SM Ch02 4ce Jerry J. Weygandtdo (2)

CHAPTER2 ASSI GNMENTCLASSI FI CATI ONTABLE Sel f St udy Br i e f DoI t ! Quest i ons Exer ci ses Revi ew Exer ci ses 5, 6, 7, 8 1, 2, 3, 9, 14 18,19,20, 11 21,22,29, 35

Pr obl ems 4 0A,4 1A,4 5A, 4 8A,4 9B,5 0 B, 5 3B,

2. Explain variable, fixed, and mixed costs and the relevant range.

1,2

4,5

15

23,24,26, 28

47A,55B

3. Apply the highlow method to determine the components of mixed costs.

3,4

4,6,7,8

16

25,27

!. Demonstrate how to calculate cost of goods manufactured and prepare financial statements for a manufacturer.

9,10

10,12,13

17

30,31,32, 33,34,35, 36,37,38, 39

St udyOb Obj ect i ves 1. Define the three classes of manufacturing costs and differentiate between product and period costs.

4 2A,4 3A,4 4A, 4 5A,4 6A,4 8A, 5 1B,5 2B,5 3B, 5 4B,5 6B,5 7B, 58B

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i bu t i on ,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d 21

ASSI GNMENTCHARACTERI STI CSTABLE Pr obl em Numb mber Descr i pt i on

Di fficul t y Level

4 0A

Cl a s s i f yma nu f a c t u r i n gc os t si n t od i ff er e ntc a t e go r i e sa nd c al c ul at et heuni tc os t .

Si mpl e

Ti me Al l ot t ed ( mi n. ) 20–30

4 1A

Cl a s s i f yma nu f a c t u r i n gc os t si n t od i ff er e ntc a t e go r i e sa nd c al c ul at et heuni tc os t .

Si mpl e

20–30

4 2A

I n di c a t et h emi mi s s i n gamo un to fd i ff e r e ntc o s ti t e ms ms ,a nd p r e pa r eac on de ns e dc o s to fg oo dsma ma nu f a c t u r e ds c h e du l e, ani nc omest at ement ,andapar t i al ba l anc es hee t .

Moder at e

30–40

43A

Pr epar eacostofgoodsma manuf act ur edschedul e,apar t i al i nc omes t at ement ,andapar t i al bal anc es hee t .

Moder at e

30–40

44A

Pr epar eac ost ofgoodsmanuf act ur eds chedul eanda c or r ec ti nc omes t at ement .

Moder at e

30–40

45A

Cal cul at ecost ofgoodsm ma anuf act ur ed,andcos tofgoods s ol d.

Moder at e

20–30

46A

Cal cul at er awmat er i al spur chased,cost ofgoods ma nu f a ct u r e d,a ndco s to fg oo dss ol d .

Moder at e

20–30

47A

Det er mi nemi mi ss i ngamo mount si nt hecos tofgoods ma nu f a c t u r e da nds o l ds c h e du l ean dc o mp mp ar efi x e dan d v ar i abl ecos t s .

Chal l engi ng

30–40

48A

Det er mi nemi mi ss i ngamo mount sandcal cul at esel ect edcost s f o rs c h ed ul e so fc os to fg ood sma nuf a ct u r e da nds ol d .

Chal l engi ng

30–40

4 9B

Cl a s s i f yma nu f a c t u r i n gc os t si n t od i ff er e ntc a t e go r i e sa nd c al c ul at et heuni tc os t .

Si mpl e

20–30

5 0B

Cl a s s i f yma nu f a c t u r i n gc os t si n t od i ff er e ntc a t e go r i e sa nd c al c ul at et heuni tc os t .

Si mpl e

20–30

5 1B

I n di c a t et h emi mi s s i n gamo un to fd i ff e r e ntc o s ti t e ms ms ,a nd p r e pa r eac on de ns e dc o s to fg oo dsma ma nu f a c t u r e ds c h e du l e, ani nc omest at ement ,andapar t i al ba l anc es hee t .

Moder at e

30–40

52B

Pr epar eacostofgoodsma manuf act ur edschedul e,apar t i al i nc omes t at ement ,andapar t i al bal anc es hee t .

Moder at e

30–40

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i bu t i on ,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d 22

ASSI GNMENTCHARACTERI STI CSTABLE( Cont i nued) Pr obl em Numb mber Descr i pt i on

Di fficul t y Level

Ti me Al l ot t ed ( mi n. )

53B

Cal cul at epr i mecost ,conver si oncost andcost ofgoods ma nu f a c t u r e d.

Moder at e

20–30

54B

Pr epar ei ncom me est at eme mentsc hedul esf orcos tofgoods s o l da ndc o s to fg oo dsma ma nu f a c t u r e d.

Moder at e

30–40

55B

Det er mi nemi mi ss i ngamo mount si nt hecos tofgoods ma nu f a c t u r e da nds o l ds c h e du l ean dc o mp mp ar efi x e dan d v ar i abl ecos t s .

Chal l engi ng

20–30

56B

Pr epar eac ost ofgoodsmanuf act ur eds chedul eanda c or r ec ti nc omes t at ement .

Moder at e

30–40

57B

Cal cul at esel ect edcost sf ort hei ncom me est at eme ment ,and s c he dul e sofc os to fg oo dsma ma nu f a c t u r e da nds ol d .

Moder at e

20–30

58B

Det er mi nemi mi ss i ngamo mount s, pr epar ecos tofgoods manuf ac t ur edandc al c ul at ei n v ent or yv al ues .

Chal l engi ng

40–50

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i bu t i on ,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d 23

BLO OM’ S TAX ON OM Y TAB LE

© 201 5 F o r I n s t r u c t or Us e Onl y 24

Corr el at i onChartbet weenBl oom’ sTaxonomy my,St udyObj ect i vesandEndof Chapt erExerci sesandPr obl ems ms St udyObj ect i ve

Knowl edge Compr ehensi on

1. Define the three classes of manufacturing costs and differentiate between product and period costs.

D14

BE1,

Appl i cat i on

Anal ysi s

E2 9,E3 5,P5 3B

P4 0A,P4 1A,P4 5A, P48A, A,P49B,P50B

BE5,E28

E24

BE7,BE8

BE2,BE3,BE9, BE11, E18,E19, E20,E21,E22

Synt hesi s

2. Explain variable, fixed, and mixed costs and the relevant range. .

BE4,D15,E23,

3. Apply the highlow method to determine the components of mixed costs.

BE4

BE6,D16,E25,E2 7

!. Demonstrate how to E3 7 calculate cost of goods manufactured and prepare financial statements for a manufacturer.

BE1 0

BE1 2,BE1 3,D17,E3 0, P45A, A,P46A,P48A, E32,E33,P42A, E3 1 ,E3 4 ,E3 5 ,E3 6 ,E3 8 ,P54B,P57B P44A, A,P51B, E39,P43A,P52B,P53B, P58B P56B

Eval uat i on

P47A,P55B

E26

 ______  _______  _  _  __________________ So l u t i o nsMa Ma nu al ©2 01 5J o hnWi Wi l e y& So nsCa na da ,L t d .Un au t h or i z e dc o py i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i sp ag ei spr o hi b i t e d 24

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SOL OLUTI ONSTO BRI EFEXERCI SES BRI EFEXERCI SE21 ( a) DM Fr ame mesandt i r esusedi nmanuf act ur i ngbi cycl es. ( b) DL Wagespai dt opr oduct i onwor ker s. ( c) MO I nsur anceonf act or yequi pmentandmachi ner y. ( d) MO Depr eci at i ononf act or yequi pment . BRI EFEXERCI SE22 ( a ) Di r e ctma t e r i a l s . ( b) Di r e ctma t e r i a l s . ( c) Di r ectl abour .

