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managerial accounting 8th

Managerial Accounting 4th Global Edition Karen Wilken Braun, Wendy M. Tietz - Solutions

E5-36B Analyze flow of costs through inventory T-accounts(Learning Objective 1)Healthy Start Bakery mass-produces bread using three sequential processing departments:Mixing, Baking, and Packaging. The following transactions occurred during February:1. Direct materials used in the Packaging
E5-35A Complete five-step procedure in second department(Learning Objective 5)Goldstein Semiconductors experienced the following activity in its Photolithography Department during December. Materials are added at the beginning of the photolithography process.Units:Work in process, December 1 (80%
E5-34A Compute equivalent units in two later departments(Learning Objectives 2 & 5)Selected production and cost data of Waterfall Fudge follow for May:Flow of Production Flow of Physical Units Mixing Department Heating Department Units to account for:Beginning work in process, May
E5-33A Complete five-step procedure and journalize result Kao uses the weighted-average method in process costing. The Work in Process T-account for the Shaping Department for last month is as follows:Beginning inventory Direct materials Direct labor Overhead Ending inventory Work in
E5-32A Sustainability and process costing (Learning Objective 3)Sampson Industries manufactures plastic bottles for the food industry. On average, Sampson pays $78 per ton for its plastics. Sampson’s waste disposal company has increased its waste disposal charge to $60 per ton for solid and inert
E5-31A Complete five-step procedure in first department (Learning Objective 3)Cambria Winery in Santa Maria, California, has two departments: Fermenting and Packaging.Direct materials are added at the beginning of the fermenting process (grapes)and at the end of the packaging process (bottles).
E5-30A Compute equivalent units and assign costs(Learning Objectives 2, 3, & 4)The Assembly Department of Greaton Surge Protectors began September with no work in process inventory. During the month, production that cost $50,786 (direct materials,$12,386, and conversion costs, $38,400) was started
E5-29A Record journal entries (Learning Objective 4)Record the following process costing transactions in the general journal:a. Raw materials were issued for use in production:Mixing Department, $9,000 Finishing Department, $2,000b. Labor costs were incurred and paid:Mixing Department, $12,000
E5-28A Continuation of E5-27A: Journal entries (Learning Objective 4)Return to the Blending Department for The Lucy Paint Company in E5-27A.Requirements 1. Present the journal entry to record the use of direct materials and direct labor and the allocation of manufacturing overhead to the Blending
E5-30A Compute equivalent units and assign costs(Learning Objectives 2, 3, & 4)The Assembly Department of Greaton Surge Protectors began September with no work in process inventory. During the month, production that cost $50,786 (direct materials,$12,386, and conversion costs, $38,400) was started
E5-29A Record journal entries (Learning Objective 4)Record the following process costing transactions in the general journal:a. Raw materials were issued for use in production:Mixing Department, $9,000 Finishing Department, $2,000b. Labor costs were incurred and paid:Mixing Department, $12,000
E5-28A Continuation of E5-27A: Journal entries (Learning Objective 4)Return to the Blending Department for The Lucy Paint Company in E5-27A.Requirements 1. Present the journal entry to record the use of direct materials and direct labor and the allocation of manufacturing overhead to the Blending
E5-27A Complete five-step procedure in first department (Learning Objective 3)The Lucy Paint Company prepares and packages paint products. The company has two departments: (1) Blending and (2) Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of
E5-26A Compute equivalent units and percentage of completion(Learning Objectives 2 & 5)China Mobile uses a process costing system to determine the product costs of one of its products. The product will go through three processes and packaging will be the last process.The Packaging Department
E5-25A Compute the units transferred out and cost per equivalent unit(Learning Objective 2 & 3)Panasonic uses the weighted-average method in its process costing system. Its first manufacturing department, the Fixing Department, started the month with 25,000 units in its beginning work in process
E5-25A Compute the units transferred out and cost per equivalent unit(Learning Objective 2 & 3)Panasonic uses the weighted-average method in its process costing system. Its first manufacturing department, the Fixing Department, started the month with 25,000 units in its beginning work in process
