldaccountable).AgooddivisionperformancemeasurementshouldpresenttheperformanceofthemanagerunobscuredbyextraneousitemsthatarenotsubjecttotheD.M.’scontrol.Inthisinstance.Ashwood’sdivisionalmanagementissolelyresponsiblefortheproductionanddistributionofcorporate课后答案网products.Specificfeaturesoftheperformancemeasurementreportingandevaluationsystemwww.hackshp.cnwhichshouldberevisedareasfollows:·Aflexiblebudgetbaseduponproductionaswellassalesshouldbeusedsothatdivisionscanbetterreflecttheactuallevelofactivityachieved.·Fixeddivisionalcostsshouldbesoidentifiedandsubtractedfromadivisionalcontributionmargin.*CMAadapted.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter20607若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–30.(continued)·Allocatedcorporatefixedcostsobscurethedivision’sperformancesincesuchcostsarenotsubjecttodivisionmanagementcontrol.Ideally,corporatelevelfixedcostsshouldnotbeallocated.However,ifcorporatemanagementfeelsitnecessarytoallocatecorporatelevelfixedcosts,theyshouldberelegatedtoapositionasafinalsubtractitemfromdivisionalresidualincome.·Theinvestmentbaseusedtocomputeresidualincomeusesyear-endvaluesforreceivablesandinventoriesasopposedtosomeaverage-valuemethod.Anaveragevaluewouldmoreaccuratelyreflecttheactivitiesintheseaccountsoverthetimeperiodbeinganalyzed.·Plantassetsareunderthejointauthorityofthedivisionandthecorporation,therebylimitingthecontrolatthedivisionallevel.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997608CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–31.(40min.)ROIandmanagementbehavior:ThainCorporation.*a.MostofthespecificactionsthatdivisionmanagerscantakewhichwouldresultinincreasingdivisionROIanddecreasingcorporateROIrelatetoinvestmentproposals.Thedivisionmanagershavetheresponsibilitytorecommendinvestmentopportunitiesfortheirdivisions.Thefactsintheproblemwouldsuggestthattheyhavebeenrecommendingonlyinvestmentswhicharea“surething”toincreasedivisionROIandscreeningoutinvestmentswhichwouldlowerdivisionROIeventhoughimprovingcorporateROI.Inaddition,thepostponementofcapitalinvestmentsmakesthedivisionalassetbasesmallerforthecalculationofdivisionROI.Further,themanagersarenotlikelytorecommendprojectswhichwouldimprovedivisionROIinthelong-runbutwoulddepressitintheshort-run(start-upperiods).b.Thain’scorporategoalsandgoalsforitsdivisionsarenotcongruent.ImprovingthedivisionROIdoesnotautomaticallyleadtoimprovedcorporateROI.CertainactionscouldbetakenbyadivisionwhichwouldimproveitsROI,suchasrejectinganinvestmentbelowitsROIbutabovethecorporationROI,butwouldnotnecessarilyimprovecorporateROI.TheemphasisondivisionROIasthemostimportantappraisalfactorforsalarychangesdoesnotprovidethepropermotivationbecausedivisionalexecutivesaremotivatedtomaximizedivisionROIwithoutregardtothecorporateROI.Additionally,divisionmanagersareindifferentastotheamountandtimingofcashflowsbecausecashisnotpartofthedivision’sinvestmentbase.However,thecorporationisnotindifferenttocashflowbecauseithastoinvestthecash.c.Thechangesshouldbetwo-foldincharacter.Theemphasisonasinglemeasureforperformanceevaluationshouldbeeliminated.Additionalfactorsimportanttodivisionandcorporategoalsshouldbeincluded.OneapproachwouldbetoestablishatargetROIwhichwouldincludeallowancesforstart-upcostsoflong-termprojects.Thecompanycouldconsidertheresidualprofitsconceptofdivisionalperformancemeasurement.Thedivisionswouldbecharged“interest”costofassetsemployedandperformancewouldbemeasuredonthebasis课后答案网ofthedivisionprofitsabovethe“interest”charges.FactorsotherthanROIalsoshouldbeincludedinthepolicy.Thelong-runsuccessofthecompanyrequiresattentiontosuchitemsas:www.hackshp.cn·newproductsand/ornewmarkets.·newmanufacturingtechnology.·improvementinsalesvolumeand/ormarketshare.·costefficiency.*CMAadapted©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter20609若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–32.(30min.)Impactofdecisionstocapitalizeorexpenseonperformancemeasurement:LewisonDrillingCompany.a.ROIBaseYearThisYearSuccessfulefforts$900,000($1,720,000–$900,000)=13.0%=11.4%(usedinbaseyear)$6,900,000($8,100,000–$900,000)Full-cost(usedby$1,720,000=21.2%newmanagement)$8,100,000b.10%x$820,000=$82,000c.Theboardshouldrejecttherequestforabonus.Thepurposeofthebonusistoprovideanincentivetomanagementtoimproveactualperformance.However,managementhasjustmanipulatedthefiguresbywhichperformanceismeasured.Iftheaccountingmethodhadnotbeenchanged,bothincomeandROIwouldhaveshowndecreasesinthepresentyear.20–33.(30min.)Evaluateperformanceevaluationsystem–Behavioralissues:DrawemCo.*a.Ananswerthatassumedthatmanagersshouldonlybeheldresponsibleforwhattheycontrolwouldmakethefollowingarguments:ThefinancialreportingandperformanceevaluationprogramofDrawemCompanyisinappropriateasameasureoftheresponsibilitiesoftheBildemDivision.Bildemisbeingevaluatedasaprofitorinvestmentcenterwhenithasnocontroloverpricing,productionandinvestmentdecisions.Inactuality,BildemDivisionisacostcenterandtheperformancereportshouldonlyconsidercostsunderthecontrolofBildemmanagement.课后答案网Additionally,thecorporategeneralservicecostsshouldnotbeincludedontheperformancereportbecausethesecostsarenotunderthecontrolofthedivisionmanagement.Moreover,theallocationbasisisartificialinthatcorporatemanagementwww.hackshp.cndeterminesBildemDivisionsalesvolume.Bildem’smanagerscurrentlysharesomeoftheorganization-wideriskbecausetheyareheldresponsibleforthingstheydonotcontrol.Presumably,theymustbecompensatedforsharingthisriskiftheyarerisk-averse.Ontheotherhand,theymayattainnonpecuniaryrewardsfrombeingan“investmentcenter”insteadofacostcenter.DespitethefactthatBildem’smanagersareheldresponsibleforthingsoutsideoftheircontrol,itisnotclearthatBildem’smanagersorthecompanywouldbebetteroffbymakingBildemacostcenter,althoughitisacostcenter,defacto.*CMAadapted.©TheMcGraw-HillCompanies,Inc.,1997610CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–33.(continued)b.Followingthenotionthatmanagersshouldbeheldresponsibleonlyforwhattheycontrol,theanswertorequirementbwouldbe:ThefollowingrevisionsshouldbemadetoDrawemCompany’sfinancialreportingandperformanceevaluationsystem.·EvaluateBildemDivisionasacostcenterandincludeintheanalysisonlythosecostsunderthecontrolofdivisionmanagement.·Introduceabudgetsystempossiblyincludingaflexiblebudgetformatwhichwouldbeusedwithcostsclassifiedasfixedandvariable.·Theallocatedcorporategeneralservicescostsshouldnotbeincludedinthereport.However,ifmanagementwantstoincludethecorporateservices,itshouldbeidentifiedseparatelyandtreatedasthefinaladditiontodivisioncosts.·Corporatecomputercostsshouldbeincludedonthereport.Theamountchargedshouldbebaseduponactualusageandapredeterminedstandardrate.·Providedaflexiblebudgetisusedfortheactuallevelofproductionactivity,avarianceanalysiscanbeincludedintheevaluation.Thevariancesshouldbeidentifiedaspriceorefficiencyrelated.·Thereportcouldbeexpectedtoanalyzenoneconomicaspectsofproductionotherthancosts.Performancemeasurestoconsidermightincludemanpowerlevels,inventorylevels,orderbacklogs,trainingprograms,andnewproductsordevelopments.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter20611若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–34.(40min.)Divisionalperformancemeasurement—Behavioralissues:LencoIncorporated.a.TheproposedAchievementofObjectivesSystem(AOS)wouldbeanimprovementoverthecurrentmeasureofdivisionalperformanceforthefollowingreasons:·Thereappearstobegreaterparticipationintheestablishmentofobjectivesbydivisionalmanagers.·Theuseofmultiplecriteriaforperformancemeasuresshouldbeamoreequitablestandardofevaluation.Thisperformancemeasuretendstoreduceover-emphasisonsinglemeasurementcriteriaandmayalsobalanceextremesinperformanceinoneareaversusanother.·Realisticplanningencouragesaccuratebudgetestimationsandpromotesintermediateandlong-rangeobjectives,whichenhancesgoalcongruence.·Staticbudgetsestablishedsixmonthsbeforethestartoftheyearwouldbereplacedbyflexiblebudgetswhichwouldbesubjecttochangeasneeded.·Theemphasisonperformanceisbaseduponfactorscontrollablebyanduponeffortsactuallydirectedbydivisionalmanagers.b.Specificperformancemeasuresforthecriterion“doingbetterthanlastyear”couldincludetotalsales,contributionmargin,controllablecosts,netincome,netincomeasafunctionofsales,returnoninvestment,marketshare,andproductivity.Measurementoftheseitemsshouldbecomparedinabsolutetermsorbypercentagestotheprioryear.Specificperformancemeasuresforthecriterion“planningrealistically”couldincludeananalysisofvariancebetweenactualandbudgetandtheuseofaflexiblebudgettodeterminesales,netincome,netincomeasafunctionofsales,andreturnoninvestment.Specificperformancemeasuresforthecriteria“managingcurrentassets”couldincludeaccountsreceivableturnover,inventoryturnover,returnoncurrentassets,andyear-to-yearcomparisonsofcurrentassetsintotalandbyaccountclassification.课后答案网www.hackshp.cn*CMAadapted©TheMcGraw-HillCompanies,Inc.,1997612CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–34.(continued)c.Themotivationalandbehavioralaspectsoftheachievement-of-objectives-systemdependuponthelevelofacceptanceofthesystembytopmanagementandthedivisionalmanagers.·Divisionalmanagerscouldhaveasenseofparticipationintheroleofgoalsettingandbudgetdevelopmentwhichcouldencouragegoalcongruence.·Multiplecriteriaenhanceasenseofequityorfairness,andremovepressurestopursuemeasuredgoals,theachievementofwhichmayconflictwithcorporatelong-runobjectives(i.e.,promotesgoalcongruence).·Divisionalmanagersshouldhaveanincreasedsenseofresponsibilityandcontroloveractivitieswithintheirdivisionsoncetheyarenotheldresponsibleforuncontrollablefactors.·Topmanagementsupportalongwithtimelyandregularreviewsofperformancewillpromotedivisionmanagers’feelingsofself-worth.Programswhichmaybeinstitutedtopromotemoraleandgiveincentivestodivisionalmanagersinconjunctionwiththeachievement-of-objectivessystemincludethefollowing.·Intrinsicmotivatorscanbeprovidedbyallowingthemanagertoassesshis/herownachievementsandhis/herownworth.·Extrinsicmotivatorscanbedevelopedthroughamanager’scompetitionagainsthim/herselforwithotherdivisionswithrecognitiongiventothesuccessfulparticipantsintheformofawardsormonetaryincentives.·Increasedmoralecanresultfromparticipationinbudgetsettingandmanagementleveldecisionsaswellashavingpositivefeedback.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter20613若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn20–35.(35min.)ROI,residualincome,differentassetbases:WoodsideProductsStore.a.andb.Incomestatementstosummarizethealternativesareasfollows:($inthousands)RegularMerchandiseFurnitureTotalRevenue$260,000$75,000$335,000CostofSales163,00057,000220,000GrossMargin$97,000$18,000$115,000OperatingExpense26,0008,50034,500OperatingProfit$71,000$9,500$80,500Investment$187,500$55,000$242,500ROI37.87%17.27%33.20%a.b.Althoughthefurnitureprovidesareturngreaterthanthecostofcapital,itlowersthestatusquoROI.c.Ifthefloorplanisused,theinvestmentbasewillbe$187,500.Operatingprofitswillequal$80,500minusthefloorplanchargeof$6,750foranetprofitof$73,750.TheROIwillbe39.33%whichis$73,750¸$187,500.d.Themanagerwouldpreferthefloorplanbecauseitwouldraisethestore’sROIabovethecurrentROIof37.87%.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997614CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter21TransferPricingSolutionstoReviewQuestions21–1.Atransferpricemaybebasedoncosts,marketprices,anegotiatedamountorsomecombinationofthethree.21–2.Transferpricesexistincentralizedorganizationstorecordthetransferofgoodsandservicesfromoneunittoanotherforthesamereasonssuchorganizationsallocatecosts(e.g.,inventoryvaluation,cross-departmentmonitoring).21–3.Market-basedtransferpricingisconsideredoptimalundermanycircumstancesbecauseitpreservesdivisionalautonomy,yetencouragesdivisionmanagerstomakeeconomicallyoptimaldecisionsforthecompanyifdivisionsoperateatcapacityandtherearenomarkettransactioncosts.21–4.Thekeylimitationisthatmarketpricesareoftennotreadilyavailable.Thelimitationsofmarket-basedtransferpricesexistwhenthemarketpricedoesnotreflecttheopportunitycostofthegoodsandservices,forexamplewhenidlecapacityispresent.Also,temporaryshort-runfluctuationsinmarketpricescouldleadtosuboptimallong-rundecisions.21–5.Theadvantageofdirectinterventionisitpromotesshort-runprofitsbyensuringproperaction.Thedisadvantagesofsuchapracticearethattopmanagementwillbecometooinvolvedinpricingdisputes,and课后答案网divisionmanagerswillloseflexibilityandautonomyintheirdecisionmaking.Thecompanyalsolosestheotheradvantagesofdecentralization.www.hackshp.cn21–6.Companiesoftenusepricesotherthanmarketpricesforinterdivisionaltransfersbecause(1)marketpricesmaynotbeavailable,(2)marketpricescanleadtosuboptimalbehaviorwhenthesupplierdivisionhasidlecapacity,or(3)thecompanyisnototherwiseindifferentbetweeninternalandexternalbuying.21–7.Whenactualcostsareusedasabasisforthetransfer,anyvariancesorinefficienciesinthesellingdivisionarepassedalongtothebuyingdivision.Topromoteresponsibilityinthesellingdivisionandtoisolatevarianceswithindivisions,standardcostsareusuallyusedasabasisfortransferpricingincostbasedsystems.(Note:Standardcosttransferpricingisonlyappropriateifstandardcostsareuptodateandreflectreasonableestimatesofcost.)©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter21615若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–8.Thedisadvantagesofanegotiatedtransferpricesystemarethatagreatdealofmanagementeffortmaybewastedonthenegotiatingprocessandthatthenegotiatedpricemaybebasedmoreuponthemanagers’abilitytonegotiateratherthaneconomicfactors.21–9.Thetwogeneraltransferpricingrulesareasfollows:1)Ifthesellingdivisionisoperatingatcapacity,thetransferpriceshouldbethemarketprice.2)Ifthesellingdivisionhasidlecapacitythatcannotbeusedforotherpurposes,thetransferpriceshouldbeatleastthevariablecostsincurredtoproducethegoods.SolutionstoCriticalAnalysisandDiscussionQuestions21–10.Threegoalsoftransferpricinginadecentralizedorganizationare(1)tocoordinatetheactivitiesofvariousresponsibilitycenters,(2)tomotivatemanagerstoperforminthecompany’sbestinterestand(3)toserveasaperformancemeasureforresponsibilitycenters.21–11.Acost-basedornegotiatedcost-basedtransferpricingmethodwouldbenecessary.Werecommendusingdifferentialstandardcoststothesupplierplussupplier’sopportunitycostsoftheinternaltransfer,ifany.Ifadualtransferpricingsystemisused,thesuppliercouldbegivenamark-upwithoutchargingittothebuyer.21–12.Thetransferpricebecomesrevenueforthesellingsegmentandacosttothebuyingsegment.Anincrease(decrease)inthetransferpriceincreases(decreases)thesellingsegment’soperatingprofitanddecreases(increases)thebuyingsegment’soperatingprofit.21–13.TheIRSclaimedtheU.S.subsidiary’slowprofitsandlosseswerecausedbyatransferpricesetbelowanarms-lengthmarket-basedprice.Also,theIRSclaimedtheJapaneseparentcompanyshouldbearsomeofthecostsoftheU.S.subsidiary’shighinventorylevels.课后答案网21–14.Becausetransferpricescanaffecttheassignmentofincomefromonejurisdictiontoanother,thereisatendencytosetacross-jurisdictionaltransferpriceinsuchamannerthatincomeisshiftedtothejurisdictionwww.hackshp.cnwithalowertaxburden.Ofcourse,managementmayneedtobeawareofdifferencesintaxlaws,currencycontrolsandotherfactorswhenestablishingatransferprice.Moreover,taxingauthoritiesmaychallengeatransferpricethatisdeemedunreasonable.©TheMcGraw-HillCompanies,Inc.,1997616CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises21–15.(20min.)Applyeconomictransferpricingrule:Beamer&Associates.a.Theminimumtransferpricethatthemaintenancedivisionshouldobtainis$70perhour.b.Themaximumtransferpricethattheleasingdivisionshouldpayis$40perhour.c.Answer(a)wouldbe$36perlaborhour.Answer(b)wouldnotbeaffected.21–16.(15min.)Evaluatetransferpricingsystem:Paradym,Inc.IfDivisionXbuysfromoutsidersbecausethetransferpriceisgreaterthan$150,thiswouldcostthecompany$10,000.Thedifferencebetweenthepricepaidfortheunitsfromanoutsidesupplier($150)andthedifferentialcostsofproducinginDivisionY($140)timesthe1,000unitsintheorder=$10,000.21–17.(15min.)Evaluatetransferpricingsystem.WiththepossibilityofincreasedproductionDivisionXhasanopportunitycostoftransferringtoDivisionYof$4.50persquarefootwhichistheappropriatetransferprice.However,theopportunitycostofacquiringthewarehousespaceis$3.00persquarefootforDivisionY.Therefore,itwouldbeinthecompany’sbestinterestifDivisionYrentedthespacefromtheoutsidecompany.[ThisassumesnoadditionalcostssuchasmovingexpensestoDivisionYinusingoutsidefacilities.]课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter21617若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–18.(20min.)Evaluatetransferpricingsystem.a.BuyerSellerCompanyTransferinternallyPays$160.00Receives$150Pays$10Pays$55Pays55Pays$65TransferexternallyPays$157.50Receives$150Pays$7.50Pays55Pays55Pays$62.50Optimaltotransferexternally.b.BuyerSellerCompanyTransferinternallyPays$160.00Receives$150Pays$10Pays55Pays55Pays$65TransferexternallyPays$157.50Receivesandpays–0–Pays$157.50Optimaltotransferinternally.21–19.(25min.)Evaluatetransferpricingsystem:SeattleTransitLtd.a.Differentprices:(1)Theopportunitycostmightbeconsideredtheregularfareof$.80lessthe$.10feecollected.(2)Thefullcostis$2.00lessthe$.10feecollected.