Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 1, Problem 2E
Indicate whether the following costs of Procter & Gamble (PG), a maker of consumer products, would be classified as direct materials cost, direct labor
- a.
Depreciation on assembly line equipment in the Mehoopany, Pennsylvania, paper products plant - b. Licensing payments for use of Disney characters on children products
- c. Maintenance supplies
- d. Packaging materials
- e. Paper used in bath tissue
- f. Plant manager salary for the Iowa City, Iowa, plant
- g. Resins for body wash products
- h. Salary of process engineers
- i. Scents and fragrances used in making soaps and detergents
- j. Wages of production line employees at the Pineville, Louisiana, soap and detergent plant
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Question 22 (18 points)
Problem 2 – Accounting Changes (18 marks)
During the audit of Hoppy Ending Brewery for the fiscal year ended June 30, 2027, the auditors identified the following issues:
a. The company sells beer for $1 each plus $0.10 deposit on each bottle. The deposit collected is payable to the provincial recycling agency. During 2026, the company had recorded $12,000 of deposits as revenue. The auditors believe this amount should have been recorded as a liability.
b. The company had been using the first-in, first-out cost flow assumption for its inventories. In fiscal 2027, management decided to switch to the weighted-average method. This change reduced inventory by $25,000 at June 30, 2026, and $40,000 at June 30, 2027.
c. The company has equipment costing $6,000,000 that it has been depreciating over 10 years on a straight-line basis. The depreciation for fiscal 2026 was $600,000 and accumulated depreciation on June 30,…
Chapter 1 Solutions
Managerial Accounting
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - What manufacturing cost term is used to describe...Ch. 1 - Distinguish between prime costs and conversion...Ch. 1 - What is the difference between a product cost and...Ch. 1 - Name the three inventory accounts for a...Ch. 1 - In what order should the three inventories of a...Ch. 1 - What are the three categories of manufacturing...Ch. 1 - How do the manufacturing costs incurred during a...Ch. 1 - How does the Cost of goods sold section of the...
Ch. 1 - Management process Three phases of the management...Ch. 1 - Prob. 2BECh. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Jakes Cabins is a small motel chain with locations...Ch. 1 - Indicate whether each of the following costs of an...Ch. 1 - Indicate whether the following costs of Procter ...Ch. 1 - Prob. 3ECh. 1 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - Prob. 6ECh. 1 - Classifying costs In a service company A partial...Ch. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Financial statements of a manufacturing firm The...Ch. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Cost of direct materials used in production for a...Ch. 1 - Prob. 12ECh. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of Foothills Medical Centers costs...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1PBCh. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of The Grand Hotels costs follows:...Ch. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 1 - Prob. 2MADCh. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Prob. 4MADCh. 1 - Prob. 5MADCh. 1 - Prob. 1TIFCh. 1 - Communication Todd Johnson is the Vice President...Ch. 1 - For each of the following managers, describe how...Ch. 1 - The following situations describe scenarios that...Ch. 1 - Geek Chic Company provides computer repair...Ch. 1 - Which of the following items would not be...Ch. 1 - Prob. 2CMACh. 1 - A firm has 100,000 in direct materials costs,...Ch. 1 - In practice, items such as wood screws and glue...
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- Les Mills Ltd.'s policy is to report all cash flows arising from interest and dividends in the operating section. Les Mills activities for the year ended December 31, 2026, included the following: • Income tax expense for the year was $30,000. • Sold an investment at FVOCI for $45,000. The original cost of the investment was $52,000. • Depreciation expense for the year was $19,000. • Sales for the year were $1,030,000. • Selling and administration expenses for the year totaled $240,000. • Les Mills cost of goods sold in 2026 was $315,000. • Interest expense for the period was $12,000. The interest payable account increased $5,000. • Accounts payable increased $20,000 in 2026. • Accounts receivable decreased $36,000 in 2026. • Les Mills inventory increased $13,000 during the year. • Dividends were not declared during the year; however, the dividends payable account decreased $5,000. Required Prepare the cash flows from operating activities…arrow_forwardThe following is an excerpt from a company's financial records at year-end. Balance in CAD US dollars chequing account. $10,000 Cash in sinking fund account for a future repurchase of common shares. 50,000 Term deposit maturing 100 days after the year-end. 78,000 Bank loan (60,000) Cash restricted for plant expansion. 45,000 Cash on hand. 7,800 Bank overdraft - part of cash management system (9,000) The "cash and cash equivalents" in the cash flow statement will be: Question 20 options: ($51,200) $8,800 ($1,200) $17,800arrow_forwardWhat are investing activities? Question 19 options: Activities involving the acquisition and disposal of long-term assets and other investments. Activities involving the principal revenue-producing activities of the entity. Activities involving changes in the size and composition of the equity's borrowings. Activities that do not involve cash.arrow_forward
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