overhead allocation rate using the 1987 model year budget. Calculate the overhead allocation rate for each of the model years 1988 through 1990. Are the changes since 1987 in overhead allocation rates significant? Why have these changes occurred? Solution: Based on the given info we calculate Overhead Allocation Rate =Overhead for PeriodAllocation Base for Period for each allocation bases vis. Sales‚ Direct Material and Direct Labor Year | 1987 | 1988 | 1989 | 1990 | Sales | $330‚154 | $351
Premium Marketing
CHAPTER 1 (Introduction to Management Accounting) P-1-4A The following data were taken from the records of Clarkson Company for the fiscal year ended June 30‚ 2014. Raw Materials Factory Insurance $ 4600 Inventory 7/1/13 $ 48000 Factory Machinery Raw Materials Depreciation 16‚000 Inventory 6/30/14 39‚600 Factory Utilities 27‚600 Finished Goods Office Utilities Expenses 8‚650 Inventory 7/1/13 96‚000 Sales Revenue 534‚000 Finished Goods Sales Discounts
Premium Costs Variable cost Total cost
Q1: There are two different types of cost accounting systems: Job order cost systems and process cost systems. How does management decide whether to use a job order cost system or a process cost system in any given manufacturing situation? Explain. Job order cost system is used in situations where many different products are produced each period. For example‚ a Levi Strauss clothing factory would typically make many different types of jeans for both men and women during a month. A particular order
Premium Costs Management accounting Manufacturing
TEST BANK CHAPTER 1 Intercorporate Investments: An Overview MULTIPLE CHOICE Use the following information on a company’s investments in equity securities to answer questions 1- 4 below. The company’s accounting year ends December 31. | |Date of acquisition|Cost |Fair value |Date sold |Selling price | |Investment | | |12/31/10 | |
Premium Balance sheet Generally Accepted Accounting Principles Asset
Introduction The purpose of management accounting in the organization is to support competitive decision making by collecting‚ processing‚ and communicating information that helps management plan‚ control‚ and evaluate business processes and company strategy. The interesting thing about management accounting is that it is rare to find an individual within a company with the title of “management accountant.” Often many individuals function as accountants within the organization‚ but these individuals
Premium Management Management accounting Control
Time Value of Money Q1. Mr. Sundaram is planning to retire this year. His company can pay him a lump sum retirement payments of Rs 2‚ 00‚000 or Rs 25‚000 life time annuity whichever he chooses. Mr. Sundaram is in good health and estimates to live for at least 20 more years. If his interest rate is 12%‚ which alternative should he choose? Ans Present Value of Annuity 25000*7.469*1.12 = 2‚09‚132 Which is greater than lump sum value of Rs. 2‚00‚000. So Annuity option is better
Premium Time value of money Money Retirement
managerial accounting 9th edition‚Ronald 03. Sadler Corporation purchased equipment to be used in manufacturing. The purchase was made at the beginning of 2006 by paying cash of $150 000. The equipment has an estimated residual value of 10‚000 and an expected useful life of 10 years. At the beginning of 2008‚ Sadler concluded that the total useful life of the equipment will be 8 years rather than 10‚ and that the residual value will be zero. Sadler uses the straight-line method for depreciation
Premium 2008 1921 Depreciation
BBUS2541 – ASSIGNMENT #3 Q1 – Exercise 4-18 Percentage of Physical Completion w/respect Equivalent Units Units to conversion Direct Material Conversion Work in Process‚ October 1 1‚000 40% Units Started during October 5‚000 Total Units to account for 6‚000 Units from beginning WIP‚ completed & transferred out during October 1‚000 100% 1‚000 1‚000 Units started & completed during Oct 3‚000 3‚000 3‚000 Work in Process‚ Oct 31 (20% as to con) 2
Premium Inventory 1983 1986
Liabilities Capital Revenues Credits are increases for these types of accounts: Liabilities Capital Revenues Credits are decreases for these types of accounts: Assets Withdrawals Expenses (5 min.) S 2-2 “The basic summary device in accounting is the account. The left side is calld the debit side‚ and the right side is called the credit side. We record transactions first in a journal. Then we post (copy the data) to the ledger. It is helpful to list all the accounts with their balances
Premium Accounts receivable Double-entry bookkeeping system Generally Accepted Accounting Principles
ORGANIZATION ACCOUNTANT’ See the front matter of this Solutions Manual for suggestions regarding your choices of assignment material for each chapter. 1-1 Management accounting measures‚ analyzes and reports financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization. It focuses on internal reporting and is not restricted by generally accepted accounting principles (GAAP). Financial accounting focuses on reporting to external parties such as investors
Premium Balance sheet Generally Accepted Accounting Principles Financial statements