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

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SOL OLUTI ONSTO BRI EFEXERCI SES BRI EFEXERCI SE21 ( a) DM Fr ame mesandt i r esusedi nmanuf act ur i ngbi cycl es. ( b) DL Wagespai dt opr oduct i onwor ker s. ( c) MO I nsur anceonf act or yequi pmentandmachi ner y. ( d) MO Depr eci at i ononf act or yequi pment . BRI EFEXERCI SE22 ( a ) Di r e ctma t e r i a l s . ( b) Di r e ctma t e r i a l s . ( c) Di r ectl abour . ( d) Manuf act ur i ngover head. ( e ) Ma nuf a ct ur i ngov er he ad( I ndi r e ctma t e r i a l s ) . ( f ) Di r e ctma t e r i a l s . ( g) Di r e ctma t e r i a l s . ( h) Ma nuf a ct ur i ngov er he ad( I ndi r e ctl a bour ) . BRI EFEXERCI SE23 ( a) Pr oduct . ( b) Per i od. ( c) Per i od.

( d) Pr oduct . ( e) Per i od. ( f ) Pr oduct .

BRI EFEXERCI SE24 I ndi r ectl abouri sav ar i abl ecostbecausei ti ncr easesi nt ot aldi r ect l y a nd pr opor t i ona t e l ywi t ht hec ha nge i nt hea ct i v i t yl e v el :$ 10 , 0 00÷ 2 , 0 00uni t s=$ 5. 0 0a nd$ 20 , 0 00÷4 , 0 00uni t s=$ 5. 0 0. Super vi sor ysal ar i esar eafixed costbecauset heyr ema mai nt hesame mei n t ot a lr e ga r dl essofchangesi nt heact i vi t yl evel :$5, 000atbot hl evel s. Mai nt enance i s a mi xed costbecause i ti ncr eases i nt ot albut not pr opor t i ona t e l ywi t hchangesi nt heact i vi t yl e vel :$4, 000÷2, 000uni t s= $ 2. 0 0a nd$ 7, 0 00÷4 , 0 00uni t s=$ 1. 7 5. So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d 25

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BRI EFEXERCI SE25 VARI ABLECOST Rel evantRange

FI XEDCOST Rel evantRange

$ 10 , 0 00

$ 10 , 0 00

8 , 0 00

8 , 0 00

6 , 0 00

6 , 0 00

4 , 0 00

4 , 0 00

2 , 0 00

2, 0 00

0

20 40 60 80 100

0

20 40 60 80 100

Act i vi t yLevel

Act i vi t yLevel

BRI EFEXERCI SE26

$ 60 , 0 00 T ot alCostLi ne 4 5, 0 00       T       S       O       C

Var i abl eCostEl eme ment

3 0, 0 00

1 5, 0 00 Fi xedCostEl eme ment 0

500

1, 000 1, 500 2, 000 2, 500

Di r ectLabourHour s So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d 26

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BRI EFEXERCI SE27 Hi gh

Low

Di ffer ence

$16, 490 – $12, 330 = 8, 200 – 5, 000 =

$4, 160 3, 200

$ 4, 1 60÷3 , 2 00=$ 1. 3 0—Va r i a bl ec os tpe rk i l ome t e r . Hi gh T ot a lc os t Le ss :Var i a bl ec os t s 8 , 2 00×$ 1. 3 0 5 , 0 00×$ 1. 3 0 T ot a lfix edc os t s

Low

$ 16 , 4 90   $1 2, 3 30 10, 66 0 $ 5, 830

6, 500 $ 5, 83 0

Themi mi x edc os ti s$5 , 8 30pl us$1 . 3 0pe rk i l ome t e r . BRI EFEXERCI SE28 Hi gh

Low

Di ffer ence

$65, 000 – $32, 000 = 40, 000 – 18, 000 = $3 3, 0 00÷2 2, 00 0

$33, 000 22, 000

=$ 1. 50pe runi t . Act i vi t yLev el Hi gh Low

T ot a lc os t Le ss :Var i abl ec os t s 4 0, 00 0×$ 1. 50 1 8, 00 0×$ 1. 50 T ot a lfix edc os t s

$ 65 , 0 00

$ 32 , 0 00

60, 000 0 00 , 0 00 $ 5, 00 0

27, 000 $ 5, 00 0

Themi mi xedcosti s$5, 000pl us$1. 50peruni tpr oduced.

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d 27

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BRI EFEXERCI SE29 Pr oductCost s Di r e ct Mat er i al s ( a) ( b) ( c) ( d)

Di r e ct Labour

F a c t o r y Over head X

X X X

BRI EFEXERCI SE210 DI EKERCOM OMPANY Bal anceSheet Decemb mber31,2016 Cur r e nta ss et s Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 , 0 00 Account sr ecei vabl e. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 00 , 0 00 I nvent or i es Fi ni shedgoods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Raw mat er i al s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 31 , 0 00 Pr epai dexpenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 , 0 00 Tot alcur r entasset s. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 53 1, 0 00

$71, 000 87, 000 73, 000

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d 28

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BRI EFEXERCI SE211 ( a )Di r e ctl a bourc os t s=pr i mec os t s+c onv er s i onc os t s –t ot alma nuf ac t ur i ngc os t s Di r e ctl a bour=$ 19 5, 0 00+$ 14 0, 0 00–$ 27 0, 0 00=$ 65 , 0 00 Di r ec tma t e r i a lcost s=pr i mec os t s–di r e ctl a bourc os t s Di r ec tma t e r i a lc os t s=$ 19 5, 0 00–$ 65, 00 0=$ 130 , 0 00 Manuf act ur i ngover headcost s=conver si oncost s–di r ectl abour c o s t s Manuf act ur i ngover headcost s=$140, 000–$65, 000=$75, 000 ( b)T ot alcost sofpr oduct i on=di r ectmat er i al+di r ectl abour+ov er head =$130, 000+$65, 000+$75, 000=$270, 000 ( c)T ot alper i odc ost s=$200, 000

BRI EFEXERCI SE212 Di r ect Ma t e r i a l sUs ed ( 1) ( 2) ( 3) ( 1) ( 2) ( 3)

$ 81 , 0 00(2)

Di r e ct Labour Used

F a c t o r y Over head

T o t a l Manuf act ur i ng Cost s $ 13 6, 0 00(1)

$ 14 4, 0 00(3)

$25, 000+$61, 000+$50, 000 $296, 000–$140, 000–$75, 000 $310, 000–$111, 000–$55, 000

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d 29

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BRI EFEXERCI SE213 T o t a l Manuf act ur i ng Cost s ( 1) ( 2) ( 3)

$ 13 6, 0 00

Wor ki n Process ( 1/ 1)

Wor ki n Process ( 1 2 / 3 1 )

CostofGoods Manuf act ur ed $ 17 4, 0 00(1)

$ 12 3, 0 00(2) $ 58 , 0 00(3)

( 1)

  $120, 000+$136, 000–$82, 000=$174, 000   $321, 000–$296, 000+$98, 000=$123, 000 ( 3)   $ 31 0, 0 00+$ 46 3, 0 00-$ 71 5, 0 00=$ 58 , 0 00

( 2)

T ! SOLUTI ONSTODO I   REVI EW EXERCI SES DO I T !   214

Per i odcost s: Adv er t i si ng Sal ar i esofsal esr e pr esent at i v es Pr oductcost s: Bl ankCDs( DM) Depr eci at i onofCDi magebur ner( MO) Sal ar yoff act or yma manager( MO) Fact or ysuppl i esused( MO) Paperi nser t sf orCDcases( DM) CDpl ast i ccases( DM) Sal ar i esoff act or yma mai nt enanceemp mpl oyees( MO) Sal ar i esofemp mpl oyeeswhobur nmu musi cont oCDs( DL)   215 DO I T ! Var i abl ecost s:I ndi r ectl abour ,di r ectl abour ,anddi r ectmat er i al s. So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 1 0

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

Fi x edc os t s : Mi x edc os t s:

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Pr ope r t yt a xe sa ndde pr e ci a t i on. Ut i l i t i e sandma i nt e na nc e.

