亨格瑞管理会计英文第15版练习答案解析.docx

《亨格瑞管理会计英文第15版练习答案解析.docx》由会员分享，可在线阅读，更多相关《亨格瑞管理会计英文第15版练习答案解析.docx（201页珍藏版）》请在得力文库 - 分享文档赚钱的网站上搜索。

1、WORD 完美格式CHAPTER 4COVERAGE OF LEARNING OBJECTIVES技术资料专业整理LEARNING OBJECTIVELO1: Describe the purposes of cost management systems.CRITICALFUNDA-THINKINGMENTALEXERCISES ASSIGN-MENT ANDMATERIALEXERCISESPROBLEMS31, 3450CASES, EXCEL, COLLAB. & INTERNET EXERCISESLO2: Explain the relationship between cost,

2、 cost object, cost accumulation, and cost assignment.4556LO3: Distinguish between A1,B136,37,38, 45,4956directand indirect39,44costs.LO4: Explain the major reasons for allocating costs.B233,414654LO5: Identify the main36,37,38,types of manufacturing costs: direct materials, direct labor, and indirec

3、t productioncosts.39LO6: Explain how theA257,60, 61financial statements of merchandisers and manufacturers differ because of the types of goods they sell.LO7: Understand the main A3, A4,33, 40, 41, 48, 49, 50 55, 56,differences betweenB3, B4 traditional and activity- based costing systems andwhy ABC

4、 systems provide value to managers.LO8: Use activity-basedA4, B4 cost information to make strategic and operational control decisions.4257, 58,59, 60, 6132, 37, 4348, 49, 50 55, 56, 60CHAPTER 4Cost Management Systems and Activity-Based Costing4-A1(20-30 min.)See Table 4-A1 on the following page.4-A2

5、(25-30 min.)1.Merchandise Inventories, 1,000 devices $97$97,0002.Direct materials inventory$40,000Work-in-process inventory0Finished goods inventory97,000Total inventories$137,0003.NILE ELECTRONICS PRODUCTSStatement of Operating Income For the Year Ended December 31, 20X9Sales (9,000 units at $170)$

6、1,530,000 Cost of goods sold:Beginning inventory$0Purchases970,000Cost of goods available for sale$ 970,000 Less ending inventory97,000Cost of goods sold (an expense)873,000Gross margin or gross profit$657,000Less other expenses: selling & administrative Operating income (also income before taxesin

7、this example)costs185,000$472,000WORD 完美格式TABLE 4-A1STATEMENT OF OPERATING INCOMEOPERATING INCOME BY PRODUCT LINECost ofDirectgoods sold:material40,0005,00015,00020,000Direct, DireIndirectmanufacturing41,00028,00015,0008,000Indirect, AHours81,00033,00020,00028,000Gross profitSelling and administrati

8、ve Commissionsexpenses:74,00015,000(3,000)1,50025,0003,50052,00010,000Direct, DireDistribution to warehouses10,4001,00023,0006,400Indirect,Total selling and admin. expenses25,4002,5006,50016,400Contribution to corporate expenses and profitUnallocated expenses:Administrative salaries48,6008,000$(5,50

9、0)$18,500$35,600Other administrative expenses4,000Total unallocated expenses12,000Operating income before tax$36,600EXTERNAL REPORTING PURPOSEINTERNAL STRATEGIC DECISION MAKING PURPSales$155,000CustomLargeSmallDetailedStd.Std. Cost Type, As$30,000$45,000$80,0001 Total machine hours is 1,400 + 250 +

10、400 = 2,050. Indirect manufacturing cost per machin$41,000 2,050 = $20. The allocation to custom detailed is $20 1,400 machine hours =2 Total weight shipped is 25,000 kg + 75,000 kg + 160,000 kg = 260,000 kg. Indirect distrikilogram is then $10,400 260,000 kg = $0.04. The allocation to custom detail

11、ed is $0.04$1,000.技术资料专业整理WORD 完美格式4. ORINOCO, INC.Statement of Operating Income For the Year Ended December 31, 20X9Sales (9,000 units at $170)$1,530,000Cost of goods manufactured and sold:Beginning finished goods inventory$ 0Cost of goods manufactured:Beginning WIP inventory$ 0Direct materials use

12、d530,000Direct labor290,000Indirect manufacturing150,000Total mfg. costs to account for $970,000Less ending work-in-process inventory0970,000Cost of goods available for sale$970,000Less ending finished goods inventory97,000Cost of goods sold (an expense)873,000Gross margin or gross profit$657,000Les

13、s other expenses: selling and administrativecosts185,000Operating income (also income before taxesin this example)$472,0005. The balance sheet for the merchandiser (Nile) has just one line for inventories, the ending inventory of the items purchased for resale. The balance sheet for the manufacturer