课后答案网(3)Onemightsuggestthatifthetransitvehiclesarenotrunningatcapacity,theopportunitycostiszerobecausetheseniorcitizensareridinginseatsthatwouldwww.hackshp.cnotherwisebeempty.b.SeattleTransitwouldprefertobereimbursedatthefullcostof$2.00becauseitwouldreceivemorerevenue.c.Theprovisionalgovernmentwouldpreferarateofzerosoitwouldpaynomoneytothetransitauthority.d.Thedifferenceis$380,000permonth,whichequals200,000ridesat$1.90perride.The$1.90isthedifferencebetweenthefullcostlessthe$.10farecollected.©TheMcGraw-HillCompanies,Inc.,1997618CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–20.(25min.)Evaluatepricingsystem:OracleGreenery.Mr.Ms.TotalPeterson’sJefferiesShareShareDecreaseinprofitsatOracleGreenery.........($1,500)a($900)($600)IncreaseinprofitsatLivelyLandscapeCo...1,500a300900Netchangeinprofits.....................................$0($600)$300a$1,500=$15perplantx10%x1,000plants.21–21.(25min.)Internationaltransferprices:PyramidCorporation.Analyzethetaxliabilitiesineachjurisdictionusingthealternativetransferprices.Ifthetransferpriceis$3million,thetaxliabilitiesare:CanadaU.S.Revenues.....................................$3,000,000$15,000,000Third-partycosts..........................2,000,0006,000,000Transferredgoodscosts..............3,000,000Totalcosts...................................2,000,0009,000,000Taxableincome...........................1,000,0006,000,000Taxrate........................................60%40%Taxliability...................................$600,000$2,400,000Totaltaxliability...........................$3,000,000Ifthetransferpriceis$4million,thetaxliabilitiesarecomputedasfollows:课后答案网CanadaU.S.Revenues.....................................$4,000,000$15,000,000Third-partycosts..........................2,000,000www.hackshp.cn6,000,000Transferredgoodscosts..............4,000,000Totalcosts...................................2,000,00010,000,000Taxableincome...........................2,000,0005,000,000Taxrate........................................60%40%Taxliability...................................$1,200,000$2,000,000Totaltaxliability...........................$3,200,000Thetotaltaxliabilityishigherifprofitsareshiftedtothecountrywiththehighertaxrate.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter21619若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–22.(30min.)Segmentreporting:LincolnHomes,Inc.($inmillions)a.Usingan$8milliontransferprice:BuildingFinanceItemCompanyCompanyOutsiderevenue..........................$68$16Transferprice..............................8Totalrevenue..............................6824Less:Outsidecosts...........................5214Transfer...................................8Totalcosts...................................6014Operatingprofitbeforetax...........$8$10b.Usinga$4milliontransferprice:BuildingFinanceItemCompanyCompanyOutsiderevenue..........................$68$16Transferprice..............................4Totalrevenue..............................6820Less:Outsidecosts...........................5214Transfer...................................4Totalcosts...................................5614Operatingprofitbeforetax...........课后答案网$12$6www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997620CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–23.(30min.)Segmentreporting:SidneyCorporation.($inthousands)AmusementItemParkHotelRevenue:Outsiderevenue.......................$11,200$7,400Transferprice...........................1,600600Totalrevenue............................$12,800$8,000Less:Outsidecosts............................$6,200$5,000Transfer....................................6001,600Totalcosts................................$6,800$6,600Operatingprofitbeforetax...........$6,000$1,400课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter21621若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems21–24.(30min.)Transferpricingwithimperfectmarkets—ROIevaluation,normalcosting:LaZareth,Inc.a.ROIforDivisionS.[90,000x($10–$3)]–[$5x100,000]=$130,000$130,000ROI==21.67%$600,000b.Note:Capacityis100,000units,soregularsaleswouldbereducedto80,000units(100,000unitscapacity–20,000unitstoDivisionT).(80,000x$7)+[20,000x($6.20–$3.00)]–$500,000=$560,000+$64,000–$500,000=$124,000.$124,000ROI==20.67%$600,000c.(80,000x$7)+[20,000x(TP–$3)]–$500,000=$130,000$560,000+20,000TP–$60,000–$500,000=$130,00020,000TP=$130,000$130,000TP==$6.50,20,000unitswhereTP=transferpriceperunit.Proof课后答案网$560,000+[20,000x($6.50–$3.00)]–$500,000www.hackshp.cn=$560,000+$70,000–$500,000=$130,000$130,000ROI==21.67%$600,000©TheMcGraw-HillCompanies,Inc.,1997622CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–25.(50min.)Evaluateprofitimpactofalternativetransferdecisions:1StickneyProductsCo.*(000omittedinallcalculations)a.1.ThebottledivisionprofitsRevenue.................$10,000Cost........................7,200Profit.......................$2,8002.ThecolognedivisionprofitsRevenue.................$63,900Cost........................58,400(=$48,400+$10,000)Profit.......................$5,5003.ThecorporationprofitsRevenue.................$63,900Cost........................55,600(=$48,400+$7,200)$8,300b.1.YesBottleDivisionVolumesCases.................2,0004,0006,000Revenue.............$4,000$7,000$10,000Cost....................3,2005,2007,200Profit...................$800$1,800$2,8002.No课后答案网www.hackshp.cnCologneDivisionVolumesCases.................2,0004,0006,000Revenue.............$25,000$45,600$63,900a2Cost..................20,40039,40058,400Profit...................$4,600$6,200$5,500*CMAadapted.aProductioncostsplusmarketpriceforthebottles.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter21623若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–25.(continued)b.(continued)3.YesCorporationVolumesCases..................2,0004,0006,000Revenue..............$25,000$45,600$63,900Cost.....................19,60037,60055,600Profit....................$5,400$8,000$8,300Thebottledivisionandthecorporationarethemostprofitableatthe6,000,000volumeandthecolognedivisionismostprofitableatthe4,000,000volume.Basedonamarket-basedtransferprice,thedivisionsachievemaximumprofitforthemselvesatdifferentlevelsofsalesbasedonthemarketpriceatthevariouslevelsrelativetothedivisioncostsatthesevariouslevels.Thecorporationachievesmaximumprofitbasedonthesellingpricetooutsidersrelativetothetotalcostofmakingtheproduct.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997624CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–26.(40min.)Internationaltransferprices:TildenMerchant,Co-op(TMC).All$inmillions.a.Malaysianbasisfortransferprice:ShippingDockItemCompanyServiceCo.Revenue:Outsiderevenue..........................$26$4Transferprice..............................3Totalrevenue..............................267Less:Outsidecosts...............................175Transfer.......................................3Totalcosts...................................205Operatingprofitbeforetax(Revenue-costs).........................$6$2Taxrate...........................................x.75x.20Incometaxes...................................$4.5$.4Totaltaxes......................................$4.9b.GreatBritainbasisfortransferprice:ShippingDockItemCompanyServiceCo.Outsiderevenue.............................$26$4Transferprice..................................8Totalrevenue..................................2612Less:课后答案网Outsidecosts...............................175Transfer.......................................8Totalcosts......................................www.hackshp.cn$25$5Operatingprofitbeforetax(Revenues-costs).......................$1$7Taxrate...........................................x.75x.20Incometaxes..................................$.75$1.4Totaltaxes......................................$2.15Thedifferenceintaxesis$2,750,000whichis$4,900,000minus$2,150,000.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter21625若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–27.(60min.)Analyzetransferpricingdata:Notewon,Inc.a.IfLsellstooutsideContributionstoLOutsidesales140,000@$16.00$2,240,000LeftoverDLH[400,000–(140,000x2)]¸2.5=48,000.48,000unitstransferred@$18.00864,000$3,104,000Laborcosts400,000hrs.@$62,400,000Contributionmargin$704,000b.Unitstransferred120,000@$18.$2,160,000LeftoverDLH400,000–(120,000x2.5)=100,000;(100,000hrs¸2)x16800,000$2,960,000Laborcosts2,400,000Contributionmargin$560,000a3c.andd.DivisionDivisionLNCompanySalesbyLtooutside....................................$2,240,000$2,240,000SalesbyLtoN.............................................864,000864,000SalesbyNtooutside(120,000x$45)........$5,400,0005,400,000Totalsales....................................................课后答案网$8,504,000CostoflaborinL..........................................2,400,0002,400,000CostofunitstransferredtoN.......................864,000864,000Costofunitspurchasedfromoutsidewww.hackshp.cnbyN(120,000–48,000)x$18.50............1,332,0001,332,000ConversioncostinN$8x120,000...............960,000960,000Contribution..............................................$704,000$2,244,000$2,948,000aThisisbasedontheoptimalcompanypolicy.IfLsold120,000unitstoN,L’stotalcontributionwouldbe$560,000.N’scontributionif120,000unitsweretransferredtoitwouldbe$2,280,000(=$5,400,000–$2,160,000–$960,000).Companycontributionswouldbeonly$2,840,000.©TheMcGraw-HillCompanies,Inc.,1997626CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–28.(40min.)Transferpricing—performanceevaluationissues:LillardCorporation*a.DelawareshouldnotsupplyJaydeewithfitting1726forthe$5.00perunitprice.Delawareisoperatingatcapacityandwouldlose$2.50($7.50–$5.00)foreachfittingsoldtoJaydee.ThemanagementperformanceofDelawareismeasuredbyreturnoninvestmentanddollarprofits;sellingtoJaydeeat$5.00perunitwouldadverselyaffectthoseperformancemeasures.b.Lillardwouldbe$5.50betteroff,intheshortrun,ifDelawaresuppliedJaydeethefittingfor$5.00andthebrakeunitwassoldfor$49.50.Assumingthe$8.00perunitforfixedoverheadandadministrationrepresentsanallocationofcostJaydeeincursregardlessofthebrakeunitorder,Lillardwouldlose$2.50incashflowforeachfittingsoldtoJaydeebutgain$8.00plusmark-upfromeachbrakeunitsoldbyJaydee.c.IntheshortrunthereisanadvantagetoLillardoftransferringthefittingatthe$5.00priceandthussellingthebrakeunitfor$49.50plusmark-up.Inordertomakethishappen,LillardwillhavetooverrulethedecisionoftheDelawaremanagement.Thisactionwouldbecountertothepurposesofdecentralizeddecisionmaking.Ifsuchactionwerenecessaryonaregularbasisthedecentralizeddecisionmakinginherentinthedivisionalizedorganizationwouldbeasham.Thentheorganizationstructureisinappropriateforthesituation.Ontheotherhandifthisisanoccurrenceofrelativeinfrequency,theinterventionofcorporatemanagementwillnotindicateinadequateorganizationstructure.Itmay,however,createproblemswithdivisionmanagements.Inthecaseathand,ifLillardmanagementrequiresthatthefittingbetransferredat$5.00,theresultwillbetoenhanceJaydee’soperatingresultsattheexpenseofDelaware.Thiscertainlyisnotinkeepingwiththeconceptthatamanager’sperformanceshouldbemeasuredontheresultsachievedbythedecisionshecontrols.Inthiscase,itappearsthatDelawareandJaydeeservedifferentmarketsanddonotrepresentcloselyrelatedoperatingunits.Delawareoperatesatcapacity,Jaydeedoesnot;nomentionismadeofanyotherinterdivisionalbusiness.Therefore,theLillardcontrollershouldrecommendthateachdivisionshouldbefreetoactinaccordance课后答案网withitsbestinterests.ThecompanyisbetterservedinthelongrunifDelawareispermittedtocontinuedealingwithitsregularcustomersatthemarketprice.IfJaydeeishavingdifficulties,thesolutiondoesnotliewithtemporaryhelpattheexpenseofwww.hackshp.cnanotherdivisionbutwithamoresubstantivecourseofaction.NotethatJaydeecanstillmakethesaleifitchangesitsallocationoffixedoverheadandadministrationto$5.50perunit.Inthatcase,itcanpayDelaware(oracompetitor)$7.50forthepartandstillarriveatatotalcostof$49.50.Becauseitisnotoperatingatcapacity,itshouldbewillingtotrythis.*CMAadapted.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter21627若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–29.(40min.)Evaluatetransferpricesystem:Tri-City,Inc.*a.Raleighdivisionmanagement’sattitudeatthepresenttimeshouldbepositivetoeachofthesepricesindecreasingorderbecauseRaleighapparentlyhasunusedcapacity.Raleighdivisionmanagementperformanceisevaluatedbasedonreturnoninvestment(ROI)andeachofthesepricesexceedvariablecostswhichwillincreaseRaleigh’sROI.Atthetimewhenallexistingcapacityisbeingused,Raleighdivisionmanagementwouldwanttheinter-companytransferpricetogeneratethesameamountofprofitasoutsidebusinessinordertomaximizedivisionROI.b.Negotiationbetweenthetwodivisionsisthebestmethodtosettleonatransferprice.Tri-City,Inc.isorganizedonahighlydecentralizedbasisandeachofthefourconditionsnecessaryfornegotiatedtransferpricesexist.Theseconditionsare:•Anoutsidemarketexiststhatprovidesbothpartieswithanalternative.•Bothpartieshaveaccesstomarketpriceinformation.•Bothpartiesarefreetobuyandselloutsidethecorporation.•Topmanagementsupportsthecontinuationofthedecentralizedmanagementconcept.c.No,themanagementofTri-Cityshouldnotbecomeinvolvedinthiscontroversy.Thecompanyisorganizedonahighlydecentralizedbasiswhichtopmanagementmustbelievewillmaximizelong-termprofits.Imposingcorporaterestrictionswilladverselyaffectthecurrentmanagementevaluationsystembecausedivisionmanagementwouldnolongerhavecompletecontrolofprofits.Inaddition,theadditionofcorporaterestrictionscouldhaveanegativeimpactondivisionmanagementwhoareaccustomedtoanautonomousworkingenvironment.课后答案网www.hackshp.cn*CMAadapted.©TheMcGraw-HillCompanies,Inc.,1997628CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–30.(25min.)Transferpricesandtaxregulations:Hellena,Inc.ThetransferpriceeconomicallyoptimalforHellenaInc.is$60perunit.AsillustratedbelowthisisduetothedifferenceintaxratesbetweentheU.S.andFrance.ItwouldthusbeadvantageoustoHellenatochargeashighatransferpriceaspossiblesoastogenerateincomeintheU.S.andavoidthehigher-taxrateof70%inFrance.Profitaftertaxatthetransferpriceof$25/unitDiv.X,U.S.Div.Y,FranceSellingPrice$115TransferPrice$25TransfersfromU.S.$25VariableCost25Shippingcosts15Profit$0Processingcosts105065Tax@70%45.5Profitaftertax$19.5TotalProfitaftertaxforHellenaInc.=$19.50/unitProfitaftertaxatthetransferpriceof$60/unitDiv.X,U.S.Div.Y,FranceTransferPrice$60SellingPrice$115VariableCost25TransfersfromU.S.$60Profit35Shippingcosts15Tax@40%14Processingcosts1085Profitaftertax$2130课后答案网Tax@70%21Profitaftertax$9TotalprofitaftertaxforHellenaInc.=$21+$9=$30/unitwww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter21629若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–31.(40min.)Segmentreporting:TyejonCorp.a.($millions)AutoTravelAirlineHotelRentalServicesOutsiderevenue..........................$245$106$89$32Frequentstayercoupons.............26Autodiscounts(airline)...............7Autodiscounts(hotel).................3Crewlodging...............................13Travelcommissions:Airline.......................................4Hotel........................................2Auto.........................................1Totalrevenues.............................$271$119$99$39Outsidecosts...............................$157$71$66$30Frequentstayercoupons.............26Autodiscounts(airline)...............7Autodiscounts(hotel).................3Crewlodging...............................13Travelcommissions:Airline.......................................4Hotel........................................2Auto.........................................1Totalcosts...................................$181$102$67$30Operatingprofits..........................$90$17$32$9b.Adjusttheoperatingprofitsinpart(a.)forthechangedtransferprices.课后答案网www.hackshp.cnAutoTravelAirlineHotelRentalServicesOperatingprofits(a)...................$90$17$32$9Frequentstayer...........................(21)21Autocoupons..............................6(6)Operatingprofits(b)...................$75$38$26$9©TheMcGraw-HillCompanies,Inc.,1997630CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–31.(continued)c.Dividetheoperatingprofitsin(a.)and(b.)bydivisionassets:For(a):Travelservices.........................13.85%=$9/$65Autorental................................9.97=$32/$321Airline.......................................9.42=$90/$955Hotel.........................................4.42=$17/$385For(b):Travelservices.........................13.85%=$9/$65Hotel.........................................9.87=$38/$385Autorental................................8.10=$26/$321Airline.......................................7.85=$75/$955Thehotelmovesfromlastplaceintherankingstosecond,whiletheairlineandautorentalseachdropinranking.ThetransferpricingmethodchosendoeshaveaneffectontheROI-basedrankings.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter21631若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–32.(60min.)CustomFreightSystems(A):TransferPricing.a.TheLogisticsDivisionshouldacceptthebidfromForwardersDivision.CustomFreightSystemsis$72(=$185–$113)betteroffiftheLogisticsdivisionusestheForwardersdivisionforthiscontract.Seedetailcalculationsbelow.OptionI:PruchaseInternallyAirCargoForwardersLogisticsDivisionDivisionDivisionSales...................................................$155$210–0–VariableCosts.....................................