DO I T !   216

( a ) Va r i a bl ecos t :( $ 18 , 7 50–$ 16 , 2 00 )÷( 1 0, 5 00–8 , 8 00 )=$ 1. 5 0pe runi t Fi x edcost : $18, 7 50–( $1. 50×10, 500uni t s )=$ 3, 000 or$16, 200–( $1. 50×8, 80 0uni t s )=$3, 000 ( b) Tot alest i mat edcostt opr oduce8, 500uni t s: =$ 3, 00 0+( $ 1. 5 0×8, 50 0)=$1 5, 75 0

DO I T !   217

ROLENMA MANUFACTURI NG COMPANY CostofGoodsManuf act ur edSchedul e Fort heMo Mont hEndedApr i l30 Wor ki npr ocess,Apr i l1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5, 000 Di r ectma mat er i a l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Raw mat er i al s,Apr i l1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 10, 000 Rawma mat er i al spur chases. . . . . . . . . . . . . . . . . . . . . . . . . . . 98, 000 Tot alr aw mat er i al savai l abl ef oruse. . . . . . . . . 108, 000 Less:Raw mat er i al s,Apr i l30. . . . . . . . . . . . . . . . . . . . 14, 000 Di r ectmat er i al sused. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 94, 000 Di r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60, 000 Manuf act ur i ngov er head. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180, 000 Tot almanuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3 34, 0 00 Tot alcostofwor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . $ 33 9, 0 00 Less :Wo Wor ki npr oces s,Apr i l30. . . . . . . . . . . . . . . . . . . . . 3, 500 Costofgoodsmanuf act ur ed. . . . . . . . . . . . . . . . . . . . . . . . . . $ 33 5, 5 00 So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 1 1

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So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 1 2

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

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SOL OLUTI ONSTO EXERCI SES EXERCI SE218 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

( b) Di r ectl abour . * ( c) Manuf act ur i ngover head. ( c) Manuf act ur i ngover head. ( c) Manuf act ur i ngover head. ( a) Di r ectmat er i al s. ( b) Di r ec tl abour . ( c) Manuf act ur i ngover head. ( c) Manuf act ur i ngover head( I ndi r ectmat er i al s) . ( c) Manuf act ur i ngover head( I ndi r ectl abour ) . ( a) Di r ectmat er i al s.

* orsomet i mes( c) ,dependi ngont heci r cumst ances EXERCI SE219 ( a)Mat er i al susedi npr oduct . . . . . . . DM Depr eci at i ononpl ant . . . . . . . . . . . MOH Pr oper t yt axesonst or e. . . . . Per i od Labourcost sofassemb mbl yl i newor ker s. . . . . . . . . . . . . . . . . . . . . . . . . . . . DL Fact or ysuppl i esused. . . . . . . . . . MOH

Adver t i si ngexpense. . . . . . . . . . . . . . . Per i od Pr oper t yt axesonpl ant . . . . . . . . . . . . . MOH Del i ver yexpense. . . . . . . . . . . . . . . . . . . . . Per i od Sal escommi ssi ons. . . . . . . . . . . . . . . . . Per i od Sal ar i espai dt osal escl er ks. . . . Per i od

( b)Pr oductcost s ar er ecor ded as a par toft he costofi nvent or y, because t hey ar e an i nt egr alpar toft he costofpr oduci ng t he pr oduct .Pr oductcost sar enotexpensedunt i lt hegoodsar esol d andar er eflect edi nt hecostofgoodssol daccount .Per i odcost s ar er ecogni zedasanexpensewheni ncur r ed.

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 1 3

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

EXERCI SE220 ( a) Fact or yut i l i t i es. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5, 5 00 Depr eci at i ononf act or yequi pment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 , 6 50 I ndi r ectf act or yl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 , 9 00 I ndi r ectmat er i a l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 , 8 00 Fact or ymanager ’ ssal ar y. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 000 Pr oper t yt a xesonf a ct or ybui l di ng. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 500 Fact or yr epai r s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 000 Manuf act ur i ngover head. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17 0, 3 50 ( b)Di r ectmat er i a l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13 7, 6 00 Di r ectl a bour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 9, 1 00 Manuf act ur i ngover head. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 70 , 3 50 Pr oductcost s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 37 7, 0 50 ( c) Depr eci at i onondel i ver yt r ucks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sal essal ar i es. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repai r st oofficeequi pment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 300 Adver t i si ng. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 , 0 00 Officesuppl i esused. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Per i odcost s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 3, 800 46, 400

2, 640 $69, 140

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 1 4

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

EXERCI SE221 1. ( c) 2. ( c)

3. ( a) 4. ( c)

* 5. ( b) 6. ( d)

7. ( a) 8. ( b)

9. ( c) 10. ( c)

* orsomet i mes( c) ,dependi ngont heci r cumst ances.

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 1 5

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

EXERCI SE222 1.( .( b) 2.( .( c) 3.( .( a) 4.( .( c) 5.( .( c) 6.( .( c) 7.( .( c) 8.( .( c) 9.( .( c) 10.( .( c)

EXERCI SE223 ( a)V )Var i abl eCost s Var y i n t ot al di r ect l y and pr opor t i onat el y wi t h c ha nge si nt heact i v i t yl e ve lbutr ema i nconst a ntona per uni tbasi s. Fi xedCost s

Re ma ma i nc ons t a nti nt ot a lr e ga r dl e ssofc ha nge si nt he act i vi t yl evelbutvar yonaper uni tbasi s.

Mi xedCost s

Cont ai nbot havar i abl eandfixedcostel eme ment .They c ha ngei nt ot a lbutnotpr opor t i ona t e l ywi t hc ha nge s i nt hea ct i v i t yl e v ela nd v ar ybot hi nt ot a la nd on a per uni tbasi s.

( b) Usi ngt hesecr i t er i aasagui del i ne,t hecl assi fic at i oni sasf ol l ows: Di r ectmat er i al s Di r e ctl a bour Ut i l i t i es

Var i abl e Var i abl e Mi xed

Rent Mai nt enance Super vi sor ys al ar i es

Fi x ed Mi xed Fi x ed

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 1 6

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

EXERCI SE224 ( a)

( b) The r el ev antr ange i s 4, 000 – 9, 000 uni t s ofout putsi nce a st r ai ght l i ner el at i onshi pe xi st sf orbot hdi r ectmat er i al sandr ent wi t hi nt hi sr ange. ( c) Var i abl ecostperuni twi t hi nt her el evantr ange: ( 4, 000–9, 000uni t s) Cost = Uni t s $ 10 , 0 00 * = =$ 2pe runi t  5, 0 00 * * Anycost sanduni t swi t hi nt her el evantr angecoul dhavebeen us edt oc al c ul a t et hesa me meuni tc os tof$ 2.

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 1 7

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

( d) Fi xedcostwi t hi nt he r el evant r ange ( 4, 000 t o 9, 000 uni t s) = $ 7, 0 00 . EXERCI SE225 ( a) Mai nt enanceCost s: ( $ 4, 9 00–$ 2, 5 00 )÷( 7 00–3 00 )=$ 2, 4 00÷4 00= $6. 00var i abl ecostpermachi nehour

T ot alcost s Less: Var i abl ecost s 700×$6. 00 300×$6. 00 T ot a lfix edc os t s

700 Machi neHour s

300 Machi neHour s

$ 4, 900

$2, 500

 4, 200  1, 800 $ 700

$ 700

Thus,mai nt enancecost sar e$700permont hpl us$6. 00per machi nehour . ( b)

$ 5, 0 00 Tot alCostLi ne

$4, 900

$ 4, 0 00

$ 3, 0 00

      S       T       S       O       C

Var i abl eCostEl eme ment

$ 2, 0 00

$ 1, 0 00 Fi xedCostEl eme ment 0 100 200300 400 500 600 700 So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 1 8

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

Machi neHour s

EXERCI SE226 1.Wooduse di nt hepr oduct i onoff ur ni t ur e. 2.Fuelusedi ndel i ver yt r ucks. 3 .S .St r a i ght l i nede pr e ci a t i ononf a ct or ybui l di ng. 4.Scr ewsusedi nt hepr oduct i onoff ur ni t ur e. 5.Sal esst affsal ar i es. 6.Sal escommi ssi ons. 7.Pr oper t yt axes. 8.I nsur anceonbui l di ngs. 9.Hour l ywagesoff ur ni t ur ecr af t spe opl e. 10.Sa l ar i esoff act or ysuper vi sor s. 11.Ut i l i t i esexpense. 12.Tel ephonebi l l .