14、 (Orinoco) has three items: direct materials inventory, work-in-process inventory, and finished goods inventory.The income statements are similar except for the computation of cost of goods available for sale.The merchandiser (Nile) simply shows purchases for the year plus beginning inventory.In con

15、trast, the manufacturer (Orinoco) shows beginning work-in-process inventory plus the three categories of cost that comprise manufacturing cost (direct materials used, direct labor, and factory (or manufacturing) overhead) and then deducts the ending work-in-process inventory.The manufacturer then ad

16、ds the beginning finished goods inventory to this cost of goods manufactured to get the cost of goods available for sale.技术资料专业整理6. The purpose is providing aggregate measures of inventory value and cost of goods manufactured for external reporting to investors, creditors, and other external stakeho

17、lders.4-A3(10-15 min.)There can be many justifiable answers for each item other than the listed cost driver and behavior. The purpose of this exercise is to generate an active discussion regarding those chosen by First Banks managers. One point that should be emphasized is that many times managers c

18、hoose cost drivers that are not the most plausible or reliable because of lack of data availability. Cost drivers are also used as a basis to allocate activity and resource costs and so the availability of data is often an important consideration.Activity Or Resourcea. *Rb. *RCost Driver Number of s

19、quare feet Number of person hoursCost BehaviorF Fc.RNumberofcomputer transactionsVd.ANumberofschedulese.RNumberofperson hoursFf.RNumberofloan inquiriesVg.*ANumberofinvestmentsh.ANumberofapplicationsi.RNumberofperson hoursVj.RNumberofminutesVk.RNumberofperson hoursFl.ANumberofloans*An argument can be

20、 made that maintenance of the building is an activity. If this was the case, resources such as supplies and labor would be resources consumed, and several resource cost drivers would be needed.In addition, a separate resource and associated cost driver would be needed for insurance costs.However, th

21、e company had a contract for maintenance (fixed price), sothis was a fixed-cost resource that was added to other occupancy costs such as insurance.The cost driver chosen for all these occupancy costs was square feet occupied by the various departments.*Normally, the cost driver used for any labor re

22、source is person hours. It is assumed that the staff person hours used are regular hours rather than overtime or temporary labor hours. Thus, the cost is fixed with respect to changes in hours used.As the hours used increases (decreases) the utilization of the resources increases (decreases) and eve

23、ntually, management will need to make a decision whether to expand capacity (or whether to cutback on labor). This is an example of a step cost that is fixed over wide ranges of cost-driver level.*Students may try to determine the cost behavior of activities even though the problem requirements do n

24、ot ask for it.Point out that activities almost always have mixed cost behavior because they consume various resources.Some of these are fixed-cost and others variable-cost resources.For example, the activity “research to evaluate a loan application” consumes such fixed-cost resources as manager labo

25、r time and computers (assumed owned by the bank).This activity also consumes variable-cost resources such as telecommunications time and external computing services.4-A4(20-30 min.)1. The first step is to determine the cost per cost-driver unit for each activity:Activity Cost driverMaterial Handling

26、 Direct materials costMonthlyManufacturing Overhead$12,000Cost-Driver Activity$200,000Cost perDriver Unit$0.06Engineering Engineering change notices20,000201,000.00Power Kilowatt hours16,000400,0000.04Total Manufacturing Overhead$48,000Next, the costs of each activity can be allocated to each of the

27、 three products:PHYSICAL FLOW / ALLOCATED COSTCostSeniorBasicDeluxeMaterial Handling$.06 25,000 =$1,500$.06 50,000 = $3,000$.06 125,000 = $7,5 Engineering $1,000 13 =13,000$1,000 5 =5,000$1,000 2 =2,000Power$.04 50,000 =2,000$.04 200,000 =8,000$.04 150,000 =6,000 Total$16,500$16,000$15,5002. Overhea

28、d rate based on direct labor costs:Rate = Total manufacturing overhead Total direct labor cost=$48,000 $8,000 =$6.00/DL$Overheadallocated to each product is:Senior:$6.00 4,000=$24,000Basic:$6.00 1,000=6,000Deluxe:$6.00 3,000=18,000Total$48,000Notice that much less manufacturing overhead cost is allo

29、cated to Basic using direct labor as a cost driver.Why?Because Basic uses only a small amount of labor but large amounts of other resources, especially power.3. The product costs in requirement 1 are more accurate if the cost drivers are good indicators of the causes of the costs - they are both pla

