# Accounting Worksheet

Accounting Worksheet

Financial & Managerial 17e Check Figures

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Chapter 1

No check figures required.  Problem material is qualitative in nature.

Chapter 2

Solutions to Problem Set A

Problem 2.1A     Total assets = \$1,080,300; Total liabilities = \$720,300

Problem 2.2A     Issued capital stock for \$15,000 (part e).

Problem 2.3A     Ending cash balance = \$47,250

Problem 2.4A     Ending cash balance = \$87,600

Problem 2.5A     Total assets = \$543,080; Total liabilities = \$215,850

Problem 2.6A     Total assets = \$901,470; Total liabilities = \$422,050

Problem 2.7A     Total assets (8/3) = \$236,700; Total liabilities (8/3) = \$91,000

Problem 2.8A     Total assets (10/6) = \$173,590; Total liabilities (10/6) = \$88,000

Problem 2.9A     Total assets = \$51,500; Total liabilities = \$23,100

Problem 2.10A   Total assets = \$114,735; Total liabilities = \$106,200

Solutions to Problem Set B

Problem 2.1B     Total assets = \$614,000; Total liabilities = \$261,600

Problem 2.2B     Issued capital stock for \$10,000 (part e).

Problem 2.3B     Ending cash balance = \$48,000

Problem 2.4B     Ending cash balance = \$27,600

Problem 2.5B     Total assets = \$630,250; Total liabilities = \$141,250

Problem 2.6B     Total assets = \$226,700; Total liabilities = \$79,000

Problem 2.7B     Total assets (7/5) = \$213,300; Total liabilities (7/5) = \$49,700

Problem 2.8B     Total assets (10/6) = \$211,900; Total liabilities (10/6) = \$58,000

Problem 2.9B     Total assets = \$56,400; Total liabilities = \$23,000

Problem 2.10B   Total assets = \$115,900; Total liabilities = \$102,500

Chapter 3

Solutions to Problem Set A

Problem 3.1A     Liabilities (Accounts Payable) increased (credited) \$8,000 on 2/18.

Problem 3.2A     Debit Accounts Payable \$100 on 8/5.

Problem 3.3A     Debit Advertising Expense \$165 on 9/14.

Problem 3.4A     Total stockholders equity (6/30) = \$63,990

Problem 3.5A     Total assets (5/31) = \$579,400

Problem 3.6A     Debit column total of trial balance  (7/31) = \$3,550

Problem 3.7A     Debit column total of trial balance  (6/30) = \$19,300

Problem 3.8A     The first error listed understates (U) Owners’ Equity.

Solutions to Problem Set B

Problem 3.1B     Liabilities (Accounts Payable) increased (credited) \$11,000 on 4/12.

Problem 3.2B     Debit Accounts Payable \$100 on 6/5.

Problem 3.3B     Debit Advertising Expense \$320 on 10/12.

Problem 3.4B     Total stockholders equity (3/31) = \$85,670

Problem 3.5B     Total assets (8/31) = \$625,800

Problem 3.6B     Debit column total of trial balance  (2/28) = \$4,805

Problem 3.7B     Debit column total of trial balance  (3/31) = \$24,300

Problem 3.8B     The first error listed understates (U) Owners’ Equity.

Chapter 4

Solutions to Problem Set A

Problem 4.1A     Adjusting entry (4): Debit Depreciation Expense: Carts, \$1,000.

Problem 4.2A     Adjusting entry (7): Debit Unearned Camper Revenue, \$900.

Problem 4.3A     Adjusting entry (4): Credit Passenger Revenue Earned, \$40,000.

Problem 4.4A     Adjusting entry (1): Credit Prepaid Film Rental, \$15,200.

Problem 4.5A     Adjusting entry (3): Credit Unexpired Insurance, \$300.

Problem 4.6A     Adjusting entry (5): Credit Climbing Supplies, \$2,900.

Problem 4.7A     Net Income for the year ended 12/31 = \$27,720

Problem 4.8A     Owners’ Equity is understated (U) as a result of transaction g.

Solutions to Problem Set B

Problem 4.1B     Adjusting entry (5): Debit Interest Expense, \$400.