Var i abl e. Var i abl e. Fi x ed. Var i abl e. Fi xed. Var i abl e. Fi xed. Fi xed. Var i abl e. Fi xed. Mi xed. Mi xed.

EXERCI SE227 ( a) Mai nt enanceCost s: "#,$$ $



"2,%#$

',$$$



3,#$$

&

 "2,2#$ !,#$$

=$0. 50var i abl ecostpermachi nehour Act i vi t yLe vel Hi gh Low T ot alcost Le ss :Var i a bl ec os t s 8, 000×$ . 50 3, 500×$ . 50 T ot a lfix edc os t s

$5, 000

$2, 750

4, 000 00, 000 $1, 000

1, 750 $1, 000

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 1 9

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

Thus,mai nt enancecost sar e$1, 000permont hpl us$0. 50per machi nehour .

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 2 0

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

EXERCI SE227( Cont i nued) ( b)

$ 5, 0 00 T ot a lCos tLi ne $ 4, 0 00

Var i abl eCostEl eme ment

$ 3, 0 00

      S       T       S       O       C

$ 2, 0 00

1, 000 Fi xedCostEl eme ment 0

2, 000 4, 000 6, 000 8, 000 Machi neHour s

EXERCI SE228 ( a)

Cost Di r ectmat er i al s Di r ectl abour Ut i l i t i es Pr oper t yt axes I ndi r ectl abour Super vi sor ysal ar i es Mai nt enance Depr eci at i on

Fi xed

Var i abl e X X

Mi xed X

X X X X X

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 2 1

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

EXERCI SE228( Cont i nued) ( b)Var i a bl ecos t st opr oduc e3 , 0 00uni t s=$7 , 5 00+$ 15 , 0 00+$ 4, 50 0 =$ 27 , 0 00 Var i abl ecostperuni t

=$27, 000÷3, 000uni t s =$9peruni t

Var i a bl ec os tpor t i onofmi x edc ost =T ot a lc os t–Fi x ed por t i on   Ut i l i t i es: Va r i a bl ec os tt opr oduc e3 , 0 00uni t s =$ 1, 8 00–$ 30 0 =$ 1, 5 00 Var i abl ecostperuni t

=$1, 500÷3, 000uni t s =$ 0. 5 0pe runi t

  Ma Mai nt enance: Va r i a bl ec os tt opr oduc e3 , 0 00uni t s =$ 1, 1 00–$ 20 0 =$900 Var i a bl ec os tpe runi t

=$ 90 0÷3, 00 0uni t s =$ 0. 3 0pe runi t

T ot alv ar i a bl ecostperuni t

=$9. 00+$0. 50+$0. 30 =$ 9. 8 0

Fi xedcostel eme ment

=$1, 000+$1, 80 0+$2 , 400+ $300+$200 =$ 5, 7 00

Costt opr oduc e5 , 0 00uni t s

=( $ 9. 8 0×5 , 0 00 )+$ 5, 70 0 =$49, 000+$5, 700 =$54, 700

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 2 2

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

EXERCI SE229 ( a) Del i ver yser vi ce( pr oduct )cost s: I ndi r ectmat er i al s Depr eci at i onondel i ver yequi pme ment Di spat cher ’ ssal ar y Gasandoi lf ordel i ver yt r ucks Dr i ver s’sal ar i es Del i ver yequi pmentr epai r s Tot al ( b) Per i odcost s: Pr oper t yt axesonofficebui l di ng CEO’ ssal ar y Adver t i si ng Officesuppl i es Officeut i l i t i es Repai r sonofficeequi pment Tot al

$ 8, 400 11, 200 7, 000 2, 200 15, 000 300 $44, 100 $ 2, 870 22, 000 1, 600 650 990 680 $28, 790

EXERCI SE230 ( a )Wor ki npr ocess,1/ 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0, 0 00 Manuf act ur i ngcost s: Di r ectmat er i al sused. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120, 000 Di r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110, 000 Manuf act ur i ngover head Depr eci at i ononpl ant . . . . . . . . . . . . . . . . . . . . . . . . $60, 000 Fact or ysuppl i esused. . . . . . . . . . . . . . . . . . . . . . . 25, 000 Pr oper t yt axesonpl ant . . . . . . . . . . . . . . . . . . . . 19, 000 104, 000 3 34 , 0 00

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 2 3

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

Tot alcostofwor k i npr ocess. . . . . . . . . . . . . . . . . . 3 44 , 0 00 Less:endi ngwor k i npr ocess. . . . . . . . . . . . . . . . . 1 4, 0 00 Costofgoodsmanuf act ur e d. . . . . . . . . . . . . . . . . . . $ 33 0, 0 00 ( b)Fi ni shedgoods,1/ 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 0, 0 00 Costofgoodsmanuf act ur e d. . . . . . . . . . . . . . . . . . 3 30 , 0 00 Costofgoodsavai l abl ef orsal e. . . . . . . . . . . . . . 3 90 , 0 00 Fi ni shedgoods,12/ 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 0, 6 00 Costofgoodssol d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 33 9, 4 00 EXERCI SE231 CEPEDAMANUFACTURI NG COMPANY CostofGoodsManuf act ur edSchedul e Fort heYearEndedDecemb mber31 Wor ki npr ocessi nv ent or y , ( 1/ 1) . . . . . . . . . . . . . . . . . . . . . $ 21 0, 0 00 Di r ectmat er i al s Raw mat er i al si nv ent or y ,( 1 / 1 )(2). . . . . . . . . . . .$42, 500 Raw mat er i al spur c hases. . . . . . . . . . . . . . . . . . . . . .165, 000 ( 1) T ot al r awmat er i al sa vai l abl ef oruse . . . 207, 500 Le ss :Ra wma t e r i a l si nv ent or y , ( 1 2/ 3 1) . . . . 17, 500 Di r ec tma t e r i a l sus ed. . . . . . . . . . . . . . . . . . . . . 1 90, 00 0 ( 5) Di r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111, 000 Manuf act ur i ngover head I ndi r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15, 000 Fact or ydepr eci at i on. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36, 000 Fact or yut i l i t i es. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68, 000 Tot al manuf ac t ur i ngove r head. . . . . . . . . 119, 000

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 2 4

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

T ot a lma nuf a ct ur i ngc os t s(4). . . . . . . . . . . . . . . . . . . . . . . . . . 4 20 , 0 00 T ot a lc os tofwor ki npr oc es s(3). . . . . . . . . . . . . . . . . . . . . 6 30 , 0 00 Less:Wor ki npr ocessi nv ent or y ,( 12/ 31) . . . . . . . . . 80 , 0 00 Costofgoodsmanuf act ur ed. . . . . . . . . . . . . . . . . . . . . . . . . $ 55 0, 0 00 Cal cul at i ons: ( 1 ) Tot alr aw mat er i al sav ai l abl ef oruse: Di r ectmat er i al sused. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Add: Raw mat er i al si nvent or y( 12/ 31) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tot alr aw mat er i al savai l abl ef oruse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$190, 000 17, 500 $207, 500

( 2 )

Raw mat er i al si nv ent or y( 1/ 1) : Ra w ma t er i al sav ai l a bl ef oruse( f r om (1)) . . . . . . . . . . . . . . . . . . . . . . . . . Less:Raw mat er i al spur chases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Raw mat er i al si nvent or y( 1/ 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$207, 500 1 65 , 0 00 $ 42, 500

( 3 )

T ot a lc os tofwor ki npr oc es s: Costofgoodsmanuf act ur e d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Add:Wor ki npr ocess( 12/ 31) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tot alcostofwor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$550, 000 80, 000 $630, 000