($155x60%)................................93($175–$155)..............................20(FromForwardersDiv.)................155(Given).........................................$210OperatingProfit(Cost)........................$62$35($210)TotalCompanyCost............................($113)OptionII:Purchaseexternally(UnitedSystems)TotalCompanyCost=($185)b.Ifweassumeitisoptimalforthetransfertobemadeinternally,thenthequestionarisesastotheappropriatetransferprice.Theeconomictransferpricingruleformakingtransferstomaximizeacompany’sprofitsistotransferatthedifferentialoutlaycosttothesellingdivisionplustheopportunitycosttothecompanyofmakingtheinternaltransfers.课后答案网www.hackshp.cnDifferential+OpportunityCostof=TransferOutlayCostTransferringInternallyPriceIftheseller(thedivisionsupplyingthegoodsorservices)hasidlecapacity..................$175+$0=$175Ifthesellerhasnoidlecapacity..........$175+$35=$210($210sellingprice–$175variablecost)©TheMcGraw-HillCompanies,Inc.,1997632CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–32.(continued)c.EspinosahasmanyalternativestointerventionortoforcingthemanageroftheForwardersdivisiontolowerhispricebelow$210.Eachhasadvantagesanddisadvantages.·Espinosamusttrade-offthebenefitsofinterventiononthisparticulartransactionagainsttheimpactofinterventionondecentralizationasapolicy.ToomuchinterventionbyEspinosawilleliminatethebenefitsofdecentralization.·TelltheLogisticsandForwarderdivisionsthatthetransferpricewillbebetweendifferentialcost($113)andthelowestoutsidemarketprice($185)andallowthemtonegotiatetheprofit.·Espinosacouldreorganizethecompanycombiningthedivisionsintooneoperatingcompany.However,CustomFreightSystemswouldloseallofthebenefitsofdecentralization.·Espinosacouldsimplydonothingandletthemanagersmaintaintheirautonomy.ThiswouldnotbeinthebestinterestsofCustomFreightSystems.However,itmightbebettertosub-optimizeforthistransactionandobtainmoregeneralbenefitsfromdecentralizing.d.TherewardsystematCustomFreightSystemscreatesanenvironmentthatencouragesmanagerstoactinthebestinterestsoftheirdivisionratherthanforthecorporation.ManagersarerewardedontheirreturnonassetsandprofitswhichdiscouragesdiscountingtootherdivisionsofCustomFreightSystemsandultimatelycoststhecorporationmore.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter21633若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn21–33.(30min.)CustomFreightSystems(B):TransferPricing.SimilartoCaseA,theLogisticsDivisionshouldacceptthebidfromtheForwardersDivision.However,ifweeliminatetheForwardersDivisionfromthebiddingprocess,thebidfromWorldshouldbeaccepted.EmphasizethateventhoughWorld’sbidis$10perhundredpoundshigherthanUnited’s,theoverallcosttoCustomFreightSystemsislowerbecauseotherdivisionsofCustomerFreightSystemsareincludedinthebid.Seedetailedcalculationsbelow.OptionI:(from21–32)PurchaseinternallyAirCargoForwardersLogisticsDivisionDivisionDivisionSales...................................................$155$210–0–VariableCosts.....................................($155x60%)................................93($175–$155)..............................20(FromForwardersDiv.)................155(Given).........................................$210OperatingProfit/(Cost)........................$62$35($210)TotalCompanyCost............................($113)OptionII:(from21–32)Purchaseexternally(UnitedSystems)TotalCompanyCost=($185)OptionIII:PurchaseExternally(WorldSystems)课后答案网AirCargoForwardersLogisticsDivisionDivisionDivisionSales...................................................www.hackshp.cn$155–0––0–VariableCosts.....................................93$195OperatingProfit(Cost)........................$62–0–($195)TotalCompanyCost............................($133)©TheMcGraw-HillCompanies,Inc.,1997634CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter22NonfinancialPerformanceMeasuresSolutionstoReviewQuestions22–1.Thebalancedscorecardisasetofperformancetargetsandresultsthatshowanorganization’sperformanceinmeetingitsobjectivesrelatingtocompetingstockholderwants.22–2.Stakeholdersaregroupsorindividualswhohaveastakeinwhatanorganizationdoes,suchasemployees,suppliers,customers,shareholders,andthecommunity.22–3.Nonfinancialperformancemeasuresdirectemployees’attentiontotheorganization’sobjectivesandfocusonthemeasuresthatarecontrollablebyeachemployee.22–4.Criticalsuccessfactorsarethefactorsthatareimportanttotheorganization’ssuccess.Forexample,proprietarytechnologyorestablisheddistributionchannels.22–5.Peopleatdifferentlevelsintheorganizationhavedifferentresponsibilities.Performancemeasuresaremosteffectivewhentheyrelatetowhatpeopleatdifferentlevelscontrol.课后答案网22–6.Benchmarkingidentifiesanactivitythatneedstobeimproved,findsanorganizationthatisthemostefficientattheactivity,studiesitsprocess,andthenutlizesthatprocess.www.hackshp.cn22–7.Competitivebenchmarkinginvolvesthesearchfor,andimplementationof,thebestwaytodosomethingaspracticedinotherorganizations.22–8.Anorganization’smissionstatementshouldcommunicatetheorganization’svalues,itsresponsibilitiestostakeholders,andthemajorstrategiestheorganizationplanstousetomeetitscommitments.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter22635若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn22–9.Customersatisfactionmeasuresreflecttheperformanceoftheorganizationonseveralfactors,includingqualitycontrolanddeliveryperformance.22–10.Manufacturingcycleefficiencymeasurestheefficiencyofthetotalmanufacturingcycle(themostefficientcompanieshaveameasureof1).Thismeasureisimportanttomostcompaniesbecausegainsinefficiencygenerallyimprovecompanyprofitability.22–11.Deliveryperformancemeasuresindicatehowproficienttheorganizationisatdeliveringgoodsorserviceswhenpromisedtothecustomer.Poordeliveryperformancewilllikelynegativelyimpactanorganization’sprofitabilityasrepeatbusinessdeclines.22–12.Workerinvolvementisimportantforthreereasons:1)Increasedworkerinvolvementoftentranslatestoanincreasedcommitmenttotheorganization.2)Workersareabletoberesponsiveatalllevelsifempoweredwithdecision-makingresponsibilities.3)Workersareabletousetheirskillsandknowledgetofurtherdevelopandtoimprovetheorganization’sperformance.22–13.SeeIllustration22.4.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997636CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoCriticalAnalysisandDiscussionQuestions22–14.Answerswillvary,butshouldinclude:Stakeholders—students,professors,employees,publishers,authors,andregents.Criticalsuccessfactors—sufficientinventoryandaccurateclass/textinformation.22–15.Answerswillvary.Qualitycontrol:1)Numberofcustomercomplaints2)Numberofservicecalls3)NumberofreturnsDeliveryperformance:1)Percentageofon-timedeliveries2)Percentageofdeliveriesdamaged3)Deliveryservicesurveys22–16.Criticscontendthattraditionalfinancialperformancemeasuresareobstaclestoeffectiveimplementationofinnovativemanagementmethodsbecausemanyperformancemeasuresdonotusefinancialdata.22–17.Thenumberofpositionsfilledfromwithinthecompanymayindicatewhetherornotemployeesarecommittedenoughtothecompanytowanttoadvanceandemployeeperceptionofadvancementpossibilities.Itmayalsoindicateemployeecommitmentbythequalityofemployeeperformance.Forinstance,ifpositionsarenotfilledinternallyitmaybebecausetheemployeesarenotperformingwellenoughtobepromoted.课后答案网22–18.Ifawardsarebasedoneffectiveworkerinvolvementandcommitment(i.e.,thisisthecriteriafortheawards),www.hackshp.cnthenthispercentagemeasurestheproportionofcompanyemployeeswhomeetthecriteria.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter22637若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises22–19.(20min.)Balancedscorecard.Answerswillvary,butshouldincludethefollowing:Thebalancedscorecardfocusesoncompany-wideobjectives,manyofwhicharenotunderthecontrolofproductionlevelemployees.Theywouldnotbeabletorelatethecompetingobjectivestowhattheyaredoingonadailybasis.Thebalancedscorecardshouldbeusedbyuppermnagementtomaketrade-offsbetweencompetingwants,thenestablishobjectivesforproductionwhicharerelatedtotheproductionlevelemployeesandonwhichtheycanfocus.22–20.(20min.)Benchmarks.a.On-timedeliveryofmaterials.3.Supplierperformance.b.Percentagedefectiveunits.2.Productperformance.c.Employeeturnover.1.Employeeperformance.d.Timetogeneratereports.4.Supportperformance.22–21.(20min.)Benchmarks.a.On-timedeliverytocustomer.2.Productperformance.b.Percentagedefectiverawmaterials.3.Supplierperformance.c.Numberofemployeesickdays.1.Employeeperformance.d.Maintenanceresponsetime.课后答案网4.Supportperformance.22–22.(45min.)Performancemeasures.www.hackshp.cnAnswerswillvary,butmayincludeanyoftheperformancemeasureslistedintheillustrations.©TheMcGraw-HillCompanies,Inc.,1997638CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn22–23.(20min.)ManufacturingCycleTimeandEfficiency.6hrs.ManufacturingCycleEfficiency=2hrs.+6hrs.+1hr.+24hrs.6hrs.=33hrs.=18%.22–24.(20min.)Functionalmeasures.Answerswillvary.Somepossibleexamplesare:•Accountingquality—Percenterrorinbudget•Clericalquality—Numberofmisfiledpapers•Forecastingquality—Numberofforecastingassumptionerrors•Procurement/purchasingquality—Percentageofincorrectlyorderedmaterials•Productioncontrolquality—Timethatlineisdownduetountrainedemployeeerror22–25.(30min.)Workerinvolvement.Answerswillvary.Examplesareasfollows:Percentageofmanagersactiveincontinuingeducation—usedtomeasureworkerdevelopment.Percentageofworkersactingasmentors—usedtomeasureworkerempowerment.Percentageofworkersapplyingforpromotions—usedtomeasureworkerrecruitment.课后答案网22–26.(20min)ManufacturingCycleTimeandEfficiency.www.hackshp.cn2daysManufacturingCycleEfficiency=.5days+2days+.25days+5days2days=7.75days=26%©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter22639若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems22–27.(20min.)Benchmarks.Answerswillvary,butmayincludethefollowing:•Numberofcustomercomplaintsforevery100carssold.•Numberofdefectsforeverycarsold.•Dollaramountofwarrantyrepairsforeverycarsold.•Customersatisfactiononascaleof1to10.Althoughthisinformationmaybedifficulttoobtainfromcompetitors,likelycandidatesforcomparisonmightbeHondaorToyota.ItwouldbeeasiertogetthisinformationfromotherGeneralMotorsdivisions,suchasChevrolet,butthisinformationisonlyusefuliftheotherGMdivisionsaredoingbetterthantheSaturnDivision.22–28.(45min)Missionstatement.Answerswillvary,butshouldidentifythestakeholders(patients,doctors,staff,andcommunity)andstatehowthecompanyintendstoaddvaluetoeachgroup.22–29.(45min.)Performancemeasures.Answerswillvary.22–30.(20min.)Functionalmeasures.课后答案网Answerswillvary,butmayincludeanyofthefunctionalmeasuresshowninIllustration22.3.Thefollowingisoneexample.Animportantcriticalsuccessfactorformanybanksistheefficiencyinwhichthebankcanprocessloans.Thiscanbemeasuredbytheaveragewww.hackshp.cnnumberofdaysittakestoprocessaloan.Byusingthismeasure,thebankwouldbesendingasignaltoitsemployeesthatthisisimportantnotonlytothebank,butalsotoitscustomers.Ifemployeesareevaluatedbasedonthismeasure,theywouldhaveaclearincentivetoshortentheloanprocessingtime.©TheMcGraw-HillCompanies,Inc.,1997640CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn22–31.(45min.)Performancemeasures.Answerswillvary.22–32.(40min.)Operationalperformancemeasures.a.Answerswillvary,butshouldaddressthefollowingpoints:•Percentageofmanufacturingcycleefficiencyhasimprovedsteadilyfrom85%inweek1to90%inweek6.•Percentageofon-timedeliverieshasimprovedsteadilyfrom94%inweek1to99%inweek6.•Numberofcustomercomplaintshasdecreasedsignificantlyfrom40inweek1to11inweek6.b.Asamanagerofthecompany,youmaywanttoknowwhatcausedtheimprovementsshownbyallthreemeasures.Didemployeeshaveincentivestomaketheseimprovements?Wereadditionalcostsincurredtoimproveonallthreemeasures?,etc.22–33.(40min.)Operationalperformancemeasures:KenstonCorporation.a.Answersmayinclude:ProductionalmostdoubledfromJanuarytoJune.However,asproductionincreased,thenumberofdefectiveunitsproducedanddeliveredincreasedingreaterproportionthanproduction.Thereareseveralprobablecausesforthisincluding:•Employeesmayberushingtokeepupwithordersandunabletotakethetimetodoagoodjob,inwhichcasehiringmoreemployeesmayalleviatetheproblem.•Theequipmentbeingusedisnotdesignedtohandlethislevelofproductionormaybeoutofadjustment.Recalibratingthemachinesmaysolvetheproblem.课后答案网•Employeesmaybesopushedthattheyhaveabadattitudeaboutworksotheygetsloppy.www.hackshp.cnb.Thenumberoflatedeliveriesdoesnotappeartoberelatedtotheincreaseinproduction.However,themonthofMayshouldbeinvestigatedtodeterminethecauseofthehighnumberoflatedeliveries.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter22641若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter23CapitalInvestmentDecisionsSolutionstoReviewQuestions23–1.Thetimingisimportantbecausecashreceivedearlierhasagreatereconomicvaluethancashreceivedlater.Thereisanopportunitycostandriskinvolvedbyhavingfundstiedupincapitalinvestmentprojects.Determiningtheamountisimportantinestimatingthefuturecashflows.Thetimingandamounttogetherareusedtodeterminetheeconomicvalueoftheproject.23–2.Thetimevalueofmoneymerelystatesthatcashreceivedearlierhasagreatervaluethancashreceivedlaterbecausethedollarreceivedtodaycanbeearninginterestbetweennowandlater.23–3.Taxpoliciesprovideadditionalincentiveforcapitalinvestmentbyvariousaccelerateddepreciationmethods(orinvestmenttaxcreditswhenineffect)whichresultinafasterreturnofthecompany’scapitalthroughquickerreductionsintaxliabilities.Asaresult,thenetpresentvalueofthecapitalinvestmentisincreased.23–4.Therelationshipbetweentherealreturn(r)andtheinflationrate(i)thatisusedtodiscountnominalcashflowsunderconditionsofinflationis:(1+r)(1+i)–1Theequationservestoreducetheinflatedfuturedollarstotheirvalueintermsoftoday’sdollarsthroughthe课后答案网(1+i)term.Theterm(1+r)operatestodiscountthedollarsforthetimevalueofmoneyeffects.23–5.www.hackshp.cnThenetpresentvalueoftheprojectwillusuallybelowerafteradjustingforinflation,unlessfuturecashflowsfromtheprojectareexpectedtoincreasemorerapidlythantherateofinflation.Thisproblemarisesbecausethetaxshieldisbasedontheoriginalcostoftheassets.Thecashflowsfromthedepreciationtaxdeductionarediscountedmorebecausetheyarereceivedinthefutureandareworthlessthanthedollarsthatwerepaidfortheasset.Thiseffectmaybereflectedinlowerassetprices,andthetaxdeductibilityofnominalinterestratesmayoffsetsomeofthetaxdisadvantagesofhistoricalcostdepreciation.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter23643若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoCriticalAnalysisandDiscussionQuestions23–6.Todeterminewhich,ifeither,projectshouldbeapproved,thenetpresentvalueofeachprojectshouldbedetermined.Oncethetimingandamountofcashflowshasbeendetermined,theyshouldbediscountedtothepresentbydeterminingandapplyingappropriatediscountrates.Anyprojectwithapositivenetpresentvaluecouldbejustifiedandtheprojectwiththegreaternetpresentvalueshouldbeapprovedundernormalcircumstances.23–7.Thefourtypesofcashflowsare:(1)investmentcashflows,(2)periodicoperatingflows,(3)depreciationtaxshield,and(4)disinvestmentflows.Weconsiderthemseparatelybecauseeachtypeofflowresultsfromdifferentactivitiesandgivesrisetodifferenttaxconsequences.23–8.Auditsidentifywhatestimateswerewrongandcancreateanenvironmentinwhichplannerswillnotbetemptedtoinflatetheirestimatesofprofitstogetaprojectimproved.Auditsoftenleadtomoreaccuratecashflowanalyses.23–9.The$160,000reductionintheoperatinglossisacostsavings.Inaddition,thecompanywillreceivethetaxshieldfromdepreciationofthenewequipment.Iftheequipmentlastsformorethanafewyears,itappearstobeagoodinvestment.Abetterinvestmentmightbetoliquidatethedivision.23–10.No.Depreciationisnotacashflowitem.However,thetaxshieldwhicharisesfromdepreciationdeductions课后答案网fortaxpurposesisacashflowitemandisincluded.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997644CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–11.Therelevantcostsforanydecisionarethedifferentialcosts.Allocatedcostsshouldnotbeusedfordecisionmaking.Ifsomeportionoffixedcostsareallocatedtonewprojectsthenthenewprojectsaresubsidizingtheexistingoperations.23–12.Theprimaryconcernisnottheamountofthedeductionbutthetimingofthededuction.Deductionsthatcanbetakensoonerhaveagreaternetpresentvalueinthepresenceofconstanttaxrates.Therefore,anaccelerateddepreciationmethodwillresultingreaternetpresentvaluesimplybecausethedeductionsaretakensooner.23–13.Workingcapitalrequirementsincreasewiththeincreasedvolumeofnominaldollarsbecausemoredollarsarerequiredtosupportthesamelevelofactivityunderinflation.Inventoryvalueswillnotchangeifagivenquantitywasinitiallyprocuredandtheinventorylevelremainsthesame.Replacementcostsofinventoryareincludedasperiodcashoutflows.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter23645若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercisesForpurposesofpresentationallPVfactorshavebeenroundedtothreeplaces.23–14.(20min.)Presentvalueofcashflows.Year012Engineeringstudies.....................$(100,000)Initiationcosts..............................$(400,000)Constructioncosts.......................$(1,800,000)Netcashflow...............................$(100,000)$(400,000)$(1,800,000)PVfactorfor10%.........................1.000.909.826Presentvalues.............................