Problem 4.2B     Adjusting entry (7): Debit Unearned Camper Revenue, \$1,500.

Problem 4.3B     Adjusting entry (4): Credit Unexpired Insurance, \$380.

Problem 4.4B     Adjusting entry (7): Credit Salaries Payable, \$2,200.

Problem 4.5B     Adjusting entry (3): Credit Unexpired Insurance, \$400.

Problem 4.6B     Adjusting entry (4): Credit Office Supplies, \$1,720.

Problem 4.7B     Net Income for the year ended 12/31 = \$10,205

Problem 4.8B     Owners’ Equity is overstated (O) as a result of transaction g.

Chapter 5

Solutions to Problem Set A

Problem 5.1A     Retained earnings on 12/31 = \$21,000

Problem 5.2A     Total assets on 12/31 = \$226,800

Problem 5.3A     Net loss for the year ended 12/31 = \$31,240

Problem 5.4A     Net income for the quarter ended 9/30 = \$20,600

Problem 5.5A     Total assets on 12/31 = \$65,525

Problem 5.6A     Total debit column of the adjusted balance = \$252,690

Problem 5.7A     Total debit column of the adjusted balance = \$371,430

Problem 5.8A     Beginning of year current ratio = 1.88:1

Solutions to Problem Set B

Problem 5.1B     Retained earnings on 12/31 = \$33,300

Problem 5.2B     Total assets on 12/31 = \$124,400

Problem 5.3B     Net loss for the year ended 12/31 = \$31,600

Problem 5.4B     Net income for the quarter ended 9/30 = \$56,600

Problem 5.5B     Total assets on 12/31 = \$442,450

Problem 5.6B     Total debit column of the adjusted balance = \$113,355

Problem 5.7B     Total debit column of the adjusted balance = \$633,250

Problem 5.8B     Beginning of year current ratio = 1.86:1

Chapter 6

Solutions to Problem Set A

Problem 6.1A     Gross profit for year ended 12/31 = \$327,968

Problem 6.2A     Net income for the year ended 12/31 = \$12,000

Problem 6.3A     Change in net sales during the most recent year = 6%

Problem 6.4A     Debit Cost of Goods Sold \$588 in June (part a.1).

Problem 6.5A     Debit Cost of Goods Sold \$6,000 on 2/9 (part a).

Problem 6.6A     Inventory is overstated by \$14,700 (part a.2).

Problem 6.7A     Gross profit is \$175,000 (part a).

Problem 6.8A     Gross profit is \$3,900 (part g).

Solutions to Problem Set B

Problem 6.1B     Gross profit for year ended 12/31 = \$698,500

Problem 6.2B     Net income for the year ended 12/31 = \$33,970

Problem 6.3B     Change in net sales during the most recent year = 3.8%

Problem 6.4B     Debit Cost of Goods Sold \$686 in March (part a.1).

Problem 6.5B     Debit Cost of Goods Sold \$6,000 in October (part a).

Problem 6.6B     Inventory is overstated by \$7,350 (part a.2).

Problem 6.7B     Gross profit is \$50,000 (part a).

Problem 6.8B     Gross profit is \$27,000 (part h).

Chapter 7

Solutions to Problem Set A

Problem 7.1A     Adjusted cash balance on 7/31 = \$129,714

Problem 7.2A     Correct adjusted cash balance on 11/30 = \$15,745

Problem 7.3A     Debit Uncollectible Accounts Expense \$12,750 on 12/31.

Problem 7.4A     Debit Uncollectible Accounts Expense \$160,000 on 12/31.

Problem 7.5A     Debit Loss on Sale of Investments \$10,150 on 8/7 (part b).

Problem 7.6A     Credit Interest Revenue \$3,125 on 6/1 (part a).

Problem 7.7A     Credit Interest Revenue \$500 on 12/31 (part c).

Problem 7.8A     Cash and cash equivalents on 12/31 (part b) = \$171,460

Solutions to Problem Set B

Problem 7.1B     Adjusted cash balance on 11/30 = \$7,745

Problem 7.2B     Correct adjusted cash balance on 4/30 = \$16,730

Problem 7.3B     Debit Uncollectible Accounts Expense \$44,600 on 12/31.

