Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 20, Problem 20.15Q
Discuss the differences between lean accounting and traditional cost accounting.
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Please answer the following requirements a and b on these general accounting question
General Accounting
Harper, Incorporated, acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2023, for $210,000 in
cash. The book value of Kinman's net assets on that date was $400,000, although one of the company's buildings, with a $60,000
carrying amount, was actually worth $100,000. This building had a 10-year remaining life. Kinman owned a royalty agreement with a
20-year remaining life that was undervalued by $85,000.
Kinman sold Inventory with an original cost of $60,000 to Harper during 2023 at a price of $90,000. Harper still held $15,000 (transfer
price) of this amount in Inventory as of December 31, 2023. These goods are to be sold to outside parties during 2024.
Kinman reported a $40,000 net loss and a $20,000 other comprehensive loss for 2023. The company still manages to declare and
pay a $10,000 cash dividend during the year.
During 2024, Kinman reported a $40,000 net income and declared and paid a cash dividend of $12,000. It made additional inventory
sales…
Chapter 20 Solutions
Cost Accounting (15th Edition)
Ch. 20 - Why do better decisions regarding the purchasing...Ch. 20 - Name six cost categories that are important in...Ch. 20 - What assumptions are made when using the simplest...Ch. 20 - Give examples of costs included in annual carrying...Ch. 20 - Give three examples of opportunity costs that...Ch. 20 - What are the steps in computing the cost of a...Ch. 20 - Why might goal-congruence issues arise when...Ch. 20 - JIT purchasing has many benefits but also some...Ch. 20 - What are three factors causing reductions in the...Ch. 20 - You should always choose the supplier who offers...
Ch. 20 - Prob. 20.11QCh. 20 - What are the main features of JIT production, and...Ch. 20 - Distinguish inventory-costing systems using...Ch. 20 - Describe three different versions of backflush...Ch. 20 - Discuss the differences between lean accounting...Ch. 20 - Prob. 20.16ECh. 20 - Prob. 20.17ECh. 20 - Prob. 20.18ECh. 20 - Prob. 20.19ECh. 20 - Prob. 20.20ECh. 20 - Prob. 20.21ECh. 20 - Prob. 20.22ECh. 20 - Prob. 20.23ECh. 20 - Prob. 20.24ECh. 20 - Prob. 20.25PCh. 20 - Prob. 20.26PCh. 20 - Prob. 20.27PCh. 20 - Prob. 20.28PCh. 20 - Prob. 20.29PCh. 20 - Supply-chain effects on total relevant inventory...Ch. 20 - Prob. 20.31PCh. 20 - Prob. 20.32PCh. 20 - Prob. 20.33PCh. 20 - Prob. 20.34PCh. 20 - Lean accounting. Reliable Security Devices (RSD)...Ch. 20 - Prob. 20.36P
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