Managerial Accounting
6th Edition
ISBN: 9781259726972
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Textbook Question
Chapter C, Problem 11E
Use the information below for Tesla to answer the requirements.
1. Compute days’ sales in work in process inventory for the current year. Round to the nearest day.
2. If the company’s work in process inventory were 5% lower, by how many days would days’ sales in work in process inventory be reduced? Round to the nearest day.
3. If the company’s cost of goods sold were 12% higher, by how many days would days’ sales in work in process inventory be reduced? Round to the nearest day.
Exercise C-11
Days’ sales in work in process inventory
A2
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1. Determine the cost of the December 31 finished-goods inventory.
2. Compute Mason’s net income for the current year ended December 31.
3. If next year’s production decreases to 23,000 units and general cost behavior patterns do not change, what is the likely effect on a. The direct-labor cost of $36 per unit?
No change
Increase
Decrease
b. The fixed manufacturing overhead cost of $600,000?
No change
Increase
Decrease
c. The fixed selling and administrative cost of $860,000?
No change
Increase
Decrease
d. The average unit cost of production?
No change
Increase
Decrease
According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment
fell 3.8 percent between January and December 2018. Let's see whether these changes are reflected in the income statement of
Gonzalez Industries for the year ended December 31, 2018.
Sales Revenue
Cost of Goods Sold
Gross Profit
Selling, General, and Administrative Expenses
Interest Expense
Income before Income Tax Expense
Income Tax Expense
Net Income
Required 1
Required:
1. Compute the gross profit percentage for each year. Assuming the change from 2017 to 2018 is the beginning of a sustained trend, is
Gonzalez likely to earn more or less gross profit from each dollar of sales in 2019?
2. Compute the net profit margin for each year. Did Gonzalez do a better or worse job of controlling operating expenses in 2018
relative to 2017?
Required 2
2018
$ 105,000
62,500
42,500
36,500
3. Gonzalez reported average net fixed assets of $54,700 in 2018 and $45,600 in…
3. Prepare a variable-costing income statement for Pattison Products, Inc., for the month of October.
4. What if November production was 48,000 units, costs were stable, and sales were 49,000 units? What is the cost of ending inventory? If an amount is zero, enter "0".
5. What is operating income for November?
Chapter C Solutions
Managerial Accounting
Ch. C - Prob. 1DQCh. C - How does push production differ from pull...Ch. C - Prob. 3DQCh. C - Prob. 4DQCh. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Prob. 8DQCh. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 12DQCh. C - Can management of a company like Samsung use cycle...Ch. C - Identify each of the following as applying more to...Ch. C - Identify each of the following as applying more to...Ch. C - Prob. 3QSCh. C - Use lean accounting to prepare journal entries for...Ch. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Prob. 7QSCh. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QSCh. C - Prob. 11QSCh. C - A company reports ending accounts payable of...Ch. C - Prob. 13QSCh. C - Identify each of the following production...Ch. C - Prob. 2ECh. C - Prob. 3ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Prob. 7ECh. C - A manufacturer makes T-shirts in several...Ch. C - Prob. 9ECh. C - Prob. 10ECh. C - Use the information below for Tesla to answer the...Ch. C - Prob. 12ECh. C - Prob. 13ECh. C - Prob. 14ECh. C - Robo-Lawn is a lean manufacturer of robotic lawn...Ch. C - Prob. 2PCh. C - Prob. 3P
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