EXERCI SE231( Cont i nued) ( 4 )

T ot a lma nuf a ct ur i ngc os t s : Tot alcostofwor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less:Wo Wor ki npr ocess( 1/ 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tot alma manuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$630, 000 2 10, 0 00 $420, 000

( 5)

  Di r ectl abour : Tot alma manuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less:Tot al over head. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Di r ectmat er i al sused. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$420, 000 1 19, 0 00 1 90, 0 00

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 2 5

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

Di r ectl a bour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 11 , 0 00 EXERCI SE232 ( a)+$57, 400+$4 6, 500=$175 , 650 ( a)=$71, 750

$252, 100–$11 , 000=( f ) ( f )=$241, 100

$175, 650+( b)=$221, 500 $102, 000= ( b)=$45, 850

$273, 700–$130, 000–

$221, 500–( c)=$180, 725 ( c)=$40, 775

$273, 700+( h)=$335, 000 ( h)=$61, 300

$68, 40 0+$86, 50 0+$8 1, 60 0=( d) ( d)=$236, 500

$335, 000–$90, 000=( i ) ( i )=$245, 000

( g)=$41, 700

$ 23 6, 5 00+$ 15 , 6 00=( e ) ( e)=$252, 100 Addi t i ona le xpl a na t i ont oEXERCI SE2 3 2s ol ut i on: Cas eA ( a) Tot alma manuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $175, 650. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less:Manuf act ur i ngover head. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Di r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Di r ectma mat e r i al sused. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EXERCI SE232( Cont i nued) ( b) Tot a lc ostofwor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $221, 500. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less:Tot almanuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wor ki npr ocess( 1/ 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45, 850. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

46 , 5 00 57 , 4 00 $ 71, 750

175, 650

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 2 6

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

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( c ) Tot a lc ostofwor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $221, 500. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less:Costofgoodsmanuf act ur ed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wor ki npr ocess( 12/ 31) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40, 775. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

180, 725

Cas eB ( d) Di r ectma mat er i al sused. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Di r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Manuf act ur i ngover head. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tot almanuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $236, 500. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( e ) Tot alma manuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $236, 500. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wor ki npr ocess( 1 / 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tot alcostofwor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $252, 100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 68, 400 86, 500 81, 600

15, 600

( f ) Tot a lc ostofwor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $252, 100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1, 0 00 Costofgoodsmanuf act ur ed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24 1, 1 00 Cas eC ( g) Tot alma manuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $273, 700. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less:Ma Manuf act ur i ngover head. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Di r ectmat er i al sused. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Di r ectl a bour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41, 700. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( h) Tot a lc ostofwor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $335, 000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less:Tot almanuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

102, 000 1 30 , 0 00

273, 700

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 2 7

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

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Wor ki npr ocess( 1/ 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61, 300. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( i ) Tot a lc ostofwor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $335, 000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90, 0 00. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Costofgoodsmanuf act ur ed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $245, 000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EXERCI SE233 ( a) ( a) $127, 000+$140, 000+$89, 000=$356, 000 ( b) $356, 000+$33, 000–$360, 000=$29, 000 ( c) $430, 000–( $200, 000+$123, 000)=$107, 000 ( d) $40, 000+$470, 000–$430, 000=$80, 000 ( e) $257, 000–( $80, 000+$100, 000)=$77, 000 ( f ) $257, 000+$60, 000–$80, 000=$237, 000 ( g) $308, 000–( $67, 000+$75, 000)=$166, 000 ( h) $308, 000+$45, 000–$270, 000=$83, 000 ( b)

I KERDCOMPANY CostofGoodsManuf act ur edSchedul e Fort heYearEndedDecemb mber31,2016

Wor ki npr ocess,Januar y1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 , 0 00 So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 2 8

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

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Di r ectmat er i a l s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $127, 000 Di r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140, 000 Manuf act ur i ngover head. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89, 000 Tot almanuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . . . . . . . . . 3 56 , 0 00 Tot alcostofwor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 89 , 0 00 Less:Wo Wor ki npr ocessi nvent or y, Dec emb mber31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 , 0 00 Costofgoodsmanuf act ur ed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 36 0, 0 00

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 2 9

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

EXERCI SE234 ( a)

AI KMANCORPORATI ON CostofGoodsManuf act ur edSchedul e Fort heMont hEndedJune30,2016

Wor ki npr ocess,June1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 000 Di r ectmat er i al sused. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25, 000 Di r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30, 000 Manuf act ur i ngover head I ndi r ectf act or yl abour . . . . . . . . . . . . . . . . . . . . . . . . . $4, 500 Fact or yma manager ’ ssal ar y. . . . . . . . . . . . . . . . . . . . 3, 000 I ndi r ectmat e r i al s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 200 De pr ec i a t i on,f a ct or yequi pme nt . . . . . . . . 1, 4 00 Ma i nt e na nc e,f a ct or ye qui pme nt . . . . . . . . 1 , 8 00 Fact or yut i l i t i es. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 Tot almanuf act ur i ngover head. . . . . . 13, 300 Tot almanuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . . . . . . . .

68, 300

Tot alcostofwor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . 71 , 3 00 Less:Wor ki npr ocess,June30. . . . . . . . . . . . . . . . 2, 800 Costofgoodsmanuf act ur e d. . . . . . . . . . . . . . . . . . . . . . $ 68, 5 00 ( b)

AI KMANCORPORATI ON I nc omeSt a t e me me nt( Pa r t i a l ) Fort heMont hEndedJune30,2016 Netsal es. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87, 1 00 Costofgoodssol d Fi ni s hedgoodsi nv ent or y ,June1. . . . . . . . . . . . . . . . . Costofgoodsma manuf act ur ed[ f r om ( a) ] . . . . . . . . . .

$ 5, 000 68, 500

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 3 0

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

Costofgoodsavai l abl ef orsal e. . . . . . . . . . . . . . . . . . . . Fi ni s he dgoodsi nv ent or y ,J une30. . . . . . . . . . . . . . . Costofgoodssol d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$eygandt, %immel, %ieso, Aly

73, 500 9 , 5 00

64 , 0 00 Gr osspr ofit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23, 1 00

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 3 1

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

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EXERCI SE235 ( a) DANNER,LETOURNEAU,ANDMAJEWS WSKI Schedul eofCostofCont r actSer vi cesPr ovi ded Fort heMont hEndedAugust31,2016 Suppl i esused( di r ectmat er i al s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sa l a r i e sofpr of e ss i ona l s( di r e ctl a bour ) . . . . . . . . . . . . . . . . . . . . . . Ser vi ceover head: Ut i l i t i esf orcont r actoper at i ons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cont r actequi pmentdepr eci at i on. . . . . . . . . . . . . . . . . . . . . . . . . . . . I nsur anceoncont r actoper at i ons. . . . . . . . . . . . . . . . . . . . . . . . . . . . J ani t or i a ls er vi ce sf orpr of es si onaloffic es. . . . . . . . . . . . . Cos tofc ont r a cts er v i c espr ovi de d. . . . . . . . . . . . . . . . . . . . . . . . . .

