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CHECK FIGURES
FOR SELECTED EXERCISES, PROBLEMS AND CASES
COST ACCOUNTING, 14 th Edition, by Carter

EXERCISE,
PROBLEM,
or CASE

CHECK FIGURE

E2-2
E2-3
E2-6
E2-8
E2-11
E2-12
C2-1
C2-2

(4) Total cost incurred, $828,000

Operating loss, $(500,850)
Fact ory overhead cost per blade, $300
Fact ory overhead cost per machine, $1,500
(4) Total variable cost, $20; (5) Total cost, $53,900
Direct labor cost, $3,000
(1) Percentage profit margin, 82.50% ; (2) Percentage profit margin, 60%
(3) Total cost, $2,800; (5) Total cost, $4,500

E3-1
E3-2
E3-3
E3-4
E3-5
E3-6
E3-7
E3-8
E3-9
E3-10
P3-1
P3-2
P3-3
P3-4
P3-5
P3-6
P3-7
P3-8

Fixed cost, $260

Variable cost, $.6936 per direct labor hour
b = $60
a = $356
r = .92
r2 = .882
(2) b = $.384
(2) r2 = .7753
s' = $114.018
s' = $62
(1)(a) r2 = .8957
(3) b = $.29141
(3) a = $836.20
(3) r2 = .91489
(1) b = $.1015
(2) r2 = .916
(3) s' = $324
(2) b = $.979213

E4-1
E4-2
E4-3
E4-4
E4-7
E4-8
P4-1
P4-2
P4-3
P4-5
P4-7

Cost of goods sold, $130

Cost of goods sold, $310
(1) Cost of goods manuf actured. $386,000
(1) Total overhead, $78,390; (2) Cost of goods manuf act ured, $282,060;
(3) Finished goods ending balance, $47,662
Cost of goods manufactured, $1,050
Cost of goods sold, $795,800
(1) Cost of goods sold, $60
(1) Cost of goods sold, $140
(1) Cost of goods manuf actured, $348,000
(8) Payment of payroll, $259,000
(3) Cash, $36,412

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E5-3
E5-4
P5-1
P5-2
P5-3
P5-4
P5-5
P5-6
P5-8

(1)
(3)
(1)
(3)
(7)
(1)
(2)
(3)
(4)

CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter

Direct labor in finished goods, $14,000
Cost of goods manufactured, $184,800
Total cost put into process, $217,200; (3) Cost of goods sold, $219,600
Cost of goods manufactured, $28,630; (5) April gross profit, $10,375
Overapplied factory overhead, $(3,000)
Cost of goods sold, $76,030; (2) Income before income tax, $22,730
Cost of goods soldadjusted, $40,000
Total, $51,306
Cash, $171,320; Work in Process, $46,075

E6-1
E6-2
E6-3
E6-4
E6-5
E6-6
E6-7
E6-8
E6-9
E6-10
E6-11
E6-12
P6-1
P6-2
P6-3
P6-4
P6-5
P6-6
P6-7
P6-8

(1) Equivalent units for overhead, 23,000

Cost transferred from Dept. X to Dept. Y, $300,000
Work in process, ending inventory, $12,672
Total average cost per equivalent unit, $8.00
Cost transferred to Painting Dept., $155,000
Equivalent units for labor and overhead, 2,300
Work in process, ending inventory, $6,200
Cost transferred to Bottling Dept., $15,600
Equivalent units for overhead, 29,600
Cost transferred to Assembly Dept., $84,935
Work in process, ending inventory, $32,800
Cost transferred to Finished Goods, $26,280
Cost transferred from Cutting Dept. to Assembly Dept., $45,500
Total average cost per equivalent unit, $4.10
Assembly Dept. w ork in process, ending inventory, $85,656
Equivalent units for overhead in the Blending Dept., 6,550
Cost transferred from Blending Dept. to Finished Goods, $24,840
Cost transferred from Cutting Dept to Assembly Dept., $128,350
Fabrication Dept. w ork in process, ending inventory, $59,40 0
Equivalent units for labor in the Mashing Dept., 2,940

