Check Figures for Problems and Cases
Ray Garrison, Eric Noreen, and Peter Brewer
Managerial Accounting, 12th Edition
Chapter 1
No check figures
Chapter 2
Problem 2-14
Problem 2-15
Problem 2-16
Problem 2-17
Problem 2-18
Problem 2-19
Problem 2-20
Problem 2-21
Problem 2-22
Problem 2-23
Problem 2-24
Problem 2-25
Problem 2-26
Problem 2-27
Problem 2-28
Problem 2-29
Case 2-30
Case 2-31
Cost of shipping finished goods: variable, selling
(1) Manufacturing overhead: $60
Rent on warehouse: fixed, period
Plastic washers: variable, indirect
(1) Total internal failure cost this year: $4,000,000
(1) Cost of goods manufactured: $290,000
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Answering device: fixed, period
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(1) Total variable cost: $647,000
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(1) Cost of goods manufactured: $450,000
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(1) Direct labor: $65,000
Case 1, Goods available for sale: $24,000
(1) Cost of goods manufactured: $450,000
(2) Cost of goods manufactured: $680,000
Raw materials inventory: $70,000
Chapter 3
Problem 3-18
Problem 3-19
Problem 3-20
Problem 3-21
Problem 3-22
Problem 3-23
Problem 3-24
Problem 3-25
Problem 3-26
Problem 3-27
Problem 3-28
Problem 3-29
Problem 3-30
Problem 3-31
Case 3-32
Case 3-33
Case 3-34
(3) Underapplied: £13,000; (4) Net operating income: £82,000
(3) Overapplied: $3,000; (4) Net operating income: $52,000
(3) Underapplied: $4,000; (4) Net operating income: $15,000
(3) Overapplied: $3,000; (4) Net operating income: $31,594
(3) Overhead applied: $32,000; (4) Total cost: $60,700
(1) Research:, $35 per hour; (3) Total cost: $4,060
(3) Overapplied: $3,000; (4) Net operating income: $40,400
(2) Total overhead: $3,980; (3) $312.40 per unit
(2) Overhead applied in 2005: $1,500
(4) Cost of goods manufactured: $810,000; (7) Overapplied: $15,000
(2) Cost of goods manufactured: $342,000; (5) Direct materials: $20,000
(2) Underapplied: $270,000
(3) Cost of goods manufactured: $590,000; (6) $48.16 per unit
(2) Overhead applied: $21,750
(2) New approach: 88,000 units
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Chapter 4
Problem 4-19
Problem 4-20
Problem 4-21
Problem 4-22
Problem 4-23
Problem 4-24
Problem 4-25
Ending Work in Process: $63,200
Ending Work in Process: $64,000
(1) Conversion: 390,000 equivalent units; (3) Ending Work in Process: $45,000
(2) Materials: $0.90 per equivalent unit; (3) Ending Work in Process: $70,000
Cost to Outpatient Clinic: $60,000
(2) Conversion: 32,000 equivalent units
(1) Materials: $1.40 per equivalent unit; Ending Work in Process: $84,000
Problem 4-26
Problem 4-27
Case 4-28
Case 4-29
Case 4-30
Case 3-31
(1) Conversion: $3.00 per equivalent unit
(2) Manufacturing overhead: $7,000 debit balance
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(1) Materials: $0.31 per equivalent unit; Ending Work in Process: $6,400
(1) Transferred in: $0.84 per equivalent unit; Ending Work in Process: $6,240
(1) Overhead rate, Milling Department: $4.05 per machine-hour
Chapter 5
Problem 5-14
Problem 5-15
Problem 5-16
Problem 5-17
Problem 5-18
Problem 5-19
Problem 5-20
Problem 5-21
Problem 5-22
Problem 5-23
Case 5-24
Case 5-25
Case 5-26
Case 5-27
(3) Total cost: $16,000
(2) Net operating income: $19,000
(2) Shipping expense: Y = £20,000 + £8.00X
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(1) Y = $800 + $40X
(1) Y = $1,185 + $37.82X
(1) Y = $40,000 + $7,500X
(4) Total cost $182,100
(3) Cost of goods manufactured: $307,500
(3) Total cost: 283,500 pesos
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(1) Y = $28,352 + $2.58X
(4) Y = SFr64,840 + SFr2.06X
No check figure
Chapter 6
Problem 6-18
Problem 6-19
Problem 6-20
Problem 6-21
Problem 6-22
Problem 6-23
Problem 6-24
Problem 6-25
Problem 6-26
Problem 6-27
Problem 6-28
Problem 6-29
Problem 6-30
Case 6-31
Case 6-32
Case 6-33
(2) Break-even: $300,000
(1) Break-even: 15,000 units; (4) 17,500 units
(1) $8,600 loss
(1) 20,000 shirts; (3) $15,000 loss
(2) Break-even: 28,000 units
(1) Break-even: $100,000; (3) 57,500 pairs
(1) $24,000 total sales
(1b) Margin of safety: €80
(1) April net operating income: $62,000
(2) Break-even: 40,000 skateboards; (6a) 43,000 skateboards
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(1) Break-even: 50,000 units
