Instructor’s
Solution Manual
Tracie Miller
Stephanie Poindexter
Financial and Managerial
Accounting:
The Managerial Chapters
9th Edition
Tracie Miller, Franklin University
Stephanie Poindexter, Dallas College
Brenda Mattison, Tri-County Technical College
Complete Chapters Included
Chap 1 to 11 + Appx M:B & M:C
Copyright © 2027
,Chapter M:1
Introduction to Managerial Accounting
Try Its!
TI-M:1-1
1. FA 2. MA 3. MA 4. MA 5. FA
TI-M:1-2
1. h. Board of directors 2. f. Chief executive officer 3. i. Line position 4. a. Staff position
5. g. Planning 6. c. Strategic planning 7. b. Operational Planning 8. e. Directing
9. d. Controlling
TI-M:1-3
1. Product, direct labor, prime and conversion
2. Period
3. Product, manufacturing overhead, conversion
4. Product, direct materials, prime
5. Product, manufacturing overhead, conversion
6. Period
© 2027 1-1
,TI-M:1-4
ABC MANUFACTURING COMPANY
Schedule of Cost of Goods Manufactured
Year Ended December 31, 20X1
(in millions)
Beginning Work-in-Process Inventory $ 12
Direct Materials Used:
Beginning Direct Materials $ 5
Purchases of Direct Materials (including Freight In) 25
Direct Materials Available for Use 30
Ending Direct Materials (7)
Direct Materials Used: $ 23
Direct Labor 36
Manufacturing Overhead: 17
Total Manufacturing Costs Incurred during the Year 76
Total Manufacturing Costs to Account For 88
Ending Work-in-Process Inventory (16)
Cost of Goods Manufactured $ 72
ABC MANUFACTURING COMPANY
Schedule of Cost of Goods
Year Ended December 31, 20x1
(in millions)
Beginning Finished Goods Inventory $ 8
Cost of Goods Manufactured 72
Cost of Goods Available for Sale 80
Ending Finished Goods Inventory (6)
Cost of Goods Sold $ 74
TI-M:1-5
1. d 2. e 3. a 4. c 5. b
TI-M:1-6
Total operating costs / Total number of services provided Unit cost per service provided
$2,340 / 45 offices $52 per office
© 2027 1-2
, Quick Checks
1. a 2. d 3. d 4. c 5. c 6. c 7. b 8. b 9. b 10. d
Review Questions
1. The primary purpose of managerial accounting is to provide information to help managers plan,
direct, control, and make decisions.
2. Financial accounting and managerial accounting differ on the following 6 dimensions: (1) primary
users, (2) purpose of information, (3) focus and time dimension of the information, (4) rules and re-
strictions, (5) scope of information, and (6) behavioral.
3. Line positions are directly involved in providing goods or services to customers. Staff positions
support line positions.
4. Planning means choosing goals and deciding how to achieve them. Directing involves running the
day-to-day operations of a business. Controlling is the process of monitoring operations and
keeping the company on track.
5. The four IMA standards of ethical practice and a description of each follow.
I. Competence.
• Maintain an appropriate level of professional leadership and expertise by enhancing
knowledge and skills.
• Perform professional duties in accordance with relevant laws, regulations, and technical
standards.
• Provide decision support information and recommendations that are accurate, clear, concise,
and timely.
• Recognize and help manage risk.
II. Confidentiality.
• Keep information confidential except when disclosure is authorized or legally required.
• Inform all relevant parties regarding appropriate use of confidential information. Monitor to
ensure compliance.
• Refrain from using confidential information for unethical or illegal advantage.
III. Integrity.
• Mitigate actual conflicts of interest. Regularly communicate with business associates to
avoid apparent conflicts of interest. Advise all parties of any potential conflicts.
• Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
• Abstain from engaging in or supporting any activity that might discredit the profession.
• Contribute to a positive ethical culture and place integrity of the profession above personal
interest.
© 2027 1-3
Solution Manual
Tracie Miller
Stephanie Poindexter
Financial and Managerial
Accounting:
The Managerial Chapters
9th Edition
Tracie Miller, Franklin University
Stephanie Poindexter, Dallas College
Brenda Mattison, Tri-County Technical College
Complete Chapters Included
Chap 1 to 11 + Appx M:B & M:C
Copyright © 2027
,Chapter M:1
Introduction to Managerial Accounting
Try Its!
TI-M:1-1
1. FA 2. MA 3. MA 4. MA 5. FA
TI-M:1-2
1. h. Board of directors 2. f. Chief executive officer 3. i. Line position 4. a. Staff position
5. g. Planning 6. c. Strategic planning 7. b. Operational Planning 8. e. Directing
9. d. Controlling
TI-M:1-3
1. Product, direct labor, prime and conversion
2. Period
3. Product, manufacturing overhead, conversion
4. Product, direct materials, prime
5. Product, manufacturing overhead, conversion
6. Period
© 2027 1-1
,TI-M:1-4
ABC MANUFACTURING COMPANY
Schedule of Cost of Goods Manufactured
Year Ended December 31, 20X1
(in millions)
Beginning Work-in-Process Inventory $ 12
Direct Materials Used:
Beginning Direct Materials $ 5
Purchases of Direct Materials (including Freight In) 25
Direct Materials Available for Use 30
Ending Direct Materials (7)
Direct Materials Used: $ 23
Direct Labor 36
Manufacturing Overhead: 17
Total Manufacturing Costs Incurred during the Year 76
Total Manufacturing Costs to Account For 88
Ending Work-in-Process Inventory (16)
Cost of Goods Manufactured $ 72
ABC MANUFACTURING COMPANY
Schedule of Cost of Goods
Year Ended December 31, 20x1
(in millions)
Beginning Finished Goods Inventory $ 8
Cost of Goods Manufactured 72
Cost of Goods Available for Sale 80
Ending Finished Goods Inventory (6)
Cost of Goods Sold $ 74
TI-M:1-5
1. d 2. e 3. a 4. c 5. b
TI-M:1-6
Total operating costs / Total number of services provided Unit cost per service provided
$2,340 / 45 offices $52 per office
© 2027 1-2
, Quick Checks
1. a 2. d 3. d 4. c 5. c 6. c 7. b 8. b 9. b 10. d
Review Questions
1. The primary purpose of managerial accounting is to provide information to help managers plan,
direct, control, and make decisions.
2. Financial accounting and managerial accounting differ on the following 6 dimensions: (1) primary
users, (2) purpose of information, (3) focus and time dimension of the information, (4) rules and re-
strictions, (5) scope of information, and (6) behavioral.
3. Line positions are directly involved in providing goods or services to customers. Staff positions
support line positions.
4. Planning means choosing goals and deciding how to achieve them. Directing involves running the
day-to-day operations of a business. Controlling is the process of monitoring operations and
keeping the company on track.
5. The four IMA standards of ethical practice and a description of each follow.
I. Competence.
• Maintain an appropriate level of professional leadership and expertise by enhancing
knowledge and skills.
• Perform professional duties in accordance with relevant laws, regulations, and technical
standards.
• Provide decision support information and recommendations that are accurate, clear, concise,
and timely.
• Recognize and help manage risk.
II. Confidentiality.
• Keep information confidential except when disclosure is authorized or legally required.
• Inform all relevant parties regarding appropriate use of confidential information. Monitor to
ensure compliance.
• Refrain from using confidential information for unethical or illegal advantage.
III. Integrity.
• Mitigate actual conflicts of interest. Regularly communicate with business associates to
avoid apparent conflicts of interest. Advise all parties of any potential conflicts.
• Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
• Abstain from engaging in or supporting any activity that might discredit the profession.
• Contribute to a positive ethical culture and place integrity of the profession above personal
interest.
© 2027 1-3
