亨格瑞管理會計英文第15版練習(xí)答案04

1、CHAPTER4COVERAGE OF LEARNING OBJECTIVESLEARNING OBJECTIVEFINW- MBHAL ASSIGH-MEMT MATKIALCRITICAL THINKING EXERCISES AfO EXERCISESPROBLBISCASES, EXCEL, OOLLAB. & INTWNET EXERCISESL01: Describe the purposes of cost management systems.31, 3450L02: Explain the relationship between cost, cost object,

2、 cost accunulation> and cost assignment.4556L03: Distinguish between direct and indirect costs.A1,B136, 37, 38,39, 4445, 4956L04: Explain the major reasons for al locating costs.B233, 414654L05: Identify the main types of manufactur i ng costs: direct materials, direct labor, and indirect product

3、ion costs.36, 37, 38,39L06: Explain how the financial statements of merchandisers and manufacturers differ because of the types of goods they sei I.A257, 60, 61L07: Understand the mainA3, A4,33, 40, 41,48, 49, 5055, 56,differences between traditional and activitybased costing systems and why ABC sys

4、tems provide value to managers.B3, B44257, 58,59, 60, 61L08: Use activity-based cost information to make strategic and operational control decisions.A4, B432, 37, 4348, 49, 5055, 56, 60CHAPTK4Cost Management Systems and Activity-Based Costing4-A1(20-30 min.)See Tab Ie 4-A1 on the fol lowing page.4-A

5、2(25-30 min.)1. Merchandi se Inventor ies, 1,000 devices $97$97,0002. Di rect mater i a Is i nventory$ 40,000Work-i n-process i nventory0Finished goods inventory97,000TotaI inventories$137,0003. NILE ELECTRON ICS PRODUCTSStatement of Operating IncomeFor the Year Ended December 31, 20X9Sales (9,000 u

6、nits at $170)Cost of goods sold:Beginning inventory$PurchasesCost of goods ava iIabIe for saIeLess end i ng i nventoryCost of goods sold (an expense)970,000$ 970, 00097, 000$1,530,000873, 000Gross margin or gross profit$657,000Less other expenses: selling & administrative costs 185,000 Operat i

7、ng i ncome (a I so i ncome before taxesi n thi s examp Ie)$472t 000TABLE 4-A1STATEMENT OF OPERATING INCOMEOPERATI NG INCOME BY PRODUCT LINEEXTERNAL REPORTING PURPOSEINTERNAL STRATEGIC DECISION MAK I NG PURPOSECustomLargeSma I IDetai ledStd.Std.Cost Type, Assignment MethodSa I es$155,000$30,000$45, 0

8、00$80,000Cost of goods sold:Di rect mater ia I40,0005, 00015, 00020,000Direct, Di rect TraceI nd i rect manufactur i ng_41,00028, 000 TotaI mach i ne hours i s 1,400 + 250 + 400 = 2,050. I nd i rect manufactur i ng cost per mach i ne hour i s then $41,000 -r 2, 050 = $20, The a I Iocat ion to custom

9、 detai Ied is $20 X 1,400 machine hours = $28,000.5, 0008, 000I nd i rect, Al Ioc. - Mach.Hours81,00033, 00020,00028,000Gross profit_74, 000(3, 000)25,000 _52,000Selling and administrative expenses:Commi ss i ons15, 0001,5003, 50010, 000Direct, Di rect TraceDi str ibut ion to warehouses10,4001, OOOT

10、otal weight shipped is 25,000 kg + 75,000 kg + 160,000 kg = 260,000 kg. Indi rect distribution costs per k i Iogram i s then $10,400 -r 260,000 kg = $. The a I Iocat i on to custom deta i Ied i s $ X 25,000 kg = $1,000.3,0006, 400I nd i rect, Al location - WeightTotaI selling and admin, expenses _25

11、,4002,5006, 500 _16, 400Contr ibut ion to corporate expensesand profit_48,600$ 500)$18,500$35,600Una I Iocated expenses:Administrative salaries8,OOOOther administrative expenses 4, 000TotaI unaI located expenses 12, 000Operat i ng i ncome before tax $36,6004.OR INOCO, INC.Statement of Operat i ng In

12、comeFor the Year Ended December 31, 20X9Sales (9,000 units at $170)$1,530, 000$ 0530,000970, 000$970,000Cost of goods manufactured and sold: Beginning finished goods inventoryCost of goods manufactured:Beginning WlP inventory$ 0Di rect mater ia Is usedDi rect Iabor290,000I nd i rect manufactur i ng1

13、50,000Tota I mfg. costs to account for $970, 000Less ending work-in- process i nventory 0Cost of goods ava iIabIe for saIe97, 000873,000$657,000185,000$472,000Less ending finished goods inventoryCost of goods sold (an expense) Gross margin or gross profitLess other expenses: selling and administrati

