Problem 1 Page 40 a- Cost of goods manufactured = Direct cost + Indirect cost = [Direct Cost of Material + Direct Cost of Labor] + [Indirect Cost of Material + Indirect Cost of Labor + Utilities Overhead] = Total Cost of Material + Total Cost of Labor + Utilities Overhead = 120‚000 + 90‚000 + 40‚000 = $ 250‚000 b- Total Cost of Operation = Cost of goods manufactured + Selling‚ General admin. and expenses. = 250‚000 + 60‚000 = $ 310‚000 c- Prime Cost =Direct Material
Premium Costs Variable cost Marginal cost
the period $ 421‚970 $ 446‚970 Conversion cost: Cost in beginning work in process $ 13‚000 Cost during the period $ 394‚880 = 407‚880 Equivalent Units in ending work in process: Material (4‚000 units x .9) 3‚600 Conversion cost (4‚000 x .5) 2‚000 Cost per equivalent unit of material: $446‚970 divided by (44‚000 + 3‚600) $ 9.39 Cost per equivalent unit for conversion cost: $407‚880 divided by (44‚000 + 2000) $ 8.87 = $
Premium Costs Units of measurement Cost
Managerial Accounting‚ 3e (Braun/Tietz) Chapter 2 Building Blocks of Managerial Accounting 1) Service companies must carry a large amount of inventory to meet consumer demand. Answer: FALSE Diff: 1 LO: 2-1 EOC: E2-1 AACSB: Reflective Thinking Learning Outcome: Define and use cost-volume-profit analysis to analyze the effects of changes in costs and volume on a company’s profits 2) Manufacturing companies usually have three types of inventory. Answer: TRUE Diff: 1 LO: 2-1
Premium Inventory Manufacturing Costs
Business Ethics in Managerial Accounting When companies don’t see the importance of business ethics in managerial accounting they usually end up down the same road as Enron: bankrupt. And while that isn’t always true‚ the importance of business ethics in managerial accounting cannot be understated if you want your company to be a success. Why Ethics Is Important in Managerial Accounting The Enron scandal is probably the most well-known example of improper accounting ethics on the part
Premium Business ethics Ethics Business
company. Managerial accounting is primarily used by individuals within a company or organization. The main purpose of financial accounting is to prepare financial reports that provide information about an organization’s performance to external parties like creditors‚ investors and tax authorities (Hilton‚ 2006). There are several key differences between both managerial and financial accounting. The first key difference is in the purpose of each method. For example‚ managerial accountings’ purpose
Premium
Managerial Accounting Analysis of Concepts and Techniques Managerial Accounting BUS 630 Managerial Accounting Analysis of Concepts and Techniques Introduction/Thesis Statement Managerial accounting is a concept used in businesses to manage internal systems. Understanding the importance of effective decision making‚ planning and control creates a foundation for value within the company on a more in depth level. Planning and controlling is measured by performance based on budgeting accounts
Premium Management accounting Cost accounting
($514‚250/$935‚000) | $495‚000 ($900‚000 x 55%) | Land | 271‚150 | 29% ($271‚150/$935‚000) | 261‚000 ($900‚000 x 29%) | Land Improvements | 65‚450 | 7% ($65‚450/$935‚000) | 63‚000 ($900‚000 x 7%) | Four Vehicles | 84‚150 | 9% ($84‚150/$935‚000) | 81‚000 ($900‚000 x 9%) | Totals | $935‚000 | 100% | $900‚000 | 1. Prepare a table to allocate the lump-sum purchase price to the separate assets purchased. Prepare the journal entry to record the purchase. Dr – Building $495‚000 Cr
Premium Real estate Generally Accepted Accounting Principles Finance
(FALSE) 8.) Managerial accounting places less emphasis on non monetary data than financial accounting? (FALSE) 9.) Direct material cost combines with manufacturing overhead cost is known as conversion cost? (FALSE) direct labor 10.) The cost of shipping parts from a supplier is not considered a product cost? (FALSE) it is a product cost 11.) The fixed cost per unit is constant and does not depend on how many units are produced? (FALSE) it does depend (it is not constant) 12.) Managerial accounting is primarily
Premium Manufacturing Management accounting Costs
(TCO F) For which situation(s) below would an organization be more likely to use a job-order costing system of accumulating product costs rather than a process costing system? Student Answer: a steel factory that processes iron ore into steel bars a factory that processes sugar and other ingredients into black licorice a costume maker that makes specialty costumes for figure skaters all of these Comments: 2. Question : (TCO F) Process costing would be appropriate for each
Premium Inventory Manufacturing Costs
Chapter 2 1. Which of the following would be considered a product cost for external financial reporting purposes? a. Cost of a warehouse used to store finished goods. b. Cost of guided public tours through the company’s facilities. c. Cost of travel necessary to sell the manufactured product. d. Cost of sand spread on the factory floor to absorb oil from manufacturing machines. 1. Which of the following would be considered a product cost for external financial reporting purposes
Premium Marketing Economics Cost