$(100,000)$(363,600)$(1,486,800)Projectnetpresentvalue:$(1,950,400)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997646CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–15.(20min.)Presentvalueofcashflows:TribureCity.a.At20%TimeYear012345Netcashflow.........($200,000)$20,000$50,000$80,000$80,000$100,000PVfactor(20%)......1.000.833.694.579.482.402Presentvalues.......($200,000)$16,660$34,700$46,320$38,560$40,200NetPVofproject....($23,560)b.At12%TimeYear012345Netcashflow.........($200,000)$20,000$50,000$80,000$80,000$100,000PVfactor(12%)......1.000.893.797.712.636.567Presentvalues.......($200,000)$17,860$39,850$56,960$50,880$56,700NetPVofproject....$22,250课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter23647若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–16.(15min.)Effectsofinflation:TribureCity.a.Inflationadjusteddiscountrate:(1+r)(1+i)–1=d(1+.12)(1+.10)–1=23.2%Year012345Netcashflowa..........($200,000)$22,000$60,500$106,480$117,128$161,052PVfactor(23.2%)....1.000.812.659.535.434.352Presentvalues.........($200,000)$17,864$39,870$56,967$50,834$56,690NetPVofproject......$22,225aAssumesinflationaffectscashflowsattherateof10%peryear.b.TheNPVoftheprojectusingtheinflationadjusteddiscountrateisthesame($25differenceduetoroundingthePVfactor)aswheninflationwasnotconsideredbecauseinflationincreasesthevalueofcashflowsinthefuturebythesameamountasinflationreducesthePVfactor.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997648CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–17.(30min.)Presentvalueofcashflows:TitanticEntertainment.a.($000omitted)TimeYear012345Investmentflows:Investment..............$(2,500)Operatingflows:Netcashflows........$750$850$1,200$1,000$600Totalcashflows.........$(2,500)$750$850$1,200$1,000$600PVfactor(20%)..........1.000.833.694.579.482.402Presentvalues...........$(2,500)$625$590$695$482$241NetPVofproject........$133b.($000omitted)TimeYear012345Investmentflows:Investment..............$(2,500)Operatingflows:Netcashflows........$750$850$1,200$1,000$600Totalcashflows.........$(2,500)$750$850$1,200$1,000$600PVfactor(15%)..........1.000.870.756.658.572.497Presentvalues...........$(2,500)$653$643$790$572$298NetPVofproject........$456课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter23649若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–18.(30min.)Effectsofinflationoncashflows:TitanticEntertainment.TimeYear012345Investmentflows:Investment..............$(2,500)Operatingflows:Netcashflows........$795$955$1,429$1,263$803Totalcashflows.........$(2,500)$795$955$1,429$1,263$803PVfactor(21.9%)......1.000.820.673.552.453.372Presentvalues...........$(2,500)$652$643$789$572$299NetPVofproject........$455Calculations:$795=$750x1.062$955=$850x(1.06)etc.Nominalrate=(1+.15)x(1+.06)–1=.219=21.9%23–19.Effectsofinflationoncashflows:TitanticEntertainment.Thenetpresentvalueoftheproject,usingtheinflationadjusteddiscountrate,isthesameaswheninflationisnotconsideredifinflationincreasesthevalueofcashflowsinthefutureatthesamerateasinflationincreasesthediscountrate.Thatwouldbethecasehere.(CompareNPVinpartbof23–17toNPVin23-18[$1differenceisduetorounding].)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997650CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–20.(25min.)Computepresentvalueoftaxshield:LimboCorporation.a.TaxShieldPVFactorPresentYearDepreciationat40%(18%)Value1$120,000$48,000.847$40,6562210,00084,000.71860,312390,00036,000.60921,924490,00036,000.51618,576590,00036,000.43715,732$600,000$240,000$157,200Thepresentvalueofthetaxshieldis$157,200b.TaxShieldPVFactorPresentYearDepreciationat40%(18%)Value1$120,000$48,000.847$40,6562120,00048,000.71834,4643120,00048,000.60929,2324120,00048,000.51624,7685120,00048,000.43720,976$600,000$240,000$150,096Thepresentvalueofthetaxshieldis$150,096.Notethetotaldepreciationtakenisthesameunderstraight-lineandaccelerated,butthetimingunderacceleratedmethodsincreasethepresentvalueofthetaxshieldoverthestraight-linemethod.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter23651若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–21.(25min.)Presentvalueofdepreciationtaxshieldunderinflation:LimboCorp.a.At8%inflation:NominalInterestRate=(1.08)(1.22)–1=31.76%TaxShieldPVFactorPresentYearDepreciationat40%(31.76%)Value1$120,000$48,000.759$36,4322210,00084,000.57648,384390,00036,000.43715,732490,00036,000.33211,952590,00036,000.2529,072$600,000$240,000$121,572b.At14%inflation:NominalInterestRate=(1.14)(1.22)–1=39.08%TaxShieldPresentYearDepreciationat40%PVFactorValue1$120,000$48,000.719$34,5122210,00084,000.51743,428390,00036,000.37213,392490,00036,000.2679,612590,00036,000.1926,912$600,000$240,000$107,856c.Thenetpresentvalueofthetaxshielddecreasesastheinflationrateincreases.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997652CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–22.(30min.)Presentvalueoftaxshield:C.L.Corporation.TaxShieldPVFactorPresentYearDepreciationat35%(15%)Value1$115,000$40,2500.870$35,0182150,00052,5000.75639,690345,00015,7500.65810,364445,00015,7500.5729,009545,00015,7500.4977,828$400,000$140,000$101,90923–23.(30min.)Presentvalueoftaxshield:C.L.Corporation.TaxShieldPVFactorPresentYearDepreciationat35%(15%)Value1$80,000$28,0000.870$24,360280,00028,0000.75621,168380,00028,0000.65818,424480,00028,0000.57216,016580,00028,0000.49713,916$400,000$140,000$93,88423–24.(20min.)Presentvalueoftaxshieldunderinflation:C.L.Corporation.NominalInterestRate=(1.06)(1.15)–1=21.9%a.At6%inflation:课后答案网TaxShieldPVFactorPresentYearDepreciationwww.hackshp.cnat35%(21.9%)Value1$115,000$40,2500.820$33,0052150,00052,5000.67335,333345,00015,7500.5528,694445,00015,7500.4537,135545,00015,7500.3725,859$400,000$140,000$90,026©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter23653若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–25.(30min.)Presentvalueofcashflowsunderinflation:KentronProducts.a.TimeYear012345Investmentflows:Newequipment......$(240,000)Operatingflows:Cashflowsa............$43,200$43,200$43,200$43,200$43,200Taxshield:Depreciationb..........14,40021,12020,16020,16020,160Totalcashflows.........$(240,000)$57,600$64,320$63,360$63,360$63,360PVfactor(8%)...........1.000.926.857.794.735.681Presentvalues...........$(240,000)$53,338$55,122$50,308$46,570$43,148NetPVofproject........$8,486a$43,200=(1–40%)x$72,000b$14,400=$240,000x15%x40%$21,120=$240,000x22%x40%$20,160=$240,000x21%x40%b.At12%inflationNominalRate=(1+.08)x(1+.12)–1=.2096=20.96%TimeYear012345Investmentflows:Newequipment$(240,000)Operatingflows:课后答案网aCashflows$48,384$54,190$60,692$67,976$76,134Taxshield:www.hackshp.cnDepreciation14,40021,12020,16020,16020,160Totalcashflows$(240,000)$62,784$75,310$80,852$88,136$96,294PVfactor(20.96%)1.000.827.683.565.467.386Presentvalues$(240,000)$51,922$51,437$45,681$41,160$37,169NetPVofproject$(12,631)a$43,384=$43,200x1.122$54,190=$48,384x1.12or$43,200x(1.12)etc.©TheMcGraw-HillCompanies,Inc.,1997654CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–26.(30min.)Presentvalueanalysisinnonprofitorganizations:GoldbergResearchOrganization.Year01234567Investmentflows.................$(4,000,000)Periodicoperatingflows:Annualcashsavings.......$1,400,000$1,400,000$1,400,000$1,400,000$1,400,000$1,400,000$1,400,000Additionalcashoutflow...(200,000)(200,000)(200,000)(200,000)(200,000)(200,000)(200,000)Disinvestmentflows........400,000Netannualcashflow......$(4,000,000)$1,200,000$1,200,000$1,200,000$1,200,000$1,200,000$1,200,000$1,600,000PVfactor12%................1.000.893.797.712.636.567.507.452Presentvalue.................$(4,000,000)$1,071,600$956,400$854,400$763,200$680,400$608,400$723,200Netpresentvalue...........$1,657,600Yes,thehospitalshouldbuytheequipment.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997655若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–27.(20min.)Impactofinflationonnetpresentvalueinnonprofitorganizations:GoldbergResearchOrganization.Year01234567Netannualcashflowa........$(4,000,000)$1,296,000$1,399,680$1,511,654$1,632,586$1,763,194$1,904,250$2,742,118PVfactor20.96%b.............1.000.827.683.565.467.386.319.264Presentvalue....................$(4,000,000)$1,071,792$955,981$854,085$762,418$680,593$607,456$723,919Netpresentvalue..............$1,656,244Ifinflationisconsidered,thentheequipmentshouldstillbebought.aCashflowsfromExercise23–26times(1.08)n,wherenistheyearofthecashflow.b20.96%=(1.08)(1.12)–1.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997656若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–28.(35min.)Sensitivityanalysisincapitalinvestmentdecisions:HearldManufacturing.Thescheduleofcashflowsis($000omitted):BestWorstYearCaseExpectedCase0($3,000)($3,000)($3,000)10002000300042,0001,40060052,0001,40060062,0001,40060072,0001,400600NetPresentValue@16%$586a($490)b($1,924)cInternalRateofReturn20%12%(4%)a$586=($3,000)+$2,000x(1.16–4+1.16–5+1.16–6+1.16–7)b($490)=($3,000)+$1,400x(1.16–4+1.16–5+1.16–6+1.16–7)c($1,924)=($3,000)+$600x(1.16–4+1.16–5+1.16–6+1.16–7)Undertheexpectedscenario,theprojectdoesnotmeetthecompany’shurdlerate.Therefore,itwouldprobablyberejected.However,underthebestcase,theproject’sinternalrateofreturnis20%,whichmaybesuitableifthereareadditionalreasonstobelievethisscenarioismorelikelyorifthecompanyiswillingtotaketheriskontheprojectforotherreasons.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter23657若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–29.(20min.)Netpresentvalueindex.Year(inthousands)Item01234ProjectACashFlows............$(200)$50$90$100$10020%PVFactors....................—.833.694.579.481PresentValue.......................$(200)$42$62$58$48NetPresentValue.................$10NetPresentValueIndex5.0%(=$10/$200)ProjectBCashFlows............$(350)$80$190$250$120PresentValues@20%.........$(350)$67$132$145$58NetPresentValue.................$52NetPresentValueIndex15%(=$52/$350)ProjectCCashFlows...........$(300)$70$125$170$200PresentValues@20%.........$(300)$58$87$98$96NetPresentValue.................$39NetPresentValueIndex13%(=$39/$300)RankProjectAmounttoInvestNetPresentValue1B$350$522C25033(i.e.,250/300x$39)3A00$600$85课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997658CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–30.(40min.)Netpresentvalue:MorrisandAssociates.a.Calculatenetpresentvalueindex.(Answersmaydiffersomewhatduetorounding.)($000omitted)Year01234567A.SoftwareDesigns.............................$(900)$0$0$0$0$1,000$1,000$1,000PVfactor(15%)................................0.8700.7560.6580.5720.4970.4320.376Presentvalues.................................(900)$0$0$0$0$497$432$376Netpresentvalue.............................$405Netpresentvalueindex45%=$405/$900Year01234567B.SunsetMall......................................$(550)$65$65$65$250$250$250$250PVfactor(15%)................................0.8700.7560.6580.5720.4970.4320.376Presentvalues.................................(550)$57$49$43$143$124$108$94Netpresentvalue.............................$68Netpresentvalueindex12%=$68/$550课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997659若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–30.(continued)Year01234567C.Nutri-care.........................................($650)$260$260$260$60$60$60$60PVfactor(15%)................................0.8700.7560.6580.5720.4970.4320.376Presentvalues.................................($650)$226$197$171$34$30$26$23Netpresentvalue.............................$57Netpresentvalueindex9%=$57/$650Year01234567D.MarvinGardens...............................($850)$250$250$250$250$250$250$250PVfactor(15%)................................0.8700.7560.6580.5720.4970.4320.376Presentvalues.................................($850)$217$189$164$143$124$108$94Netpresentvalue.............................$189Netpresentvalueindex22%=$189/$850b.Withnoconstraints,MorrisandAssociateswouldinvest$900,000inSoftwareDesignsandwouldpurchase70.6%(=$600,000remaining¸$850,000projectinvestment)interestinMarvinGardens.Thesearethefirstandsecondrankedintermsofnetpresentvalueindex.Thenetpresentvaluefromthisinvestmentplanwouldbe$538,000=$405,000+(.706x189,000).课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997660若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–31.(15min.)Alternativeprojectevaluationmeasures:FarmFreshCorporation.Investment$300,000==3.75yearsAnnualcashflow$80,00023–32.(20min.)Alternativeprojectevaluationmeasures:Nodiscounting:QuintanaCo.a.InvestmentcostAnnualcashreturns(aftertax)+Depreciationtaxshield$20,000=+$20,000[(.4)$8,000x(1–.40)]][5]$20,000==3.125years$4,800+$1,600b.13.125=32%c.(Cashflow–Depreciation)(1–Taxrate)($8,000–$4,000)(1–.40)=Averageinvestment1/2x$20,000$2,400==24%$10,000课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter23661若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems23–33.(45min.)Assesscapitalinvestmentprojectwithalternativemeasures:BaxterCo.a.Year0123Investmentflows:Equipment................................$(900,000)Annualoperatingflows(seeschedulebelow)...........$330,000$480,000$240,000Taxshield($900,000/3)x.40..120,000120,000120,000Disinvestment:Salvage....................................180,000Taxongain..............................(72,000)Netcashflows.............................$(900,000)$450,000$600,000$468,000Year123Sales......................................................$1,000,000$1,600,000$800,000Material,labor&variableoverhead........400,000750,000350,000Incrementalrent(12,500@$4)............50,00050,00050,000Netbeforetaxes.....................................$550,000$800,000$400,000Aftertaxoperatingflows.........................$330,000$480,000$240,000b.Yes.Paybackperiodislessthantwoyears.课后答案网YearCashFlowBalance00(900,000)www.hackshp.cn1450,000(450,000)2600,000150,000$450,000=.75$600,000Payback=1.75years.©TheMcGraw-HillCompanies,Inc.,1997662CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23-33.(continued)Averageaccountingincome1/3($103,500+$232,500+$16,500)c.=Averageinvestment1/2($900,000+$180,000)$117,500==21.8%$540,000(Ifthecalculationisbasedoninitialinvestmentinsteadofaverageinvestment,theresultis$117,500/$900,000=13.1%).Thecalculationassumesrentandassignedoverheadareallocatedtothisproductaccordingtotheproblem.d.Yes.Year0123Netcashflows(seeparta.)........$(900,000)$450,000$600,000$468,000PVfactors@20%........................833.694.579Presentvalues.............................$(900,000)$374,850$416,400$270,972Netpresentvalue.........................$162,222课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter23663若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–34.(40min.)Newmachinedecision:TCY,Inc.Donotpurchasethenewmachine,basedonthenegativeNPV.TimeYear0123Investment:Newmachine.......................(2,000,000)Saleofoldmachine..............400,000Taxongainonsaleofoldmachine......................(32,000)aOperatingcashflows:Variablecostsavings...........120,000120,000120,000Fixedcostsavings................240,000240,000240,000Taxeffectsofcostbsavings.............................(144,000)(144,000)(144,000)Depreciationtaxshieldconnewmachine...............120,000200,000160,000Forgonedepreciationtaxdshieldonoldmachine......(128,000)Disinvestmentcashflows:Salvageofnewmachine......1,000,000eTaxongain.........................(80,000)Forgonesalvageofoldmachine............................(200,000)fTaxongain..........................80,000Netcashflows.........................$(1,632,000)$208,000$416,000$1,176,000Presentvaluefactors...............1.0.909.826.751Presentvalues.........................$(1,632,000)课后答案网$189,072$343,616$833,176Netpresentvalue.....................$(216,136)www.hackshp.cnaOldmachinehasbeendepreciatedto20%ofitsoriginalcost,20%x$1,600,000=$320,000.Taxongain=40%x($400,000–$320,000)=$32,000.bCostsavingstimes40%taxrate.c15%x$2,000,000x40%=$120,000inYear1;25%x$2,000,000x40%=$200,000inYears2;20%x$2,000,000x40%=$160,000inYear3.dOldmachineisbeingdepreciated$320,000(=20%x$1,600,000)inYear1(its5thyear).Taxshield=40%x$320,000=$128,000.e($80,000)=40%x($1,000,000–$300,000–$500,000–400,000).f$80,000=40%x$200,000.©TheMcGraw-HillCompanies,Inc.,1997664CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–35.(25min.)EthicalIssues:IshimaCompany.a.HelenDodge’sfirstrevisionoftheproposalwasunethicalifshedidnotalsodisclosethatestimateswereremotepossibilities.Sheshouldcommunicateinformationfairlyandobjectively,anddisclosefullyallrelevantinformationthatwouldinfluenceanintendeduser’sunderstanding.Sheneedstoavoidconflictsofinterest,andtorefrainfromsubvertingtheattainmentoftheorganization’slegitimateandethicalobjectives.b.Hisconductwasdefinitelyunethical.Watsonhastheresponsibilitytoperformhisprofessionaldutiesinaccordancewithrelevantstandards,suchasusingrealisticestimatesinhisnetpresentvalueanalysis.Hehasadutytocommunicatebothfavorableandunfavorableinformation,aswellasprofessionaljudgementsandopinions.Hemustavoidconflictsofinterest,andadviseallpartiesofsuchpotentialconflicts.c.Alwaysinvestigatetoseeifthereisanexistingpolicywithinthecompanyforresolvingethicalconflicts.Followthispolicyifitdoesexist.Otherwise,sinceGeorgeWatson,Dodge’ssuperior,isinvolved,itisnotnecessarytodiscussthisissuewithhimanyfurther.Sheshouldtakeherproblemtothenexthigherlevelofauthority,thatistothevicepresidentoffinance.IfshefailstogetasatisfactorysolutionsheshouldtakeherproblemtotheAuditCommitteeortotheBoardofDirectors.Perhapsseekingtheadviceofaconfidentialobjectiveadvisor,forexampleapeer,willhelptoclarifytheconceptsoftheissuesathand.Ifthesituationstillremainsunresolvedafterexhaustingalllevelsofinternalreview.Helenshouldresignandsubmitaninformativememorandumtotheappropriateofficialintheorganization.Unlessthereisalegalobligation,whichisnotthecasehere,Helenshouldrefrainfromdiscussingthiswithauthoritiesorindividualsnotemployedorengagedbytheorganization.