14、ve costsOperat i ng i ncome (a I so i ncome before taxesi n thi s examp Ie)5. The ba Iance sheet for the merchandi ser (Ni Ie) has just one Iine for inventor ies, the ending inventory of the items purchased for resaIe The ba Iance sheet for the manufacturer (Or i noco) has three items: d i rect mate

15、r i a Is i nventory, work-in-process i nventory, and finished goods i nventory.The i ncome statements are s imi I ar except for the computat i on of cost of goods avaiIabIe for saIe. The merchandiser (NiIe) simply shows purchases for the year pI us beginning inventory.In contrast, themanufacturer (O

16、r inoco) shows beginning work-in-process inventory pI us the three categor i es of cost that compr i se manufactur i ng cost (d i rect mater i a Is used, d i rect Iabor, and factory (or manufactur i ng) overhead) and then deducts the ending work-in-process inventory. The manufacturer then adds the b

17、eginning finished goods inventory to this cost of goods manufactured to get the cost of goods avaiI able for sale.6. The purpose is providing aggregate measures of inventory vaIue and cost of goods manufactured for externa I report ing to investors, creditors, and other externa I stakehoIders.4-A3(1

18、0-15 min.)There can be many justifiabIe answers for each item other than the Iisted cost dr i ver and behavior. The purpose of this exercise is to generate an act i ve d i scuss i on regard i ng those chosen by First Bank * s managers. One point that shouId be emphasized is that many times managers

19、choose cost dr i vers that are not the most pIaus i bIe or re Ii abIe because of I ack of data avai lability. Cost dr i vers are a I so used as a bas i s to a I Iocate activity and resource costs and so the avai lability of data is often an important consideration.ActivityOr ResourceCost DriverCost

20、Behaviora.*RNumber of square feetFb.*RNumber of person hoursFc.RNumber of computer transact i onsVd.ANumber of scheduIese.RNumber of person hoursFf.RNumber of Ioan inqui r iesVg.* aNumber of i nvestmentsh.ANumber of appIicat ionsRNumber of person hoursV J-RNumber of minutesVk.RNumber of person hours

21、FI.ANumber of Ioans*An argument canbe made that ma i ntenance of thebuiIding is an activity.If thi s was the case, resources such as suppIi es and Iabor wouId be resources consumed, and severaI resource cost dr i vers wouId be needed. In addition, a separate resource and associated cost dr i ver wou

22、Id be needed for insurance costs. However, the company had a contract for ma i ntenance (fi xed pr i ce), so this was a fixed-cost resource that was added to other occupancy costs such as i nsurance. The cost dr i ver chosen for a I I these occupancy costs was square feet occupied by the var ious de

23、partments. Norma I Iy, the cost dr i ver used for any Iabor resource i s person hours. It i s assumed that the staff person hours used are reguI ar hours rather than overtime or temporary Iabor hours. Thus, the cost is fixed with respect to changes i n hours used. As the hours used i increases (decr

24、eases) the ut i Ii zat i on of the resources i ncreases (decreases) and eventuaI Iy, management wiI I need to make a decision whether to expand capacity (or whether to cutback on Iabor). This i s an examp Ie of a step cost that i s fixed over wide ranges of cost-dr i ver I eve I.* Students may try t

25、o determine the cost behavior of activities even though the prob Iem requi rements do not ask for it. Point out that activities a I most a I ways have mixed cost behav i or because they consume var i ous resources. Some of these are fixed-cost and others var i abIe-cost resources. For example, the a

26、ctivity uresearch to evaIuate a Ioan application“ consumes such fixed-cost resources as manager Iabor time and computers (assumed owned by the bank).This activity a I so consumes var i abIe-cost resources such as teIecommun i cat i ons time and externa I comput i ng serv i ces.4-A4(20-30 min.)1.The

27、fi rst step i s to determine thecost per cost-dr iver unitfor eachactivity:Month IyCost-Cost perManufactur i ngDr verDr i verActivity Cost dr i verOverheadActivityUnitMater i a I Hand Ii ng Di rect mater ia Is cost$12,000$200,000$Engineer ing Engineer ing change not ices20,000201,Power Ki Iowatt hou

28、rs16, 000400,000TotaI Manufactur i ng Overhead$48,000Next, the costs of each activity can be a I located to each of the three products:PHYSICAL FLOW / ALLOCATED COSTCostSeniorBasicDeluxeMaterial Handl ing$. 06 X 25,000 = $1,500$. 06 X 50,000 = $ 3,000$. 06 X 125,000 = $ 7,5Engineering $1,000 X 13 =