Problem 7.4B     Debit Uncollectible Accounts Expense \$282,000 on 12/31.

Problem 7.5B     Debit Loss on Sale of Investments \$5,020 on 4/20 (part b).

Problem 7.6B     Credit Interest Revenue \$2,100 on 8/1 (part a).

Problem 7.7B     Credit Interest Revenue \$360 on 12/31 (part c).

Problem 7.8B     Cash and cash equivalents on 12/31 (part b) = \$263,500

Chapter 8

Solutions to Problem Set A

Problem 8.1A     Debit Cost of Goods Sold \$30,200 on 1/15 (part a, FIFO method).

Problem 8.2A     Inventory balance on 9/30 (LIFO method) = \$20,250

Problem 8.3A     Inventory balance on 9/30 (FIFO method) = \$20,300

Problem 8.4A     Debit Cost of Goods Sold \$1,560 (part a, LIFO method).

Problem 8.5A     Inventory balance (FIFO method) = \$7,015

Problem 8.6A     Gross profit percentage in most recent year = 36%

Problem 8.7A     Estimated ending inventory (part a) = \$52,800

Problem 8.8A     Gross profit rate (LIFO method) = 24.9%

Solutions to Problem Set B

Problem 8.1B     Debit Cost of Goods Sold \$14,600 on 1/22 (part a, FIFO method).

Problem 8.2B     Inventory balance on 6/30 (LIFO method) = \$57,500

Problem 8.3B     Inventory balance on 6/30 (FIFO method) = \$58,300

Problem 8.4B     Debit Cost of Goods Sold \$120 (part a, LIFO method).

Problem 8.5B     Inventory balance (FIFO method) = \$2,773

Problem 8.6B     Gross profit percentage in most recent year = 32%

Problem 8.7B     Estimated ending inventory (part a) = \$44,000

Problem 8.8B     Gross profit rate (LIFO method) = 31.3%

Chapter 9

Solutions to Problem Set A

Problem 9.1A     Debit Depreciation Expense: Computing Equipment \$28,100 (part d).

Problem 9.2A     Depreciation Expense, 2014 = \$20,736 (200% declining-balance)

Problem 9.3A     Depreciation Expense, 2017 = \$1,068 (150% declining-balance)

Problem 9.4A     Credit Gain on Sale of Plant Assets on 4/1, \$550,000.

Problem 9.5A     Operating expense (part e).

Problem 9.6A     Estimated goodwill of Joe’s Garage (part a) = \$1,085,000

Problem 9.7A     Accumulated depreciation (part b) = \$6,400

Problem 9.8A     Amortization of patent (part b) = \$15,000

Solutions to Problem Set B

Problem 9.1B     Debit Depreciation Expense: Equipment \$4,060 (part d).

Problem 9.2B     Depreciation Expense, 2014 = \$57,600 (200% declining-balance)

Problem 9.3B     Depreciation Expense, 2017 = \$1,415 (150% declining-balance)

Problem 9.4B     Credit Gain on Sale of Plant Assets on 3/3, \$320,000.

Problem 9.5B     Intangible asset (part d).

Problem 9.6B     Estimated goodwill of Carnie’s (part a) = \$1,600,000

Problem 9.7B     Accumulated depreciation (part b) = \$7,000

Problem 9.8B     Amortization of patent (part b) = \$13,333

Chapter 10

Solutions to Problem Set A

Problem 10.1A   Income statement, transaction a:  increase expenses; decrease net income.

Problem 10.2A   Total current liabilities = \$381,000

Problem 10.3A   Debit Interest Expense on 12/31, \$6,428.

Problem 10.4A   Debit Interest Expense on 11/1, \$10,797.

Problem 10.5A   Debit Bond Interest Expense on 12/31, \$166,667.

Problem 10.6A   Debit Bond Interest Expense on 12/31, \$2,653,334 (part a.1).

Problem 10.7A   Total liabilities (part a) = \$1,088,620

Problem 10.8A   Total liabilities (part a) = \$1,576,000

Solutions to Problem Set B

Problem 10.1B   Income statement, transaction a:  increase expenses; decrease net income.