E5-24A Analyze flow of costs through inventory T-accounts (Learning Objective 1)Tasty Treats Bakery mass-produces bread using three sequential processing departments:Mixing, Baking, and Packaging. The following transactions occurred during April:1. Direct materials used in the Packaging
S5-23 Identify ethical standards violated (Learning Objectives 1, 2, 3, 4, & 5)For each of the situations listed, identify the primary standard from the IMA Statement of Ethical Professional Practice that is violated (competence, confidentiality, integrity, or credibility). Refer to Exhibit 1-6 for
S5-22 Continuation of S5-21: Record journal entry and post to T-account(Learning Objective 4)Refer to the Crystal Springs Bottling Department Data Set and your answer to S5-21.1. Prepare the journal entry to record the cost of units completed and transferred to finished goods.2. Post all
S5-21 Continuation of S5-19 and S5-20: Assign costs in second department(Learning Objective 5)Refer to the Crystal Springs Bottling Department Data Set and your answers to S5-19 and S5-20. Complete Step 5 of the process costing procedure: Assign costs to units completed and to units in ending
S5-20 Continuation of S5-19: Compute cost per equivalent unit in second department (Learning Objective 5)Refer to the Crystal Springs Bottling Department Data Set and your answer to S5-19.Complete Steps 3 and 4 of the process costing procedure: Summarize total costs to account for and then compute
S5-19 Compute equivalent units in second department (Learning Objectives 2 & 5)Refer to the Crystal Springs Bottling Department Data Set.1. Draw a time line.2. Complete the first two steps of the process costing procedure for the Bottling Department:summarize the physical flow of units and then
S5-18 Continuation of S5-17: Record journal entry and post to T-account(Learning Objective 4)Refer to the Crystal Springs Filtration Department Data Set and your answer to S5-17.1. Record the journal entry to transfer the cost of the 165,000 liters completed and transferred out of the Filtration
S5-17 Continuation of S5-15 and S5-16: Assign costs (Learning Objective 3)Refer to the Crystal Springs Filtration Department Data Set and your answer to S5-15 and S5-16. Complete Step 5 of the process costing procedure: Assign costs to units completed and to units in ending inventory. Prepare a
S5-16 Continuation of S5-15: Summarize total costs to account for and compute cost per equivalent unit (Learning Objective 3)Refer to the Crystal Springs Filtration Department Data Set and your answer to S5-15.Complete Steps 3 and 4 of the process costing procedure: Summarize total costs to account
S5-15 Summarize physical flow and compute equivalent units(Learning Objective 2)Refer to the Crystal Springs Filtration Department Data Set. At Crystal Springs, water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the process, and in May, 165,000
S5-14 Compute cost per liter (Learning Objective 1)Refer to the Crystal Springs Filtration Department Data Set.1. Compute the May conversion costs in the Filtration Department.2. If the Filtration Department completely processed 205,000 liters, what would be the average filtration cost per liter?3.
S5-13 Find unit cost and gross profit on a final product (Learning Objective 5)Counter Co. produces Formica countertops in two sequential production departments:Forming and Polishing. The Polishing Department calculated the following costs per equivalent unit (square feet) on its October production
S5-12 Assign total costs in a second processing department(Learning Objective 5)After completing Steps 1–4 of the process costing procedure, Donahue Corporation arrived at the following equivalent units and costs per equivalent unit for its final production department for the month of July:1. How
S5-11 Flow of costs through Work in Process Inventory (Learning Objective 4)Maxwell Flooring produces its product in two processing departments: Forming and Finishing.The following T-account shows the Forming Department’s Work in Process Inventory at October 31 prior to completing the five-step
S5-10 Assign costs (Learning Objective 3)Nippon uses the weighted-average method in its process costing system. The company’s packaging department has the following data for the last month:Materials Labor Overhead Beginning work in process inventory................... $17,500 $35,100 $95,000 Cost
S5-9 Recompute SeaView’s cost per equivalent unit (Learning Objective 3)Return to the original SeaView example in Exhibits 5-5 and 5-7. Suppose direct labor is$34,000 rather than $21,250. Now what is the conversion cost per equivalent unit?