(Note:TheIMAhasan800hotlinefordiscussingethicaldilemmas.)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter23665若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–36.(1hour)Computenetpresentvalue:WrightCorporation.a.Equipmentremovalnetoftaxeffects=$2,750=$5,000x(1–45%).b.Depreciationschedule:TaxShieldPresentValuePresentYearDepreciationat45%Factor(15%)Value1$40,000$18,000.870$15,660270,00031,500.75623,814330,00013,500.6588,883430,00013,500.5727,722530,00013,500.4976,710Totals$200,000$90,000$62,789c.Forgonetaxbenefits:$100,000$4,500=x45%10yearsd.Gainfromsalvageofnewequipment:$33,000=$60,000x(1–45%)e.Taxbenefitarisingfromlossonoldequipment:$27,000=($100,000bookvalue–$40,000salvagevalue)x.45taxratef.Differentialcashflows(years1–10):$18,150=[($30,000+$48,000)–($25,000+$20,000)]x(1–45%)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997666CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–36.(continued)g.Year012345678910Investmentflows:Equipmentcost......$(200,000)Removal.................(2,750)Salvageofoldequipment..........40,000Taxbenefit—saleofoldequipment27,000Periodicoperatingflows...................$18,150$18,150$18,150$18,150$18,150$18,150$18,150$18,150$18,150$18,150Taxshieldfromdepreciation:Newequipment:Year1.................18,000Year2.................31,500Years3–5...........13,50013,50013,500Oldequipment(forgone)............(4,500)(4,500)(4,500)(4,500)(4,500)(4,500)(4,500)(4,500)(4,500)(4,500)Disinvestment:Proceedsofdisposal..............60,000Taxongain............课后答案网(27,000)Totalcashflows.......$(135,750)$31,650$45,150$27,150$27,150$27,150$13,650$13,650$13,650$13,650$46,650PVfactorat15%.......870www.hackshp.cn.756.658.572.497.432.376.327.284.247Presentvalues.........$(135,750)$27,536$34,133$17,865$15,530$13,494$5,897$5,132$4,464$3,877$11,523Netpresentvalue.....$3,701Note:YouranswermayvaryslightlyduetoroundingofPVfactor.©TheMcGraw-HillCompanies,Inc.,1997667若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–37.(45min.)Impactofinflationonnetpresentvalues:WrightCorporation.a.Nominalinterestrate=(1.15x1.06)–1=.219=21.9%b.AnnualoperatingflowsunderinflationYearOperatingflowxinflationfactor=1$18,150x1.061=$19,2392$18,150x1.062=$20,3933$18,150x1.063=$21,617etc.(seescheduleinpartc)课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997668CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–37.(continued)c.TimeYear012345678910Investmentflows:Equipment..........................$(200,000)Removal.............................(2,750)Salvageofoldequipment...40,000Taxbenefit—saleofoldequipment......................27,000Periodicoperatingflows.......$19,239$20,393$21,617$22,914$24,289$25,746$27,291$28,928$30,664$32,504Taxshield–new:Year1.............................18,000Year2.............................31,500Years3–5.......................13,50013,50013,500Taxshield—oldequipment(forgone).....(4,500)(4,500)(4,500)(4,500)(4,500)(4,500)(4,500)(4,500)(4,500)(4,500)Disinvestment:Proceedsofdisposal..........100,000Taxongain........................(45,000)Totalcashflows....................$(135,750)$32,739课后答案网$47,393$30,617$31,914$33,289$21,246$22,791$24,428$26,164$83,004Discountfactor(21.9%)........1.0000.8200.6730.5520.4530.3720.3050.2500.2050.1680.138Presentvalue.......................$(135,750)$26,846www.hackshp.cn$31,895$16,901$14,457$12,384$6,480$5,698$5,007$4,396$11,455Netpresentvalue.................$(231))Note:YouranswermayvaryslightlyduetoroundingofPVfactor.©TheMcGraw-HillCompanies,Inc.,1997669若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–38.(25min.)Assessnetpresentvalueoftrainingcosts:Zigfield,Inc.Thenewtrainingshouldbepurchased.Thesupportcalculationsfollow:(000’somitted)Costsavingsduetotraining:Reductionindirectlabor.....................$770Reductioninotherexpenses...............275Grosssavings.....................................$1,045Aftertaxof40%...................................$627Presentvalueof$627peryearfor10yearsat12%:5.650x$627=$3,543Aftertaxtrainingcosts[$5,000x(1–.40)](3,000)Netpresentvalueoftraining$543Thus,thenewtrainingshouldbepurchased.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997670CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–39.(40min.)Sensitivityanalysisincapitalinvestmentdecisions:Octagon,Corp.Thecashflowsarescheduledasfollows($000omitted):BestWorstYearCaseExpectedCase0($3,500)($3,500)($3,500)15000(500)25000(500)31,5001,0001,00041,5001,0001,00053,0002,0001,00063,0003,0001,00073,0003,0001,000NetPresentValue@20%$1,903a$207b($2,187)cInternalRateofReturn33%21%2%a$1,903=($3,500)+[$500x(1.20–1+1.20–2)]+[$1,500x(1.20–3+1.20–4)]+[$3,000x(1.20–5+1.20–6+1.20–7)]b$207=($3,500)+[$1,000x(1.20–3+1.20–4)]+[$2,000x1.20–5]+[$3,000x(1.20–6+1.20–7)]c($2,187)=($3,500)–[$500x(1.20–1+1.20–2)]+[$1,000x(1.20–3+1.20–4+1.20–5+1.20–6+1.20–7)]Sincetheexpectednetpresentvalueisgreaterthanzero,thecompanywouldbelikelytoinvestinthisproject.However,thealternativescenariosneedtobeconsideredwhenmakingthedecision.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter23671若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn23–40.(40min.)Capitalinvestmentanalysisunderinflationwithinvestmenttaxcredit:NortonCompany.Year012345678Investmentflows:Machine............................$(80,000)Investmenttaxcredit........$8,000Annualoperatingflowsa.......23,976$25,894$27,966$30,203$32,619$35,229$38,047$41,091Depreciationtaxshieldb.......6,40011,2004,8004,8004,800Totalcashflows....................$(80,000)$38,376$37,094$32,766$35,003$37,419$35,229$38,047$41,091cPVfactorat20.96%.............827.683.565.467.386.319.264.218Presentvalues......................$(80,000)$31,737$25,335$18,513$16,346$14,444$11,238$10,044$8,958Netpresentvalue.................$56,615Note:YouranswermayvaryslightlyduetoroundingofNPVfactor.aAnnualoperatingflows=(1–40%)x($50,000–$3,000–$10,000)x(1+i)n=$22,200x(1.08)nbYearDepreciationtaxshieldTaxshield140%x$16,000=课后答案网$6,400240%x$28,000=11,200340%x$12,000=4,800www.hackshp.cn440%x$12,000=4,800540%x$12,000=4,800cNominalrate=[(1.12)(1.08)–1]=20.96%©TheMcGraw-HillCompanies,Inc.,1997672若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter24InventoryManagementSolutionstoReviewQuestions24–1.Althoughtheinventorymodelsaredevelopedbyoperationsresearchers,statisticiansandcomputerspecialists,theirareasofexpertisedonotextendtotheevaluationofthedifferentialcostsfortheinventorymodels.Generally,discussionsofinventorymodelstakethecostsasgiven.Itistheroleoftheaccountanttodeterminewhichcostsareappropriateforinclusioninaninventorymodel.24–2.Aswithotherinvestments,thereisanopportunitycostinvolvedinhavingresourcesinvestedinaspecificasset.Fundsthatareinvestedininventorycould,atleast,beearningshort-terminterestratesifinvestedinmarketsecurities.Itismorelikelythatthesefundswouldbeinvestedinmoreprofitableassets,however.Therefore,solongasthefundsaretiedupininventory,theopportunitytoobtainearningsonotherinvestmentsmustbeforgone.24–3.Theeconomicorderquantitymodelseekstominimizethesumofcarryingcostsplusordercostsfortheworkinginventory.Sincetheworkinginventoryisassumedtobehaveinasawtoothpattern(seeIllustration24.5),theinventorycarryingcostwouldbethecostsassociatedwiththeaveragequantityofinventoryonhand.AtthestartofthecyclethereareQunitsonhand,whileattheendtherearezerounitsonhand.Theaverageofthesetwonumbers(Q+0)isequaltoQ/2;hence,thedivision.ThereisanassumptionofsteadyusageratesintheEOQmodel.Ifthisassumptionisseriouslyviolated,someothercostfunctionmayberequired.24–4.课后答案网a.Hourlyfeeforinventoryaudit(C)b.Salaryofpurchasingsupervisorwww.hackshp.cn(N)c.Coststoauditpurchaseordersandinvoices(P)d.Taxesoninventory(C)e.Stockoutcosts(P)f.Storagecostschargedperunitininventory(C)g.Fireinsuranceoninventory(C)h.Fireinsuranceonwarehouse(N)i.Obsolescencecostsoninventory(C)j.Shippingcostspershipment(P)©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter24673若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–5.Q*is,bydefinition,theoptimalsolutionintheabsenceofconstraints.Withconstraints,wecanneverobtainalowercostsolutionthanQ*.Iftheconstraintisirrelevant(thatis,Q*isstillfeasible)thenQ*istheleastcostsolution.IfQ*isnotfeasible,thenthenextbestsolutionwillbeatanadjacentconstrainteithergreaterthanorlowerthanQ*.ThisoccursbecausethetotalcostfunctionisdecreasinguntilitreachesQ*andthenincreasingafter.AnyrestrictionotherthanthoseadjacenttoQ*willnecessarilybeatahighercostthantheadjacentrestrictions.InspectionofIllustration24.2withtheimpositionofconstraintsatvariousvaluesofQwillconfirmthisvisually.24–6.a.Orderquantityb.Reorderpointc.Safetystockd.StockoutSolutionstoCriticalAnalysisandDiscussionQuestions24–7.Sincethecarryingcostsexceedtheordercost,andintheabsenceofconstraints,itwouldappearthattheactualQisinexcessofQ*.RecallthatatQ*thetwocostsareequal(insimplecases)orgenerallyclosetoequal.Aninspectionofillustration24.1showsthatthecarryingcostfunctionisgreaterthantheordercostfunctionwhentheactualQisgreaterthanQ*.24–8.Differentialrelevantcostsaredefinedasthosethatchangewithachangeinthedecisionvariable.Inthecaseofinventorypolicy,thedecisionvariablesareeitherorderquantitiesorsafety-stocklevels.Inthecaseoforderquantities,thedifferentialcostsmaybethoseassociatedwiththequantitiesofinventorythataremaintainedasaresultofagivenorderquantityorwiththenumberofordersplacedinagivenyear.Anycostwhichvarieswitheitherofthesefactorswouldberelevanttotheeconomiclotsizedecision.Forsafety-stockdetermination,therelevantcostsarethecarryingcostofthesafetystockplustheexpectedannualstockoutcosts.Theexpectedstockoutcostsareaffectedbytheprobabilityofastockout,thecostsofagivenstockout,andtheexposuretostockout.Thelattertermisdeterminedbythefrequencyofordering.课后答案网Thestockoutmustusuallybedeterminedwithdataoutsidetheaccountingrecordsandmayrangefromratherlowcostsofspecialorderstoextensivecostsofashutdownofcompanyoperations.24–9.www.hackshp.cnAsymmetricaldistributionimpliesequalprobabilitiesoneithersideoftheexpectedvalue.Astockoutwouldoccuranytimethedemandoverleadtimeexceededtheexpectedvalue.Thatislikelytohappenequallyasoftenasademandoverleadtimeoflessthantheexpectedvalue,soonewouldexpectastockout50%ofthetime.©TheMcGraw-HillCompanies,Inc.,1997674CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–10.Inthefirstplace,largeordersizeswillnoteliminatetheexposuretoastockout.Safetystockwill.Thus,ordering5,000unitswith75instockandademandovertheleadtimeof800unitswillresultinastockout.However,reducingthenumberofordersperyearwillreducetheexpectedfrequencyofastockout.Forexample,ifacompanyhasconcludedthata.5probabilityofastockoutisacceptable,anditplacestwoordersayear,itcanexpectonestockout(i.e.,2x.5).However,ifitplacesfiftyordersayearthen25stockoutscanbeexpected.Theappropriatecriterionforinventorypolicyisnotavoidanceofastockout,asimpliedinthecomment,butrathertheminimizationofthecostsassociatedwithmaintaininginventories.24–11.Themethodofaccountingforfinancialreportingortaxpurposeswillnotdirectlyaffecttheoptimalinventorypolicy.Optimalinventorypolicyisrelatedtoexpectedfuturecosts,notthepastcostsonwhichLIFOorFIFOdataarebased.However,sinceLIFOcanresultinasignificanttaxpenaltyifLIFOinventoriesarereducedinquantity,therecanbeanadditionalcosttoconsiderinmanagementofLIFOinventories,namely,thecostsofavoidingthetaxliabilityonLIFOinventoryliquidation.However,thatproblemisdifferentfromthematerialdiscussedhereandusuallyrelatestoanaggregateinventoryratherthantoaspecificitemininventory.24–12.Just-in-timeeliminatesinventorywherespoiledgoodsanddefectscanbestored.Ifadepartmentismakingdefectiveproducts,withJITitmustcorrecttheproblembeforetheproductsaretransferredtothenextdepartment.24–13.FlexiblemanufacturingenablescompaniestochangefromproductionofproductAtoproductBquickly,withminimalsetuptime.Thisreducestheneedforinventories.24–14.Companiesthatusejust-in-timeproductionmighthaveashortageofproductifdemandincreasesunexpectedly.Also,supplierdisruptions(forexample,workerstrikes)maycauseaninterruptioninthereceiptofmaterialsandpartsnecessarytocompleteproduction.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter24675若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises24–15.(15min.)ComputeEOQ.A=40,000S=$9.60+(18%x$80.00)=$9.60+$14.40=$24.00P=$480.002x40,000x$480.00Q*=$24.00=1,600,000=1,265units24–16.(15min.)ComputeEOQ:SonomaTechnologyInc.2x310,000x$620EOQ=$125=3,075,200=1,754units课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997676CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24-17.(35min.)FindmissingdataforEOQ:ErrantosCorporation.ThisproblemrequiressolvingforanunknownintheEOQequation.Giventheequation,2APQ*=Ssubstitutingintheknownsfromtheexercise,andlettingtheunknowninventorycostbedenoted“I”weobtain:2x3,500x20x$306.253,500=$0.80+.2ISquaringbothsides:2x3,500x20x$306.2512,250,000=$0.80+.2ICollectingterms:42,875,00012,250,000=$0.80+.2Iand:12,250,000x($0.80+.2I)=$42,875,000then$0.80+.2I=$42,875,000/12,250,000$0.80+.2I=$3.50.2I=$3.50–$0.80.2I=$2.70课后答案网I=$13.50www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter24677若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–18.(15min.)EOQ-multiplechoice.a.Theansweris2.2x240,000x$300600=$400b.Theansweris1.Thereare4,000unitsintheoptimalproductionrun:2x48,000x$1004,000=$.60Therefore,Fongshouldmake12productionrunsperyear:48,000unitsperyear12=––––––––––––––––––––4,000unitsperrunc.Theansweris3.2x160,000x$541,200=$12课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997678CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–19.(35min.)Ordersinroundlots:LogginsCorporation.Theoptimalorderquantitywithoutregardtotheorderrestrictionsis:2xAxPQ*=S2x172,000x$325Q*=$25=4472000,,=2,115unitsGiventherestrictions,itisnecessarytoevaluatethecostsattheadjacentorderquantitiesof2,000unitsand3,000units.At2,000units:Carryingcosts:QS2,000x$25==$25,00022Ordercosts:AP172,000x$325==$27,950Q2,000Totalcosts$52,950At3,000units:Carryingcosts:QS3,000x$25==$37,50022Ordercosts:课后答案网AP172,000x$325==$18,633Q3,000www.hackshp.cnTotalcosts$56,133Itisoptimaltoorder2,000units.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter24679若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–20.(35min.)Impactofquantitydiscountsonorderquantity:FolsomCompany.FirstcomputetheEOQwithoutregardtothediscountschedule:2AP2x810x$500Q*==S$450=42ThencomputethetotalcostsundertheinitialQ*andfortheminimumquantityrequiredtoearneachofthenextpricebreaks.OrderCarryingOrderForegoneTotalQuantityCostCostDiscountCosts4242x$450810x$500810x$1,500242x(6%–2%)=$9,450=$9,643=$48,600$67,6938080x$450810x$500810x$1,500280x(6%–5%)=$18,000=$5,063=$12,150$35,213Optimal150150x$450810x$500zero2150=$33,750=$2,700-0-$36,450课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997680CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–21.(20min.)Impactofconstraintsonoptimalorder:FolsomCompany.Iftherewerearestrictiononthestoragecapacity,thentheoptimalordersizewouldbe42units,notthe50unitrestriction.Thismaybefoundbycomparingthetotalcostat42unitsgiveninexercise24-20as$67,693withthefollowingcostsat50units.CarryingOrderForegoneTotalCostCostDiscountCosts50x$450810x$500810x$1,500250x(6%x2%)=$11,250=$8,100=$48,600$67,950课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter24681若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–22.(25min.)Evaluatesafety-stockpolicy:RollinsCorporationItisnecessarytoevaluatethetotalannualcarryingcostsandexpectedstockoutcostsateachsafety-stocklevel.Thecarryingcostwillbe$32.00foreachunitinsafetystock.Withthegivenordersize,thereare15ordersplacedayear(i.e.,39,000/2,600=15).Basedonthesecomputations,wepreparethefollowingschedule:SafetyCarryingCostsofExpectedStockoutTotalStockSafetyStockCostsCosts00.6x15ax$3,300=$29,700$29,700100100x$32.00=$3,200.2x15ax$3,300=$9,90013,100175175x$32.00=$5,600.08x15ax$3,300=$3,9609,560(optimal)ba250250x$32.00=$8,000.04x15x$3,300=$1,9809,980Additionalcomputations:a15isthenumberofordersperyear.bItshouldbeevidentthatatthislevelthecarryingcostsaloneexceedthetotalcostsatasafetystockof175units.Therefore,itisnotpossibleforthisoranysafety-stocklevellargerthan250tobelesscostlythan175units.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997682CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–23.(20min.)Safetystock–multiplechoice.a.Theansweris4.SafetyCarryingExpectedStockoutTotalStockCostCostCost1010x$1=$1040%x5x$300=$600$6102020x$1=$2020%x5x$300=$300$3204040x$1=$4010%x5x$300=$150$1908080x$1=$805%x5x$300=$75$155Optimalb.Theansweris1.SafetyCarryingExpectedStockoutTotalStockCostCostCost10$8x10=$8050%x5x$120=$300$380Optimal20$8x20=$16040%x5x$120=$240$40030$8x30=$24030%x5x$120=$180$42040$8x40=$32020%x5x$120=$120$44050$8x50=$40010%x5x$120=$60$46055$8x55=$4405%x5x$120=$30$470课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter24683若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–24.