DescriptionSolution manual for Managerial Accounting Creating Value in a Dynamic Business Environment, 10th edition by Ronald W.
4 -1 In a jo b- or de r co s ti ng s ys te m, c os ts a r e as si gn ed to bat c he s or jo b or de r s of production. Job-order costing is used by firms that produce relatively small numbers of dissimilar products.
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In a process-costing system, costs are averaged over a large number of product units. Process costing is used by firms that produce large numbers of nearly identical products. 4- 2 Pr oc es s cost in g oul d be an app ro pr ia te pro du ct -c os ti ng sy st em in the fol lo i ng industries! Petroleum, food processing, lumber, chemicals, te'tiles, and electronics. #ach of these industries is involved in the production of very large numbers of highly similar products.
4- $ Pr oc es s co st in g co ul d be us ed in th e fo ll o in g no nm an uf ac tu ri ng en te rp ri se s! Processing of tests in a medical diagnostic laboratory, processing of ta' returns by the Internal%evenue &ervice, and processing of loan applications in a ban'. 4- 4 Pr od uc t-c os ti ng s ys te ms ar e us ed fo r th e fol lo i ng p ur po se s! (a) In fin anc ial accou nti ng! Produ ct cos ts are need ed to val ue inv ent ory on the balance sheet and to compute the cost-of-goods-sold e'pense on the income statement.
(b ) In ma na ge ri al ac co unt in g! Pr od uc t co st s ar e ne ed ed fo r pl an ni ng, fo r co st control, and to provide managers ith data for decision ma'ing. (c) In rep ort ing to int ere ste d org ani.a tio ns! Pr odu ct cos t inf orm ati on is use d to report on relationships beteen firms and various outside organi.ations. +or e'a mpl e, hos pit als 'ee p tra c' of the cos ts of med ica l pro ced ure s tha t ar e reimbursed by insurance companies or by the federal government under the edicare program. 4- n e/ ui va le nt un it is a me as ur e of the am ou nt of pr od uc ti ve ef fo rt ap pl ie d in the production process. In process costing, costs are assigned to e/uivalent units rather than to physical units.
4- 0 h e f ol lo i ng fo ur st ep s a re us ed in pr oc es s c os ti ng! (a) naly sis of physic al flo of units! l l of the units in the beginning and end ing inventories, those started during the period, and those transferred out to finished goods are accounted for. (b) alc ulatio n of e/uiv alent units! he e/uiv alent units of activit y are computed for direct material and for conversion.
(c) ompu tatio n of unit costs! he costs per e/uivale nt unit for direct materi al and conversion are computed. (d) naly sis of total costs! he cost of the goods complete d and transferr ed out and the cost of the ending or'-in-process inventory are determined. 4- 3 (a ) Jo ur na l en tr y to en te r di re ct -m at er ia l co st s in to or '- in -P ro ce ss In ve nt or y account!
o r' -in -P ro ce ss Inv en to ry! 5e pa rt me nt . 66 6% a - a t e r i a l I n v e n t o r y. 6 6 6 (b) Jour nal entry to record tran sfer of goods from the first to the second depar tment in the production se/uence! o r' -in -P ro ce ss In ve nt or y!
5e pa rt me nt 7. 66 6 o r ' - i n - P r o c e s s I n v e n t o r y! 5 e p a r t m e n t .
6 6 6 4-8 ra nsf err ed- in co sts a re th e cos ts as sig ned t o par tia lly c omp let ed pr odu cts t hat h ave been transferred from one production department into the ne't department. 4- 9 h e:1 3,;;; of tr an sf er re d- in co st s e re in cu rr ed pr io r to Ja nu ar y 1 an d in th e mi'ing department. he costs must have been incurred prior to January 1, because they are included in the cost of the beginning or'-in-process inventory on that date.
oreover, these costs must have been incurred in the mi'ing department, because they have been transferred into the coo'ing department. 4- 1; h e na me.
4- 1 1 h e di ff er en ce bet e en nor ma l an d ac tu al cos ti ng lies in the cal cu la ti on of th e man ufa ctu rin g-o ver hea d cos t of the cur re nt per iod. =nd er act ual cos tin g, the man ufa ctu rin g-o ver hea d cos t of the cur ren t per iod is the act ual ove rhe ad cos t incurred during the period. =nder normal costing, the current-period manufacturing overhead is computed as the product of the predetermined overhead rate and the actual level of the cost driver used to apply manufacturing overhead. 4- 12 If ma nu fa ct ur in g ov er he ad e re appl ie d ac co rd in g to some act iv it y ba se (or co st driver) other than direct labor, then direct-labor costs and manufacturing-overhead cos ts ou ld be acc oun ted for sep ara tel y ins tea d of bei ng com bin ed int o one account called conversion costs. hus, instead of to columns for direct-material and conversion costs, there ould be three columns! Direct material, direct labor, and manufacturing overhead. 4-1 $?pe ra tio n costi ng is a hyb rid pr odu ct- cos tin g syst em that is use d hen con ver sio n act ivi tie s are ver y si mil ar acr oss pro duc t lin es, but the dir ect mat eri als dif fer significantly.
