Sou SOLUTIONS TO EXERCISES EXERCISE 18-1 (15-20 minutes) (a) Huish could recognize revenue at the point of sale based upon the time of shipment because the books are sold f.o.b. shipping point. Because of the return policy one might argue in favor of the cash collection basis. Because the returns can be estimated‚ one could argue for shipping point less estimated returns. (b) Based on the available information and lack of any information indicating that any of the criteria in FASB Statement
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Solution A homogeneous mixture of two or more substances with each substance retaining its own chemical identity. Solute – substance being dissolved. Solvent – liquid water. General Properties of a Solution 1. Contains 2 or more components. 2. Has variable composition. 3. Properties change as the ratio of solute to solvent is changed. 4. Dissolved solutes are present as individual particles. 5. Solutes remain uniformly distributed and will not settle out with time. 6. Solute
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CHAPTER 10 Standard Costing and Performance Measures for Today’s Manufacturing Environment ANSWERS TO REVIEW QUESTIONS 10-1 Management by exception is a managerial technique in which only significant deviations from expected performance are investigated. 10-2 Any control system has three basic parts: a predetermined or standard performance level‚ a measure of actual performance‚ and a comparison between standard and actual performance. The system works by making the comparison between
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CHAPTER FOUR Q4.3. Power Toys (a) Since every resource has exactly one worker assigned to it‚ the bottleneck is the assembly station with the highest processing time (#3) (b) Capacity = 1 / 90 sec = 40 units per hour (c) Direct labor cost = Labor cost per hour / flow rate = 9*$15/h / 40 trucks per hour = $3.38/truck (d) Direct labor cost in work cell= (75+85+90+65+70+55+80+65+80) sec/truck * $15/hr = $2.77/truck (e) Utilization = flow rate / capacity 85 sec / 90 sec = 94.4% (f) (g) Capacity = 1
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Chapter 15 Entities Overview SOLUTIONS MANUAL Discussion Questions 1. [LO 1] What are the more common legal entities used for operating a business? How are these entities treated similarly and differently for state law purposes? Answer: Corporations‚ limited liability companies (LLCs)‚ general and limited partnerships‚ and sole proprietorships. These entities differ in terms of the formalities that must be observed to create them‚ the legal rights and responsibilities conferred on
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Chapter 04 Analyzing Investing Activities Multiple Choice Questions 1. Which of the following would rarely be classified as a current asset? A. Prepaid insurance B. Goodwill C. Marketable Securities D. Work-in-progress 2. Which of the following would not be classified as a current asset? A. Inventory B. Accounts payable C. Accounts receivable D. Prepaid expenses 3. An asset is considered to be liquid if: A. it is readily converted into a current asset. B. it is
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administrative‚ and marketing and selling cost. The rent would most likely be prorated on the basis of the amount of space occupied by manufacturing‚ administrative‚ and marketing operations. 6. The wages of the company’s bookkeeper: administrative cost. 7. Sales commissions paid to the company’s salespeople: marketing and selling cost. 8. Depreciation on power tools: manufacturing overhead cost. Exercise 2-2 (15 minutes) Product Cost Period Cost 1. The cost of the memory chips used in
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CHAPTER 2 The Financial Statements BRIEF EXERCISES BE2–1 2008 2008 2008 Beginning Ending Retained 2008 2008 2008 Retained Earnings + Revenues – Expenses – Dividends = Earnings $28.2 + $43.3 – $38.2 – X = $30.6 X = $2.7 2008 Dividends as a percentage of 2008 net income: 2008 Dividends = $ 2.7 = 52.9% 2008 Net income ($43.3-$38.2) $ 5.1 BE2–2 1) Current Liabilities financed $32 billion of the
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CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-20 (15–20 min.) Classification of costs‚ manufacturing sector. Cost object: Type of car assembled (Corolla or Geo Prism) Cost variability: With respect to changes in the number of cars assembled There may be some debate over classifications of individual items‚ especially with regard to cost variability. |Cost Item |D or I |V or F | |A
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E20-7 Rydell Corp Memo Record Items Annual Pension Expense Cash OCI—Prior Service Cost Pension Asset/Liability Projected Benefit Obligation Plan Assets Balance‚ Jan. 1‚ 2012 13‚800 cr 560‚000 cr 546‚200 dr Prior service cost 120‚000 dr 120‚000 cr New Balance‚ January 1‚ 2012 680‚000 cr 546‚200 dr Service cost 58‚000 dr 58‚000 cr Interest Cost $680‚000 x 9% = $61‚200 61‚200 dr 61‚200 cr Actual return 52‚280 cr 52‚280 dr Unexpected
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