(30min.)Differentialcostsofinventorypolicy:Souds,Inc.Coststhatvarywiththenumberofunitspurchased:Purchaseprice....................................$195Insuranceonshipment........................3Total.................................................$198Coststhatvarywiththeaveragenumberofunitsininventory:Inventoryinsurance...........................$5.60Inventorytax......................................3.90(=$195x2%)Total...............................................$9.50perunitTotalcarryingcost=(25%x$198)costofcapital+$9.50=$49.50+$9.50=$59.Ordercosts:Shippingpermit...................................$403.30Coststoarrangefortheshipment.......55.20Unloading............................................160.40Stockoutcosts.....................................244.00Total.................................................$862.90课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997684CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–25.(30min.)Differentialcostsofinventorypolicy.OtherOrder=Insurance+ordercostscostsP=$860+$18=$878CarryingOut-of-pocketCostofcapital=+costscostsoninventoryS=$75+20%x$317=$138.40a.Carryingcosts:QS500x$138.40==$34,600.0022Ordercosts:AP5,400x$878==$18,964.80Q250Total$53,564.80b.Economicorderquantity:2x5,400x$878Q*==68514,=262units$138.40Carryingcosts:QS262x$138.40==$18,130.4022Ordercosts:课后答案网AP5,400x$878==$18,096.18Q262www.hackshp.cnTotal$36,226.58Thecompanycouldsavemoneybychangingitsordersizetotheoptimalquantity.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter24685若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems24–26.(40min.)Determineoptimalsafety-stocklevels:Estatic,Inc.Thekeytothisproblemiscomputingtheexpectedstockoutcostsintermsofdollarsperdayofstockoutratherthaninspecificdollaramount.Astockoutwilloccurwhentheactualleadtimeexceedsthesumoftheplannedleadtime(5days)plusthenumberofdays’safetystockonhand.Thislatteramountissimplythesafetystockdividedbytheusagerate(50unitsperday).Exposuretoastockoutisbasedonthenineordersperyear.Thatis,270workingdaystimes50unitsperdayalldividedbythe1,500unitsorderedatonetime.Theexpectedannualcostsofalternatesafety-stockpoliciesmaybeillustratedinthefollowingschedule:SafetyCarryingCostsExpectedAnnualTotalStock(@$22/Unit)StockoutCostsCosts09x{[.05x(9–5)]+[.15x(8–5)]+zero[.20x(6–5)]}x$4,200=9x(.2+.45+.2)x$4,200=$32,130$32,130509x{[.05x(9–5–1)]+50x$22[.15x(8–5–1)]}x$4,200=$1,100=$17,010$18,1101009x{[.05x(9–5–1)]+100x$22[.15x(8–5–2)]}x$4,200=$2,200课后答案网=$11,340$13,540150150x$229x[.05x(9–5–3)]+$4,200=$3,300www.hackshp.cn=$1,890$5,190200200x$22none=$4,400-0-$4,400Optimal©TheMcGraw-HillCompanies,Inc.,1997686CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–27.(60min.)Inventorypolicycostevaluation:Wilson,Inc.Firstitisnecessarytocomputethecostofeachunit,thecarryingcost,andtheordercostfromthedatasuppliedintheproblem.a.OrderInvestmentCostCarryingCostCostInvoiceprice....................................................$32.92$640.00Shippingcharges.............................................1.05.60($.40x1.5kg)Taxoneachunit..............................................1.80Specialpackaging...........................................2.65(netofrefund)Casualtyinsurance..........................................1.76Liabilityinsurance............................................415.00Processingorderdocuments...........................183.00Unloadingoperations.......................................82Inspectandcountforannualinventory...........$2.63Rentalofunloadingequipment........................222.00Estimatedobsolescencecosts........................1.35Inventoryrecordmaintenance..........................92Inventorytax.....................................................99($32.92x3%)Inventoryinsurance.........................................课后答案网4.94($32.92x15%)Expectedstockoutcosts..................................108.00aSub-totals........................................................$41.60www.hackshp.cn$10.83$1,568.00Costofcapital..................................................9.15($41.6x22%)Totals..............................................................$41.60$19.98$1,568.00________________________a$5,400x2%Withthesedata,itispossibletoanswerthequestionsintheproblem.©TheMcGraw-HillCompanies,Inc.,1997687若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–27.(continued)b.Thecostsofthecurrentinventorypolicyincludethecarryingcostsoftheworkinginventoryandsafetystock,theordercostsandtheexpectedannualstockoutcosts.Theseareasfollow:Carryingcosts:Safetystock={25,000units–[9x(350,000/300)]}x$19.98=[(reorderpoint)–(demandoverleadtime)]xcarryingcostperunit=14,500unitsx$19.98=$289,710WorkinginventoryQS=(350,000/4ordersperyear)$19.98=$874,12522Totalcarryingcosts$1,163,835Ordercosts:4ordersperyearx$1,568.00=$6,272Expectedannualstockoutcosts(includedintheordercosts)Totalcosts$1,170,107c.Costsofoptimalorderpolicy:(1)DetermineQ*ignoringrestrictionsonordersize:2APQ*=课后答案网S2x350,000x$1,568Q*=www.hackshp.cn$19.98=54934935,,=7,412©TheMcGraw-HillCompanies,Inc.,1997688CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–27.(continued)(2)Determinethelowestcostfromtheadjacentfeasibleordersizes:At5,000units:Carryingcosts:QS5,000x$19.98==$49,95022Ordercosts:AP350,000x$1,568==$109,760Q5,000Totalcosts$159,710At10,000units:Carryingcosts:=$99,900(doublethatfor5,000units)Ordercosts:(halfthatfor5,000units)=$54,880Totalcost$154,780OptimalOptimalsafetystocklevelisfoundbyevaluatingtheannualcostsateachdifferentsafetystockamount.SafetyCarryingExpectedAnnualTotalStockCostStockoutCostCosts0zero35ax.5x$5,400=$94,500$94,500Optimal7,000$139,860b35ax.1x$5,400=$18,900$158,76014,000279,720课后答案网35ax.02x$5,400=$3,780$283,50021,000419,58035ax.01x$5,400=$1,890$421,470awww.hackshp.cn35=numberofordersperyear=350,000/10,000determinedin(2)above.bItshouldbeevidentthatthecostofcarrying7,000ormoreunitsofsafetystockisgreaterthanthestockoutcostsatnounitsofsafetystock.Tocarry4,729unitswouldcost$94,500(i.e.,4,729x$19.98),thusthemaximumcost-effectivesafetystockwouldbe4,729unitsandthiswouldonlybeeconomiciftheexpectedstockoutcostswerereducedtozero.d.Reorderpoint:350,000Usageoverleadtime+safetystock=–––––––x9+0=10,500units300©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter24689若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24-28.(40min.)SensitivityofEOQcomputationstochangesincostestimates:Wildridge,Inc.a.2AP2x80,000x$808Q*==S$7+(.3x$275)=1444469,,=1202,b.Carryingcosts:QS1,202x[$7+(.15x$275)]==$28,99822Ordercosts:AP80,000x$808==$53,777Q1,202Totalcosts$82,775c.ThenewQ*iscomputed:2AP2x80,000x$808Q*==S$7+(.2x$275)=2085161,,=1444,Andthetotalcostsunderthispolicy:课后答案网Carryingcosts:QS$1,444x$62.00==$44,764www.hackshp.cn22Ordercosts:AP80,000x$808==$44,765Q1,444Totalcosts$89,529©TheMcGraw-HillCompanies,Inc.,1997690CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–29(20min.)Inventorycycleanalysis–multiplechoice:Retem&Company.a.Theansweris2.(280x.2)+(180x.8)=200unitsb.Theansweris4.420=200x[(3weeksx.1)+(2weeksx.9)]24–30.(60min.)Alternativeorderpolicycosts:SavetheWhales.Thisproblemislikelytoresultinasignificantamountofdiscussion.Thereisnosinglesolutiontotheproblemand,hence,alternativethoughtsarelikelytoarise.Thefocusofthediscussionshouldbeonthealternativecostsofeachorderpolicyassuggestedbytheproblem.ItmayhelptonarrowthechoiceofalternativeorderquantitiestothoseatthepricebreaksorthosesuggestedbytheCommittee(500unitsand2,500units).Otherwise,asintherealworld,thepossibilitiesbecomeunmanageable.Itisimportanttolookatthecostsofdifferentordersizeswiththeideathatinformationmightbegatheredafterthefirstsetofshirtsgoonsale.Thatis,ifonedecidestoorder500shirtsatatimeandfindstheyaresellingatamuchgreaterrate,thenextordercouldbelarger.However,ifoneorders2,500shirtsandfindstheyarenotsellingwell,thereisnoopportunitytoavoidthelossthatmightarisefromunsoldshirts.Tostudytheproblem,theCommitteewillhavetomakeadecisionbasedonverysketchyevidence.Knowingthecostofa500shirtorderpolicyvs.a2,500shirtorderpolicywouldatleastprovidetheCommitteewithsomeeconomicbasisforatrade-offbetweenthereturnsandrisks.Thetworelevantcostsareordercosts(the$100.00set-upcharge)andtheforgonediscount.Since2,500unitsisthemaximumorder,themaximumdiscountwouldbebasedonthe$3.80priceforordering2,500units.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter24691若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–30.(continued)QuantityDifferentialCostswithSalesofOrdered500Shirts2,500Shirts500Set-upcosts:$100.00$500.00(5orders@$100)Forgonediscount:a-0-3,000.00[2,500x($5.00–$3.80)]Unsoldshirtcosts:-0--0-Costsof500unitorderpolicy$100.00$3,500.002,500Set-upcosts:$100.00$100.00Forgonediscount:-0--0-Unsoldshirtcosts:b7,600.00-0-Costsof2,500unitorderpolicy$7,700.00$100.00Thecommitteemust,therefore,considerthetradeoffbetweenthelostdiscountsandhigherorderingcostsofordering500atatimeversusthepotentiallossfromunsoldshirts.Itmaybebesttoorder500units,incurringanincrementalset-upcostof$100.00togaininformationontherateofsales.Basedonthesaleslevelforthe500units,thenextorder(ifthereisone)couldbefor500,750,1,000or2,000unitsasindicatedbythenewinformation.课后答案网___________aIfonly500weresold,eventhoughfullpricewaspaidfortheshirts,thereisnodiscountwww.hackshp.cnforgone.Therewasnoopportunitytogainfromorderingmoreshirts.b2,000shirtsat$3.80each.©TheMcGraw-HillCompanies,Inc.,1997692CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutiontoIntegrativeCase24–31.(60min.)Overheadapplicationandinventorymanagementcosts:CommercialFurnitureInc.*a.AnestimateofCommercialFurniture’sset-upisasfollows:Maintenancedepartmentcosts:Salaries(2x5x$10.80)...........................................$108.00Productiondepartmentcosts:Salaries(5x5x$7.50).............................................187.50Variableoverhead––laborbase(5x5x$2.75)........68.75Variableoverhead—machinehourbase(1x$5)......5.00261.25Directmaterials($200x$50)........................................150.00Total...........................................................................$519.25Explanationofcosts:·Thefullcostofthemaintenancemen’ssalaryandemployeebenefitsisincludedbecausethe$10.80incurredpermanhourisincurredsolelyforthepurposeofaffectingthechangeover.·Theothercostsofthemaintenancedepartmentarenotincludedintheestimatebecausetheyarefixedcostsofthemaintenancedepartmentandwillbeincurredregardlessofthemaintenanceworkers’activities.·Thesalariesofthefiveproductionworkersforthefullfivehoursareincludedintheset-upcostbecausetheymustbeinattendanceallthetimethoughtheyareneededonlypartofthetime.Iftheworkerscouldhavebeenassignedtootherjobsduringthechangeover,thenthefullamountwouldnotbechargedtoset-up.·Thevariableoverheadcostsoftheproductiondepartmentappliedonthedirectlabor课后答案网baseareincurredasafunctionofthedirectlaborhours;therefore,afullfivehoursofcostareassignedtotheset-upcost.·Thevariableoverheadcostsoftheproductiondepartmentappliedonthemachine-hourwww.hackshp.cnbaseareincurredasafunctionoftheoperationofthemachinery;therefore,onehourisassignedtoset-upcostfortheonehourthemachineryisusedintesting.·Allfixedoverheadcostsoftheproductiondepartment(thoseappliedonthebasisofdirectlaborandthoseappliedonthebasisofmachinehours)arenotincludedintheset-upcostbecausetheyarefixedcostsandwouldbeincurredregardlessoftheactivityinthedepartment.Theyarenotrelevantcostsofthiscostassignment.·Thenetmaterialcostof$150isincludedbecauseitrepresentstheunsalvageableportionofthematerialsusedfortheset-upandnotfortheproductionofasaleabledesk.*CMAadapted©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter24693若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn24–31.(continued)b.ThecostitemswhichwouldbeincludedinanestimateofCommercialFurniture’scostofcarryingdesksininventoryinclude:·allcostsrelatedtowarehousingandhandlingthedesksininventory(i.e.,warehousewages,insuranceandothercostswhichvaryinamountbythenumberofitemsstored).·theopportunitycostforthefundscommittedtotheinvestmentininventory.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997694CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter25ManagementEthicsandFinancialFraudSolutionstoReviewQuestions25–1.Fraudulentfinancialreportingisintentionalconductthatresultsinmateriallymisleadingfinancialstatements.Thetwokeyconceptsinthedefinitionoffraudulentfinancialreportingare(1)theconductmustbeintentionalorreckless,and(2)themisstatementmustbematerialtothefinancialstatements.25–2.Materiality,inoursetting,referstothemagnitudeofthemisstatement.Tobematerial,themagnitudeofthemisstatementmustbelargeenoughthatitwouldlikelyaffectthejudgmentofareasonablepersonrelyingontheinformation.Simplystated,themisstatementmustbeimportant.Materialityisdifficulttodefineinpracticebecauseitishardtoknowwhatamountisimportanttoadecisionmaker.25–3.Commonexamplesoffraudulentfinancialreportingarefailuretowritedownobsoleteinventory,andrecognizingrevenuebeforethesalehasbeenmade.25–4.“Toneatthetop”referstothetonethattopmanagementsetsindealingwithethicalissues.Thetoneiscriticalbecausetopmanagement’sactionshaveagreatimpactonethicsatlowerlevelsofmanagement.25–5Withoutinternalcontrolregulations,topmanagementisabletousetheexcusethattheydidnotknowaboutbribesmadebylowerlevelmanagers.Theinternalcontrolsrequirementforcestopmanagementtobeawareofthebriberyorfacechargesthatthecontrolswereinsufficient.课后答案网25–6.www.hackshp.cnSeparationofdutieshelpspreventfinancialfraudbecauseitlimitstheopportunitytocommitthefraud.Whenaseparationofdutiesexists,twoormoreindividualsmustengageincollusiontocommitfraud.Whilecollusioncananddoesoccur,itincreasestheriskthatsomeonewill“blowthewhistle”onthefraud.Theincreasedriskofrevealingfraudmakesitlesslikelythatfraudwilloccur.25–7.Internalauditorsdeterfraudbyreviewingandtestingcontrolsandbyassuringthatcontrolsareinplaceandworkingwell.Often,thephysicalpresenceofawatchfulinternalauditorcandeterfraud.Internalauditorsdetectfraudbyemployingspecialfraudexaminersorinvestigatorswhosejobistoidentifyfraud.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter25695若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn25–8.Publicaccountingfirmsareincreasinglyheldaccountablefortheirclient’sfraudulentfinancialreportingbecausetheusersofthefinancialreportsseethepublicaccountingfirmsastheindependententitymostlikelytofindfraud.Alsoaccountingfirmsareasourceoffundswhereinvestorscancollectfordamages,particularlyiftheauditeewentbankrupt.SolutionstoCriticalAnalysisandDiscussionQuestions25–9.No.Fraudulentfinancialreportingisnotembezzlementortheft.Seequestion25-10.25–10.Generally,accountingforthestolenitemsasspoilagewouldbefinancialfraudiftheitemismaterialandthecover-upisintentional.25–11.Theerrorinrecordingisnotintentional;itisnotfinancialfraud.Unintentionalerrorsinpreparingfinancialstatementsarenotfraudulentfinancialreporting.25–12.Theclerk’sactionscouldeasilybeunintentionaliftheclerkthoughttheinventorywasnotobsolete;forexample,ifsomeoneinoperationstoldtheclerktheinventorywasnotobsolete.Accountingpeoplehavetheresponsibilitytorecordassetsandtransactionsproperly,though,sosomeoneinaccountingwilleventuallybeheldresponsibleiftheinventoryisnotwrittenoff.25–13.Financialfraudwasnotprovedinthesecases.Noneofthesecaseswenttotrial.Generally,theindividualsinvolvedsignconsentdecreesinwhichtheyneitheradmitnordenyguilt,buttheyagreenottocommitcertainactsordocertainthingsinthefuture.25–14.ForYear1,sales,costofgoodssold,grossmargin,andprofitamountsareoverstated,assumingtherevenueexceededthecostofgoodssold.AtDecember31,Year1,accountsreceivableisoverstatedand课后答案网inventoryisunderstated.ForYear2,theincomestatementshowstheoppositeeffectsofYear1—sales,costofgoodssold,grossmarginandprofitamountsareunderstated.25–15.www.hackshp.cnWhataboutpeoplewhorelyonthefinancialstatementsduringtheperiodofthefraud?Supposesomeonebuysstockinacompanythatshowsagood,butfictitious,performanceinYear1,onlytohavethebottomfalloutinYear2.Inaddition,earlysalessometimesarefictitiouswhencustomerschangetheirmindbeforethesalehasbeenfinalized.Earlyrevenuerecognitionisanexampleofunethicalbehaviorthatsendsamessagethatunethicalbehaviorisnormalpractice.EarlyrevenuerecognitioninYear1oftenleadstoearlyrevenuerecognitioninYear2andsoon.25–16.Answeringthisquestionrequiressomespeculation,butwesuspectplantmanagementatRonsonandthedivisionmanageratDoughtie’sFoodswantedtoknowthecorrectnumbersfortheirowndecisionmaking,planning,andcontrol.Thesemanagersprobablyexpectedthefalsenumbersandthecorrectnumberstoconvergesomeday.