E7-1
E7-2
E7-3
E7-4
E7-5
E7-6
E7-7
E7-8
E7-9
E7-10
E7-11
E7-12
P7-1
P7-2
P7-3

(1) Credit to scrap sales, $1,650

Debit to Factory Overhead Control, $112
Debit to Factory Overhead Control, $1,700
Debit to Spoiled Goods Inventory, $10,000
Debit to Factory Overhead Control, $700
Cost of Goods Sold, $73,500
Charge to Factory Overhead Control for spoilage, $3,725
Cost transferred to Finished Goods, $102,600
Total average cost per unit, $.50
Charge to Factory Overhead Control for spoilage, $8,250
(1) Work in process, ending inventory, $25,800
Cost transferred to Bottling Dept., $18,300
(1) Charge to Factory Overhead Control, $1,450
(2) Sales revenue, $121,800
(1) Charge to Factory Overhead Control, $2,000
Charge to Factory Overhead Control for spoilage of Assembling Dept.,
$12,000
Cost transferred from Mixing and Brew ing Dept. to Canning Dept., $6,440
Charge to Factory Overhead Control for spoilage of Fabricating Dept., $810
Distillation Dept. w ork in process, ending inventory, $2,760

P7-4
P7-5
P7-6
P7-7

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CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter

P8-1
P8-2
P8-3
P8-4
P8-5
P8-6

(2) Cost of goods sold, B, $808,200

(1) May gross profit, T, $45,000
(2) Gross profit for Alpha, $73,792
(3) Gross profit for Jana, $50,000
(2) Finished goods inventory, SPL-3, $178,160
(1) Total cost accounted f or, Process 3, $137,500; (3) Total unit cost, Process
2, $4.10

E9-2
E9-3
E9-6
E9-8
E9-9
E9-11
P9-3
P9-5
P9-6
P9-7

Quantity to order for November delivery, 4,400 units

(1) Quantity to order f or March delivery, 5,800 units
(2) Ordering and carrying costs, $1,510
(4) Absolut e maximum invent ory, 6,000 units
(3) Normal maximum inventory, 3,960 unit s
(1) Jan. 27 invent ory, $842
(2) Normal maximum inventory, 4,300 unit s
(1) March 31 invent ory, $12,400
(2) (b) Dec. 5 invent ory, $3,900
(1)(a) April 30 invent ory, $7,805.60; (b) April 30 inventory, $7,700; (c) April
30 invent ory, $6,800
(1)(b) Optimum production run of desks, 2,000

C9-1
E10-1
E10-3
E10-4
E10-10
E10-11
P10-1
P10-2
P10-3
P10-4
P10-5
P11-1
P11-2
P11-3
P11-4
P11-5
P11-6
P11-7
P11-8
P11-9
P1110

Expected annual savings, $40,500

Expected annual savings, $2,200,000
(1)(c) Per unit, $66.726
(4) Difference, rounded t o the nearest tenth of one percent, 0.9%
(3) Difference, rounded t o the nearest tenth of one percent, 0.1%
(1) Expected annual savings, $720,000
(1) Average lead time, 42 days
(2) Cost of Goods Sold balance at June 30, $1,810,700
(2) Cost of Goods Sold balance at May 31, $1,306,200
(1) Estimated before-tax dollar savings, $37,500
(1) Per-unit conversion cost for 40 units, $4.40
(2) Incentive plan unit conversion cost, $13.55
(1) Monday' s unit labor cost, $.514
(2) Conversion cost per unit, $.3685
Underpayment, Emerson Ef ficiency System: Suggs, $35.60; Ward, $39.76
(2) Group' s tot al earnings for w eek, $1,380
(1) Factory w orkers' share of bonus, $9,375
(1) Direct labor hours per unit for t he next order, 2.4192
(2) Factory overhead charge for Employee #1071, $333.20
(3) Accrued Payroll, $2,640

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CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter

E12-1
E12-5
E12-7
E12-8
E12-9
E12-11
P12-1
P12-3
P12-4
P12-5
P12-6
E13-3
E13-4
E13-6
E13-7
E13-8
E13-13
E13-14
P13-1

(1) Fixed overhead, $1,750,000

(2)(a) Factory overhead rate, $16.69
(2) Underapplied fact ory overhead, $10,600
Overapplied overhead, $(1,086)
(2) Underapplied overhead, $461
(3) Overapplied factory overhead, $(9,000)
(2) Predetermined rate at practical capacity, $316.67 per machine hour (MH)
(1) Total cost of Job 50, $156,750
(3) Amount included in cost of goods sold for Job 1376, $91,700; (4) Cost
assigned to w ork in process account at end of year 20 , $205,800
(1) Factory overhead rate, $.95; (5) Underapplied overhead, $2,450
(2) Total act ual factory overhead, $117, 000

P13-6
P13-7
P13-8

(1) Job 437 Overhead, $30.18

(1) Plantw ide rat e per direct labor hour, $.83
Mixing Dept. rate, $3.00; Finishing Dept rat e, $4.00
(2) Plantw ide rat e per direct labor hour, $36.317
(2) Job No. 3752 tot al, $331
(2) Job No. 345 total, $2,425
(2) Job No. 103 total, $47,500
(2) Overhead rat es: Grinding Dept., $82.25 per machine hour; Smoothing Dept.,
$11.73 per direct labor hour; (3) Overhead rates: Grinding Dept., $84.05 per
machine hour; Smoothing Dept., $11.49 per direct labor hour
(2) Cutting Dept., $2.30 per machine hour; Assembly Dept., $4.50 per direct
labor hour; Finishing Dept., $1.50 per direct labor hour
Dept. 10 overhead rate per machine hour, $100.00
Overhead rates per direct labor hour: (1) Molding Dept., $10.60; Assembly Dept.,
$2.46; (2) Molding Dept., $9.80; Assembly Dept., $2.66
(1) Pow erhouse = $30,000; Personnel = $40,000; Gen. Factory = $50,000
(2) Factory overhead applied to Dept. 10, $8,928
(2) Job No. 564 total, $3,350; (4)(b) Job No. 564 total, $4,175

E14-3
E14-4
E14-7
E14-9
P14-1
P14-2
P14-3
P14-4
P14-5
P14-6
C14-1
C14-2

$2,000 overstatement
$4,800 overstatement
(1) Overhead cost allocated, $126; (2) Overhead cost allocat ed, $554
(1) Overhead cost allocated, $140; (2 ) Overhead cost allocat ed, $740
(3) Overhead rat e, $57 per setup
(3) Overhead rat e, $1,020 per set up
(1) Custom cost per unit, $1,900; (2) Standard cost per unit, $106.98
(1) Fancy cost per unit $1,000; (2) Plain cost per unit , $87.34
(1) Super cost per unit, $400; (2) Normal cost per unit, $34
Large cost per unit : (1) $172; (2) $156.80
#321 cost per unit : (1) $135; (2) $84.83
#33 cost per unit : (1) $557.40; (2) $525.30; (4) $816.35

P13-2
P13-3
P13-4

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CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter

E15-1
E15-2
E15-3
E15-4
E15-5
E15-6
E15-7
E15-8
E15-9
P15-1
P15-2
P15-3
P15-4
P15-5
P15-6
P15-7
P15-8
P15-9

Total budget ed sales revenue, $1,136,040

Budgeted Production for Flop, 21,500 units
Budgeted Production for Moon Glow , 251,200 equivalent units
(1) Budgeted Production for Low Band, 190 units
(4) Materials purchase budget for Material A, $10,900
(3) Total variable manufacturing cost for Tribolite, $89,100
Budgeted purchases, $2,600,000
Income before income tax, $190,000
Operating income before taxes and interest, $1,617,000
(4) Total budget ed labor, $2,147,000
(1) January tot al DLH, 20,000
(2) Total cost of budgeted purchases of Mat erial 101, $255,840
(1) 6-month tot al budgeted sales, 1,327,500 units
(1) First quarter budget ed net income, $56,000
(2) Budgeted billing rat e for Vickers, $52.00
Model 100, planned production, 12,100 units
Predet ermined overhead rate for Testing Dept., $11.00 per machine hour
(1) Ending balance in retained earnings, $99,300