S5-8 Compute the cost per equivalent unit (Learning Objective 3)Ricoh provided the following data concerning March’s activity in the Fixing Department:Materials Conversion Equivalent units of production in ending work in process....... 2,600 1,200 Cost per equivalent
S5-7 Summarize total costs to account for (process costing Step 3)(Learning Objective 3)MacIntyre Company’s Work in Process Inventory account had a $68,000 beginning balance on May 1 ($43,000 of this related to direct materials used during April, while$25,000 related to conversion costs incurred
S5-6 Compute the equivalent units (process costing Step 2)(Learning Objective 2)Thestar uses the weighted-average method in its process costing system. Products are transferred from the Shaping Department to the Painting Department. Operating data for the Painting Department for the month of
S5-5 Compute equivalent units (process costing Step 2) (Learning Objective 2)Top Glove provided the following data for December for the first department in its production line:Units Materials Overhead Work in process inventory, Dec. 1...................... 40,000 Units started in
S5-4 Determine the units transferred out (Learning Objective 2)Initially, there were 7,200 units in the work in process inventory of the Painting Department.An additional 30,000 units were transferred in from another department during the month to begin processing in the Painting Department. There
S5-3 Recompute SeaView’s equivalent units (Learning Objective 2)Look at SeaView’s Shaping Department’s equivalent-unit computation in Exhibit 5-5.Suppose the ending work in process inventory is 30% of the way through the shaping process rather than 25% of the way through. Compute the total
S5-2 Flow of costs through Work in Process Inventory (Learning Objective 1)Great Beans produces jelly beans in three sequential processing departments: Centers, Shells, and Packaging. Assume that the Shells processing department began September with $18,100 of unfinished jelly bean centers. During
S5-1 Compare flow of costs (Learning Objective 1)Use Exhibit 5-1 to help you describe in your own words the major difference in the flow of costs between a job costing system and a process costing system.
S5-4 Determine the units transferred out (Learning Objective 2)Initially, there were 7,200 units in the work in process inventory of the Painting Department.An additional 30,000 units were transferred in from another department during the month to begin processing in the Painting Department. There
S5-3 Recompute SeaView’s equivalent units (Learning Objective 2)Look at SeaView’s Shaping Department’s equivalent-unit computation in Exhibit 5-5.Suppose the ending work in process inventory is 30% of the way through the shaping process rather than 25% of the way through. Compute the total
S5-2 Flow of costs through Work in Process Inventory (Learning Objective 1)Great Beans produces jelly beans in three sequential processing departments: Centers, Shells, and Packaging. Assume that the Shells processing department began September with $18,100 of unfinished jelly bean centers. During
S5-1 Compare flow of costs (Learning Objective 1)Use Exhibit 5-1 to help you describe in your own words the major difference in the flow of costs between a job costing system and a process costing system.
10. (Learning Objective 5) Royce’s final processing department shows the following costs per equivalent unit of chocolate produced: $5 transferred-in, $2 direct materials, and $8 conversion. What is the selling price per unit if the company wishes to sell with a 60% markup?a. $8b. $9c. $15d. $24
9. (Learning Objective 5) The schedule used to summarize the entire five-step process costing procedure is called aa. production cost report.b. process costing schedule.c. job cost record.d. processing report.
8. (Learning Objective 5) In Royce’s first processing department, the percentage of completion assigned to units transferred out to next department is alwaysa. 0%.b. 100%.c. dependent on the percentage of completion in the first processing department.d. None of the above
7. (Learning Objective 4) A company has two sequential processing departments: Mixing and Forming. In the Mixing Department, Step 5 of the process costing procedure assigned $10,000 to units in ending WIP and$80,000 to units completed and transferred out. What journal entry is needed as a result of
6. (Learning Objective 4) The journal entry needed to record inventory transferred out from the Packaging Department to the Finishing Department would bea. debit Direct Material; credit WIP—Packaging Department.b. debit WIP—Packaging Department; credit Inventory.c. debit WIP—Finishing
5. (Learning Objective 3) Assume 100 units were completed and transferred out during the period.The 40 units left in ending WIP are 20% complete with respect to conversion costs. The total equivalent units for conversion costs would bea. 100.b. 8.c. 140.d. 108.
