Solutions for Managerial Accounting
Problem 1DQ:
What are job-order costing and process costing? What types of firms use job-order costing? Process...Problem 2DQ:
Give some examples of service firms that might use job-order costing, and explain why it is used in...Problem 5DQ:
Explain how overhead is assigned to production when a predetermined overhead rate is used.Problem 6DQ:
What is underapplied overhead? When Cost of Goods Sold is adjusted for underapplied overhead, will...Problem 7DQ:
What is overapplied overhead? When Cost of Goods Sold is adjusted for overapplied overhead, will the...Problem 8DQ:
Suppose that you and a friend decide to set up a lawn mowing service next summer. Describe the...Problem 9DQ:
Why might a company decide to use departmental overhead rates instead of a plantwide overhead rate?Problem 10DQ:
What is the role of materials requisition forms in a job-order costing system? Time tickets?...Problem 11DQ:
Carver Company uses a plantwide overhead rate based on direct labor cost. Suppose that during the...Problem 14DQ:
If a company decides to increase advertising expense by 25,000, how will that affect the...Problem 20DQ:
(Appendix 4B) Explain the difference between the direct method and the sequential method.Problem 1MCQ:
Which of the following statements is true? a. Job-order costing is used only in manufacturing firms....Problem 2MCQ:
The ending balance of which of the following accounts is calculated by summing the totals of the...Problem 3MCQ:
In a normal costing system, the cost of a job includes a. actual direct materials, actual direct...Problem 4MCQ:
The predetermined overhead rate equals a. actual overhead divided by actual activity level for a...Problem 6MCQ:
Applied overhead is a. an important part of normal costing. b. never used in normal costing. c. an...Problem 7MCQ:
The overhead variance is overapplied if a. actual overhead is less than applied overhead. b. actual...Problem 8MCQ:
Which of the following is typically a job-order costing firm? a. Paint manufacturer b....Problem 9MCQ:
Which of the following is typically a process-costing firm? a. Paint manufacturer b. Custom...Problem 13MCQ:
Wilson Company has a predetermined overhead rate of 5 per direct labor hour. The job-order cost...Problem 14MCQ:
(Appendix 4A) When a job costing 2,000 is finished but not sold, the following journal entry is...Problem 15MCQ:
(Appendix 4B) Those departments responsible for sold to customers are referred to as a....Problem 17MCQ:
(Appendix 4B) An example of a producing department is a. a materials storeroom. b. the maintenance...Problem 18MCQ:
(Appendix 4B) An example of a support department is a. data processing. b. personnel. c. a materials...Problem 19MCQ:
(Appendix 4B) The method that assigns support department costs only to producing departments in...Problem 20MCQ:
(Appendix 4B) The method that assigns support department costs by giving partial recognition to...Problem 21MCQ:
(Appendix 4B) The method that assigns support department costs by giving full recognition to support...Problem 22BEA:
Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company...Problem 23BEA:
Overhead Variance (Over- or Underapplied), Closing to Cost of Goods Sold At the end of the year,...Problem 24BEA:
Use the following information for Brief Exercises 4-24 and 4-25: At the beginning of the year,...Problem 25BEA:
Use the following information for Brief Exercises 4-24 and 4-25: At the beginning of the year,...Problem 26BEA:
Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods,...Problem 27BEA:
Use the following information for Brief Exercises 4-27 and 4-28: Quillen Company manufactures a...Problem 28BEA:
Use the following information for Brief Exercises 4-27 and 4-28: Quillen Company manufactures a...Problem 29BEB:
Predetermined Overhead Rate, Overhead Application At the beginning of the year, Estes Company...Problem 30BEB:
Overhead Variance (Over- or Underapplied), Closing to Cost of Goods Sold At the end of the year,...Problem 31BEB:
Use the following information for Brief Exercises 4-31 and 4-32: At the beginning of the year,...Problem 32BEB:
Use the following information for Brief Exercises 4-31 and 4-32: At the beginning of the year,...Problem 33BEB:
Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods,...Problem 34BEB:
Use the following information for Brief Exercises 4-34 and 4-35: Sanjay Company manufactures a...Problem 35BEB:
Use the following information for Brief Exercises 4-34 and 4-35: Sanjay Company manufactures a...Problem 36E:
Job-Order Costing versus Process Costing a. Hospital services b. Custom cabinet making c. Toy...Problem 37E:
Job-Order Costing versus Process Costing a. Auto manufacturing b. Dental services c. Auto repair d....Problem 38E:
Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the...Problem 39E:
Calculating the Predetermined Overhead Rate, Applying Overhead to Production, Reconciling Overhead...Problem 40E:
Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the...Problem 41E:
Job-Order Costing Variables On July 1, Job 46 had a beginning balance of 1,235. During July, prime...Problem 42E:
Source Documents For each of the following independent situations, give the source document that...Problem 43E:
Applying Overhead to Jobs, Costing Jobs Jagjit Company designs and builds retaining walls for...Problem 44E:
Applying Overhead to Jobs, Costing Jobs Gorman Company builds internal conveyor equipment to client...Problem 45E:
Balance of Work in Process and Finished Goods, Cost of Goods Sold Derry Company uses job-order...Problem 46E:
Job-Order Cost Sheets, Balance in Work in Process and Finished Goods Prull Company, a job-order...Problem 47E:
Cost Flows Consider the following independent jobs. Overhead is applied in Department 1 at the rate...Problem 48E:
Job Cost Flows Roseler Company uses a normal job-order costing system. The company has two...Problem 49E:
Calculation of Work in Process and Cost of Goods Sold with Multiple Jobs Ensign Landscape Design...Problem 50E:
(Appendix 4A) Journal Entries Yurman Inc. uses a job-order costing system. During the month of May,...Problem 51E:
(Appendix 4B) Direct Method of Support Department Cost Allocation Stevenson Company is divided into...Problem 52E:
(Appendix 4B) Sequential Method of Support Department Cost Allocation Refer to Exercise 4-51 for...Problem 53P:
Overhead Application and Job-Order Costing Heurion Company is a job-order costing firm that uses a...Problem 55P:
Calculating Ending Work in Process, Income Statement Pavlovich Prosthetics Company produces...Problem 56P:
Overhead Applied to Jobs, Departmental Overhead Rates Xania Inc. uses a normal job-order costing...Problem 57P:
Overhead Rates, Unit Costs Folsom Company manufactures specialty tools to customer order. There are...Problem 58P:
Calculate Job Cost and Use It to Calculate Price Suppose that back in the 1970s, Steve was asked to...Problem 59P:
(Appendix 4A) Unit Cost, Ending Work in Process, Journal Entries During August, Leming Inc. worked...Problem 60P:
(Appendix 4A) Journal Entries, Job Costs The following transactions occurred during the month of...Problem 61P:
(Appendix 4A) Predetermined Overhead Rates, Variances, Cost Flows Barrymore Costume Company, located...Problem 62P:
(Appendix 4A) Overhead Application, Journal Entries, Job Cost At the beginning of the year, Smith...Problem 63P:
(Appendix 4A) Journal Entries, T-Accounts Lowder Inc. builds custom conveyor systems for warehouses...Problem 64P:
(Appendix 4B) Support Department Cost Allocation MedServices Inc. is divided into two operating...Problem 65P:
(Appendix 4B) Support Department Cost Allocation: Comparison of Methods of Allocation Bender...Browse All Chapters of This Textbook
Chapter 1 - Introduction To Managerial AccountingChapter 2 - Basic Managerial Accounting ConceptsChapter 3 - Cost Behavior And Cost ForecastingChapter 4 - Job-order Costing And Overhead ApplicationChapter 5 - Activity-based Costing And ManagementChapter 6 - Process CostingChapter 7 - Cost-volume-profit AnalysisChapter 8 - Tactical Decision-making And Relevant AnalysisChapter 9 - Profit Planning And Flexible BudgetsChapter 10 - Standard Costing And Variance Analysis
Book Details
MANAGERIAL ACCOUNTING, 7E makes teaching and learning managerial accounting meaningful, fun, and relatable for both you and your students. This edition has been revised with an emphasis on showing students "Here's How It's Used." This unique learning approach along with new brief video clips and relevant examples encourages and enables students to develop a deeper understanding of managerial accounting and its implications for business. Additionally, a new organization logically progresses from why managerial accounting is important, to what it is, to where the information comes from, and how it is best used to make business decisions. Students even explore emerging topics of interest to them, such as sustainability, quality cost, lean accounting, international issues, enterprise risk management, and forensic and fraud accounting.
