Solutions for Accounting
Problem 1DQ:
Explain the meaning of (a) differential revenue, (b) differential cost, and (c) differential income.Problem 2DQ:
A company could sell a building for 250,000 or lease it for 2,500 per month. What would need to be...Problem 3DQ:
A chemical company has commodity-grade and premium-grade products. Why might the company elect...Problem 4DQ:
A company accepts incremental business at a special price that exceeds the variable cost. What other...Problem 5DQ:
A company fabricates a component at a cost of 6.00. A supplier offers to supply the same component...Problem 7DQ:
In the long run, the normal selling price must be set high enough to cover what factors?Problem 8DQ:
Although the cost-plus approach to product pricing may be used by management as a general guideline,...Problem 11DQ:
Under what conditions might a company use activity-based costing to allocate factory overhead to...Problem 25.1APE:
Lease or sell Duncan Company owns a machine with a cost of 75,000 and accumulated depreciation of...Problem 25.1BPE:
Lease or sell Timberlake Company owns equipment with a cost of 165,000 and accumulated depreciation...Problem 25.2BPE:
Discontinue a segment Product B has revenue of 39,500, variable cost of goods sold of 25,500,...Problem 25.3APE:
Make or buy A restaurant bakes its own bread for a cost of 230 per unit (100 loaves), including...Problem 25.3BPE:
Make or buy A company manufactures various sized plastic bottles for its medicinal product. The...Problem 25.4APE:
Replace equipment A machine with a book value of 250,000 has an estimated six-year life. A proposal...Problem 25.4BPE:
Replace equipment A machine with a book value of 80,000 has an estimated five-year life. A proposal...Problem 25.5BPE:
Process or sell Product D is produced for 24 per gallon. Product D can be sold without additional...Problem 25.6APE:
Accept business at special price Product AA is normally sold for 120 per unit. A special price of...Problem 25.7APE:
Product cost markup percentage Light force Inc. produces and sells lighting fixtures. An entry light...Problem 25.7BPE:
Product cost markup percentage Green Thumb Garden Tools Inc. produces and sells home and garden...Problem 25.8APE:
Bottleneck profit Product A has a unit contribution margin of 21. Product B has a unit contribution...Problem 25.9APE:
Activity-based costing Mainline Marine Company has total estimated factory overhead for the year of...Problem 25.9BPE:
Activity-based costing Casual Cuts Inc. has total estimated factory overhead for the year of...Problem 25.1EX:
Differential analysis for a lease-or-sell decision Matrix Construction Company is considering...Problem 25.4EX:
Differential analysis for a discontinued product The condensed product-line income statement for...Problem 25.5EX:
Segment analysis for a service company Charles Schwab Corporation is one of the more innovative...Problem 25.6EX:
Decision to discontinue a product On the basis of the following data, the general manager of...Problem 25.7EX:
Make or buy decision Diamond Computer Company has been pure basing carrying cases for its portable...Problem 25.8EX:
Make-or-buy decision for a service company The Theater Arts Guild of Dailus (TAG-D) employs five...Problem 25.9EX:
Machine replacement decision A company is considering replacing an old piece of machinery, which...Problem 25.10EX:
Differential analysis for machine replacement Kim Kwon Digital Components Company assembles circuit...Problem 25.11EX:
Sell or process further Big Fork Lumber Company incurs a cost of 402 per hundred board feet (hbf) in...Problem 25.13EX:
Decision on accepting additional business Homestead Jeans Co. has an annual plant capacity of 65.000...Problem 25.14EX:
Accepting business at a special price Portable Power Company expects to operate at 80% of productive...Problem 25.16EX:
Accepting business at a special price for a service company Cityscape Hotels has 200 rooms available...Problem 25.17EX:
Product cost concept of product pricing La Femme Accessories Inc. produces women's handbags. The...Problem 25.18EX:
Product cost concept of product costing Smart Stream Inc. uses the product cost concept of applying...Problem 25.19EX:
Target costing Toyota Motor Corporation uses target costing. Assume that Toyota marketing personnel...Problem 25.20EX:
Target costing Instant Image Inc. manufactures color laser printers. Model J20 presently sells for...Problem 25.21EX:
Product decisions under bottlenecked operations Mill Metals Inc. has three grades of metal product....Problem 25.22EX:
Product decisions under bottlenecked operations Youngstown Glass Company manufactures three types of...Problem 25.23EX:
Activity-based costing CardioTrainer Equipment Company manufactures stationary bicycles and...Problem 25.24EX:
Activity-based costing Zeus Industries manufactures two types of electrical power units, custom and...Problem 25.25EX:
Activity rates and product costs using activity-based costing BriteLite Inc. manufactures entry and...Problem 25.26EX:
Total cost concept of product pricing Based on the data presented in Exercise 25-18, assume that...Problem 25.27EX:
Variable cost concept of product pricing Based on the data presented in Exercise 25-18, assume that...Problem 25.1APR:
Differential analysis involving opportunity costs On October 1, White Way Stores Inc. is considering...Problem 25.2APR:
Differential analysis for machine replacement proposal Lexigraphic Printing Company is considering...Problem 25.3APR:
Differential analysis for sales promotion proposal Parisian Cosmetics Company is planning a...Problem 25.7APR:
Activity-based costing Pure Cane Sugar Company manufactures three products (while sugar, brown...Problem 25.2BPR:
Differential analysis for machine replacement proposal Flint Tooling Company is considering...Problem 25.3BPR:
Differential analysis for sales promotion proposal Sole Mates Inc. is planning a one-month campaign...Problem 25.4BPR:
Differential analysis for further processing The management of International Aluminum Co. is...Problem 25.6BPR:
Product pricing and profit analysis with bottleneck operations Wilmington Chemical Company produces...Problem 25.7BPR:
Activity-based costing Southeastern Paper Company manufactures three products (computer paper,...Problem 25.1CP:
Ethics in Action Aaron McKinney is a cost accountant for Majik Systems Inc. Martin Dodd, vice...Problem 25.3CP:
Communication The following conversation took place between Juanita Jackson, vice president of...Problem 25.4CP:
Decision on accepting additional business A manager of Varden Sporting Goods Company is considering...Browse All Chapters of This Textbook
Chapter 1 - Introduction To Accounting And BusinessChapter 2 - Analyzing TransactionsChapter 3 - The Adjusting ProcessChapter 4 - Completing The Accounting CycleChapter 5 - Accounting SystemsChapter 6 - Accounting For Merchandising BusinessesChapter 7 - InventoriesChapter 8 - Internal Control And CashChapter 9 - ReceivablesChapter 10 - Long-term Assets: Fixed And Intangible
Chapter 11 - Current Liabilities And PayrollChapter 12 - Accounting For Partnerships And Limited Liability CompaniesChapter 13 - Corporations: Organization, Stock Transactions, And DividendsChapter 14 - Long-term Liabilities: Bonds And NotesChapter 15 - Investments And Fair Value AccountingChapter 16 - Statement Of Cash FlowsChapter 17 - Financial Statement AnalysisChapter 18 - Introduction To Managerial AccountingChapter 19 - Job Order CostingChapter 20 - Process Cost SystemsChapter 21 - Cost-volume-profit AnalysisChapter 22 - BudgetingChapter 23 - Evaluating Variances From Standard CostsChapter 24 - Decentralized OperationsChapter 25 - Differential Analysis, Product Pricing, And Activity-based CostingChapter 26 - Capital Investment Analysis