E16-1
E16-2
E16-3
E16-4
E16-5
E16-6
E16-7
E16-8
P16-1
P16-2
P16-3
P16-4
P16-5
P16-6
P16-7
P16-8
P16-9

January ending cash balance, $20,500

May cash disbursements f or mat erials purchases, $619,360
July cash disbursements f or purchases of Tee, $509,600
Ending cash balance, $1,550
(2) Critical path 1-2-5-6-7, 11 w eeks
Expected time for activity 1 -2, 2.00 days
(2) Slack time at event 3, 1 day
(4) Slack time at event 2, 2 days
(1) Budgeted cash disbursements for June, $323,279
Cash to be borrow ed in April, $122,000
Cash balance at the end of 20B, $75,000
Current financing required, $84,162
(1) Total cash revenue, $709, 100
(1) Total cash receipts during July, $4,580,000
(2) Cost of operating on t he first day, $1,600
(3) Total normal cost, $17,100
(1) Critical path A-B-E-H-K-L, 11 w eeks

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CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter

E17-1
E17-2
E17-3
E17-4
E17-5
E17-6
E17-7
E17-8
E17-9
E17-10
P17-1
P17-2
P17-3
P17-4
P17-5
P17-6

(2) Maintenance Dept. spending variance, $5,500 unf av.

(3) Carpent er Shop idle capacity variance, $2,450 unfav.
(2) Payroll Dept. spending variance, $(455) fav.
(1) Total cost billed to Dept. A, $2,800
(1) First quarter tot al billing to Cutting Dept., $5,400
Total act ual cost per mile, $.0059 under budget
Total budget ed cost at 90% capacity, $34,090
Total budget ed cost at 110% capacity, $27,500.00
Total spending variance, $220 unfav.
Idle capacity variance, $12,280 unfav.
(2) Dept. A overhead, $2,191 underapplied
(2) Planers overhead rat e, $3.825 per DLH
(2) Machining Dept. spending variance, $328 unf av.
Total variable cost at 90% capacity, $102,645
(2) Total spending variance, $689.00 unfav.
(2) Idle capacity variance, $600.00 unfav.

E18-1
E18-2
E18-3
E18-4
E18-5
E18-6
E18-7
E18-8
E18-9
E18-10
E18-11
E18-12
E18-13
E18-14
E18-15
P18-1
P18-2
P18-3
P18-4
P18-5
P18-6
P18-7
P18-8
P18-9
P18-10

Materials quantity variance, $2,700 unfav.

Materials purchase price variance, $(2,500) fav.
(2) Materials price usage variance, $1,278 unfav.
Labor efficiency variance, $500 unfav.
(2) Labor rate variance, $93 unfav.
Controllable variance, $20,500 unf av.
Volume variance, $4,800 unf av.
Variable efficiency variance, $2,320 unfav.
Spending variance, $650 unf av.
(2) Spending variance, $(5,000) fav.
Materials mix variance, $(4,500) fav.
(2) Materials yield variance, $540 unfav.
Total controllable variance, $282 unf av.
Idle capacity variance, $(800) fav.
Fixed efficiency variance, $(500) fav.
(2) Volume variance, $1,000 unfav.
(1) Standard quantity allow ed for Mat erial A, 14,700 unit s
(2) Labor efficiency variance, $2,300 unf av.
(2) Materials quantity variance, $8,000 unfav.
(2) Variable efficiency variance, $200 unfav.
(3)(b) Labor efficiency variance f or Lot 22, $(98) fav.
Volume variance, $1,005 unf av.
Total spending quantity variance, $690 unfav.
Fact ory overhead efficiency variance, $3,150 unfav.
Fixed efficiency variance, $20,000 unf av.