29、13,000$1,000 X 5 =5,000$1,000 X 2 =2,000Power $.04 X 50, 000 =2, 000$, 04 X 200, 000 =8, 000$. 04 X 150,000 =6, 000Tota I$16,500$16,000$15,5002. Overhead rate based on di rect Iabor costs:Rate = TotaI manufactur i ng overhead 4- TotaI d i rect Iabor cost =$48,000 : $8,000 = $DL$Overhead a I Iocatedt

30、oeach product is:Senior:$X4,000=$24,000Basic:$X1,000=6, 000De Iuxe:$X3,000=18,000Tota I$48, 000Not ice that much less manufactur ing overhead cost i s a I located to Basic using di rect Iabor as a cost dr i ver. Why Because Basic uses only a smaI I amount of Iabor but Iarge amounts of other resource

31、s, especially pov/er.3. The product costs i n requi rement 1 are more accurate i f the cost dr i vers are good indicators of the causes of the costs - they are both plausible and re Ii abIe. For examp Ie, k iIowatt hours i s certa inly a better measure of the cost of power costs than i s d i rect Ia

32、bor hours. Therefore, the al location of power costs in requi rement 1 is certainly better than i n requi rement 2. Mater i a Is hand Ii ng and engineer i ng are Iikewise more plausible. A manager would be much more confident in the manufactur ing overhead a I located to products in requi rement 1.

33、Remember, however, that there are incrementaI costs of data col lection associated with the more accurate ABC system. The benefit/cost criteria must be applied in deciding which costing system is “best. ”4-B1(20-30min.)See Tab Ie 4-B1on the fol lowingpage.4-B2(25-30 min.)2.(a) $585, 000 G(b) $495, 0

34、00 :1.$1,080,000 -r 45,000 hours = $24 per di rect-1abor hour15,000 hours = $39 per di rect-1abor hour30,000 hours = $ per di rect-1abor hour3.(a) $585, 000 97, 500 hours = $6 per mach i ne hour4.(b) $495, 000 :30,000 hours = $ per di rect-1abor hour(a) $24 X$24 X$24 X+ = $(b) ($39 X($39 X($39 X+ ($

35、 X+ ($ X+ ($ X(c) ($6 X($6 X($6 X+($X=$+$=$+($X=$+$=$+($X=$+$=$(d) First consider using departmentaI instead of fi rm-wide rates (part b vs. part a). DepartmentaI rates that use di rect-1abor hours as the base decrease the cost appIi ed to units of A and C and I eave B unaffected. Other products tha

36、t use relatively I ess assembIy time wiI I increase in cost. Now examine changing to a base of machine hours i n machining (part c vs. part a). Product B i s the on Iy onewith an increase in cost inuses on Iy 16% of the di recti s i s a I Iocated on Iy 16% ofdi rect Iabor hours. But it(c) compared t

37、o (a). Why Because B* s labor hours used for A, B, and C, so it the costs a I located on the basis of uses 40% of the machine hours, andthere i s a I Iocated 40% of costs that are a I Iocated on the bas i s on machine hours. Therefore, it receives relatively more costs with a base of machine hours t

38、han with a base of di rect-labor hours.TABLE 4-B1STATEMENT OF OPERATING INCOMEOPERATINGINCOME BYPRODUCT ILINEThousands of Dol IarsLawnHandScooterMowerToolCost Type,PartsPartsPartsAssignment MethodSa I es$990$350$380$260Cost of goods sold:Di rect mater ia I400175125100Direct, Di rect TraceI nd i rect

39、 manufactur i ng9468 11412I nd i rect -494243139112Gross profit_496107241148Selling and administrative expenses:Commi ss i ons55252010Direct, Di rect TraceDi str ibut ion to warehouses_150_20 2_8050I nd i rect - WeightTotaI selling and administrative expenses_2054510060Contr ibut ion to corporate ex

40、penses and profit291$ 62$141$ 88Unai located expenses:Corporate salar ies11Other genera I expenses17Tota I unaI Iocated expenses28Operat i ng i ncome before tax$263TotaI mach i ne hours i s 8,500 + 1,750 + 1,500 = 11,750. I nd i rect manufactur i ng cost per mach i ne hour i s then $94, 000 4- 11,75

41、0 = $8. The a I Iocat ion to scooter parts is $8 X 8, 500 machine hours = $68, 000.TotaI weight shipped is 100,000 kg + 400,000 kg + 250,000 kg = 750,000 kg. Indi rect distribution costs per k iIogram i s then $150, 000 -r 750, 000 kg = $. The a I Iocat i on to scooter parts i s $ X 100,000 kg = $20

42、,000.4-B3(30-35 min.)1. The ex i st i ng system a I Iocates a I I costs based on d i rect Iabor cost. The rate for al locating indi rect production costs is:Estimated indi rect product ion cost 4- Estimated di rect Iabor cost 二 ¥ 24, 500, 000 4- ¥ 35, 000, 000 = 70%That is, each time ¥