$ 2, 500 1 5, 6 00 $1, 900 900 800 3 00

3 , 9 00 $ 22 , 0 00

( b)Thecost snoti ncl uded i nt hecostofcont r actser vi cespr ovi ded woul dal lbecl assi fiedasper i odcost s.Theywoul dber epor t edon t hei ncomest at eme mentunderadmi ni st r at i veexpenses. EXERCI SE236 ( a) Wor ki npr ocess,1/ 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13, 500 Di r ectmat er i al sused Raw mat er i al si nvent or y ,1/ 1. . . . . . . . . . . $21, 000 Mat er i al spur c hased. . . . . . . . . . . . . . . . . . . . . . . . 150, 000 Mat er i al savai l abl ef oruse. . . . . . . . . . . . . . 171, 000 Le ss :Ma t e r i a l si nv ent or y ,1 2/ 3 1. . . . . 3 0, 0 00 $ 14 1, 0 00 Di r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220, 000 So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 3 2

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

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Manuf act ur i ngover head. . . . . . . . . . . . . . . . . . . . . . . . . Tot alma manuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . . . . 5 41 , 0 00 Tot alcostofwor k i npr ocess. . . . . . . . . . . . . . . . . 5 54 , 5 00 Less:Wo Wor k i npr ocess,1 2/ 31. . . . . . . . . . . . . . . . . 17, 200 Costofgoodsmanuf act ur ed. . . . . . . . . . . . . . . . . $ 53 7, 3 00

180, 000

EXERCI SE236( Cont i nued) SASSAFRASCOMPANY I nc omeSt a t e me me nt( Pa r t i a l ) Fort heYearEndedDecemb mber31,2016

( b)Sal esr evenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 91 0, 0 00 Costofgoodssol d Fi ni shedgoods,1/ 1. . . . . . . . . . . . . . . . . . . . . . . . . Costofgoodsmanuf act ur ed( f r om ( a) ) Costofgoodsavai l abl ef orsal e. . . . . Less:Fi ni shedgoods,12/ 31. . . . . . . . . . Costofgoodssol d. . . . . . . . . . . 5 43 , 3 00 Gr osspr ofit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 36 6, 7 00

$ 27, 000 537, 300 564, 300 21 , 000

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 3 3

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

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SASSAFRASCOMPANY ( Par t i al )Bal a nceShee t Decemb mber31,2016

( c)C )Cur r entasset s I nv ent or i es Fi ni shedgoods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Raw mat e r i al s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68 , 2 00

$21, 000 17, 200 30, 000

( d)I namer chandi si ngcompany’ si ncomest at eme ment ,t heonl ydi ffer ence woul d bei nt hec omput a t i onofc os tofgoodss ol d. Thebe gi nni ng and endi ng fini s hed goods i nvent or y woul d be r epl aced by begi nni ng and endi ng mer chandi se i nvent or y and t he cos tof goods manuf act ur ed t ot alwoul d be r epl aced by pur chases.I na mer chandi si ng comp mpany’ s bal ance shee t ,t her e woul d be one i nv ent or ya cc ount( me r c ha ndi s ei nv ent or y )i ns t e adoft hr e e.

EXERCI SE237 1. ( a) 2. ( a)1 3. ( a) ,( c) 1 4. ( b) 5. ( a) 6. ( a) 7. ( a) 8. ( b) ,( c)

9. 10. 11. 12. 13. 14. 15. 16.

( a) ( a) ,( b) ( b) ( b) ( a) ( a) ( a) ( a)

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 3 4

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

1

Onl yendi ngi nv ent or yi sr e fle ct e di nt heba l a nc eshe et .Ope ni ng i nv ent or ywoul dber e fle ct e da st hecl os i ngi nv ent or yoft hepr e vi ous yeari nacompar at i vebal ancesheet . EXERCI SE238 ( a)

KANANASKI SMANUFACTURI NG CostofGoodsManuf act ur edSchedul e Fort heMont hEndedJune30,2016

Wor ki npr ocessi nv ent or y ,June1. . . . . . . . . . . . . . . . . 5, 000 Di r ectmat er i al sused Raw mat er i al si nvent or y ,June1. . . . . . . . . . $10, 000 Raw mat er i al spur c hases. . . . . . . . . . . . . . . . . . . . . . 6 4, 000 T ot al r awmat er i al sa v ai l abl ef oruse. . . . . . . 7 4, 000 Le ss :Ra wma t e r i a l si nv e nt or y , J une30 .. 1 3, 1 00 $ 60 , 9 00 Di r e ctl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57, 000 Manuf act ur i ngover head I ndi r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7, 500 Fact or yi nsur ance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 000 Machi ner ydepr eci at i on. . . . . . . . . . . . . . . . . . . . . . . . . . 5, 000 Fact or yut i l i t i es. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 100 Machi ner yr epai r s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 800 Mi scel l aneousf act or ycost s. . . . . . . . . . . . . . . . . . 1, 500 22, 900 Tot almanuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 40 , 8 00 Tot alcostofwor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . 1 45 , 8 00 Less:Wor ki npr ocessi nv ent or y , June30. . . . . . . 13, 000 Costofgoodsmanuf act ur ed. . . . . . . . . . . . . . . . . . . . . . . . . $ 13 2, 8 00 EXERCI SE238( Cont i nued) ( b)

KANANASKI SMANUFACTURI NG ( Par t i al )Bal anceSheet

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 3 5

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AsatJune30,2016 Cur r e nta ss et s I nvent or i es Fi ni shedgoods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6, 000 Wor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 , 0 00 Raw mat er i al s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 , 1 00 $ 32, 1 00 EXERCI SE239 ( a ) Ra w Ma t e r i a l sa cc ount : 5 , 0 00uni t spur c ha se d;4 , 6 50uni t sus ed=3 50uni t sr e ma ma i ni ng 350uni t sx$8each=$2, 800 Wor ki nPr ocessaccountSept30t h: 4, 600uni t swer eusedi nmanuf act ur i ng;90% i ncompl et edaut os ( 4, 600×10%)×$8=$3, 680 Fi ni shedGoodsaccount : 4, 600x90% compl et ed;75% ofcompl et edaut ossol d ( 4, 600×90% ×25%) %)×$8=$8, 280 CostofGoodsSol daccount : 4, 600x90% compl et ed;75% ofcompl et edaut ossol d ( 4, 600×90% ×75%) %)×$8=$24, 840 Sel l i ngExpensesaccount :50×$8=$400

EXERCI SE239( Cont i nued) So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 3 6

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Pr oofofc os tofhe adl a mp mpsal l oc at e d( 5 , 0 00×$ 8=$ 40 , 0 00 ) Raw mat er i al s Wor ki npr ocess Fi ni shedgoods Costofgoodssol d Sel l i ngexpenses   Tot al ( b) To: Fr om:

$ 2, 800 3, 680 8, 280 24, 840 400 $40, 000

Chi efAccount ant St udent

Subj ect : St at eme mentPr esent at i onofAccount s Twoaccount swi l lappeari nt hei ncomest at eme ment .CostofGoods Sol dwi l lbededuct edf r om netsal esi ndet er mi ni nggr osspr ofit . Sel l i ng expenses wi l lbe shown wn underoper at i ng expenses and wi l lbe deduct ed f r om gr oss pr ofiti n det er mi ni ng neti ncome. Somet i mes,t hecal cul at i onf orCostofGoodSol di sshownont he i ncomest at eme ment .I nt hesecases,t hebal ancei nFi ni shedGoods i nvent or ywoul dal sobeshown wnont hei ncomest at eme ment . Theot heraccount sassoci at edwi t ht heheadl amp mpsar ei nvent or y a cc ount swhi c hc ont a i ne ndof pe r i odba l a nc es .Thus ,t he ywi l lbe r e por t e d unde ri nv ent or i e si nt he c ur r e nta ss et ss ec t i on oft he bal ance sheeti nt he f ol l owi ng or der :fini shed goods,wor ki n pr oc es s,a ndr a w ma t e r i a l s .