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CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter

E19-1
E19-2
E19-3
E19-4
E19-5
E19-6
E19-7
E19-8
E19-9
E19-10
E19-11
E19-12
P19-1
P19-2
P19-3
P19-4
P19-5
P19-6
P19-7
P19-8
P19-9
P1910

Materials quantity variance, $42 debit

(3) Materials price usage variance (fifo inventory), $760 debit
Labor efficiency variance, $1,140 debit
Labor efficiency variance, $900 credit
(3) Controllable variance, $8,700 credit
(4) Controllable variance, $2,900 debit
(3) Variable efficiency variance, $1,600 debit
(3) Volume variance, $3,000 debit
Adjust ed end-of-year balance in Finished Goods Invent ory, $181,400
Total net variances charged to Work in Process, $2 37.50 debit
Idle capacity variance, $2,040 debit
Spending variance, $7,200 credit
Labor efficiency variance, $400 debit
Materials quantity variance, $3,000 debit
Volume variance, $2,250 credit
Net manufacturing variances, $90 fav.
Net income, $1,741,700
(1) Volume variance, $12,000 debit
(1) Labor efficiency variance, $1,400 credit
(3) Work in Process adjust ed to act ual cost, $15,150
Overhead efficiency variance, $500 debit
Spending variance, $520 credit

E20-1
E20-2
E20-3
E20-4
E20-5
E20-6
E20-7
E20-8
E20-9
E20-10
E20-11
E20-12
E20-13
P20-1
P20-2
P20-3
P20-4
P20-5
P20-6
P20-7
P20-8
P20-9
P2010

Operating income, $412,000

(1) Cost of goods sold at standard under absorption costing, $6,500,000
(2) Operating income under direct costing, $96,000
Break-even point, $10,000
(1) Break-even point, 13,000 units
Margin of saf ety, $500,000
(1) Break-even point, $15,000
(1) Break-even point, $50,000
Fixed cost, $1,190,000
Break-even point, $1,500,000
(2) Required sales, $1,275,000
(1) Sales price to break-even, $6.50
Break-even point, $140,000 and 7,000 unit s
Operating income, $100,000
(2) Operating income under direct costing, $296,000
(1) Operating income under absorption costing, $191,000
(2) First quarter operating income under direct costing, $22,600
(1) Break-even point w ith capital-intensive manufact uring, 210,000 units
(2) Units to be sold at $40 each to produce required profit, 4,500
Sales to produce required profit, 12,324 unit s of B2 plus 18,486 units of B4
(1) sales t o break-even, 40,000 tape recorders plus 80,000 calculat ors
(1) (a) Sales to break-even, 500 units
(2) Break-even point, $1,000,000

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CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter

E21-1
E21-2
E21-3
E21-4
E21-5
E21-6
E21-7
E21-8
E21-9
E21-10
E21-11
E21-12
E21-13
E21-14
E21-15
P21-1
P21-2
P21-3
P21-4
P21-5
P21-6
P21-7
P21-8
P21-9
P2110
E22-1
E22-2
E22-3
E22-4
E22-5
E22-6
E22-7
P22-1
P22-2
P22-3
P22-4
P22-5
P22-6
P22-7

Differential profit from accepting new business, $1,595

(1) Differential cost, $250,000
Differential profit from sale, $45,000
Savings from manufacturing part, $5,000
Savings from purchasing pist ons, $6,000
(1) Gross contribution margin from Tift, $14,000
Net contribution margin, $.70 per unit
(1) Minimum bid price, $.008 per dose
Average daily franchise fee collections, $52,500
Annual savings w ith new AZ-17 process, $125,333
Marking board contribution margin w hen using automated assembly, $19.90
Maximum contribution margin, $900
Maximum contribution margin, $2,600
Minimum cost, $17
Minimum cost, $8,200
(1) Increment to pretax profit, $ 432,000
(1) Increase in net income by accepting bid, $27,900
(1) (c) Differential cost if level production is used, $88,785
Group I total production costs, $32,050
(1) Differential cost of special order, $34,750
Total operating income w ith additional capacity, $65,855
(1) Sales required to recover fixed overhead and regional promotion cost s,
160,000 units
Annual cost savings w ith discount quantity plan, $41,850
(1) Net revenue w ith plain paper and bulk mail, $1,083,600
(1) Net local market contribution, $310,000