43、; 1 is spent on di rect Iabor, Watanabe adds ¥ of indi rect production cost to the cost of the product.2. Under an ABC system, Watanabe wouId a I Iocate i nd i rect product i on costs separate Iy for each activity. This wouId result i n the fol lowing four a I Iocat ion rates:Receiving: Rece i

44、v i ng costs -r Di rect mater i a I cost=¥ 4, 800, 000 4- 60, 000, 000 = ¥ per ¥ 1of dir. mat.AssembIy:AssembIy costs -r Number of controI units=¥ 13, 800, 000 4- 92, 000 = ¥ 150 per control unitQua I. ControI: Qua Iity control cost 4- QC hours=¥ 1,800,000 600 = ¥

45、3,000 per QC hourShipping:Shipping cost 4- # of boxes shipped二¥ 4, 100, 000 4- 8, 200 = ¥ 500 per box shipped3. (a) The cost wi I I contain 3 components (in thousands of yen):Di rect mater i a I¥8, 000Di rect Iabor2, 000Indi rect production cost(¥ 2,000 X . 7 = 1,400)1y 400TotaI

46、cost¥11,400Price(¥ 11,400 X¥ 14,820a I Iocat i ng i nd i rect¥ 8,0002, 000¥ 6407501503001,840 ¥ 11,840(b) The cost wiI I have 7 components, 4 of them production costs (totaIs in thousands of yen):D i rect mater i a IsDi rect IaborReceiving (¥ X 8,000)Assembly (

47、5; 150 X 5,000)Qua Iity control(¥ 3,000 X 50)Shipping (¥ 500 X 600)TotaI indi rect production costTotaI cost¥ 15,392Price (11 ,840 X4. The order from Nissan requi res a relatively Iarge amount of receiving, qua Iity controI, and shipping resources compared to the re I at i ve amount o

48、f Iabor requi red. Thi s makes its indi rect product ion costs are relatively expensi ve re I at i ve to the Iabor requi red. The fol lowing i I Iustrates why an a I Iocat i on on the bas i s of Iabor cost results i n I ess costs than a I Iocat i ons based on the four activities:ActivityBudgeted Cos

49、t- Al location BaseNissan Cost-Allocation BaseN i ssanPercentageD i rect mater i a I s Di rect Iabor Rece i v i ng AssembIyQua Iity control Shipping60, 000, 00035,000, 00060,000,00092, 0006008,2008, 000, 0002, 000, 0008, 000, 0005,00050600Using the single di rect-1abor cost-aI Iocat ion base, this o

50、rder wouId recei ve % of a I I i nd i rect product i on costs. The ma i n reason that i nd i rect product i on costs for this order under the ABC system are relatively high is the Iarge re I at i ve cost of mater i a Is that dr i ves a Iarge a I Iocat i on %) of rece i v i ng costs to this order. Th

51、e al locations of both qua Iity control and shipping costs are sIightIy Iarger that they would be using a di rect-1abor cost- a I Iocat i on base, while the a I Iocat i on of assembIy costs i s sIi ghtIy smaI I er.4-B4(50-60 min.)1. A summary of the ana Iyses fol lows.Base Gross Profit Percentage* P

52、I an Gross Profit Percentage* Support of Product Manager Support of Pres i dentPenCas i ngs % %StrongCeI I-PhoneCasingsCompanyNoneModerate1 See Exhibit 4-6 on p. 136 of the text.2 * See Pane I B of Exhibit 4-B4 that fol lows.Exhibit 4-B4, Pane Is A and B on the fol lowing pages can be used to exp la

53、in the impact of the control I er f s idea using the process map of the traditional cost i ng system and the re Iated f i nanc i a I reports. Not i ce that the $80,000 annua I decrease in the cost of engineers needs to be converted to a $20,000 quarter Iy savings. The controller' s i dea wiI I r

54、esult i n an i ncrease of % i n the gross profit of the pen-casings Iine but a decrease of % in the ceI I-phone line. The product manager of pen casings wouId probabIy give strong support to the idea but the ceI I-phone casings manager wouId most IikeIy not support the idea.Although the company-1 ev

55、e I gross profit margin improves, the president' s support may not be strong. Why There i s not a strong consensus among product- Iine managers. Top management i s norma I Iy hesitant to support act ions that do not have the unanimous support among product-1ine managers unI ess there i s solid evidence of mater i a I improvement i n profitabi Iity. While the current Ioss wouId be reversed, the return on saIes i s still nomi naI at 3,500 4- $480, 000 = . 73%.Exhibit 4-B4: Pane I AProcess Map of Trad