(2c) Present margin of safety: $160,000
(1) $700,100 (rounded)
(2c) Break-even: $26,875,000
(2) 14,320 patient-days
Chapter 7
Problem 7-10
Problem 7-11
Problem 7-12
Problem 7-13
Problem 7-14
Problem 7-15
Problem 7-16
Problem 7-17
Case 7-18
Case 7-19
(1) Year 2 net operating income: $210,000
(1b) Net operating income: $70,000; (2b) Net operating loss: $10,000
(2) Net operating income: $40,000
(1b) Net operating income: $10,000; (3a) Net operating income: $40,000
(2) June net operating income: $90,000
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(2) Year 1 net operating income: $60,000
(1) Year 3 net operating income: $30,000
(1) 210,000 units
(2) Second Quarter net operating income: $270,000
Chapter 8
Problem 8-22
Problem 8-23
Problem 8-24
Problem 8-25
Problem 8-26
Problem 8-27
Problem 8-28
Problem 8-29
Case 8-30
Case 8-31
(3) Total cost of serving the Lazy Bee ranch: $161.50
(4) Yellow margin: ($11.30)
(3b) Deluxe model unit product cost: $335.60
(3a) $1,816.50 per thousand square feet
(2) Margin for local commercial work: ($25,200)
(2) Yellow margin: $158,800
(3a) Mono-circuit overhead cost: $30.75
(2b) XR7 unit product cost: $69.40
(2d) Yellow margin for Lynx Builders: $3,439
(3b) Overhead cost per pound of Malaysian: $3.65
Chapter 9
Problem 9-8
Problem 9-9
Problem 9-10
Problem 9-11
Problem 9-12
Problem 9-13
Problem 9-14
Problem 9-15
Problem 9-16
Problem 9-17
Problem 9-18
Problem 9-19
Problem 9-20
Problem 9-21
Case 9-22
Case 9-23
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(3) Ending cash balance: $5,000
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(1) August: 56,000 units; (3) July: 148,500 lbs.
(1) Total cash disbursements for materials for the year: $195,250
(2) Cash disbursements for manufacturing overhead for the year: $344,000
(1) May: $217,200; (2) May ending cash balance: $20,200
(1) Ending cash balance: $7,500
(1) August collections: $290,000; (3) August payments: $31,740
(2a) May purchases: $51,900; (5) Net income: $26,700
(1a) Third quarter cash collections: $523,000; (3) Third quarter ending cash balance: $18,500
(1) August collections: $47,760; (3) July ending cash balance: $8,410
(1) May production: 38,000 units; (3) Direct labor: $1,947,000
(2) March purchases: $55,300; (5) Net income: $7,690
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(2) June ending cash balance: $10,730; (3) Net income: $151,880
Chapter 10
Problem 10-16
Problem 10-17
Problem 10-18
Problem 10-19
Problem 10-20
Problem 10-21
Problem 10-22
Problem 10-23
Problem 10-24
Problem 10-25
Problem 10-26
Problem 10-27
Problem 10-28
Problem 10-29
Problem 10-30
Case 10-31
Case 10-32
(1a) Materials quantity variance: $500 F; (1b) Labor rate variance: $1,080 F
(1) Materials price variance: $1,600 F; (2a) Labor efficiency variance: $5,400 U
(1a) Materials price variance: $5,280 F; (2a) Labor efficiency variance: $4,320 F
(1a) Materials quantity variance: $9,000 U; (2a) Labor rate variance: $800 U
(1a) MCE month 1: 11.1%; (3a) MCE month 5: 33.3%
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(3) Standard cost of lanolin: €1,940.40 per batch
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(1) MCE month 1: 7.8%; (3a) MCE month 5: 21.4%
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(1) Standard cost of direct material: €6.10 per jar
(1a) Standard price: $3 per pound; (2b) Labor rate variance: $1,500 U
(1a) Materials price variance $3,000 F; (2a) Labor rate variance: $1,300 F
(1) Materials price variance: $3,000 F; (3) Variable manufacturing overhead spending
variance: $1,520 U
(1) Standard cost: $11,400; (5) Labor rate variance: $450 U
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Chapter 11
Problem 11-17
Problem 11-18
Problem 11-19
Problem 11-20
Problem 11-21
(3) Total variance: $7,050 U
(3a) Variable overhead spending variance: $3,250 U; (3b) Budget variance: $2,000 F
(2) Overhead applied: £92,000; (3) Volume variance: £8,000 U
(1) Flexible budget total cost at 780 liters: $38,779
(2) Materials price variance: $3,000 F; (3) Volume variance: $4,200 F
Problem 11-22
Problem 11-23
Problem 11-24
Problem 11-25
Problem 11-26
Problem 11-27
Problem 11-28
Case 11-29
Case 11-30
Case 11-31
(3a) Applied overhead: $360,000; (3b) Volume variance: $30,000 U
(3) Variable overhead spending variance: $430 F