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 3 7

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SOLUTI ONSTO PROBLEMS MS:SETA PROBLEM 240A ( a)

CostI t em

Pr oductCost s Di r e ct Di r e ct Manuf act . Mat er i al s Labour Over head

Ma i nt e na nc eonf a ct or ybui l di ng Fact or yma manager ’ ssal ar y Adv er t i si ngf orhe l me t s Sal escomm mmi ssi ons De pr e ci at i ononf ac t or ybui l di ng Rentonf act or yequi pme ment I nsur anc eonf a ct or ybui l di ng Raw mat er i al s $ 20 , 0 00 Ut i l i t ycost sf orf act or y Suppl i esf orgener aloffice Wagesf orassemb mbl yl i newor ker s $ 55 , 0 00 Depr eci at i ononoffic fficeequi pme ment Mi s ce l l a ne ousma t e r i a l s

$ 1, 30 0  4, 000

$20, 000 $55, 000

$17, 800

( b) T ot alpr oduct i onc os t s Di r ectmat er i al s Di r ectl abour Manuf act ur i ngover head Tot alpr oduct i oncost

Pe r i od Cost s

$ 8, 000 5, 000 700  6, 000   3, 000 800 200 500 2, 000 $13, 700

$20, 000 55, 000 17, 800 $92, 800

Pr oduc t i onc os tpe rhe l me t=$ 92 , 8 00 / 1 , 0 00=$ 92 . 8 0

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 3 8

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PROBLEM 241A ( a)

CostI t em

Di r e ct Di r ec t Mat er i al sLabour MOH OH

Raw mat er i al s( 1) $ 60 , 0 00 Wagesf orwor ker s( 2) $ 65 , 0 00 Rentonequi pme ment $ 1, 50 0 I ndi r ectmat er i al s( 3) 7, 500 Fact or ysuper vi sor ’ ssal ar y 3, 500 Jani t or i alcost s 1, 400 Adver t i si ng Depr eci at i on– f act or ybui l di ng( 4) 800 Pr oper t yt ax es– f act or ybui l di ng( 5) 0 00 , 0 00 0 00 , 0 00 600 $ 60 , 0 00 $ 65 , 0 00 $ 15 , 3 00

Per i od Cost s

$6, 000 00, 000 $6, 000

( 1) $24×2, 500=$60, 000. ( 2) $13×2hr s×2, 500=$65, 000. ( 3) $3×2, 500=$7, 500. ( 4) $9, 600/ 12=$800. ( 5) $7, 200/ 12=$600. ( b) Tot alpr oduct i oncost s Di r ectmat er i al s Di r ectl abour Manuf act ur i ngover head Tot alpr oduct i oncost

$ 60, 000 65, 000 15, 300 $140, 300

Pr oduc t i onc os tpe rdr i v er=$ 14 0, 3 00( 2, 5 00=$ 56. 1 2

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 3 9

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PROBLEM 242A ( a) Case1 T ot a lma nuf a ct ur i ngc os t s=( a ) ( a )=$ 6, 3 00+$ 3, 0 00+$ 6, 0 00=$ 15 , 3 00 Endi ngwor ki npr ocessi nvent or y=( b) $ 15, 3 00+$ 1, 00 0–( b)=$ 14 , 6 00 ( b)=$ 15 , 3 00+$ 1, 0 00–$ 14 , 6 00=$ 1, 7 00 Begi nni ngfini shedgoodsi nvent or y=( c) $ 14, 6 00+( c)=$1 8, 3 00 ( c )=$ 18, 30 0–$1 4, 60 0=$3 , 7 00 Costofgoodssol d=( d) ( d)=$ 18 , 30 0–$1 , 5 00=$ 16 , 8 00 Gr osspr ofit=( e) ( e)=( $22, 500–$1, 500)–$16, 800=$4, 200 Neti ncome=( f ) ( f )=$4, 200–$2, 700=$1, 500 Case2 Di r ec tma t e r i a l suse d=( g) ( g)+$ 8, 0 00+$ 4, 0 00=$ 18 , 0 00 ( g)=$ 18 , 00 0–$8 , 0 00–$ 4, 0 00=$ 6, 00 0 Begi nni ngwor ki npr ocessi nvent or y=( h) $ 18 , 0 00t ot a lma nuf a ct ur i ngc os t s+( h)be gi nni ngwor ki npr oc es s  –$3, 000endi ngwor ki npr ocess=$22, 000 ( h)=$ 22 , 0 00+$ 3, 0 00–$ 18 , 0 00=$ 7, 0 00 Costofgoodssol d=( k) ( k)=$3, 300begi nni ngi nvent or y+$22, 000Costofgoods manuf act ur ed–$2, 500endi ngi nvent or y=$22, 800

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 4 0

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( Not e:I t em ( i )canonl ybesol v edaf t eri t em ( k)i ssol v ed. )

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 4 1

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PROBLEM 242A( Cont i nued) Sal es=( i ) ( ( i )–$1, 400)–( k)=$6, 000 ( ( i )–$1, 400)–$22, 800=$6, 000 ( i )=$1 , 4 00+$ 22 , 8 00+$ 6, 0 00=$ 30 , 2 00 Goodsa vai l abl ef orsal e=( j ) ( j )=$2 2, 000+ $3, 300=$2 5, 300 Oper at i ngexpenses=( l ) $6, 000–( l )=$2, 200 ( l )=$3, 800 ( b)

CASE1 CostofGoodsManuf act ur edSchedul e

Wor ki npr ocess,begi nni ng. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 000 Di r ectma mat e r i al s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Di r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Manuf act ur i ngover head. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tot almanuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 , 3 00 Tot alcostofwor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 , 3 00 Less:Wor ki npr ocess,endi ng. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 700 Costofgoodsmanuf act ur ed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14, 6 00 ( c)

$6, 300 3, 000 6, 000

CASE1 I ncomeSt at eme ment Sal e s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22, 5 00 Less:Sal esdi scount s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 500 Netsal es. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21, 0 00 Costofgoodssol d

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 4 2

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Fi ni shedgoodsi nvent or y,begi nni ng. . . . . . . . . . . Costofgoodsma manuf act ur ed. . . . . . . . . . . . . . . . . . . . . . . . . Costofgoodsavai l abl ef orsal e. . . . . . . . . . . . . . . . . . . . Less:Fi ni shedgoodsi nvent or y,endi ng. . . . .

$eygandt, %immel, %ieso, Aly

3, 700 14, 600 18, 300 1, 500

16 , 8 00 Gr osspr ofit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 200 Oper at i ngexpenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 700 Neti ncome. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 500 PROBLEM 242A( Cont i nued) CASE1 ( Par t i al )Bal anceSheet Cur r e nta ss et s Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 000 Recei vabl es( net ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 , 0 00 I nvent or i es Fi ni shedgoods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Raw mat er i al s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 900 Pr e pai de xpe nse s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 Tot alcur r entasset s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17, 1 00

$1, 500 1, 700 700

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 4 3

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PROBLEM 243A ( a)

STELLARMANUFACTURI NG COMPANY CostofGoodsManuf act ur edSchedul e Fort heYearEndedDecemb mber31,2016

Wor ki npr ocess,( 1 / 1) . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 500 Di r ectmat er i al s Ra w ma t e r i a l si nv ent or y ,( 1 / 1 ) . . . . . $4 7, 0 00 Raw mat er i al spur chases. . . . . . . . . . . . 62, 500 T ot alr aw mat er i al sa vai l abl e f oruse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109, 500 Le ss :Ra w ma t e r i a l si nv ent or y , ( 12/ 31) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44, 800 Di r ectmat er i al sused. . . . . . . . . . . . . . . . . . . $ 64, 700 Di r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145, 100 Manuf act ur i ngover head I ndi r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18, 100 Fact or yi nsur ance. . . . . . . . . . . . . . . . . . . . . . . . . 7, 400 Fact or ymachi ner ydepr eci at i on. . . . 7, 700 Fact or yut i l i t i es. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12, 900 Pl antmanager ’ ssal ar y. . . . . . . . . . . . . . . . 40, 000 Fact or ypr oper t yt axes. . . . . . . . . . . . . . . . . 6, 900 Fact or yr epai r s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800 Tot almanuf act ur i ngover head. . . . . . . . . . . . 93, 800 Tot alma manuf act ur i ngcost s. . . . . . . . . . . . . . . . . . . 3 03 , 6 00 Tot alcostofwor ki npr ocess. . . . . . . . . . . . . . 3 13 , 1 00 Less:Wor ki npr ocess,( 12/ 31) . . . . . . . . . . . . 7, 500 Costofgoodsmanuf act ur ed. . . . . . . . . . . . . . $ 30 5, 6 00

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 4 4

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PROBLEM 243A( Cont i nued) ( b)

STELLARMANUFACTURI NG COMPANY ( Pa r t i a l )I nc omeSt a t e me me nt Fort heYearEndedDecemb mber31,2016