Excess cash inflow s over outflow s, $200,000

Excess cash inflow s over outflow s, $116,000
Total price-level adjusted pretax cash inflow s, $128,795
Excess of pret ax cash inflow s over outflow s, $524,070
Excess of net after-tax cash inflow s over outflow s, $360,000
Excess of net after-tax cash inflow s over outflow s, $114,000
Excess of net after-tax cash inflow s over outflow s, $60,000
Excess of inflation-adjusted net after-tax cash inflow s over outflow s, $47,278
Excess of net after-tax cash inflow s over outflow s, $7,560
(1) Total after-tax cash inflow s from making product, $3,868,000
Excess of inflation-adjusted net after-tax cash inflow s over outflow s, $347,940
(2) Excess of inflation-adjust ed net after-tax cash inflow s over outflow s,
$23,984
Excess of inflation-adjusted net after-tax cash inflow s over outflow s, $151,952
(1) Excess cost of CIM system over after-tax savings, $359,652

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CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter

E23-1
E23-2
E23-3
E23-4
E23-5
E23-6
E23-7
E23-8
E23-9
E2310
P23-1
P23-2
P23-3
P23-4
P23-5
P23-6
P23-7
P23-8
P23-9
P2310
24-1
E24-2
E24-3
E24-4
E24-5
E24-6
E24-7
E24-8
E24-9
E2410
E2411
E2412
E2413
E2414
E2415
P24-1
P24-2
P24-3
P24-4

Weighted average cost of capital, 11.90%

Weighted average cost of capital before bond retirement and sale-leaseback,
8.3%
(1) Payback period, 3.636 years
(2) Net present value of investment, $4,840
(2) Present value index, 8.1%
Present value of tax savings, $2,439
(2) Net present value of investment, $5,998
Net present value of investment, $31,731
Internal rate of return, 12.76%
(2) Project A internal rate of return, 19.87%
(2) Weighted average cost of capital, 9.33%
Estimated land value, $552,791
(2) Project 1 internal rate of return, 15.67%
(2) Accounting rate of ret urn on original investment, 13.9%
(5) Machine 1, internal rate of return, 18.6%
(2) Accounting rate of return on average investment, 20.58%
(4) Net present value index, .249
(3) Net present value of investment, $175,163
Net present value of purchase alternative, $727,129
Net present value of lease alternative, $14,000
(2) Standard deviation, $24,000
(2) Coefficient of variation, .114
Expected value of unit cost, $13.40
Expected value of purchasing 180,000 units, $32,500
(2) Expected value of perfect information, $1,800
Posterior probability of 40,000 unit demand, .25
Expected value of moving, $40,000
Expected value of making sub-assembly, $26,000
Expected value of bidding on Parcel A, $120,000
(1) Standard deviation, 7,496 units
Expected net present value, $1,775
Variance of net present value, $822,539
Standard deviation of net present value, $3,791
Variance of the total net present value of the investment, $49,994,656
(2) Probability that the NPV w ill be positive, .88493
(2) Expected annual pretax advantage, $2,743,250
Plan 3 estimated total cost, $347,160
Maximum amount to pay for quality control program, $440,000
(1) Expected value of ordering 400 shirts, $1,480

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(1) Posterior probability of demand for 2,000 sq. ft. houses, .3125
(2) Decrease in costs from accepting printer' s offer, $3,331
Expected value of not testing, $900
Expected value of selecting a $5.25 sales price, $387,000
Expected value of Strategy 2, $1,000,000
(2) Expected net present value, $16,895
(3) Standard deviation of expected NPV, $107,308
(2) Standard deviation of total NPV, $2,554
Weighted score for new technology, 90.0

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CHECK FIGURES, COST ACCOUNTING, 14th Ed., by Carter

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(3) Rate of return on capit al employed, .20

(3) Recreational products rate of return on capital employed, .300
(1) Increased income from outside sales, $600,000
Savings if Blade Division manuf act ures blades, $2,500
(1) Rate of return on capit al employed for Springy, 20%
(3) Cost savings by using unit s from Compressor Division, $312,500
(1) $10 advant age to Clarkson
(1) Opportunity cost of shifting production to Economy model, $540
(1) Difference for Cole Division in favor of Wales Company contract, $25,000