©TheMcGraw-HillCompanies,Inc.,1997696CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn25–17.Thesituationinthisquestionisbasedonanactualcase.Intheactualcase,thefraudulentactivitieswerediscoveredbypeoplewhoworkedintheaccountingdepartmentwhodiscoveredtheinvoicesandshippingdocumentstuckedawayinthedeskdraweroftheaccountantwhocolludedtocommitthefraud.The“friend”wasamongthosechargedwiththefraudbecausesheknewaboutitandwassuspectedtobeinvolved.Shewaseventuallyclearedofwrongdoing,butnotuntilafterseveralyearsofdefendingherselfagainstthecharges.Shelostherjob,andshespentalotoftimedefendingherself.Ifshewerefacedwithsimilarcircumstancesagain,shesaysshewouldimmediatelyinformtheheadoftheaccountingdepartment,andatleasttwootherpeopleintheorganizationwhowerehigherthanherboss.Herinitialcontactwouldnotaccusetheallegedperpetratorsofcommittingfraud,butwouldinquireastotheproprietyoftheiractionsinviewofthecompany’saccountingandsalespolicies.Inthisway,shewouldavoidaccusingsomeoneofmisbehaviorbeforeshehadproofofwrongdoing.Ifherinquirieswereignored,shewouldbeginlookingforanewjob.25–18.Small“earningsmanagement”oftenresultsinmajorfraudafteratimebecauseoftheneedtoadjusteachyeartomakeupforprioryear“adjustments.”OverstatingrevenuebyearlyrevenuerecognitioninYear1automaticallyunderstatesrevenueinYear2.Therefore,Year2revenue“must”beoverstatedjusttobringYear2backtoactual,andYear2wouldbeoverstatedevenmoretoimproveapparentearningsabovetheactuallevel.Theproblemgetslargerandlargereachyearifmanagersoraccountantscontinuetheillusion.25–19.Thisincentiveapproachminimizesincentivestocommitfinancialfraud,however,italsominimizesincentivesforsuperiorperformance.Theapproachdoesnotencourageorrewardinnovationandsuperiorperformance.25–20.TheTreadwayCommissionlistedthepressurestoachieveunrealisticallyhigh,short-termfinancialresultsandincentivesystemsthatfocusonshort-termfinancialresultsasexamplesoffactorsthatmayproducefinancialfraud.Combined,thetwofactorsproduceanenvironmentthatishighlyconducivetofraud.25–21.Twoexplanationsfortheexistenceofunrealisticprofitobjectivesfordivisionmanagersarethatuppermanagementmaybeuninformedaboutthedivision,andthattheymaybetoozealousregardingthecompany’sprofitpotential.Indecentralizedandwidelydispersedcompanies,topmanagementisusuallynot课后答案网involvedwiththedetailsoflocaloperations.Unwittingly,topmanagementmayexpectmorefromadivisionthanoperatingandmarketconditionsallow.Ontheotherhand,topmanagementmaychoosetoknowinglyexpectunrealisticresults,thinkingthatattemptstoachievetheresultswillproducebetterresultsthanifwww.hackshp.cnexpectationswerelower.25–22.Committingfinancialfraudinthecurrentperiodmayseemtooutweighfutureproblemsthatthefraudmaycause.Theperpetratorofthefraudmaybepromotedbeforethenegativeconsequencesofthefraudarerevealed.Alternatively,theperpetratoroffraudmaybelieveheorshewillbefirediftheshort-runtargetsarenotmet;soheorshehaslittletolosebycommittingfraudtomeetthetargets.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter25697若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn25–23.Fourcompensatingfactorsmaybeofassistance:1)Theinternalauditdepartmentshouldassumea“watch-dog”role,thusreducingtheopportunitytocommitfraud.2)Provideanombudsmanwithwhomemployeescandiscussquestionableactivitiesinconfidence.3)Topmanagementshouldconveya“toneatthetop”regardingethicsthatencouragesexcellenceinethics.4)Hirepeoplewhohavegoodreputations.Promotepeoplewithintegritytotopmanagementpositions.25–24.Miniscribe’smanagementmayhaveplacedtoomuchemphasisontheshortrun.Bothrewardsandpunishmentswerebasedontheachievementofunrealisticallyhighprofitobjectives.25–25.Peoplewithbigegosoftenwanttomakeabigsplashwithoutconcernfortheconsequences.Fraudsterswhoendupinprisonrelishtheopportunitytosharetheirmanyillegalexperiences.Theyappeartoenjoygettingawaywithsomethingintheshort-run,eveniftheyeventuallygetcaught.Also,peoplewithbigegosmaybelievetheywouldnevergetcaught!课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997698CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems25–26.(25min.)Explainearlyrevenuerecognition.a.ExampleYear1(actual)Year1(fraud)Revenue.........................$100$120CGS................................5060GrossProfit.....................$50$60Year2(actual)Year2(assumingnoadditionalfraud)Revenue.........................$100$80CGS................................5040GrossProfit.....................$50$40b.AccountsReceivableandRevenuewouldbeoverstated.Inventorywouldbeunderstatedbecausegoodsthatarestillininventorywouldbereportedtobesold.CostofGoodsSoldwouldbeoverstated.Tofindtheerrors,trythefollowing:•Confirmaccountsreceivablewithcustomers.Ifcustomerssaytheydidnotowethemoneyorpurchasethegoodsasoftheendoftheyear,thenthecompany’srecordsmaybewrong.•Counttheinventory,physically.Thephysicalcountshouldrevealinventoryonhandthathasbeenreportedtobesoldasoftheendoftheyear.•AnalyzetheaccountstoseeifAccountsReceivableareold,whichmayindicatecustomersdonotowethemoney.Determinewhetheryear-endAccountsReceivableareunusuallyhigh.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter25699若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn25–27.(25min.)Explaininventoryoverstatement.a.SeeIllustration25.1.b.Inventoryisoftenoverstatedbynotwritingoffobsoleteinventory,thusleavingonthebooksanassetthatshouldbeexpensed.InthePepsiCocase,forexample,obsoleteandbrokenbottleswerenotwrittenoff,thusoverstatinginventoryandoverstatingprofits.InventorymayalsobeoverstatedbyreportinginflatedendinginventoryvaluesasatDoughties’Foods.Inventoryoverstatementscanbefoundasfollows:•Counttheinventoryaccurately(notlikeDoughties’Foods),andmakesuretheinventorythatisreportedisactuallyonhand.•Havepeoplewhohavetechnicalexpertise(e.g.,engineers)checkboththephysicalinventoryandtherecordstofindobsoleteinventory(particularlyimportantinhigh-techfields).•Analyzetheinventorylevelsandtherelationofinventorytocostofgoodssold.Iftheinventoryturnoverratio(inventoryturnover=costofgoodssold/inventory)goesdownovertime,orislowcomparedtoothersimilardivisions,inventorymaybeoverstated.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997700CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn25–28.(30min.)Causesoffraudulentfinancialreporting:Doughties’Foods.a.Bycommittingfinancialfraud,Hanleywasapparentlytryingtoavoidthecriticismoftopmanagement.Presumably,hewouldalsobehelpinghisemploymentandpromotionprospectsifhecouldshowbetterfinancialresults.b.Thetoneatthetopappearstobeonethatneitherencouragednordiscouragedfraudulentactivities.Topmanagementhadpoorinternalcontrolstomonitorpotentialfraudulentactivitiesandotherdivisionmanagersseemedtoengageinfinancialfraud.Itispossiblethatwhiletopmanagementdemandedhighperformance,theydidnotwanttoknowhowitwasachieved.c.Doughties’Foodsdidnothaveproperinternalcontrols,suchasseparationofduties.Thereappearedtobenointernalauditpresencetomonitorcontrols.Hanleywasresponsibleforbothcountingandreportinginventorylevels.Further,hisreportswerenotsufficientlyverifiedforaccuracy.d.Theindependentauditorscontributedtothefraudwhentheytookinadequatestepstoauditthelevelofinventoryasanassetanddidnotrecognizetheweakinternalcontrols.TheauditorsdidnotquestionorexploretheirregularactionsthatHanleycommittedduringtheaudit.Athoroughexaminationoftheinventoriesandirregularitiesmayhaveidentifiedthefraudearlier.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter25701若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn25–29.(30min.)Causesoffraudulentfinancialreporting:RonsonCorp.a.ProblemswiththerestofthecompanycausedtopmanagementatRonsontofocusonthesuccessoftheaerospacedivision.Pressurewascontinuallyappliedinordertomakethedivisionperformevenbetter.Thecompanywasrelyingonthedivisiontoprovidethefinancialperformanceneededforcorporatedebtrestructuring.b.Perhaps,butthefraudinvolvedcollusionofavarietyofindividuals.Thefalsesalesandinvoicedocumentationinvolvedthehelpofindividualsinsalesandaccounting.Themovementoftheunfinishedjobsthatwererecordedassalesinvolvedthehelpofworkersontheflooroftheplant.c.Inthiscase,internalcontrolsmayhavebeenfairlygood,butthecollusionoccurredsuchthattheinternalcontrolswereinadequatetopreventfinancialfraud.d.TheSECdidnotfileacomplaintagainsttheindependentauditors,presumablybecausetheauditors’workcompliedwithGenerallyAcceptedAuditingStandards,andtheytooweremisledbydivisionmanagers.25–30.(30min.)Causesoffraudulentfinancialreporting:PepsiCo.a.PepsiCorewardedaggressive,highlymotivatedmanagerswhoachievedsuperiorlevelsofperformance,whichprovidedanincentivefordivisionmanagerstocommitfinancialfraud.b.Topmanagementfocusedonshort-termperformance,providedalotofautonomyandtrustedthedivisionmanagers.Topmanagersweredistressedtolearnaboutthefraud,suggestingtheythoughttheyhadsetanethicaltoneinthecompany.c.Whilewedonotknowwhichspecificcontrolswerelacking,weknowfromtheautonomygiventodivisionmanagers,thedistancefromheadquarters,thelanguagedifference,andtheroleofinternalauditas“consultants”insteadofwatchdogs,therewasopportunityfordivisionmanagerstodesignthecontrolsystemtotheirownends.课后答案网d.Internalauditorsmonitorinternalcontrolsandchecktoseeiftheyareworking.Iftheyoperateasconsultants,theylosetheskepticismandelementofsurprisethathelpsfindsituationsinwhichinternalcontrolsarenotworking.www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997702CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn25-31.(25min.)Effectofbonusplanonfinancialfraud:LeslieFay.a.Revenues,AccountsReceivable,andCostofGoodsSoldwouldbeoverstated;Inventorywouldbeunderstated.Profitswouldbeoverstatedfortheperiodtowhichtheinvoiceswerebackdated.Theprofitswouldbeunderstatedinthefollowingperiodunlessthefraudwascontinued.b.ThebonusplanprovidedastrongincentivefortheCFOandCOOtocommitfinancialfraud.Theplanwasanallornothingplan.Ifprofitswouldfalljustshyof$16million,therewouldbeastrongtemptationfortheCFOandCOOtocommitfraudortoapplyagreatdealofpressuretothedivisionalmanagers.Giventhatthesetwoindividualshaveamajorroleconcerningthetoneatthetop,andarecentraltotheinternalcontrolprocess,thebonusplanaddsfueltoahighlyflammablemixtureoffactorsthatencouragefraud.c.Thegeographicaldistancebetweenheadquartersandthecenteroffinancialoperationsmadeiteasierforsomeonetocommitfraudforavarietyofreasons.First,thetoneatthetopwasstronglyinfluencedbytheCFO,whohadastrongmotivetoachievespecificshort-runresults.Second,internalcontrolswereweakenedbecausetheCFOwasapparentlynotbeingsupervised.Third,accessbylowerlevelfinancialemployeestotheCFO’ssuperiorwasreduced.Thismade“whistleblowing”farmoredifficult.25–32.(25min.)Topmanagementawarenessoffraud:LeslieFay.ItcouldbearguedthattheCEOisresponsiblebecausehehelpedtocreateanenvironmentthatwasconducivetofinancialfraud.TheCEOapparentlysupportedacompensationplanthatwasheavilyweightedtowardsshort-runperformance.TheCFOandtheCFO’sstaffweregivenconsiderableautonomy,providingtheopportunityforfraud.TheCEOignoredfinancialresultsthatwerenotconsistentwiththepricemarkdownswhichmayhavebeeninterpretedasasignthattheCEOwaswillingtoignorethefraud.课后答案网Ontheotherhand,theCEOapparentlydidnotcommitthefraud.ItcouldbearguedthattheCEOneitherintentionally,northroughrecklessactions,encouragedunethicalwww.hackshp.cnbehavior.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter25703若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn25–33.(20min.)Topmanagement’sresponsibilityforfraud:NBCNews.TwotonesweresetbytheactionsoftheNBCNewschiefexecutiveandthePresidentofNBC.TheNBCNewschiefexecutive’sresignationsuggestedthatNBCintendedtoupholdthehighestofethicalstandards.Thechiefexecutivewaswillingtoresignnotbecauseheparticipatedinthefraud,butbecausehehadfailedtopreventthefraud.Hisaction,however,wasfollowedbyanoppositeactionbyhissuperior,thepresidentofNBC.ThepresidentofNBCsetatonethatacceptedunethicalbehavior.Hisstatementimpliesthatunethicalbehaviorisacceptableaslongasitcannotbedetected.GiventhatthePresidentofNBCremainedatNBCwhilethenewschiefexecutivedidnot,thePresident’stoneismorelikelytobeconveyedtotherestoftheorganization.25–34.(25min.)Takingactioninthefaceoffraud.Astudentrespondsasfollows:Thepreviousparticipationshouldnotinfluencehowmyfriendshouldactinthefuture.Assuch,thepreviousparticipationinthefraudissimilartoasunkcost.Asaresult,Irecommendhe/shereportthefraud.Ifasuperiorwasinvolved,proceedtoahigherlevel.Additionally,his/herconcernsshouldbeputinwriting.Ifnoactionistaken,Iwouldrecommendthatmyfriendresignratherthancontinuetoparticipateinthefraud.Iunderstandthatsuchanactionwouldbedifficult,consequentlyIwouldbewillingtohelpmyfriendthroughthetransition.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997704CostAccounting,5/e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutiontoIntegrativeCase25–35.(30min.)Motivesandopportunitiesforfraud:H.J.HeinzCo.a.Theexampleshouldbesimilartothefollowing:Year1(actual)Year1(fraud)Revenue........................$100$100CGS...............................5050Optg.Expenses.............2030Optg.Profit.....................$30$20Year2(actual)Year2(fraud)Revenue........................$100$100CGS...............................5050Optg.Expenses.............2010Optg.Profit.....................$30$40b.Bytransferringincomefromperiodtoperiod,thedivisionswereabletogaingreatercontroloverachievingtheprofitobjectivessentdownbycorporateheadquarters.Asinmanydecentralizedcompanies,theprofitobjectiveswerenotdevelopedwithanin-depthunderstandingofthedivisions’operations.Withoutanunderstandingofdivisionaloperations,topmanagementgenerallyfindsitdifficulttodeterminewhetherincomeisbeingshiftedornot.Further,aslongasthedivisionalprofitobjectivesaremet,topmanagementmaynotbelieveitshouldaudittheresults.c.Thecommunicationsgapandtheus-versus-themattitudecreatedanatmosphereinwhichtheaccuracyofreportedfinancialdatawasnotemphasized.Profitobjectivesoriginatedatcorporateheadquarterswithinadequateregardtothedivision’sabilitytoachievethem.Thedivisionsdevelopedoperatingprocedureswhichallowedthemto课后答案网reportthenumbersthatheadquarterswantedtoseeand,atthesametime,thedivisionscreatedanincomecushionthatwouldallowforfuturemanipulationofprofits.Thiskeptbothheadquartersandthedivisionscontent.Inasense,financialfraudwww.hackshp.cnmadelifeeasierforeverybody.d.Exampleswillvary.Formostexamplesasolutionwillincludearecommendationfortopmanagementtogainabetterunderstandingofthedepartmentordivisionwhiledevelopingprofitobjectives.Ineffect,itshouldbeindicatedthatparticipatorybudgetingcanhelptomitigatetheus-versus-themproblem.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter25705若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn课后答案网www.hackshp.cn若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnChapter26Revenue,Mix,andYieldVariancesSolutionstoReviewQuestions26–1.Wewanttoisolatethecauseofthevarianceseparatelyforpricechangesandcostchanges.Byholdingthecostsatstandardwhenanalyzingrevenuevariances,wecanisolatetheeffectofpricechanges.Thecostsarethenanalyzedseparately.26–2.Efficienciescanberealizedforcostsonly.26–3.Theindustryvolumevariancemeasurestheimpactofdifferencesbetweenactualandexpectedindustrysalesvolumeonthecompany’ssalesactivityvariance.Useofindustry-widedatahelpsexplainchangesinvolumeintermsofwhatishappeningtotheindustry.26–4.Ifacompanyhastwoormoreproducts,amixvariancecanariseeveniftheneteffectofallvariancesiszero.Itmaybeveryusefultolearnaboutthemixvariancebecauseifthemixischanging,thecompanymayneedtochangeproductionand/ormarketingstrategiestomeetthechangeinmix.TheU.S.automobileindustrywasfacingrisingrevenuesandrisingvolumesbut,unfortunately,therewerefallingprofitsbecausebuyerswerepurchasingsmallercarsthathadlowerprofitmarginsforthemanufacturers.26–5.Examplesinclude:课后答案网•Steelmillswhichcanprocessbothnewsteelandrecycledscrap•Oilrefinerieswhichcanprocessdifferentgradesofcrudeoilwww.hackshp.cn•Distilleriesproducingblendedwhiskeys•Chemicalcompanies©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter26707若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoCriticalAnalysisandDiscussionQuestions26–6.Itcouldbethatthevariancethemarketingmanagerreferstoisarevenuevariancealoneandnotacontributionmarginvariance.Ifso,thesignalthatthemarketingmanagerhasreceivedismisleading–variablecostsmustbeincurredtoachievethehigherrevenuelevels.Itwouldbebettertoshowtheactivityvarianceintermsofcontributionmargins.26–7.Inthissituationitisnecessarytoinvestigatethereasonswhyvolumefellshortofexpectations.If,indeed,marketingwasunabletoselltheproductionthentheproductionmanager’sassertionshavemerit.However,ifproductionwereoperatinginefficientlyand,hence,notproducingatthelevelwhichmarketingcouldhandlethenthemattercouldbeturnedaroundandproductionshouldbeheldresponsiblefortheshortfall.Thepointofthequestionisthatvariancesinonedepartment(e.g.,production)mayariseduetoactivitiesinotherdepartments.Whilethisoccursinfrequently,itisworthyofinvestigationwhenallegationsarisesuchasthosestatedbytheproductionmanager.26–8.InaCPAfirm,asinotherprofessionalfirms,billingratesvarywiththeleveloftheprofessionalpersonperformingservices.Hence,astaffaccountant’stimeisbilledatalowerratethanapartner’stime.Eventhoughthevolumeofhoursbilledmaybethesame,ifthemixofstafftopartnertimeisdifferenttherewillbedifferencesinrevenues(and,mostlikelyinprofitsaswell).26–9.Salaryratesvaryaccordingtotheclassificationoftheprofessionalsinthefirm(e.g.,partnersmakemorethanjunioraccountants),and,oneachengagement,afirmwillbudgetacertainamountoftimeforeachclassification.Thus,alabormixvariancecanbecalculatedtoshowiftheappropriatepersonnelwereusedonthatengagement.Anunfavorablemixvariancewouldsuggestthatpartnersweredoingworkthatjuniorsshouldhavedone.26–10.Inthissituationthecompanyisreallysellingjustoneproductsoamixvariancewouldnotbemeaningful.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997708CostAccounting,5e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoExercises26–11.