his is often the case in batch manufacturing operations. onversion costs are accumulated by department, and process-costing methods are used to assign these costs to products. In contrast, direct-material costs are accumulated by job order or by batch, and job-orde r costing is used to assign dire ct-material costs to products. 4- 14 h e de pa rt me nta l pr od uc ti on re po rt is the 'e y do cu me nt in a pr oc es s- co st in g system rather than the job-cost sheet used in job-order costing. he departmental production report shos the analysis of the physical flo of units, the calculation of e/uivalent units, the computation of the cost per e/uivalent unit, and the analysis of the total costs incurred in the production department.
he report shos the cost of the ending or'-in-process inventory as ell as the cost of the goods completed and transferred out of the department. 4.1 h e re is no di r ec t ma te r ia l i n th e a r ch 1 o r ' in pr oc e ss fo r th e st it ch in g department because direct material (rahide lacing) is added at the end of the process in that department.
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Chapter 1Managerial Accounting:Tools for Decision MakingDiscussion QUESTIONSQ1-1.Financial accounting is oriented toward external users and is concerned with general-purpose financial statements. These financial accounting statements are highly aggregated, report on relatively long time periods, are oriented toward the past, and must conform to external standards. These standards emphasize the use of objective data.Management accounting is oriented toward internal users and is concerned with special-purpose information.
This information may be aggregated or disaggregated, depending on need, and the reporting period may be long or short, depending on need. The information is oriented primarily toward the future and does. Activity cost drivers are specific units of work (activities) performed to serve customers’ needs that consume costly resources.Q1-10.Activities consume resources that cost money.Q1-11.Top management can help to set an ethical tone in the organization by ensuring that the company has a code of ethics and demonstrating its support for the code, but more importantly by leading the organization with ethical behavior.Q1-12.Many ethical dilemmas involve actions that are perceived to have desirable short-run consequences and highly probable undesirable long-run consequences.
The ethical action is to face an undesirable situation now to avoid a worse situation later. Yet, the decision maker may prefer to believe that things will work out in the long run, be overly concerned with the consequences of not doing well in the short run, or simply not care about the future because the problem will then belong to someone else.MINI EXERCISESM1-13.1.l2.n3.o4.e5.b6.
Management accountingb. Financial accountingc. Financial accountingd. Management accountinge. Management accountingf. Management accountingg. Financial accountingh.
Financial accountingi. Financial accountingj.
Wiley Managerial Accounting Solutions
Management accountingk. Management accountingl.
Financial accountingM1-15.a. 1194 Words 5 PagesACCT2522 Management Accounting 1 Session 1, 2013 Tutorial Week 3 – Cost basicsOverall Theme We will explore fundamental assumptions of cost functions and discuss the relationships between cost behaviour, cost estimation and cost prediction. The concept of cost driver analysis and its application to cost estimation and cost management will also be discussed. We will also describe how to estimate cost behaviour using managerial judgment, engineering methods and other quantitative techniques. 34836 Words 140 Pagesneed any solution manual, testbank for testbooks from the list, do contact us anytime, we provide competitive prices and fast delivery after payment done. Contact us:[email protected](at)gmail(dot)com2010 Corporate Partnership Estate and Gift Tax with H&R Block TaxCut 4e Pratt Kulsrud Solution Manual2010 Corporate Partnership Estate and Gift Tax with H&R Block TaxCut 4e Pratt Kulsrud Test Bank2010 Federal Taxation with H&R Block TaxCut 4e Pratt Kulsrud Solution Manual. 19283 Words 78 Pages253 Chapter 6 Evaluation Research Design: Literature Reviews & Synthesis Frequently a research question or hypothesis can be answered through secondary research, i.e., a literature review or synthesis.
Both strategies requires the researcher to mine existing data sources; ―pull out‖ relevant data or information; summarize it; logically analyze and/or statistically treat it; and report results. In many instances, the issue, problem, question, etc. Which prompted the idea for an evaluation study is. 48288 Words 194 PagesCompany1CopyrightDELTA PUBLISHING COMPANY P.O. Box 5332, Los Alamitos, CA All rights reserved. No part of this course may be reproduced in any form or by any means, without permission in writing from the publisher.2006 by2Table of ContentsPreface Chapter 1 Objectives of Financial Statement Analysis and Financial Reporting Chapter 2 Accounting Assumptions, Principles, Procedures, and Policies Chapter 3 Understanding Financial Statements Chapter 4 An Overview.
328284 Words 1314 PagesSons, Inc., 111 River Street, Hoboken, NJ 07030, (201)748-6011, fax (201)748-6008, E-mail: [email protected]. To order books or for customer service, call 1-800-CALL-WILEY(225-5945). Montgomery, Douglas, C. Introduction to Statistical Quality Control, Sixth Edition 978-0-470-16992-6 Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1About the AuthorDouglas C. Montgomery is Regents’ Professor of Industrial Engineering and Statistics and the Arizona State University Foundation Professor.
For Managerial Accounting 11th Edition By Hiltonfor for Managerial Accounting 11th Edition By Hilton. Note: this is not a text book.
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