30、usible and reliable.For example, kilowatt hours is certainly a better measure of the cost of power costs than is direct labor hours. Therefore, the allocation of power costs in requirement 1 is certainly better than in requirement 2.Materials handling and engineering are likewise more plausible.A ma

31、nager would be much more confident in the manufacturing overhead allocated to products in requirement 1. Remember, however, that there are incremental costs of data collection associated with the more accurate ABC system.The benefit/cost criteria must be applied in deciding which costing system is “

32、best.”4-B1(20-30 min.)See Table 4-B1 on the following page.4-B2(25-30 min.)1. $1,080,000 45,000 hours = $24 per direct-labor hour2. (a) $585,000 15,000 hours = $39 per direct-labor hour(b) $495,000 30,000 hours = $16.50 per direct-labor hour3. (a) $585,000 97,500 hours = $6 per machine hour(b) $495,

33、000 30,000 hours = $16.50 per direct-labor hour4.(a) $24 (1.0 + 14.0) = $360.00$24 (1.5 +3.0) = $108.00$24 (1.3 +8.0) = $223.20(b) ($39 1.0) + ($16.50 14.0) = $39.00 + $231.00 = $270.00($39 1.5) + ($16.50 3.0) = $58.50 + $49.50 = $108.00 ($39 1.3) + ($16.50 8.0) = $50.70 + $132.00 = $182.70(c) ($6 1

34、2.0) + ($16.50 14.0) = $72.00 + $231.00 = $303.00 ($6 17.0) + ($16.50 3.0) = $102.00 + $49.50 = $151.50 ($6 14.0) + ($16.50 8.0) = $84.00 + $132.00 = $216.00(d) First consider using departmental instead of firm-wide rates (part b vs. part a).Departmental rates that use direct-labor hours as the base

35、 decrease the cost applied to units of A and C and leave B unaffected.Other products that use relatively less assembly time will increase in cost. Now examine changing to a base of machine hours in machining (part c vs. part a). Product B is the only one with an increase in cost in (c) compared to (

36、a).Why?Because Bs uses only 16% of the direct labor hours used for A, B, and C, so it is is allocated only 16% of the costs allocated on the basis of direct labor hours.But it uses 40% of the machine hours, and there is allocated 40% of costs that are allocated on the basis on machine hours.Therefor

37、e, it receives relatively more costs with a base of machine hours than with a base of direct-labor hours.WORD 完美格式TABLE 4-B1STATEMENT OF OPERATING INCOMEThousands of DollarsSales$990Cost of goods sold:OPERATING INCOME BY PRODUCT LINELawnHandScooterMowerToolCoPartsPartsPartsAsIndirectmanufacturing946

38、811412In494243139112Gross profit496107241148Selling and administrativeexpenses:Commissions55252010DiDistribution to warehouses1502028050Total selling and administrative expenses2054510060$350$380$260Direct material400175125100DiCorporate salaries11Other general expenses17Total unallocated expenses28

39、Operating income before tax$263Contribution to corporate expenses and profit291Unallocated expenses:$62$141$881 Total machine hours is 8,500 + 1,750 + 1,500 = 11,750. Indirect manufacturing cost per mthen $94,000 11,750 = $8. The allocation to scooter parts is $8 8,500 machine hou2 Total weight ship

40、ped is 100,000 kg + 400,000 kg + 250,000 kg = 750,000 kg. Indirect distkilogram is then $150,000 750,000 kg = $0.20. The allocation to scooter parts is $0.$20,000.技术资料专业整理WORD 完美格式4-B3(30-35 min.)1. The existing system allocates all costs based on direct labor cost.The rate for allocating indirect p

41、roduction costs is:Estimated indirect production cost Estimated direct labor cost= 24,500,000 35,000,000 = 70%That is, each time 1 is spent on direct labor, Watanabe adds 0.7 of indirect production cost to the cost of the product.2. Under an ABC system, Watanabe would allocate indirect production co

42、sts separately for each activity.This would result in the following four allocation rates:Receiving:Receiving costs Direct material cost= 4,800,000 60,000,000 = 0.08 per 1of dir. mat.Assembly:Assembly costs Number of control units= 13,800,000 92,000 = 150 per control unit Qual. Control:Quality contr

43、ol cost QC hours= 1,800,000 600 = 3,000 per QC hourShipping:Shipping cost # of boxes shipped= 4,100,000 8,200 = 500 per box shipped3. (a)The cost will contain 3 components (in thousands of yen): Direct material8,000Direct labor2,000Indirect production cost ( 2,000 .7 = 1,400)1,400 Total cost 11,400Price ( 11,400 1.3) 14,820(b)The cost will have 7 components, 4 of them allocating indirect production costs (totals in thousands of yen):Direct materials8,000Direct labor2,000