Problem 10.2B   Total current liabilities = \$381,000

Problem 10.3B   Debit Interest Expense on 12/31, \$958.

Problem 10.4B   Debit Interest Expense on 11/1, \$1,000.

Problem 10.5B   Debit Bond Interest Expense on 12/31, \$25,000.

Problem 10.6B   Debit Bond Interest Expense on 12/31, \$193,333 (part a.1).

Problem 10.7B   Total liabilities (part a) = \$881,580

Problem 10.8B   Total liabilities (part a) = \$1,540,500

Chapter 11

Solutions to Problem Set A

Problem 11.1A   Total stockholders’ equity on 12/31 = \$4,105,000

Problem 11.2A   Total stockholders’ equity on 12/31 = \$8,235,000

Problem 11.3A   Total stockholders’ equity on 12/31 = \$2,452,000

Problem 11.4A   Debit Land on 6/4, \$250,000.

Problem 11.5A   Book value per share (part g) = \$26.27

Problem 11.6A   Total paid-in capital (part c) = \$180,329

Problem 11.7A   No check figures given.

Problem 11.8A   Total stockholders’ equity = \$603,200

Problem 11.9A   Total stockholders’ equity = \$6,695,000

Solutions to Problem Set B

Problem 11.1B   Total stockholders’ equity on 12/31 = \$3,052,000

Problem 11.2B   Total stockholders’ equity on 12/31 = \$7,750,000

Problem 11.3B   Total stockholders’ equity on 12/31 = \$4,463,000

Problem 11.4B   Debit Dividends (Preferred Stock) on 11/25, \$20,000.

Problem 11.5B   Book value per share (part g) = \$8.09

Problem 11.6B   Total paid-in capital (part c) = \$136,400

Problem 11.7B   No check figures given.

Problem 11.8B   Total stockholders’ equity = \$856,200

Problem 11.9B   Total stockholders’ equity = \$7,051,440

Chapter 12

Solutions to Problem Set A

Problem 12.1A   Net income = \$7,130,000

Problem 12.2A   Ending Retained Earnings on 12/31 (part b) = \$7,625,000

Problem 12.3A   Ending Retained Earnings on 12/31 (part b) = \$2,305,000

Problem 12.4A   Total stockholders’ equity at 12/31 = \$1,293,600

Problem 12.5A   Total stockholders’ equity at 12/31 = \$9,520,600

Problem 12.6A   Total stockholders’ equity at 12/31 (part b) = \$8,792,800

Problem 12.7A   Total stockholders’ equity decreased (part a.1).

Problem 12.8A   Total stockholders’ equity at 12/31 (part b) = \$5,914,000

Problem 12.9A   Net loss = \$18,301

Solutions to Problem Set B

Problem 12.1B   Net income = \$9,340,000

Problem 12.2B   Ending Retained Earnings on 12/31 (part b) = \$23,055,000

Problem 12.3B   Ending Retained Earnings on 12/31 (part b) = \$6,358,000

Problem 12.4B   Total stockholders’ equity at 12/31 = \$876,000

Problem 12.5B   Total stockholders’ equity at 12/31 = \$3,960,000

Problem 12.6B   Total stockholders’ equity at 12/31 (part b) = \$9,228,925

Problem 12.7B   Total stockholders’ equity increased (part a.4).

Problem 12.8B   Total stockholders’ equity at 12/31 (part b) = \$2,136,800

Problem 12.9B   Net loss = \$32,440

Chapter 13

Solutions to Problem Set A

Problem 13.1A   Net cash flow from operating activities (part a) = \$300,000

Problem 13.2A   Net cash flow used in investing activities (part a) = (\$39,000)

Problem 13.3A   Net cash flow used in investing activities (part a) = (\$33,000)

Problem 13.4A   Net cash flow from operating activities (part a) = \$336,000

Problem 13.5A   Net cash flow from operating activities = \$336,000

Problem 13.6A   Net cash flow from operating activities (part a) = \$350,000

Problem 13.7A   Net decrease in cash for the year = \$43,000

Problem 13.8A   Net increase in cash for the year = \$50,000

Solutions to Problem Set B

Problem 13.1B   Net cash flow from operating activities (part a) = \$735,000

Problem 13.2B   Net cash flow used in investing activities (part a) = (\$106,000)

Problem 13.3B   Net cash flow used in investing activities (part a) = (\$32,000)

Problem 13.4B   Net cash flow from operating activities (part a) = \$935,000

Problem 13.5B   Net cash flow from operating activities = \$935,000

Problem 13.6B   Net cash flow from operating activities (part a) = \$923,000

Problem 13.7B   Net cash flow used in operating activities (part a) = (\$158,000)

Problem 13.8B   Net increase in cash for the year = \$38,000

Chapter 14

Solutions to Problem Set A

Problem 14.1A   Industry average net income as a percentage of sales = 3%

Problem 14.2A   Net income for most recent year (part d) = \$172,800

Problem 14.3A   Total current liabilities = \$230,270

Problem 14.4A   Current ratio = 0.72:1

Problem 14.5A   Current ratio = 3:1

Problem 14.6A   Return on assets = 10.5%

Problem 14.7A   Current ratio (end of year) = 1.62:1

Problem 14.8A   Inventory turnover = 4.75 times

Problem 14.9A   Current ratio (Another World) = 2:1

Solutions to Problem Set B

Problem 14.1B   Bathrooms, Inc. net income as a percentage of sales = 17%

Problem 14.2B   Net income for most recent year (part d) = \$150,000

Problem 14.3B   Total current liabilities = \$226,600

Problem 14.4B   Current ratio = 0.69:1

Problem 14.5B   Current ratio = 2.95:1

Problem 14.6B   Return on assets = 8.1%

Problem 14.7B   Current ratio (end of year) = 1.09:1

Problem 14.8B   Inventory turnover = 7.14 times

Problem 14.9B   Current ratio (That Star) = 2.70:1

Chapter 15

Solutions to Problem Set A

Problem 15.1A   Profit in kr (part a) = kr 2,343

Problem 15.2A   Debit Inventory \$2,572,000 on 11/12.

Problem 15.3A   No check figures given.

Problem 15.4A   Profit per unit (Malaysia) = 175.40 Ringgits

Problem 15.5A   No check figures given.

Problem 15.6A   Debit Accounts Receivable (Bank of England) \$997,425 on 11/9.

Problem 15.7A   No check figures given.

Problem 15.8A   Percentage of sales in 2012 (part b) = 11.24%

Solutions to Problem Set B

Problem 15.1B   Profit in kr (part a) = kr 8,375

Problem 15.2B   Debit Inventory \$3,000,000 on 12/1.

Problem 15.3B   Expenses are translated at a rate of \$1.27 per Euro.

Problem 15.4B   Profit per unit (Mexico) = 536.54 Pesos

Problem 15.5B   No check figures given.

Problem 15.6B   Debit Accounts Receivable (British Vibes) \$320,000 on 11/15.

Problem 15.7B   No check figures given.

Chapter 16

Solutions to Problem Set A

Problem 16.1A   Ending finished goods inventory (part a) = \$78,000

Problem 16.2A   Cost of goods sold (part c) = \$2,365,000

Problem 16.3A   Total manufacturing costs (part e) = \$613,400

Problem 16.4A   Cost of finished goods manufactured (part f) = \$954,000

Problem 16.5A   Cost of goods sold (part a) = \$4,270,600

Problem 16.6A   Cost of goods sold (part c) = \$813,985

Problem 16.7A   Cost of goods sold (part c) = \$1,110,000

Problem 16.8A   Cost of finished goods manufactured (part a) = \$383,500

Solutions to Problem Set B

Problem 16.1B   Ending finished goods inventory (part a) = \$160,000

Problem 16.2B   Cost of goods sold (part c) = \$2,400,000

Problem 16.3B   Overhead rate (part e) = 150%

Problem 16.4B   Total cost charged to work in process (part f) = \$994,000

Problem 16.5B   Cost of goods sold (part a) = \$869,000

Problem 16.6B   Cost of goods sold (part c) = \$979,450

Problem 16.7B   Cost of goods sold (part c) = \$1,096,000

Problem 16.8B   Cost of finished goods manufactured (part a) = \$378,000

Chapter 17

Solutions to Problem Set A

Problem 17.1A   Debit Work in Process Inventory \$45,000 (part b).

Problem 17.2A   Debit Work in Process Inventory \$56,200 (part b).

Problem 17.3A   Application rate based on machine hours (part a) = \$35 per MH

Problem 17.4A   Debit Cost of Goods Sold \$11,000 (part c).

Problem 17.5A   Total cost of Job 2 (part b.2) = \$7,210

Problem 17.6A   Inspection costs allocated to Bitrite (part c) = \$16,000

Problem 17.7A   Repair costs allocated to A3B4 (part b) = \$2,500

Problem 17.8A   Total costs allocated to Basic Chunks (using ABC) = \$125,370

Solutions to Problem Set B

Problem 17.1B   Debit Work in Process Inventory \$130,000 (part b).

Problem 17.2B   Debit Work in Process Inventory \$98,000 (part b).

Problem 17.3B   Application rate based on machine hours (part a) = \$20 per MH

Problem 17.4B   Debit Cost of Goods Sold \$33,000 (part c).

Problem 17.5B   Total cost of Job 2 (part b.2) = \$232

Problem 17.6B   Inspection costs allocated to Caltrate (part c) = \$750,000

Problem 17.7B   Setup costs allocated to boots (part b) = \$31,250

Problem 17.8B   Total costs allocated to Tabby Treat (using ABC) = \$167,780

Chapter 18

Solutions to Problem Set A

Problem 18.1A   Units started and completed in July (part b) = 3,500

Problem 18.2A   Cost per unit (part a.1) = \$45

Problem 18.3A   Cost per unit of direct materials = \$61.50

Problem 18.4A   Debit Work in Process: Mixing Dept. \$12,600 (part a)

Problem 18.5A   Cost per unit of conversion (part b) = \$4

Problem 18.6A   Cost per unit of direct materials = \$3

Problem 18.7A   Cost per unit of direct materials (part a) = \$14

Problem 18.8A   Cost per unit of conversion (part a) = \$8

Solutions to Problem Set B

Problem 18.1B   Units started and completed in April (part b) = 5,000

Problem 18.2B   Cost per unit (part a.1) = \$49

Problem 18.3B   Cost per unit of direct materials = \$112

Problem 18.4B   Debit Work in Process: Mixing Dept. \$120,000 (part a)

Problem 18.5B   Cost per unit of conversion (part b) = \$7

Problem 18.6B   Cost per unit of direct materials = \$4

Problem 18.7B   Cost per unit of direct materials (part a) = \$18

Problem 18.8B   Cost per unit of conversion (part a) = \$6

Chapter 19

Solutions to Problem Set A

Problem 19.1A   Value-added time (part d) = 25 days

Problem 19.2A   Target cost (part a) = \$187

Problem 19.3A   Target cost (part a) = \$6.40

Problem 19.4A   Year 1 total quality costs (part a) = \$88,400

Problem 19.5A   No check figures given.

Problem 19.6A   Profit increase (part b) = \$455,000

Problem 19.7A   Total non-value added costs (part b) = \$25,750

Problem 19.8A   No check figures given.

Solutions to Problem Set B

Problem 19.1B   Value-added time (part d) = 43 days

Problem 19.2B   Target cost of BIT (part a) = \$105.60

Problem 19.3B   Target cost (part a) = \$8.20

Problem 19.4B   Year 1 total quality costs (part a) = \$96,000

Chapter 20

Solutions to Problem Set A

Problem 20.1A   Required sales price (part a) = \$75

Problem 20.2A   Sales per unit (part a) = \$105

Problem 20.3A   Total fixed costs = \$225,000

Problem 20.4A   Contribution margin ratio (part a) = 40%

Problem 20.5A   Contribution margin per unit (part a) = \$0.45

Problem 20.6A   Contribution margin per unit (part b) = \$37

Problem 20.7A   Clownfish operating income (part a) = \$186,750

Problem 20.8A   Monthly break-even in sales volume (part b) = \$945,000

Solutions to Problem Set B

Problem 20.1B   Required sales price (part a) = \$100

Problem 20.2B   Sales per unit (part a) = \$67

Problem 20.3B   Total fixed costs = \$149,940

Problem 20.4B   Contribution margin ratio (part a) = 40%

Problem 20.5B   Contribution margin per unit (part a) = \$2

Problem 20.6B   Contribution margin per unit (part b) = \$8.80

Problem 20.7B   Cod operating income (part a) = \$214,000

Problem 20.8B   Monthly break-even in sales volume (part b) = \$1,200,000

Chapter 21

Solutions to Problem Set A

Problem 21.1A   Expected increase in operating income (part a) = \$250,000

Problem 21.2A   Benefit of buying motors (part a) = \$37,500

Problem 21.3A   Benefit of buying thermostats (part b) = \$26,000

Problem 21.4A   Contribution margin per MH Model 100 (part a) = \$31

Problem 21.5A   Sunk costs (part b) = \$2,265,000

Problem 21.6A   Benefit of selling to foreign buyer (part a) = \$1,100,000

Problem 21.7A   Benefit to process into Sea Powder (part a) = \$1,000

Problem 21.8A   No check figures given.

Solutions to Problem Set B

Problem 21.1B   Expected increase in operating income (part a) = \$180,000

Problem 21.2B   Benefit of buying motors (part b) = \$305,000

Problem 21.3B   Benefit of buying switches (part b) = \$149,000

Problem 21.4B   Contribution margin per MH Model B (part a) = \$39

Problem 21.5B   Sunk costs (part b) = \$100,000

Problem 21.6B   Benefit of selling to foreign buyer (part a) = \$1,360,000

Problem 21.7B   Minimum price per pound to sell at split-off (part b) = \$24

Problem 21.8B   Contribution margin per DLH Gloves (part a) = \$15

Chapter 22

Solutions to Problem Set A

Problem 22.1A   Product responsibility margin Solid Chocolate (part a) = \$207,500

Problem 22.2A   Product responsibility margin Jewelry Line (part a) = \$160,000

Problem 22.3A   Division responsibility margin Commercial Sales (part a) = \$330,000

Problem 22.4A   Product responsibility margin FasTrack (part a) = \$250,000

Problem 22.5A   Expected responsibility margin increase Product B (part a) = \$800

Problem 22.6A   Increased sales required (part c) = \$16,000

Problem 22.7A   Contribution margin Stroller Division (part a) = \$1,050,000

Problem 22.8A   Operating profit Green Division (part a) = \$70,000

Solutions to Problem Set B

Problem 22.1B   Product responsibility margin Zippers (part a) = \$18,000

Problem 22.2B   Product responsibility margin Bag Line (part a) = \$150,000

Problem 22.3B   Division responsibility margin Clear Glass Division (part a) = \$1,500,000

Problem 22.4B   Division responsibility margin Economy (part a) = \$260,000

Problem 22.5B   Expected responsibility margin increase Product C (part a) = \$4,500

Problem 22.6B   Increased sales required (part c) = \$8,000

Problem 22.7B   Contribution margin Motor Division (part a) = \$5,400,000

Problem 22.8B   Operating profit Frame Division (part a) = \$66,500

Chapter 23

Solutions to Problem Set A

Problem 23.1A   Ending finished goods inventory (part c) = \$770,000

Problem 23.2A   Ending finished goods inventory (part c) = \$1,920,000

Problem 23.3A   Ending cash balance = \$46,800

Problem 23.4A   Payments on current payables (part b) = \$338,000

Problem 23.5A   Budgeted income (part a) = \$5,655

Problem 23.6A   Ending September cash (part a) = \$162,500

Problem 23.7A   Operating income over budget (part a) = \$168,000

Problem 23.8A   Total manufacturing costs under budget (part a) = (\$27,000)

Solutions to Problem Set B

Problem 23.1B   Ending finished goods inventory (part c) = \$646,750

Problem 23.2B   Ending finished goods inventory (part c) = \$840,000

Problem 23.3B   Ending cash balance = \$101,950

Problem 23.4B   Payments on current payables (part b) = \$427,000

Problem 23.5B   Budgeted income (part a) = \$16,500

Problem 23.6B   Ending September cash (part b) = \$169,600

Problem 23.7B   Operating income over budget (part a) = \$2,360,000

Problem 23.8B   Total manufacturing costs under budget (part a) = (\$55,000)

Chapter 24

Solutions to Problem Set A

Problem 24.1A   Debit Work in Process Inventory \$15,200 (part c).

Problem 24.2A   Materials price variance (part a) = \$3,075 favorable

Problem 24.3A   Debit Finished Goods Inventory \$270,000 (part b).

Problem 24.4A   Labor rate variance (part b) = \$1,100 favorable

Problem 24.5A   Labor efficiency variance (part b) = \$7,200 unfavorable

Problem 24.6A   Overhead spending variance (part c) = \$600 unfavorable

Problem 24.7A   Overhead volume variance (part a) = \$3,000 unfavorable

Problem 24.8A   Material used in June (part a) = 8,200 pounds

Problem 24.9A   Actual price (part a) = \$0.30 per square foot

Solutions to Problem Set B

Problem 24.1B   Debit Work in Process Inventory \$121,600 (part c).

Problem 24.2B   Materials price variance (part a) = \$20,500 favorable

Problem 24.3B   Debit Finished Goods Inventory \$300,000 (part b).

Problem 24.4B   Labor rate variance (part b) = \$625 favorable

Problem 24.5B   Labor efficiency variance (part b) = \$4,500 unfavorable

Problem 24.6B   Overhead spending variance (part c) = \$260 favorable

Problem 24.7B   Overhead volume variance (part a) = \$2,000 unfavorable

Problem 24.8B   Material used in June (part a) = 1,500 pounds

Problem 24.9B   Actual price (part a) = \$0.24 per square foot

Chapter 25

Solutions to Problem Set A

Problem 25.1A   ROI Hotel Rooms (part a) = 18.75%

Problem 25.2A   No check figures given.

Problem 25.3A   Manager’s bonus (part b) = \$24,000

Problem 25.4A   United States ROI Year 2 (part a) = 6.7%

Problem 25.5A   Operating Income Project A-1 (part d) = \$21,150

Problem 25.6A   No check figures given.

Problem 25.7A   No check figures given.

Problem 25.8A   No check figures given.

Problem 25.9A   ROI (part a) = 15.2%

Solutions to Problem Set B

Problem 25.1B   ROI Golf Courses (part a) = 40%

Problem 25.2B   No check figures given.

Problem 25.3B   Manager’s bonus (part b) = \$34,500

Problem 25.4B   United States ROI Year 2 (part a) = 10.7%

Problem 25.5B   Operating Income Project A-2 (part d) = \$32,400

Problem 25.6B   No check figures given.

Problem 25.7B   No check figures given.

Problem 25.8B   No check figures given.

Problem 25.9B   ROI (part a) = 18.34%

Chapter 26

Solutions to Problem Set A

Problem 26.1A   Payback period (part c) = 2.3 years

Problem 26.2A   Return on average investment Proposal 1 (part a) = 16.7%

Problem 26.3A   Payback period Proposal B (part a) = 4.3 years

Problem 26.4A   Net present value Proposal B (part a) = (\$10,845)

Problem 26.5A   Net present value Proposal A (part a) = (\$30,000)

Problem 26.6A   Net present value (part c) = \$52,210

Problem 26.7A   Net present value (part c) = \$1,350

Problem 26.8A   Net present value chairlift (part c) = \$19,720
Problem 26.9A   Net present value software bank installation (part c) = \$24,880

Solutions to Problem Set B

Problem 26.1B   Payback period (part c) = 1.25 years

Problem 26.2B   Return on average investment Proposal 1 (part a) = 20%

Problem 26.3B   Payback period Proposal B (part a) = 4.3 years

Problem 26.4B   Net present value Proposal B (part a) = \$135,590

Problem 26.5B   Net present value Proposal A (part a) = (\$25,600)

Problem 26.6B   Net present value (part c) = \$256,973

Problem 26.7B   Net present value (part c) = (\$276,713)

Problem 26.8B   Net present value chairlift (part c) = \$44,635
Problem 26.9B   Net present value memory stick equipment (part c) = \$365,200

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