(3a) 33,000 standard DLHs; (4) Budget variance: $1,000 U
(2) Total variance: $800 U
(2) Variable overhead spending variance: $3,000 U
(4a) 46,250 standard hours; (4c) Volume variance: $50,000 F
Total efficiency variance: $550 F
(2) Flexible budget total cost at the actual activity level: $340,112
Shipping expense variance: $16,000 F
No check figure
Chapter 12
Problem 12-21
Problem 12-22
Problem 12-23
Problem 12-24
Problem 12-25
Problem 12-26
Problem 12-27
Problem 12-28
Problem 12-29
Problem 12-30
Problem 12-31
Problem 12-32
Problem 12-33
Case 12-34
Case 12-35
(3) Middle Europe segment margin: €184,000
(2) Company A margin: 14%
(1) Total ROI: 28%
(2a) $36 ≤ transfer price ≤ $39; (3a) $35 ≤ transfer price ≤ $57
(1) Cost charged to Machine Tools Division: $81,500
(1) Central segment margin: $32,000
(1) ROI: 33%
(2) Profits would drop by $60,000
(1) Flour segment margin: $42,000
(3) ROI: 20%; (6) ROI: 25%
(3) Net loss per player: $20
(1) Cost to Milling: 380,000K
(1) Garments segment margin: R40,000
(1) Journal segment margin: $95,000
(3) $12.50 ≤ transfer price ≤ $19.25
Chapter 13
Problem 13-16
Problem 13-17
Problem 13-18
Problem 13-19
Problem 13-20
Problem 13-21
Problem 13-22
Problem 13-23
Problem 13-24
Problem 13-25
Case 13-26
Case 13-27
Case 13-28
Case 13-29
Case 13-30
(1) Decrease in profits: $450
(1) $0.35 per pound profit from further processing
(1) Decrease in net operating income: $20,000
(2) Maximum price: $0.43
(1) Increased net operating income: €90,000
(1) $140,000 disadvantage to close
(2) Breakeven price: $24.50
(1) $18,000 advantage to buy
(2) Hours required: 161,900 DLHs
(1) Incremental contribution margin: $0.98 per container
(1) Lowest price: $34,750
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(2) Selling price of flour should be at least $670
No check figure
Chapter 14
Problem 14-21
Problem 14-22
Problem 14-23
Problem 14-24
Problem 14-25
Problem 14-26
Problem 14-27
Problem 14-28
Problem 14-29
(2) NPV of cash flows: $(192,400)
NPV: $(45,210)
(2) Simple rate of return: 14%
NPV: $18,211
(2) NPV: $12,516
(1) Project #1: 0.18
(1) Net annual cash receipts: $63,900
(2) Simple rate of return: 14.2%
(2) NPV: $90,700
Problem 14-30
Problem 14-31
Problem 14-32
Problem 14-33
Problem 14-34
Problem 14-35
Problem 14-36
Problem 14-37
Case 14-38
Case 14-39
Case 14-40
(3a) Internal rate of return: 10%
(1) NPV in favor of leasing: $52,340
(3) Payback: 2.5 years
(1) Project A: 0.28
(1) Year 3 net cash flow: $30,000
(2) NPV of Alternative #2: $7,801
(1) NPV in favor of the new generator: $14,635
(1) NPV: $(63,011)
No check figure
(1) NPV in favor of leasing: $3,949,950
(1) NPV in favor of Alternative #2: $24,640
Chapter 15
Problem 15-9
Problem 15-10
Problem 15-11
Problem 15-12
Problem 15-13
Problem 15-14
Problem 15-15
Problem 15-16
Problem 15-17
Problem 15-18
No check figure
(1) Net cash provided by operating activities: $104
(1) Net cash provided by operating activities: $104
(2) Net cash used for investing activities: $164,000
(1) Net cash provided by operating activities: $39,000
(2) Net cash provided by financing activities: $67,000
(1) Net cash provided by operating activities: $21,000
(2) Net cash used for investing activities: $570,000
Net cash provided by operating activities: $356,000
Net cash provided by financing activities: $310,000
Chapter 16
Problem 16-11
Problem 16-12
Problem 16-13
Problem 16-14
Problem 16-15
Problem 16-16
Problem 16-17
Problem 16-18
Problem 16-19
(1d) Times interest earned his year: 27.4 days; (1d) Average collection period this year: 7.0
times
(1a) Earnings per share this year: $6.16; (1e) Price-earnings ratio this year: 7.3
(1b) Current ratio: 2.5
(1a) Return on total assets this year: 6.8%; (2e) Book value per share this year: $52
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Total assets: $1,500,000; Net income: $162,000
Pricing Appendix
Problem A-4
Problem A-5
Problem A-6
Problem A-7
Problem A-8
(1b) Target selling price: $90
(2) Price elasticity of demand: -1.2239
(3) Profit-maximizing price: $13.98
(2a) Markup: 75%
(1) Maximum purchase price: $3,320
Profitability Appendix
Problem B-4
(2) Total profit: $1,192
Problem B-5
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Problem B-6
(3) Total contribution margin: $151,000
Problem B-7
No check figure
Case B-8
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