4. (Learning Objective 3) Which of the following is the first step in completing the five-step process costing procedure?a. Summarize the flow of physical units.b. Summarize total costs to account for.c. Compute output in terms of equivalent units.d. Compute the cost per equivalent unit.
3. (Learning Objective 2) Which of the following is the definition of equivalent units?a. The number of whole units represented by the finished unitsb. The number of whole units represented by finished units plus partly completed unitsc. The units represented by the total manufacturing costsd. None
2. (Learning Objective 2) Conversion costs consist ofa. direct materials + direct labor.b. direct materials + manufacturing overhead.c. direct labor + manufacturing overhead.d. direct materials + direct labor + manufacturing overhead.
1. (Learning Objective 1) Which of the following sets of costs is debited directly to the Work in Process Inventory account?a. Actual direct materials, actual direct labor, actual overheadb. Actual indirect materials, actual direct labor, applied overheadc. Actual direct materials, actual direct
A4-53 Lean production costs and sustainability (Learning Objectives 4 & 5)Cal-Maine Foods, Inc., is the largest producer of shell eggs in the United States. In 2012, it sold approximately 884.3 million dozen shell eggs, which was approximately 19% of shell eggs sold domestically.1 Walmart and
A4-52 Ethics involved with ABC and hazardous waste costs(Learning Objectives 2 & 3)Sparkle Unlimited is a costume jewelry manufacturer located in the United States that uses electroplating.Electroplating is a process that involves applying a decorative metal coating to a base metal. The
A4-51 Value-Added vs. Non-Value-Added at a Restaurant Go to a fast-food restaurant (or think of the last time you were at a fast-food restaurant.)Observe the steps involved in providing a meal to a customer. You will be watching for valueadded steps and non-value-added steps. Answer the following
A4-50 ABC in Real Companies Choose a company in any of the following categories: airline, florist, bookstore, bank, grocery store, restaurant, college, retail clothing shop, movie theater, or lawn service. In this activity, you will be making reasonable estimates of the types of costs and
A4-49 Discussion Questions 1. Explain why departmental overhead rates might be used instead of a single plantwide overhead rate.2. Using activity-based costing, why are indirect costs allocated while direct costs are not allocated?3. How can using a single predetermined manufacturing overhead rate
P4-48B Comprehensive ABC (Learning Objectives 2 & 3)Axis Systems specializes in servers for work-group, e-commerce, and enterprise resource planning(ERP) applications. The company’s original job cost system has two direct cost categories:direct materials and direct labor. Overhead is allocated to
P4-47B U sing ABC in conjunction with quality decisions(Learning Objectives 2 & 5)Large Construction Toys Corporation is using a costs-of-quality approach to evaluate design engineering efforts for a new toy robot. The company’s senior managers expect the engineering work to reduce appraisal,
P4-46B Comprehensive ABC implementation (Learning Objectives 2 & 3)Gibson Pharmaceuticals manufactures an over-the-counter allergy medication called Breathe. Gibson is trying to win market share from Sudafed and Tylenol. The company has developed several different Breathe products tailored to
P4-45B U se ABC to compute overhead cost assigned to an order(Learning Objective 2)KCC Production Corporation uses an activity-based costing system and provided the following budget data:Overhead Costs Wages and salaries........................... $260,000 Other overhead
P4-44B I mplementation and analysis of departmental rates(Learning Objective 1)Percival Products manufactures its products in two separate departments: Machining and Assembly. Total manufacturing overhead costs for the year are budgeted at $1,090,000.Of this amount, the Machining Department incurs
P4-43A Comprehensive ABC (Learning Objectives 2 & 3)Halo Systems specializes in servers for work-group, e-commerce, and enterprise resource planning (ERP) applications. The company’s original job cost system has two direct cost categories: direct materials and direct labor. Overhead is allocated