(10min.)Salespriceandactivityvariances:CreativeTowels,Inc.ActualFlexibleBudgetMasterBudget190,000x(8.50$3.65)190,000x($9$3.65)200,000x($9$3.65)=$921,500=$1,016,500=$1,070,000$95,000U$53,500UPricevarianceActivityvariance26–12.(10min.)Salespriceandactivityvariances:CreativeTowels,Inc.Alternative1"FlexibleBudget"Alternative2课后答案网220,000units220,000units185,000unitsx($8.00$3.95)www.hackshp.cnx($9.00$3.95)x($9.00$3.95)=$891,000=$1,111,000=$934,250$220,000U$176,750FPricevarianceActivityvariance©TheMcGraw-HillCompanies,Inc.,1997709若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–13.(15min.)Industryvolumeandmarketsharevariances:PlacerHillsProducts.FlexibleStandardcontributionmarginMasterBudgettimesbudgetedmarketshareBudgetpercentagetimesactualindustryvolume(SP–SV)xAQ(SP–SV)xSQ$3x18,000$3x20%x120,000$3x20,000=$54,000=$72,000=$60,000$18,000U$12,000FMarketshareIndustryvolumevariancevariance$6,000UActivityvariance26–14.(20min.)Salespriceandactivityvariances:Sakata,Inc.ActualFlexibleBudgetMasterBudget125,000x($47–$10)课后答案网150,000drumsx($48–$10)=125,000x$37125,000x$38=150,000x$38=$4,625,000=$4,750,000=$5,700,000www.hackshp.cn$125,000U$950,000UPricevarianceActivityvariance©TheMcGraw-HillCompanies,Inc.,1997710若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–15.(15min.)Industryvolumeandmarketsharevariances:Sakata,Inc.FlexibleStandardcontributionmarginMasterBudgettimesbudgetedmarketshareBudgetpercentagetimesactualindustryvolume(SP–SV)xAQ(SP–SV)xSQ12.5%x1,000,000x$3810%x1,000,000x$3810%x1,500,000x=$4,750,000=$3,800,000$38=$5,700,000$950,000F$1,900,000UMarketshareIndustryvolumevariancevariance$950,000UActivityvariance课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997711若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–16.(20min.)Industryvolumeandmarketsharevariances–missingdata.a.2,400units=1,400+1,000b.60,000units.[70,000–(b)]x10%=1,000unitsc.10%d.12%.[(d)–10%]x70,000=1,400unitse.70,000units26–17.(20min.)Salesmixandquantityvariances:Fit-RightGloves.a.ActivityvarianceFlexibleActivityMasterBudgetVarianceBudget300,000x($10.95–$5.00)400,000x($10.95–$5.00)+200,000x($24.95–$10.00)+180,000x($24.95–$10.00)=4,775,000=$5,071,000$296,000U课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997712CostAccounting,5e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–17.(continued)b.MixandquantityvariancesMixQuantityFlexibleBudgetVarianceVarianceMasterBudget(SP–SV)xAQ(SP–SV)xASQ(SP–SV)xSQ400,0000000000500,000x–––––––x($10.95–$5.00)580,0000000000300,000x($10.95–$5.00)400,000x($10.95–$5.00)+200,000x($24.95–$10.00)180,000000000,+180,000x($24.95–$10.00)+500,000x––––––x($24.95–$10.00)580,00000000,=$4,775,000=$4,371,552=$5,071,000$403,448F$699,448U$296,000UActivityVariance课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997713若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–18.(35min)Materialsmixandyieldvariances:RosetteIndustries.a.ActualInputsFlexibleBudgetActualPriceatStandardEfficiency(StandardCostsVariancePricesVarianceAllowed)MaterialA:22,000units22,000units10x2,000unitsx$94x$100x$100=$2,068,000=$2,200,000=$2,000,000$132,000F$200,000UMaterialB:38,000units38,000units20x2,000unitsx$152x$150x$150=$5,776,000=$5,700,000=$6,000,000$76,000U$300,000FTotalvariances课后答案网$56,000F$100,000Fwww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997714若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–18.(continued)b.ActualInputsMixYieldatStandardPricesVarianceSPxASQVarianceFlexibleBudgetabMaterialA22,000units1/3x60,000units10x2,000x$100x$100x$100=$2,200,000=$2,000,000=$2,000,000$200,000U$–0–abMaterialB38,000units2/3x60,000units20x2,000x$150x$150x$150=$5,700,000=$6,000,000=$6,000,000$300,000F$–0–$100,000F$–0–课后答案网$100,000FaProportions:MaterialA:10/(10+20)=1/3MaterialB:20/(10+20)=2/3bTotalunitsused:22,000+38,000=60,000unitswww.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997715若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–19.(20min.)Salespriceandactivityvariances:Chapman,Krueger,andPollock.PriceFlexibleActivityMasterActualVarianceBudgetVarianceBudget(AP–SV)xAQ(SP–SV)xAQa$2,150,000–($130x8,000)($275–$130)x8,000($275–$130)x8,500+$2,225,000–($35x34,000)+($65–$35)x34,000+($65–$35)x34,650=$1,110,000+$1,035,000=$1,160,000+$1,020,000=$1,232,500+$1,039,500=$2,145,000=$2,180,000=$2,272,000$35,000U$92,000Ua(AP–SV)xAQequals(APxAQ)–(SVxAQ),whichequals$2,150,000–($130x8,000).课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997716若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–20.(25min.)Salesmixandquantityvariances:Chapman,Krueger,andPollock.FlexibleBudgetMasterBudget(SP–SV)xAQ(SP–SV)xASQ(SP–SV)xSQ8,500($145x––––––x42,000)43,150(8,000x145)(8,500x$145)+(34,000x$30)34,650+(34,650x$30)+($30x––––––x42,000)43,150=$2,180,000=$2,211,448*=$2,272,000$31,448U$60,552UMixVarianceQuantityVariance$92,000UActivityVariance*Alternativecalculation:Weighted-averagecontribution:课后答案网$2,272,000=$52.6535348,500hrs.+34,650hrs.www.hackshp.cn42,000x$52.6535=$2,211,448©TheMcGraw-HillCompanies,Inc.,1997717若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–21.(35min.)Labormixandyieldvariances:SpeedyBurrito.a.FlexibleBudgetActualPriceActualInputsEfficiency(StandardCostsVarianceatStandardPricesVarianceAllowed)SkilledLabor$10.30x1,800hours$10.30x2,000hoursa$17,500=$18,540=$20,600$1,040F$2,060FUnskilledLabor$6.50x4,600hours$6.50x5,000hoursb$33,000=$29,900=$32,500$3,100U$2,600F$2,060U$4,660FNote:Seefootnotesonpageafterpart(b).课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997718若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–21.(continued)b.FlexibleBudgetActualInputsMixYield(StandardatStandardPricesVarianceSPxASQVarianceAllowed)Skilled$10.30$10.30x4/14$10.30Laborx1,800hoursx6,400hourscx2,000hours=$18,540=$18,834=$20,600$294F$1,766FUnskilled$6.50$6.50x10/14$6.50Laborx4,600hoursx6,400hourscx5,000hours=$29,900=$29,714=$32,500$186U$2,786F$108F$4,552F$4,660FNote:Seefootnotesonnextpage.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997719若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–21.(continued)aTheflexiblebudgethoursarecalculatedasfollows:4minutesperequivalentmealx30,000equivalentmeals=120,000minutesor2,000hoursAnalternativemethodofcalculationistodeterminethecostperequivalentmeal:(4minutespermeal)60minutesperhourx$10.30perhour=$.6867perequivalentmeal$.6867x30,000meals=$20,600b10minutesperequivalentmealx30,000equivalentmeals=300,000minutes=5,000hoursThealternativemethod:(10minutes)60minutesx$6.50=$1.0833perequivalentmeal$1.0833x30,000equivalentmeals=$32,500cTotalhours:1,800+4,600=6,400hours.Proportions:Skilled:4min.4=4min.+10min.14Unskilled:10min.10=4min.+10min.课后答案网14www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997720CostAccounting,5e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoProblems26–22.(30min.)Revenueanalysisusingindustrydataandmultipleproductlines:In-n-OutCarpetCo.a.Salespriceandactivityvariances.FlexibleMasterbudgetbudget(AP–SV)xAQ(SP–SV)xAQ(SP–SV)xSQa(800x$.30)+(1,000x$.40)b$5,810–$4,575+(2,100x$.35)$6,000–$4,600=$1,235=$1,375=$1,400$140U$25USalespriceSalesactivityvariancevarianceaUnitcontributionmarginscalculatedfrommasterbudgetpanelasfollows:Unitmargin=Contributionmargin/Salesunits.b$700$1,600$2,300[800x]+[1,000x]+[2,100x]1,0001,0002,000b.Twosolutionsarepossiblewhencalculatingthemarketsharevariance,dependinguponthefigureusedfortheleftcolumn.Theexamplesinthetextusetheflexible课后答案网budgetamount.However,thoseexamplesinvolveonlyoneproduct,whereasthisproblemhastwoproducts,andthereforeamixissueispresent.Inthissituation,www.hackshp.cnanotherwaytosolvetheproblemwouldbetousethestandardpricetimestheactualquantitiesatthestandardmix.Bothalternativesaregivenonthefollowingpage.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter26721若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–22.(continued)b.(continued)ContributionmarginvarianceActualQuantitiesatStandardMixandIndustryMasterStandardPricesEffectBudget38,000––––––x$1,40040,000$1,365a=$1,330$1,400$35F$70UMarketShareIndustryVarianceVariance$35UQuantityVarianceFlexibleBudgetIndustryEffectMasterBudget$1,375$1,330$1,400$45F$70U课后答案网$25UActivityVarianceThe$10differenceinthemarketsharevarianceisexplainedbythedifferenceinthemix.www.hackshp.cn1,000$3001,000$4002,000$700a(3,900x–––––x–––––+3,900x–––––x–––––+3,900x–––––x–––––=$1,3654,0001,000)(4,0001,000)(4,0002,000)Ashortcutistomultiplytheactualnumberofrollstimestheaveragecontributionmarginperrollinthemasterbudget.3,900rollsx($1,400/4,000rolls)=$1,365.©TheMcGraw-HillCompanies,Inc.,1997722若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–23.(20min.)Salesmixandquantityvariances:In-n-OutCarpetCo.MixQuantityFlexibleBudgetVarianceVarianceMasterBudget(SP–SV)xAQ(SP–SV)xASQ(SP–SV)xSQ1,000(800x$.30)(3,900xx$.30)(1,000x$.30)4,0001,000x$.40+(1,000x$.40)+(3,900x)+(1,000x$.40)4,0002,000x$.35+(2,100x$.35)+(3,900x)+(2,000x$.35)4,000=$1,375=$1,365=$1,400$10F$35U$25UActivityVariance课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997723若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–24.(20min.)Salesprice,industryvolume,andmixvariances:SeaAirAirlines.ActualPrice,StandardVariableCost,IndustryActualQuantityFlexibleAdjustedMaster(AP–SV)xAQBudgetBudgetBudget43millionx(30.3¢–10¢)43millionx20¢(40millionx20¢)x1.0740millionx20¢=$8.729million=$8.6million=$8.56million=$8million$.129millionF$.04millionF$.560millionFPricevarianceMarketshareIndustryavariancevariance$.600millionFActivityvarianceaFromanotherperspective,thesevenpercentindustryimprovementtranslatesinto$.560millionfavorablevariances(7%x$8millionmasterbudget=$.560million).课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997724若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–25.(30min.)Salesprice,mixandquantityvariances:EccentricInc.PriceMixQuantityMaster(AP–SV)xAQVarianceFlexibleBudgetVarianceSPxASQVarianceBudgetabcProductAR-10:$7,560–$3,3602,800x$1.808,400x.25x$1.80$1.80x2,000abcProductZR-7:+$11,760–$5,600+5,600x$1.00+8,400x.75x$1.00+$1x6,000Total:=$10,360=$10,640=$10,080=$9,600$280U$560F$480F$1,040FActivityVarianceaStandardvariablecostperunittimesactualvolume:$2,400AR-10:x2,800=$3,360.2,000$6,000ZR-7:x5,600=$5,600.6,000bContributionmargins:$6,000–2,400AR-10:$1.80=.2,000课后答案网$12,000–6,000ZR-7:$1.00=.6,000www.hackshp.cncBudgetedmix:2,000AR-10:.25=.8,0006,000ZR-7:.75=.8,000©TheMcGraw-HillCompanies,Inc.,1997725若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–26.(30min.)Materialsmixandyieldvariances:DuoCo.ActualActualInputsCostPriceatStandardPricesMixYieldFlexibleBudget(APxAQ)Variance(SPxAQ)VarianceSPxASQVariance(SPxSQ)$2x52,220dgallons100x$2x8,480gallons625$2x8,000agallonsMaxan$17,384=$16,960=$16,710.40=$16,000$424U$249.60U$710.40U$.75x52,220gallons300x$.75x25,200gallons625$.75x24,000bgallonsSalex$17,640=$18,900=$18,799.20=$18,000$1,260F$100.80U$799.20U$1x52,220gallons225x$1x18,540gallons625$1x18,000cgallonsCralyn$16,686=$18,540=$18,799.20=$18,000$1,854F课后答案网$259.20F$799.20UTotal$2,690F$91.20U$2,308.80UVarianceswww.hackshp.cn$2,400UEfficiencyVariancea(40,000gal.¸4500gal.)x100gal.=8,000gal.b(40,000gal.¸4500gal.)x300gal.=24,000gal.c(40,000gal.¸4500gal.)x225gal.=18,000gal.d52,220gal.=8,480+25,200+18,540©TheMcGraw-HillCompanies,Inc.,1997726若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–27.(30min.)Labormixandyieldvariances:RockSolidEngineering.ActualInputsActualPriceatStandardPricesMixSPxASQYieldFlexibleBudgetDirect(550x$8.50)(550x$8)1,575x1/3x$8500x$8Labor+(650x$7.50)+(650x$7)+1,575x1/3x$7+500x$7+(375x$5.40)+(375x$5)+1,575x1/3x$5+500x$5=$11,575=$10,825=$10,500=$10,000$750U$325U$500U$825U课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997727若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–28.(30min.)Contributionmarginvariances:PauletteDivision.Revenueminusstandardvariablemanufacturingcostsbyproduct:FlexibleMaster(AP–SV)xAQPriceBudgetMix(SP–SV)xASQQuantityBudgetacPlastic$150,000$120,000$100,000bdeMetal100,000100,000$240,000125,000VariableMarketingfCosts:(55,800)(54,000)(64,000)(52,500)ContributionMargin$194,200$166,000$176,000$172,500g$28,200F$10,000U$3,500FPriceVarianceMixVarianceQuantityVariance$6,500UActivityVariancea$630,000–$480,000.b$300,000–$200,000.c60,000unitsxbudgetedcontributionmarginof$2$500,000–400,000((=))课后答案网50,000budgetedunitsd20,000unitsxbudgetedcontributionmarginof$5$375,000–250,000((=))www.hackshp.cn25,000budgetedunitse$240,000=($2x50,000/75,000x80,000)+($5x25,000/75,000x80,000)fBasedonsixpercentofsalesdollars.$55,800=.06($630,000+$300,000).$54,000=.06[($10x60,000)+($15x20,00)].$64,000=.06[($10x25,000/75,000x80,000)+($15x50,000/75,000x80,000)],etc.g$30,000revenuepricevarianceforthePlasticModelminussixpercentvariablemarketingcosts.©TheMcGraw-HillCompanies,Inc.,1997728若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–29.(20min.)Analyzeindustryeffectsoncontributionmargins:PauletteDivision.Budgetadjustedfor10%industryMasterFlexibleBudgetincreaseBudget$172,500x1.1$166,000a=$189,750$172,500a$23,750U$17,250FMarketShareIndustryVarianceVariance$6,500UActivityvarianceaFromProblem26-28.课后答案网www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter26729若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cnSolutionstoIntegrativeCase26–30.(60min.)Comprehensivereviewofvariances,mixvariances,analysisofdifferencesbetweenbudgetandactual:Sip-FizzBottlingCo.a.ActualBudgetRevenues:48oz(80,000x$5.40)$432,000(70,000x$5.40)$378,00012oz(50,000x$4.35)217,500(60,000x$4.35)261,00010oz(120,000x$2.80)336,000(110,000x$2.80)308,000Total$985,500$947,000VariableManufacturingCosts:48oz(80,000x$3.125)$250,000(70,000x$2.98)$208,60012oz(50,000x$2.75)137,500(60,000x$2.65)159,00010oz(120,000x$1.23)147,600(110,000x$1.15)126,500Total$535,100$494,100VariableMarketingCosts:48oz(80,000x$0.16)$12,800(70,000x$0.16)$11,20012oz(50,000x$0.22)11,000(60,000x$0.22)13,20010oz(120,000x$0.17)20,400(110,000x$0.17)18,700Total44,20043,100FixedCosts182,000175,000TotalCosts761,300712,200OperatingProfit课后答案网$224,200$234,800www.hackshp.cn©TheMcGraw-HillCompanies,Inc.,1997730CostAccounting,5e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–30.(continued)b.Variancecomputations(analysisrunsacrossthispageandthenextpage)PriceFlexibleActualVarianceBudgetRevenues80,000x$5.40+50,000x$4.35+120,000x$2.80=$985,500$985,500-0-VariableCosts80,000x($3.125+.16)80,000x$3.14+50,000x($2.75+.22)+50,000x$2.87+120,000x($1.23+.17)+120,000x$1.32=$579,300=$553,100$26,200UFixedCosts$182,000$175,000$7,000UReconciliationActualoperatingprofit$224,200Plus:课后答案网Unfavorablerevenuemixvariance958Unfavorablepricevariance(variablecosts)26,200Unfavorablequantityvariance(variablecosts)www.hackshp.cn22,383Unfavorablepricevariance(fixedcosts)7,000Less:Favorablerevenuequantityvariance(39,458)Favorablemixvariance(variablecosts)(6,483)Budgetedoperatingprofit$234,800©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter26731若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–30.(continued)b.(continued)MixQuantityMasterVarianceSPxASQVarianceBudget70,000250,000x–––––––x$5.4070,000x$5.40240,00060,000+250,000x–––––––x$4.35+60,000x$4.35240,000110,000+250,000x–––––––x$2.80+110,000x$2.80240,000=$986,458=$947,000$958U$39,458F70,000250,000x–––––––x$3.1470,000x$3.14240,00060,000+250,000x–––––––x$2.87+60,000x$2.87240,000110,000+250,000x–––––––x$1.32+110,000x$1.32240,000=$559,583=$537,200a$6,483F$22,383U$175,000课后答案网aDonotconfusethismixvariancewiththemixvariancecalculatedformanufacturingcosts.Thatvariancemeasuredthechangesincostsincurredbecauseofachangeinwww.hackshp.cnthemixofinputs,suchassubstitutingonelaborclassforanother.Thismixvariancemeasureschangesincostsincurredbecauseofachangeinthemixofoutputs,suchasincreasingthenumberof10ouncebottlessold.©TheMcGraw-HillCompanies,Inc.,1997732CostAccounting,5e若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn 课后答案网：www.hackshp.cn26–30.(continued)b.(continued)AlternativeSolutionSalesPriceManufacturingActualVarianceCostVarianceaRevenue$985,500-0-VariableCosts:Manufacturing535,100b$26,200UMarketingandAdministrative44,200fTotalVariableCosts579,30026,200UContributionMargin406,200-0-26,200UiFixedCosts182,0007,000UOperatingProfit$224,200-0-$33,200UActualQuantitiesMarketingandatStandardAdministrativeFlexibleMixMixandQuantityMasterVarianceBudgetVarianceStandardPriceVarianceBudget$985,500$958U$986,458$39,458F$947,000508,900c5,787F514,687d20,587U494,100e-0-44,200f696F44,896g1,796U43,100h553,1006,483F559,58322,383U537,200-0-432,4005,525F426,87517,075F409,800175,000––175,000––175,000-0-$257,400课后答案网$5,525F$251,875$17,075F$234,800acalculatedthesamewayasintheprimarysolutiontorequirementb.www.hackshp.cnb(80,000x$3.125)+(50,000x$2.75)+(120,000x$1.23)c(80,000x$2.98)+(50,000x$2.65)+(120,000x$1.15)70,00060,000110,000d250,000x[(–––––––x$2.98+–––––––x$2.65+–––––––x$1.15240,000)(240,000)(240,000)]e(70,000x$2.98)+(60,000x$2.65)+(110,000x$1.15)f(80,000x$.16)+(50,000x$.22)+(120,000x$.17)70,00060,000110,000g250,000x[(–––––––x$.16+–––––––x$.22+–––––––x$.17240,000)(240,000)(240,000)]h(70,000x$.16)+(60,000x$.22)+(110,000x$.17)iinsufficientinformationisgiventoclassifythisasamanufacturingcostvarianceoramarketingandadministrativevariance.©TheMcGraw-HillCompanies,Inc.,1997SolutionsManual,Chapter26733若侵犯了您的版权利益，敬请来信告知！www.hackshp.cn'