MY QUESTIONs are ATTACH in the files wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww my

6/11/2016 Chapter 6 Homework (17, 9) Brewer 7th edition: BUAD162 - Managerial Accounting Summer (1) 2016 Chapter 6 - Homework (1-7, 9) 7. diego merisma instructions | help value: 2.50 points Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2] Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $ 11 $ 5 $ 2 $ 2 $ 350,000 $ 260,000 During the year, the company produced 35,000 units and sold 25,000 units. The selling price of the company's product is $46 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost. http://ezto.mheducation.com/hm.tpx 1/2 6/11/2016 Chapter 6 Homework (17, 9) b. Prepare an income statement for the year. References eBook & Resources Worksheet Difficulty: 1 Easy Exercise 66 Variable and Absorption Costing Unit Product Costs and Income Statements [LO61, LO62] Learning Objective: 0601 Explain how variable costing differs from absorption costing and compute unit product costs under each method. Learning Objective: 0602 Prepare income statements using both variable and absorption costing. Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 2/2 6/11/2016 Chapter 6 Homework (17, 9) Brewer 7th edition: BUAD162 - Managerial Accounting Summer (1) 2016 Chapter 6 - Homework (1-7, 9) 2. diego merisma instructions | help value: 1.00 points Exercise 6-2 Variable Costing Income Statement; Explanation of Difference in Net Operating Income [LO6-2] Ida Sidha Karya Company is a familyowned company located in the village of Glanyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $960. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 0 230 200 30 $ 110 $ 320 $ 30 $ 10 $ 69,000 $ 27,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 192,000 152,000 40,000 29,000 $ 11,000 Required: 1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period. Total fixed manufacturing overhead in ending inventory 2. Prepare an income statement for the year using variable costing. Hints http://ezto.mheducation.com/hm.tpx References eBook & Resources 1/2 6/11/2016 Chapter 6 Homework (17, 9) Hint #1 Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 2/2 6/11/2016 Chapter 6 Homework (17, 9) Brewer 7th edition: BUAD162 - Managerial Accounting Summer (1) 2016 Chapter 6 - Homework (1-7, 9) 2. diego merisma instructions | help value: 1.00 points Exercise 6-2 Variable Costing Income Statement; Explanation of Difference in Net Operating Income [LO6-2] Ida Sidha Karya Company is a familyowned company located in the village of Glanyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $960. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 0 230 200 30 $ 110 $ 320 $ 30 $ 10 $ 69,000 $ 27,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 192,000 152,000 40,000 29,000 $ 11,000 Required: 1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period. Total fixed manufacturing overhead in ending inventory 2. Prepare an income statement for the year using variable costing. http://ezto.mheducation.com/hm.tpx 1/2 6/11/2016 Chapter 6 Homework (17, 9) Ida Sidha Karya Company Variable Costing Income Statement Variable expenses: Fixed expenses: Hints References eBook & Resources Hint #1 Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 2/2 6/11/2016 Chapter 6 Homework (17, 9) diego merisma Brewer 7th edition: BUAD162 - Managerial Accounting Summer (1) 2016 Chapter 6 - Homework (1-7, 9) instructions | help Exercise 6-3 Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO6-3] [The following information applies to the questions displayed below.] Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 2 Year 3 Inventories: Beginning (units) 217 151 197 Ending (units) 151 197 223 Variable costing net operating income $296,000 $276,300 $253,700 The company's xed manufacturing overhead per unit was constant at $564 for all three years. References Section Break 3. Exercise 6-3 Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO6-3] value: Required information 1.40 points Exercise 6-3 Part 1 Required: 1. Determine each year's absorption costing net operating income. Hints References eBook & Resources Hint #1 Check my work http://ezto.mheducation.com/hm.tpx 1/2 6/11/2016 4. Chapter 6 Homework (17, 9) value: Required information 0.60 points Exercise 6-3 Part 2 2. In Year 4, the company's variable costing net operating income was $242,500 and its absorption costing net operating income was $278,800. a. Did inventories increase or decrease during Year 4? Decrease Increase b. How much fixed manufacturing overhead cost was deferred in or released from inventory during Year 4? Hints References eBook & Resources Hint #1 Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 2/2 6/11/2016 Chapter 6 Homework (17, 9) Brewer 7th edition: BUAD162 - Managerial Accounting Summer (1) 2016 Chapter 6 - Homework (1-7, 9) 5. diego merisma instructions | help value: 1.00 points Exercise 6-4 Basic Segmented Income Statement [LO6-4] Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban Greengrow $ 9.00 $ 30.00 $ 3.00 $ 11.00 $ 129,000 $ 41,000 Common fixed expenses in the company total $98,000 annually. Last year the company produced and sold 43,500 units of Weedban and 20,000 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Hints References Weedban Greengrow eBook & Resources Hint #1 Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 1/1 6/11/2016 Chapter 6 Homework (17, 9) Brewer 7th edition: BUAD162 - Managerial Accounting Summer (1) 2016 Chapter 6 - Homework (1-7, 9) 6. diego merisma instructions | help value: 1.50 points Exercise 6-5 Companywide and Segment Break-Even Analysis [LO6-5] Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement shown below: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $600,000 360,000 North $400,000 280,000 South $200,000 80,000 240,000 132,000 120,000 66,000 120,000 66,000 108,000 $ 54,000 $ 54,000 56,000 $ 52,000 Required: 1. Compute the companywide breakeven point in dollar sales . 2. Compute the breakeven point in dollar sales for the North region. 3. Compute the breakeven point in dollar sales for the South region. (Round your breakeven dollar sales to the nearest whole number.) rev: 10_16_2015_QC_CS28030 References Worksheet http://ezto.mheducation.com/hm.tpx eBook & Resources Difficulty: 1 Easy 1/2 6/11/2016 Chapter 6 Homework (17, 9) Exercise 65 Companywide and Segment BreakEven Analysis [LO65] Learning Objective: 0605 Compute companywide and segment breakeven points for a company with traceable fixed costs. Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 2/2 6/11/2016 Chapter 6 Homework (17, 9) Brewer 7th edition: BUAD162 - Managerial Accounting Summer (1) 2016 Chapter 6 - Homework (1-7, 9) 6. diego merisma instructions | help value: 1.50 points Exercise 6-5 Companywide and Segment Break-Even Analysis [LO6-5] Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement shown below: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $600,000 360,000 North $400,000 280,000 South $200,000 80,000 240,000 132,000 120,000 66,000 120,000 66,000 108,000 $ 54,000 $ 54,000 56,000 $ 52,000 Required: 1. Compute the companywide breakeven point in dollar sales . 2. Compute the breakeven point in dollar sales for the North region. 3. Compute the breakeven point in dollar sales for the South region. (Round your breakeven dollar sales to the nearest whole number.) rev: 10_16_2015_QC_CS28030 References Worksheet http://ezto.mheducation.com/hm.tpx eBook & Resources Difficulty: 1 Easy 1/2 6/11/2016 Chapter 6 Homework (17, 9) Exercise 65 Companywide and Segment BreakEven Analysis [LO65] Learning Objective: 0605 Compute companywide and segment breakeven points for a company with traceable fixed costs. Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 2/2 6/11/2016 Chapter 6 Homework (17, 9) diego merisma Brewer 7th edition: BUAD162 - Managerial Accounting Summer (1) 2016 Chapter 6 - Homework (1-7, 9) 8. instructions | help value: 1.00 points Exercise 6-7 Segmented Income Statement [LO6-4] Shannon Company segments its income statement into its North and South Divisions. The company's overall sales, contribution margin ratio, and net operating income are $620,000, 50%, and $49,600, respectively. The North Division's contribution margin and contribution margin ratio are $187,500 and 75%, respectively. The South Division's segment margin is $50,000. The company has $62,000 of common fixed expenses that cannot be traced to either division. Required: Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. (Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3)) Divisions Total Company Amount $ References North % Amount South % Amount % 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 0 0.0 eBook & Resources Worksheet Difficulty: 1 Easy Exercise 67 Segmented Income Statement [LO64] Learning Objective: 0604 Prepare a segmented income statement that differentiates traceable fixed costs from common fixed costs and use it to make decisions. Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 1/1 6/11/2016 Chapter 6 Homework (17, 9) Brewer 7th edition: BUAD162 - Managerial Accounting Summer (1) 2016 Chapter 6 - Homework (1-7, 9) 9. diego merisma instructions | help value: 3.00 points Exercise 6-9 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2, LO6-3] Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 27 $ 12 $ 5 $ 4 $ 320,000 $ 70,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $59 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for year 1 and year 2. b. Prepare an income statement for year 1 and year 2. http://ezto.mheducation.com/hm.tpx 1/3 6/11/2016 Chapter 6 Homework (17, 9) Walsh Company Income Statement Year 1 Year 2 Variable expenses Total variable expenses 0 0 0 0 0 0 0 $ 0 Fixed expenses Total fixed expenses Net operating income (loss) $ 2. Assume the company uses absorption costing: a. Compute the unit product cost for year 1 and year 2. (Round your answer to 2 decimal places.) Year 1 Year 2 Unit product cost b. Prepare an income statement for year 1 and year 2. (Round your intermediate calculations to 2 decimal places.) Walsh Company Income Statement Year 1 Year 2 Net operating income (loss) 3. Reconcile the difference between variable costing and absorption costing net operating income in year 1 and year 2. (Loss and deduction amounts should be indicated with a minus sign.) http://ezto.mheducation.com/hm.tpx 2/3 6/11/2016 Chapter 6 Homework (17, 9) Year 1 Year 2 Variable costing net operating income (loss) Absorption costing net operating income (loss) References eBook & Resources Worksheet Difficulty: 1 Easy Learning Objective: 0602 Prepare income statements using both variable and absorption costing. Exercise 69 Variable and Absorption Costing Unit Product Costs and Income Statements [LO61, LO62, LO63] Learning Objective: 0601 Explain how variable costing differs from absorption costing and compute unit product costs under each method. Learning Objective: 0603 Reconcile variable costing and absorption costing net operating incomes and explain why the two amounts differ. Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 3/3 6/12/2016 Chapter 7 Homework (27) diego merisma Brewer 7th edition: BUAD162 - Managerial Accounting Summer (1) 2016 Chapter 7 - Homework (27) 1. instructions | help value: 8.00 points Problem 7-27A Completing a Master Budget [LO7-2, LO7-4, LO7-7, LO7-8, LO7-9, LO7-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash Accounts receivable Inventory Building and equipment, net Accounts payable Capital stock Retained earnings $ 7,300 $ 19,200 $ 38,400 $ 124,800 $ 22,800 $ 150,000 $ 16,900 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June July $48,000 $64,000 $69,000 $94,000 $45,000 c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales. d. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold. e. Onehalf of a month's inventory purchases is paid for in the month of purchase the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. f. Monthly expenses are as follows: commissions, 12% of sales rent, $2,100 per month other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $936 per month (includes depreciation on new assets). g. Equipment costing $1,300 will be purchased for cash in April. h. Management would like to maintain a minimum cash balance of at least $4,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Required: Using the data above: 1. Complete the following schedule. Shilow Company Schedule of Expected Cash Collections April Cash sales $ Credit sales Total collections May June Quarter 38,400 19,200 $ 57,600 http://ezto.mheducation.com/hm.tpx?_=0.1623063725302175_1465754790508 1/5 6/12/2016 Chapter 7 Homework (27) 2. Complete the following: Shilow Company Merchandise Purchases Budget April Budgeted cost of goods sold $ 41,400 Total needs 89,400 Required purchases June Quarter 48,000 Add desired ending inventory Less beginning inventory May 38,400 $ 51,000 Budgeted cost of goods sold for April = $64,000 sales 75% = $48,000. Add desired ending inventory for April = $51,750 80% = $41,400. Shilow Company Schedule of Expected Cash DisbursementsMerchandise Purchases April March purchases April purchases $ May 22,800 25,500 June Quarter $ 25,500 22,800 51,000 May purchases June purchases Total disbursements 3. Complete the following cash budget: (Borrow and repay in increments of $1,000. Cash deficiency, repayments and interest should be indicated by a minus sign.) http://ezto.mheducation.com/hm.tpx?_=0.1623063725302175_1465754790508 2/5 6/12/2016 Chapter 7 Homework (27) Shilow Company Cash Budget April Beginning cash balance $ May June Quarter 7,300 Add cash collections 57,600 Total cash available 64,900 Less cash disbursements: For inventory 48,300 For expenses 13,620 For equipment Total cash disbursements Excess (deficiency) of cash 1,300 63,220 1,680 Financing: Borrowings Repayments Interest Total financing Ending cash balance 4. Prepare an absorption costing income statement for the quarter ended June 30. http://ezto.mheducation.com/hm.tpx?_=0.1623063725302175_1465754790508 3/5 6/12/2016 Chapter 7 Homework (27) Shilow Company Income Statement For the Quarter Ended June 30 Cost of goods sold: Selling and administrative expenses: 5. Prepare a balance sheet as of June 30. http://ezto.mheducation.com/hm.tpx?_=0.1623063725302175_1465754790508 4/5 6/12/2016 Chapter 7 Homework (27) Shilow Company Balance Sheet June 30 Assets Current assets: Total current assets Total assets Liabilities and Stockholders' Equity Stockholders' equity: Total liabilities and stockholders' equity References eBook & Resources Expanded table Learning Objective: 0702 Prepare a sales budget, including a schedule of expected cash collections. Learning Objective: 0708 Prepare a cash budget. Problem 727A Completing a Master Budget [LO72, LO7 4, LO77, LO78, LO79, LO710] Learning Objective: 0704 Prepare a direct materials budget, including a schedule of expected cash disbursements for purchases of materials. Learning Objective: 0709 Prepare a budgeted income statement. Difficulty: 2 Medium Learning Objective: 0707 Prepare a selling and administrative expense budget. Learning Objective: 0710 Prepare a budgeted balance sheet. Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx?_=0.1623063725302175_1465754790508 5/5