P4-42A U sing ABC in conjunction with quality decisions(Learning Objectives 2 & 5)Robotic Construction Toys Corp. is using a costs-of-quality approach to evaluate design engineering efforts for a new toy robot. The company’s senior managers expect the engineering work to reduce appraisal,
P4-41A Comprehensive ABC implementation (Learning Objectives 2 & 3)Sawyer Pharmaceuticals manufactures an over-the-counter allergy medication called Breathe. Sawyer is trying to win market share from Sudafed and Tylenol. The company has developed several different Breathe products tailored to
P4-40 A Use ABC to compute full product costs (Learning Objective 2)BPrint uses an activity-based costing system in one of its plants. At the beginning of the year, the budgeted costs of activities for its five activity costs pools are as follows:Activity Allocation Base Budgeted Cost of Activity
P4-39A I mplementation and analysis of departmental rates (Learning Objective 1)Teahen Products manufactures its products in two separate departments: Machining and Assembly.Total manufacturing overhead costs for the year are budgeted at $1,120,000.Of this amount, the Machining Department incurs
E4-38B Classify costs and make a quality-initiative decision(Learning Objective 5)Christianson Corp. manufactures radiation-shielding glass panels. Suppose the company is considering spending the following amounts on a new TQM program:Strength-testing one item from each batch of
E4-37B Prepare a Costs of Quality report (Learning Objective 5)The CEO of Smith Snacks Corp. is concerned with the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the following logo:“Satisfaction guaranteed, or your money back.” Since the
E4-36B D ifferentiate between traditional and lean production (Learning Objective 4)Categorize each of the following characteristics as being either more representative of a traditional organization or a lean organization.1. Manufacturing plants tend to be organized with self-contained production
E4-35B Continuation of E4-34B: D etermine product profitability(Learning Objectives 2 & 3)Refer to your answers in E4-34B. In addition to the manufacturing overhead costs, the following data are budgeted for the company’s Standard and Deluxe models for next year:Standard Deluxe Sales price per
E4-34B U se ABC to allocate manufacturing overhead (Learning Objective 2)Several years after reengineering its production process, Trudell Corp. hired a new controller, Georgia Taylor. She developed an ABC system very similar to the one used by Trudell’s chief rival. Part of the reason Taylor
E4-33B Reassess product costs using ABC (Learning Objective 2)James, Inc., manufactures only two products, Medium (42-inch) and Large (63-inch) TVs.To generate adequate profit and cover its expenses throughout the value chain, James prices its TVs at 300% of manufacturing cost. The company is
E4-32B Compare traditional and ABC cost allocations at a pharmacy(Learning Objective 2)One Hitachi plant manufactures two products, Product X and Product Y. The company uses a plantwide overhead rate based on machine running hours. The company is considering using an activity-based costing system
E4-31B Compute unit product cost and pricing (Learning Objective 2)Oleo Mas manufactures two products, A and B. Product A requires 0.2 direct labor hours per unit, and 15,000 units are produced annually. A total of 20,000 units of Product B is produced annually, and each unit takes 0.8 hours of
E4-30B Compute activity cost allocation rates (Learning Objective 2)TECH manufactures electronic appliance products based on customer orders and uses an activity-based costing system. Wages and salaries total $180,000, and other overhead costs are $200,000. The manager also provided the following
E4-29B Compute activity rates and apply them to jobs (Learning Objective 2)IOI’s manufacturing division just started to implement an activity-based costing system.At the beginning of the year, management identified four manufacturing activities that incur the manufacturing overhead cost.