Sample Solutions for this Textbook
We offer sample solutions for Managerial Accounting homework problems. See examples below:
Managerial Accounting: Managerial accounting refers to the internal accounting system that gives...Chapter 2, Problem 1DQChapter 2, Problem 49EChapter 2, Problem 52PChapter 2, Problem 60PCost Behavior: Cost behavior determines the effect of changes in organizational activities on the...Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products or...Chapter 3, Problem 47EChapter 3, Problem 62P
Chapter 3, Problem 66PChapter 4, Problem 1DQChapter 4, Problem 35BEBChapter 4, Problem 47EChapter 4, Problem 50EChapter 4, Problem 52EChapter 4, Problem 56PChapter 4, Problem 57PChapter 4, Problem 64PChapter 4, Problem 65PChapter 5, Problem 1DQChapter 5, Problem 49EChapter 5, Problem 53PChapter 5, Problem 54PChapter 5, Problem 55PChapter 5, Problem 57PChapter 5, Problem 60PChapter 5, Problem 61PChapter 6, Problem 1DQChapter 6, Problem 57PChapter 6, Problem 61PChapter 6, Problem 65PChapter 6, Problem 66PChapter 6, Problem 67PChapter 6, Problem 68PChapter 6, Problem 70CCVP Analysis: CVP analysis establishes the relation between cost, volume and profit of the company....Chapter 7, Problem 44ESales Mix: Sales mix refers to the proportion of different products that is sold. It is expressed in...Chapter 7, Problem 50EChapter 7, Problem 53PChapter 7, Problem 54PChapter 7, Problem 58PContribution margin: Contribution margin can be defined as the amount obtained after deducting the...Chapter 7, Problem 1MTCChapter 8, Problem 1DQContribution Margin: Contribution margin can be defined as the amount of difference the sales...Segmented Income Statement: Variable costing is used in the preparation of a segmented income...Chapter 8, Problem 56PChapter 8, Problem 57PChapter 8, Problem 59PChapter 8, Problem 60PChapter 8, Problem 67PChapter 8, Problem 69CChapter 9, Problem 1DQChapter 9, Problem 57EChapter 9, Problem 66PChapter 9, Problem 70PChapter 9, Problem 73PChapter 9, Problem 74PCash Budget: Cash budget is a financial budget. It is prepared to assess inflows and outflows of...Chapter 10, Problem 1DQChapter 10, Problem 59EChapter 10, Problem 63PChapter 10, Problem 64PChapter 10, Problem 67PChapter 10, Problem 68PChapter 10, Problem 69PChapter 10, Problem 71PChapter 10, Problem 72PChapter 10, Problem 74PChapter 10, Problem 76PChapter 10, Problem 77CChapter 11, Problem 1DQChapter 11, Problem 40PChapter 11, Problem 41PChapter 11, Problem 42PChapter 11, Problem 43PContribution margin can be defined as the amount obtained after deducting the variable expense from...Transfer Price: The amount of price charged by the selling department for a component to the...Independent Projects and Mutually Exclusive Projects: When acceptance or rejection of a project does...Chapter 12, Problem 32EChapter 12, Problem 33EChapter 12, Problem 36EPayback Period: The time taken by an investment to recover its original value is known as payback...Chapter 12, Problem 39EChapter 12, Problem 44PIncome Statement: The statement that shows revenue and expenses incurred over a period of time...Enterprise Risk Management: Enterprise risk management is a process in which, business risks are...Inherent Risk: Inherent risk is a risk that prevails in a system before any control measure is...Chapter 13, Problem 25BEAInherent Risk: Inherent risk is a risk that prevails in a system before any control measure is...Chapter 13, Problem 32BEBChapter 13, Problem 43EBusiness Sustainability: Business sustainability is increasing the business worth for a long term,...Quality Cost: Organizations are required to bear costs due to non-conformity of goods or services...Chapter 13, Problem 63CCash Equivalents: Cash equivalents are treated as cash in a company. The investments which are...Chapter 14, Problem 24BEACash Flows from Operating Activities: This category of a cash flow statement shows the operational...Chapter 14, Problem 50PChapter 14, Problem 51PChapter 14, Problem 53PChapter 14, Problem 57PChapter 14, Problem 58CChapter 15, Problem 1DQChapter 15, Problem 56PChapter 15, Problem 58PChapter 15, Problem 61PChapter 15, Problem 63PChapter 15, Problem 64PProfitability Ratio: These ratios evaluate a firm’s ability to earn profits. They help the...Profitability Ratio: These ratios evaluate a firm’s ability to earn profits. They help the...
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