Sample Solutions for this Textbook
We offer sample solutions for Accounting homework problems. See examples below:
Chapter 1, Problem 1DQChapter 1, Problem 1.3APEChapter 1, Problem 1.3BPEChapter 1, Problem 1.12EXChapter 1, Problem 1.5APRChapter 1, Problem 1.6APRChapter 1, Problem 1.5BPRChapter 1, Problem 1.6BPRChapter 2, Problem 1DQ
Chapter 2, Problem 2.2APRChapter 2, Problem 2.3APRChapter 2, Problem 2.4APRChapter 2, Problem 2.3BPRChapter 2, Problem 2.4BPRChapter 2, Problem 1COPChapter 3, Problem 1DQChapter 3, Problem 3.3APRChapter 3, Problem 3.4APRChapter 3, Problem 3.5APRExplanation: Working note: Calculate the value of supplies expense Supplies expense = (The amount of...Chapter 3, Problem 3.3BPRChapter 3, Problem 3.4BPRChapter 3, Problem 3.5BPRChapter 4, Problem 1DQChapter 4, Problem 4.3APRChapter 4, Problem 4.4APRChapter 4, Problem 4.5APRChapter 4, Problem 4.3BPRChapter 4, Problem 4.4BPRChapter 4, Problem 4.5BPRChapter 4, Problem 1CPPChapter 5, Problem 1DQChapter 5, Problem 5.2APRChapter 5, Problem 5.3APRChapter 5, Problem 5.4APRChapter 5, Problem 5.2BPRChapter 5, Problem 5.3BPRChapter 5, Problem 5.4BPRChapter 6, Problem 1DQChapter 6, Problem 6.1APRChapter 6, Problem 6.2APRChapter 6, Problem 6.3APRChapter 6, Problem 6.4APRChapter 6, Problem 6.1BPRChapter 6, Problem 6.2BPRChapter 6, Problem 6.3BPRChapter 6, Problem 6.4BPRChapter 6, Problem 2COPExplanation: This procedure of reconciliation verifies that the inventory matches with the type and...Explanation: The inventory turnover ratio is calculated by dividing cost of goods sold by average...Chapter 7, Problem 7.3APRChapter 7, Problem 7.4APRChapter 7, Problem 7.5APRChapter 7, Problem 7.4BPRChapter 7, Problem 7.5BPRChapter 7, Problem 7.7CPInternal Control: Internal control refers to the policies, and plans of the business organization...Explanation: Journal entry 1: Establish petty cash fund. Date Account Title and Explanation Post Ref...The deposits which are not recorded by the bank are referred to as deposits in transit. Since the...The deposits which are not recorded by the bank are referred to as deposits in transit. Since the...Explanation: Journal entry 1: Establish petty cash fund. Date Account Title and Explanation Post Ref...Explanation: The deposits which are not recorded by the bank are referred to as deposits in transit....The deposits which are not recorded by the bank are referred to as deposits in transit. Since the...Chapter 9, Problem 1DQChapter 9, Problem 9.13EXChapter 9, Problem 9.14EXChapter 9, Problem 9.1APRChapter 9, Problem 9.4APRChapter 9, Problem 9.6APRChapter 9, Problem 9.1BPRChapter 9, Problem 9.4BPRChapter 10, Problem 1DQChapter 10, Problem 10.9APEChapter 10, Problem 10.9BPEChapter 10, Problem 10.11EXChapter 10, Problem 10.3APRChapter 10, Problem 10.5APRChapter 10, Problem 10.3BPRChapter 10, Problem 10.5BPRChapter 11, Problem 1DQChapter 11, Problem 11.1APRChapter 11, Problem 11.3APRChapter 11, Problem 11.5APRExplanation: Working notes: Calculate interest expense for discounted notes. Interest expense =...Chapter 11, Problem 11.3BPRExplanation: The following are the journal entries. 20Y5 Particulars Debit ($) Credit ($) January 3...Proprietorships: Proprietorship is a form of organization, which is owned, and controlled by an...Explanation: Working Notes for determining the division of net income between partner M and G under...Explanation: The income statement for 20Y3 of L&Y is as follows: L &Y Income Statement For...Explanation: Working Notes: Calculation of Allowances for Doubtful Accounts – Allowance for doubtful...Explanation: Working Notes for determining the division of net income between partner H and N under...Explanation: The income statement for 20Y2 of R&X is as follows: R&X Income Statement For...Explanation: Working Notes: Calculation of Allowances for Doubtful Accounts – Allowance for doubtful...Chapter 13, Problem 1DQExplanation: Record the declaration and issuance of stock dividends. Transaction Number Account...Chapter 13, Problem 13.3APRChapter 13, Problem 13.4APRChapter 13, Problem 13.5APRChapter 13, Problem 13.4BPRChapter 13, Problem 13.5BPRChapter 14, Problem 1DQExplanation: Determine Earnings per share of common stock. Particulars Plan 1 Plan 2 Plan 3 Net...Chapter 14, Problem 14.2APRExplanation: Prepare journal entry for cash proceeds from the issuance of the bonds on July 1, Year...Chapter 14, Problem 14.4APRChapter 14, Problem 14.1BPRChapter 14, Problem 14.3BPRChapter 14, Problem 14.4BPRChapter 15, Problem 1DQExplanation: Prepare journal entry for purchase of $100,000 bonds of Company W, at face amount with...Chapter 15, Problem 15.2APRChapter 15, Problem 15.3APRExplanation: Prepare journal entry for purchase of $100,000 bonds of Company SB, at face amount with...Explanation: Prepare journal entry for the purchase of 4,800 shares of Company AP, at $26 per share,...Chapter 15, Problem 15.3BPRStatement of cash flows: It is one of the financial statement, that shows the inflow and outflow of...Explanation: Working note: Prepare the schedule in the changes of current assets and liabilities....Chapter 16, Problem 16.21EXExplanation: Working notes: Calculate the amount of cash received from customers: (Cash received...Chapter 16, Problem 16.23EXChapter 16, Problem 16.3APRExplanation: Working note: Prepare the schedule in the changes of current assets and liabilities....Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, profitability,...Chapter 17, Problem 17.17EXChapter 17, Problem 17.19EXChapter 17, Problem 17.20EXExplanation: Working capital is the difference between current assets and current liabilities....Chapter 17, Problem 17.4APRChapter 17, Problem 17.3BPRChapter 17, Problem 17.4BPRChapter 18, Problem 1DQChapter 18, Problem 18.4EXChapter 18, Problem 18.4APRChapter 18, Problem 18.4BPRChapter 19, Problem 1DQChapter 19, Problem 19.12EXChapter 19, Problem 19.16EXChapter 19, Problem 19.2APRChapter 19, Problem 19.2BPRChapter 19, Problem 19.2CPChapter 20, Problem 1DQChapter 20, Problem 20.1APRChapter 20, Problem 20.2APRChapter 20, Problem 20.3APRChapter 20, Problem 20.4APRChapter 20, Problem 20.1BPRChapter 20, Problem 20.2BPRChapter 20, Problem 20.4BPRChapter 21, Problem 1DQExplanation: Determine the total variable cost. Particulars Total cost (A) Variable cost percentage...Chapter 21, Problem 21.5APRChapter 21, Problem 21.6APRExplanation: Determine the total variable cost. Particulars Total cost (A) Variable cost percentage...Explanation: Determine the break-even point in sales units for the overall Product E. Fixed cost...Chapter 21, Problem 21.6BPRExplanation: The three major objectives of budgeting are described below: To set the goals for the...Chapter 22, Problem 22.2APRChapter 22, Problem 22.3APRChapter 22, Problem 22.5APRChapter 22, Problem 22.2BPRChapter 22, Problem 22.3BPRChapter 23, Problem 1DQChapter 23, Problem 23.6APEChapter 23, Problem 23.6BPEChapter 23, Problem 23.14EXChapter 23, Problem 23.5APRExplanation: Determine the direct labor time variance. Direct labor time variance} = [(Actual direct...Chapter 23, Problem 5CPPChapter 24, Problem 1DQChapter 24, Problem 24.5EXExplanation: Determine ROI of MN Segment, if income from operations is $7,321,000,000, sales are...Chapter 24, Problem 24.16EXChapter 24, Problem 24.4APRChapter 24, Problem 24.2BPRChapter 24, Problem 24.4BPRChapter 25, Problem 1DQExplanation: Desired Profit: Company CD aims at earning a profit of 15% of the total investment made...Explanation: Desired Profit: Company NG aims at earning a profit of 10% of the total investment made...Chapter 26, Problem 1DQChapter 26, Problem 26.23EXChapter 26, Problem 26.6APRChapter 26, Problem 26.6BPR
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