E4-28B Compare traditional and departmental cost allocations(Learning Objective 1)Davidson’s Fine Furnishings manufactures upscale custom furniture. Davidson’s currently uses a plantwide overhead rate, based on direct labor hours, to allocate its $1,100,000 of manufacturing overhead to
E4-27A Classify costs and make a quality-initiative decision(Learning Objective 5)Clason Corp. manufactures radiation-shielding glass panels. Suppose Clason is considering spending the following amounts on a new TQM program:Strength-testing one item from each batch of
E4-26A Prepare a Costs of Quality report (Learning Objective 5)The CEO of Fresh Snacks Corp. is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the following logo:“Satisfaction guaranteed or your money back.” Since the
E4-25A D ifferentiate between traditional and lean operations(Learning Objective 4)Briefly describe how lean production systems differ from traditional production systems along each of the following dimensions:1. Roles of plant employees 2. Manufacturing cycle times 3. Quality 4. Inventory levels
E4-24A Continuation of E4-23A: Determine product profitability(Learning Objectives 2 & 3)Refer to your answers in E4-23A. In addition to the manufacturing overhead costs, the following data are budgeted for the company’s Standard and Deluxe models for next year:Standard Deluxe Sales price per
E4-23A U se ABC to allocate manufacturing overhead (Learning Objective 2)Several years after reengineering its production process, Biltmore Corporation hired a new controller, Rachael Johnson. She developed an ABC system very similar to the one used by Biltmore’s chief rival, Westriver. Part of
E4-22A Reassess product costs using ABC (Learning Objective 2)Reynolds, Inc., manufactures only two products, Medium (42-inch) and Large (63-inch)TVs. To generate adequate profit and cover its expenses throughout the value chain, Reynolds prices its TVs at 300% of manufacturing cost. The company is
E4-21A Compare traditional and ABC allocations at a pharmacy(Learning Objective 2)Wilmington Pharmacy, part of a large chain of pharmacies, fills a variety of prescriptions for customers. The complexity of prescriptions filled by Wilmington varies widely; pharmacists can spend between five minutes
E4-20A Compute activity rates and unit cost (Learning Objective 2)Nano produces skin care products. The company uses an activity-based costing system and provides the following activity cost pools and cost drivers for the month of July:Activity Cost Pool Cost Pool Allocation Rates Labor related
E4-19A Apply activity cost allocation rates (Learning Objective 2)Sidney Industries manufactures a variety of custom products. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products. The company estimates
E4-18A Compute activity rates and apply them to products (Learning Objective 2)Zebra Steel recently implemented an activity-based costing system. At the beginning of the year, management identified five manufacturing activities that incur the manufacturing overhead cost. Management also made the
E4-17A D epartmental overhead cost allocation (Learning Objective 1)Thermos had just started to use departmental overhead rates to allocate indirect costs to control production costs. The company differentiated two departments: Preparation Department and Finishing Department. The company prepared
S4-16 I dentify ethical standards violated (Learning Objectives 1, 2, 3, 4, 5, & 6)For each of the situations listed, identify the primary standard from the IMA Statement of Ethical Professional Practice that is violated (competence, confidentiality, integrity, or credibility). Refer to Exhibit 1-6
S4-15 I dentifying waste activities in an office (Learning Objective 4)The following is a list of waste activities found in an office. Classify each one as a type of waste as represented by the acronym DOWNTIME (Defects, Overproduction, Waiting, Not utilizing people to their full potential,
S4-14 Categorize different costs of quality (Learning Objective 5)Millan & Co. makes electronic components. Mike Millan, the president, recently instructed Vice President Steve Bensen to develop a total quality control program: “If we don’t at least match the quality improvements our
S4-13 Quality initiative decision (Learning Objective 5)Clearsound manufactures high-quality speakers. Suppose Clearsound is considering spending the following amounts on a new quality program:Additional 20 minutes of testing for each speaker...................................... $ 604,000
S4-12 Classifying costs of quality (Learning Objective 5)Classify each of the following quality-related costs as prevention costs, appraisal costs, internal failure costs, or external failure costs.1. Incremental cost of using a higher-grade raw material 2. Training employees 3. Lost productivity
S4-11 I dentify lean production characteristics (Learning Objective 4)Indicate whether each of the following is characteristic of a lean production system or a traditional production system.a. A workplace organization system called “5S” is frequently used to keep work spaces clean and
S4-10 I dentifying the advantages of an activity-based costing system(Learning Objective 3)Which of the following statements lists the advantages of adopting an activity-based costing system?a. A company that uses activity-based costing enjoys better benefit when the company has higher indirect
S4-9 D etermine the usefulness of refined costing systems in various situations (Learning Objective 3)In each of the following situations, determine whether the company would be more likely or less likely to benefit from refining its costing system.1. The company has very few indirect costs.2. The
S4-8 Classifying costs within the cost hierarchy (Learning Objective 2)Hosbach Manufacturing produces a variety of plastic containers using an extrusion blow molding process. The following activities are part of Hosbach Manufacturing’s operating process:1. A plant manager oversees the entire

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