Sal esr evenues Sal es. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $465, 000 Less:Sal esdi scount s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 500 Netsal es. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 46 2, 5 00 Costofgoodssol d Fi ni shedgoodsi nvent or y ,( 1/ 1) . . . . . . . . . . . . . . . . . . 85, 000 Costofgoodsma manuf act ur ed. . . . . . . . . . . . . . . . . . . . . 305, 600 Costofgoodsavai l abl ef orsal e. . . . . . . . . . . . . . . . 390, 600 Less:Fi ni shedgoodsi nvent or y, ( 12/ 31) . . . 77, 800 Costofgoodssol d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 12 , 8 00 Gr osspr ofit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14 9, 7 00

( c)

STELLARMANUFACTURI NG COMPANY ( Par t i al )Bal anceSheet AsatDecemb mber31,2016 Asset s

Cur r e nta ss et s Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 , 0 00 Account sr ecei vabl e. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 , 0 00 I nvent or i es: Fi ni shedgoods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wor ki npr ocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Raw mat er i al s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 30 , 1 00

$77, 800 7, 500 44, 800

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 4 5

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Tot a lcur r entasset s. . . . . . . . . . . . . . . . . . . . . $ 18 5, 1 00

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 4 6

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PROBLEM 244A ( a)

TOMBERTCOMPANY CostofGoodsManuf act ur edSchedul e Fort heMont hEndedOct ober31,2016

Wor ki npr ocess,Oct ober1. . . . . . . . . . . . . . . 16 , 0 00 Di r ectmat er i al s Ra w ma t e r i a l si nv ent or y , Oct ober1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18, 000 Raw mat er i al s purchases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264, 0 00 T ot alr aw mat er i al sa vai l abl e f oruse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282, 000 Le ss :Ra wma t e r i a l si nv e nt or y , Oct ober31. . . . . . . . . . . . . . . . . . . . 29, 000 Di r ectmat er i al sused. . . . . . . . . . . . . . . . . . $253, 000 Di r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190, 000 Manuf act ur i ngover head Rentonf act or yf aci l i t i es. . . . . . . . . . . . 60, 000 Depr eci at i onf act or y equi pme ment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31, 000 I ndi r ectl abour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28, 000 Fact or yut i l i t i es* . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 000 Fact or yi nsur ance* * . . . . . . . . . . . . . . . . . . . . 4, 800 T ot almanuf ac t ur i ngov er hea d. . . . . . . . . . . 1 32, 800 Tot almanuf act ur i ngcost s. . . . . . . . . . . . . . . . . 5 75 , 8 00 Tot alcostofwor ki npr ocess. . . . . . . . . . . . 5 91 , 8 00 Le ss:Wor ki npr oc ess ,Oct ober3 1. . . . . . 14 , 0 00 Costofgoodsmanuf act ur ed. . . . . . . . . . . . . $ 57 7, 8 00 * * $12, 000×75% =$9, 000 * * $8, 000×60% =$4, 800 So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 4 7

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 4 8

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

PROBLEM 244A( Cont i nued) ( b)

TOMBERTCOMPANY I ncomeSt at eme ment Fort heMont hEndedOct ober31,2016

Sal es( net ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 78 0, 0 00 Costofgoodssol d Fi ni shedgoodsi nvent or y,Oct ober1. . . . . . . $ 30, 000 Costofgoodsma manuf act ur ed. . . . . . . . . . . . . . . . . . . . . 577, 800 Costofgoodsavai l abl ef orsal e. . . . . . . . . . . . . . . . 607, 800 Less:Fi ni shedgoodsi nvent or y, Oct ober31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45, 000 Costofgoodssol d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 62 , 8 00 Gr osspr ofit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 17 , 2 00 Oper at i ngexpenses Adver t i si ngexpense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90, 000 Sel l i ngandadmi ni st r at i v esal ar i es. . . . . . . . . . . 75, 00 0 Amor t i zat i onexpense—s —sal es equi pme ment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45, 000 Ut i l i t i ese xpense* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 000 I nsur a nceexpense* * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 200 Tot aloper at i ngexpenses. . . . . . . . . . . . . . . . . . . 2 16 , 2 00 Neti ncome. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 000 * * $ 12 , 0 00×2 5% * * $ 8, 0 00×40 %

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 4 9

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

PROBLEM 245A

)a* +aw ma materials iin nventory, beginning. g............ ........ )1* +aw material purchased ...... ......... ...... ...... ...... ...... ...... ...... ....... ...... .. +aw mate materrials av available for for use. use........ .......... .......... .......... ...... ess/ +aw mater terials inventor tory, endi din ng. g... .... .... .... .... +aw materials used in production

" , ,-$$ 2','$ 2','$$ $ 3',!$$ 1$,!$$ "2',$$$

1

2',$$$ 0 "1$,!$$ & "3',!$$ "3',!$$  ",-$$ & "2','$$

 )b  )b* or in pro proces cess inven nvento tory ry,, begi beginn nniing ng.. ....... ...... ....... .... 4anufacturing costs added.............................. added.............................. 5otal tal wo wor r in proc proces ess s du duri ring ng the the mo mon nth.. th..... ...... ..... ess ess// or or in proc proces ess s inve invent ntor ory y, endi ending ng.. .... .... .... )2* 6ost of goods manufactured

" 1!,!,-$$ 1-$,$$$ 1%!, 1%!,-$$ 13,$ 13,$$$ $$ "1-1, 1-1,-$ -$$ $

2

"1!,-$$ 0 "1-$,$$$  "13,$$$ & "1-1,-$$

)c* )c* 7ini 7inis shed hed go goo ods inv inventor ntory y, begi eginn nniing ng.. .... .... .... .... .... .... .. 6ost of goods manufactured............................ manufactured............................ 6ost ost of goo goods ds ava availa ilable ble for for sal sale. e... .... .... .... .... .... .... .... .... .... .... ess ess// fini finish she ed go good ods s inve invent ntor ory y, endi ending ng.. ..... ..... .... .. 3 6ost of goods sold

" ,,-$$ 1-1,-$$ 1%1, 1%1,2 2$$ ,2$ ,2$$ $ "1-2, 1-2,$$ $$$ $

3

",-$$ 0 "1-1,-$$  ",2$$ & "1-2,$$$

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 5 0

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

PROBLEM 246A

)a* 6ost 6ost of good goods s sold sold & manu manufac facturi turing ng cost cost per per unit unit 8 number of units sold 6ost of goods sold & )"3,$$$,$$$ )"3,$$$,$$$ ( 3$$,$$$* 3$$,$$$* 8 2',#$$ & "2,'#,$$$ )b* 9ross 9ross :rofit :rofit & ;ale ;ales s  6ost 6ost of goo goods ds sold sold & )"1' 8 2',#$$*  "2,'#,$$$ "2,'#,$$$ & "2,3'',$$$ )c* 6ost of finished goods & number of units in inventory inventory 8 per unit product cost 6ost of finished goods & )3$$,$$$  2',#$$* 8 "1$.$$ 1  & "1#,$$$ 1

"3,$$$,$$$ ( 3$$,$$$ & "1$.$$ per unit

So l u t i o nsMa Ma nu al ©2 01 5J oh nWi l e y&So nsCa na da ,L t d.Un au t h or i z edc op y i n g,d i s t r i b ut i o n,o rt r a ns mi mi s s i o no ft h i spa gei sp r o hi b i t e d  2 5 1

Managerial Accounting: Tools for Business Decision-Making, "ourth #anadian Edition

$eygandt, %immel, %ieso, Aly

PROBLEM 247A beginning........................ ....   )1*)a* +aw materials inventory, beginning.................... Pl us:+aw material material purchased.. purchased...... ........... ................. ................... ......... +aw +aw m mate ateria rials ls avail availabl able e for for use. use.... ...... ...... ...... ...... ....... ........ ........ ....... ... Less:+aw : +aw mater material ials s invent inventory ory,, ending. ending..... ........ ........ ........ ...... +aw materials materials used in production. production...... .......... ......... .......... ............ ...... Less: