亨格瑞管理会计英文第15版练习答案解析(可编辑修改word版

1、WORD 完美格式CHAPTER 4COVERAGE OF LEARNING OBJECTIVESLEARNING OBJECTIVEFUNDAMENTAL ASSIGN-MEN MATERIALCRITICAL THINKING EXERCISES TA NDEXERCISESPROBLEMSCASES,EXCEL,COLLAB. &INTERNET EXERCISESLO1: Describe the purposes of cost management systems.31, 3450LO2: Explain the relationship between cost, cost ob

2、ject, cost accumulation, and cost assignment.4556LO3: Distinguish between direct and indirect costs.A1,B136, 37, 38,39, 4445, 4956LO4: Explain the major reasons for allocating costs.B233, 414654LO5: Identify the main types of manufacturing costs: direct materials, direct labor, and indirect producti

3、on costs.36, 37, 38,39LO6: Explain how the financial statements of merchandisers and manufacturers differ because of the types of goods they sell.A257, 60, 61LO7: Understand the mainA3, A4,33, 40, 41,48, 49, 5055, 56,differences between traditional and activitybased costing systems and why ABC syste

4、ms provide value to managers.B3, B44257, 58,59, 60, 61LO8: Use activity-based cost information to make strategic and operational control decisions.A4, B432, 37, 4348, 49, 5055, 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 inventory97,0003.Total inventories$137,000NILE ELECTRONICS PRODUCTS Statement of Operating Income For the Year Ended December 31, 20X9Sales (9,000 units at $17

6、0)$1,530,000Cost of goods sold:Beginning inventory$ 0Purchases970,000Cost of goods available for sale$ 970,000Less ending inventory97,000Cost of goods sold (an expense)Gross margin or gross profitLess other expenses: selling & administrative costs873,000$ 657,000185,000$ 472,000Operating income (als

7、o income before taxes in this example)技术资料 专业整理WORD 完美格式TABLE 4-A1STATEMENT OF OPERATING INCOMEOPERATING INCOME BY PRODUCT LINEEXTERNAL REPORTING PURPOSEINTERNAL STRATEGIC DECISION MAKING PURPOSECustom Large SmallDetailed Std. Std. Cost Type, Assignment MethodSales$155,000$30,000 $45,000 $80,000Cost

8、 of goods sold:Direct material40,0005,000 15,000 20,000 Direct, Direct TraceIndirect manufacturing41,000128,000 1 5,000 8,000 Indirect, Alloc. Mach.Hours81,00033,000 20,000 28,000Gross profit74,000(3,000) 25,000 52,000Selling and administrative expenses:Commissions15,0001,500 3,500 10,000 Direct, Di

9、rect TraceDistribution to warehouses10,40021,000 2 3,000 6,400 Indirect, Allocation - WeightTotal selling and admin. expenses25,4002,500 6,500 16,400Contribution to corporate expensesand profit48,600$(5,500) $18,500 $35,600Unallocated expenses:Administrative salaries8,000Other administrative expense

10、s4,000Total unallocated expenses12,000Operating income before tax$ 36,6001 Total machine hours is 1,400 + 250 + 400 = 2,050. Indirect manufacturing cost per machine hour is then$41,000 2,050 = $20. The allocation to custom detailed is $20 1,400 machine hours = $28,000.22 Total weight shipped is 25,0

11、00 kg + 75,000 kg + 160,000 kg = 260,000 kg. Indirect distribution costs perkilogram is then $10,400 260,000 kg = $0.04. The allocation to custom detailed is $0.04 25,000 kg = $1,000.技术资料 专业整理WORD 完美格式4.ORINOCO, INC.Statement of Operating IncomeFor the Year Ended December 31, 20X9Sales (9,000 units

12、at $170)$1,530,000Cost of goods manufactured and sold:Beginning finished goods inventoryCost of goods manufactured:Beginning WIP inventory $ 0 Direct materials usedDirect labor290,000Indirect manufacturing150,000Total mfg. costs to account for$970,000Less ending work-inprocess inventory 0530,000Cost

13、 of goods available for saleLess ending finished goods inventoryCost of goods sold (an expense)Gross margin or gross profitLess other expenses: selling and administrative costsOperating income (also income before taxes in this example)970,000$970,00097,000873,000$ 657,000185,000$ 472,000技术资料 专业整理5.T

14、he 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 (Orinoco) has three items: direct materials inventory, work-in-process inventory, and finished goods inventory.The income sta

15、tements 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 contrast, the manufacturer (Orinoco) shows beginning work-in-process inventory plus the three categories of cost that comprise

16、manufacturing cost (direct materials used, direct labor, and factory (or manufacturing) overhead) and then deducts the ending work-in-process inventory. The manufacturer then adds the beginning finished goods inventory to this cost of goods manufactured to get the cost of goods available for sale.6.

17、 The purpose is providing aggregate measures of inventory value and cost of goods manufactured for external reporting to investors, creditors, and other external stakeholders.4-A3 (10-15 min.)BanksThere can be many justifiable answers for each item other than the listed cost driver and behavior. The

18、 purpose of this exercise is to generate an active discussion regarding those chosen by First managers. One point that should be emphasized is that many times managers choose cost drivers that are not the most plausible or reliable because of lack of data availability. Cost drivers are also used as

19、a basis to allocate activity and resource costs and so the availability of data is often an important consideration.ActivityOrResourceCost Drivera.*RNumber of square feetb. Normally, the cost driver used for any labor resource is person hours. It is assumed that the staff person hours used are regul

20、ar 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 eventually, management will need to make a decision whether to expand capacity (or

21、 whether to cutRNumber of person hoursc.RNumber of computer transactionsd.ANumber of schedulese.RNumber of person hoursf.RNumber of loan inquiriesANumber of investmentsh.ANumber of applicationsi.RNumber of person hoursj.RNumber of minutesk.RNumber of person hoursl.ANumber of loansCostBehaviorFFVFV*

22、An argument can be 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 insuranc

23、e costs. However, the company had a contract for maintenance (fixed price), so this 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.back on labor). This is an

24、 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 not ask for it. Point out that activities almost always have mixed cost behavior because they consume various resources.

25、 Some of these are fixed-cost and others variable-cost resources. For example, the activity “research to evaluate a loan application” consumes such fixed -costresources as manager labor time and computers (assumed owned by the bank). This activity also consumes variable-cost resources such as teleco

26、mmunications 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 driverMonthlyManufacturing OverheadCostDriverActivityCost per Driver UnitMaterial Handling Direct materials cost$12,000$200,000$ 0.06Engi

27、neering Engineering change notices20,000201,000.00Power Kilowatt hours16,000400,0000.04Total Manufacturing Overhead$48,000Next, the costs of each activity can be allocated to each of the three products:PHYSICAL FLOW / ALLOCATED COSTCost Senior Basic DeluxeMaterial Handling$.06 25,000 = $1,500$.06 50

28、,000 = $ 3,000$.06 125,000 = $ 7,5Engineering $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 = 6,000Total $16,500 $16,000 $15,5002. Overhead rate based on direct labor costs:Rate = Total manufacturing overhead Total direct labor cost$48,00

29、0 $8,000 = $6.00/DL$Overhead allocated to each product is:$24,0006,000Senior:$6.00 4,000 =Basic:$6.00 1,000 =Deluxe:Total$6.00 3,00018,000$48,000Notice that much less manufacturing overhead cost is allocated to Basic using direct labor as a cost driver. Why? Because Basic uses only a small amount of

30、 labor but large amounts of other resources, especially power.3. The product costs in requirement 1 are more accurate if the costdrivers are good indicators of the causes of the costs - they are both plausible and reliable. For example, kilowatt hours is certainly a better measure of the cost of pow

31、er 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 manager would be much more confident in the manufacturing overhead allocated to products in requ

32、irement 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“best.4-B1 (20-30 min.)See Table 4-B1 on the following page.4-B2 (25-30 min.)1. $1,080,000 45,0

33、00 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) $495,000 30,000 hours = $16.50 per direct-labor hour4. (a) $24 (1 .0 + 14.0) = $360.00 $24 (1.5 +

34、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) + ($16.503.0) =$58.50 + $ 49.50 =$108.00($39 1.3) + ($16.508.0) =$50.70 +$132.00 = $182.70(c) ($6 12.0) + ($16.5014.0) =$ 72.00 + $231.00= $303.00($6 17.0) + ($16.503.0) =$102.00 + $ 49.50= $1

35、51.50($6 14.0) + ($16.508.0) =$ 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 decrease the cost applied to units of A and C and leave B unaffected. Other products that use relat

36、ively 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 (a). Why? Because Bs uses only 16% of the direct labor hours used for A, B, and C, so it is is alloc

37、ated 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. Therefore, it receives relatively more costs with a base of machine hours than with a base of direct-la

38、bor hours.WORD 完美格式TABLE 4-B1STATEMENT OF OPERATING INCOMEThousands of DollarsSales$990Cost of goods sold:Direct material400Indirect manufacturing94494Gross profit496Selling and administrative expenses:Commissions55Distribution to warehouses150Total selling and administrative expenses 205Contributio

39、n to corporate expenses and profit 291Unallocated expenses:Corporate salaries11Other general expenses17Total unallocated expenses28Operating income before tax$263OPERATING INCOME BY PRODUCT LINELawnHandScooterMowerTool Cost Type,PartsPartsParts Assignment Method$350$380$260175125100 Direct, Direct T

40、race68 11412 Indirect Mach.Hrs243139112107241148252010 Direct, Direct Trace20 28050 Indirect - Weight4510060$ 62$141$ 88Total machine hours is 8,500 + 1,750 + 1,500 = 11,750. Indirect manufacturing cost per machine hour isthen $94,000 11,750 = $8. The allocation toscooter parts is $8 8,500 machine h

41、ours = $68,000.Total weight shipped is 100,000 kg + 400,000 kg + 250,000 kg = 750,000 kg. Indirect distribution costs perkilogram is then $150,000 750,000 kg = $0.2 0. The allocation to scooter parts is $0.20 100,000 kg =$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

42、 costs based on direct labor cost. The rate for allocating indirect production 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 ofindirect production cost to the cost of the product.

43、2. Under an ABC system, Watanabe would allocate indirect production costs 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 contro

44、l units=￥ 13,800,000 92,000 = ￥150 per control unitQual. Control: Quality control 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 shipped8,0002,000 ￥2,000 .7 = 1,400)1,400￥11,400 ￥14,8203. (a) The cost will contain 3 compo

45、nents (in thousands of yen): Direct material ￥Direct laborIndirect production cost ( Total costPrice ( ￥11,400 1.3)(b) The cost will have 7 components, 4 of them allocating indirect production costs (totals in thousands of yen):Direct materials ￥ 8,000Direct labor2,000Receiving ( ￥0.08 8,000)￥640Ass

46、embly ( ￥150 5,000)750Quality control (￥3,000 50)150Shipping ( ￥500 600)300Total indirect production cost1,840Total cost ￥ 11,840Price (11 ,840 1.3) ￥ 15,392技术资料 专业整理4. The order from Nissan requires a relatively large amount of receiving, quality control, and shipping resources compared to the rela

47、tive amount of labor required. This makes its indirect production costs are relatively expensive relative to the labor required. The following illustrates why an allocation on the basis of labor cost results in less costs than allocations based on the four activities:Budgeted Cost-Nissan Cost-Nissan

48、ActivityAllocation BaseAllocation BasePercentageDirect materials60,000,0008,000,00013.3%Direct labor35,000,0002,000,0005.7Receiving60,000,0008,000,00013.3Assembly92,0005,0005.4Quality control600508.3Shipping8,2006007.3Using the single direct-labor cost-allocation base, this order would receive 5.7%

49、of all indirect production costs. The main reason that indirect production costs for this order under the ABC system are relatively high is the large relative cost of materials that drives a large allocation (13.3%) of receiving costs to this order. The allocations of both quality control and shippi

50、ng costs are slightly larger that they would be using a direct-labor cost-allocation base, while the allocation of assembly costs is slightly smaller.4-B4 (50-60 min.)1. A summary of the analyses follows.Base Gross Profit Percentage* Plan Gross Profit Percentage* Support of Product Manager? Support

51、of President?PenCasings1.25%10.80% StrongCell-PhoneCasings Company38.75%8.07%37.20%17.40%NoneModerate* See Exhibit 4-6 on p. 136 of the text. * See Panel B of Exhibit 4-B4 that follows.Exhibit 4-B4, Panels A and B on the following pages can be used to explain the impact of the controllers idea using

52、 the process map of the traditionalcosting system and the related financial reports. Notice that the $80,000 annual decrease in the cost of engineers needs to be converted to a $20,000 quarterly savings. The controller s idea will result in an increase of 9.55% in the gross profit of the pen-casings

53、 line but a decrease of 1.55% in the cell-phone line. The product manager of pen casings would probably give strong support to the idea but the cell-phone casings manager would most likely not support the idea.Although the company- level gross profit margin improves, the presidentssupport may not be

54、 strong. Why? There is not a strong consensus among productline managers. Top management is normally hesitant to support actions that do not have the unanimous support among product-line managers unless there is solid evidence of material improvement in profitability. While the current loss would be reversed, the return on sales is still nominal at 3,500 $480,000 = .73%.Exhibit 4-B4: Panel AProcess Map of Traditional Cost SystemAll IndirectResources$200,000Cost DriverDirect Labor Hours = 4,500 +1,000 = 5,500Direct Materials for Pen Casings $22,500DirectLabor forPenCasings$135,000D