Acc202 Wk 1 Assgnment 1
Exercise 10-1A
| Managerial Accounting | Financial Accounting | a. | | X | b. | X | | c. | | X | d. | | X | e. | X | | f. | | X | g. | X | | h. | X | | i. | | X | j. | X | |
Exercise 10-3
Cost Category | Product / GS&A | Asset / Expense | Research and development costs | GS&A | Expense | Cost to set up manufacturing facility | Product | Asset | Utilities used in factory | Product | Asset | Cars for sales staff | GS&A | Asset | Distributions to stockholders | Neither | Neither | General office supplies | GS&A | Asset | Raw materials used in the manufacturing process | Product | Asset | Costs to rent office equipment | GS&A | Expense | Wages of production workers | Product | Asset | Advertising costs | GS&A | Expense | Promotion costs | GS&A | Expense | Production supplies | Product | Asset | Depreciation on administration building | GS&A | Expense | Depreciation on manufacturing equipment | Product | Asset |
Exercise 10-6
a. The three main components of product cost for a manufacturing entity are direct materials, direct labor, and manufacturing overhead.
b. The product cost in a merchandising company, such as a retail toy store, is relatively easy to determine. It includes vendor’s price charged on the invoice, freight cost, and other necessary costs to make the inventory available for sale. Measuring product cost for a manufacturing entity, though, requires a more complex system. First of all, the manufacturing firm has to classify its costs between product costs and period costs. The firm has to accumulate product costs such as direct materials, direct labor, and manufacturing overhead. Once the product costs have been accumulated, the firm has to classify the cost of a product that has been sold as expense, and the cost of an unsold product as inventory, an asset.
c. If
| Managerial Accounting | Financial Accounting | a. | | X | b. | X | | c. | | X | d. | | X | e. | X | | f. | | X | g. | X | | h. | X | | i. | | X | j. | X | |
Exercise 10-3
Cost Category | Product / GS&A | Asset / Expense | Research and development costs | GS&A | Expense | Cost to set up manufacturing facility | Product | Asset | Utilities used in factory | Product | Asset | Cars for sales staff | GS&A | Asset | Distributions to stockholders | Neither | Neither | General office supplies | GS&A | Asset | Raw materials used in the manufacturing process | Product | Asset | Costs to rent office equipment | GS&A | Expense | Wages of production workers | Product | Asset | Advertising costs | GS&A | Expense | Promotion costs | GS&A | Expense | Production supplies | Product | Asset | Depreciation on administration building | GS&A | Expense | Depreciation on manufacturing equipment | Product | Asset |
Exercise 10-6
a. The three main components of product cost for a manufacturing entity are direct materials, direct labor, and manufacturing overhead.
b. The product cost in a merchandising company, such as a retail toy store, is relatively easy to determine. It includes vendor’s price charged on the invoice, freight cost, and other necessary costs to make the inventory available for sale. Measuring product cost for a manufacturing entity, though, requires a more complex system. First of all, the manufacturing firm has to classify its costs between product costs and period costs. The firm has to accumulate product costs such as direct materials, direct labor, and manufacturing overhead. Once the product costs have been accumulated, the firm has to classify the cost of a product that has been sold as expense, and the cost of an unsold product as inventory, an asset.
c. If