Acct 221 CH 14 HW
Acct 221 CH 14 HW
Acct 221 CH 14 HW
Financial Accountoing
Managerial Accounting
Stockholders, creditors, and regulatory Officers and managers
Types of reports
Frequency of reports
Purpose of reports
Content of reports
Financial statements
Quarterly and annually
General-purpose
Pertains to business as a whole and is
condensed, limited to double entry
accounting and cost data, the standard
is GAAP
Internal reports
As needed
Special purpose for specific decisions
Pertains to subunits of the business Very
detailed, extends beyond double-entry data
to any relevant data, standard is relevance
to decisions
Verification of reports
No independent audits
(a) DM
(b) DL
( c) MO
(d) MO
BE 14-4
BE 14-5 (a) DM
(b) DM
(c ) DL
(d) MO
(e ) MO
(f) DM
(g) DM
(h) MO
Windshield
Engine
Wages of assembly line workers
depreciation of factory machinery
Factory machinery lubricants
Tires
Steering wheel
Salary of painting supervisor
BE 14-6
(a) Product cost
(b) Period cost
(c ) Period cost
(d) Period cost
(e ) Product cost
(f) Product cost
Manufacturing overhead
Selling expenses
Administrative expenses
Advertising expenses
Direct labor
Direct material
BE 14-8
Beginning work in process
Direct labor
Direct materials
Total manufacturing overhead
$
$
$
209,000
180,000
208,000
597,000
25,000
622,000
BE 14-10
Direct Materials Used
1) $
2) $
3) $
Factory Overhead
40,000 $
(81,000) $
55,000 $
61,000 $
75,000 $
(144,000) $
50,000
140,000
111,000
BE14-11
Work in Process (12/31)
82,000
98,000
(58,000)
E14-1
1)Financial accouniting foucuses False, financial accounting is actually to 6)Managerial accounting reports are
on providing information to
get information to external users
prepared only quarterly and anually.
internal users.
2)Analyzing cost-volume-profit
relationships is part of
managerial accounting.
True
Manufacturing overhead
2. Insurance on factory
machines.
Manufacturing overhead
Manufacturing overhead
4.Factory repairs.
5. Upholstery used in
manufacturing furniture
Manufacturing overhead
Direct materials
E14-2
E14-3
a)
b)
Direct materials
Period cost
Manufacturing overhead
Direct labor
Manufacturing overhead
Product cost consist of direct labor, direct materials, and manufactureing overhead used in making the factory's
product. Period cost are not a necessary part of the manufacturing process.
E14-4
Factory utilities
Depreciation on factory
equipment
$
$
$
$
$
$
a) Manufacturing overhead
170, 350
b) Product cost $ 377,050
c) Period cost $ 69,140
E14-9
Molina Company
Cost of Goods Manufatured Schedule
For the Year Ended December 31, 2014
Work in Process (1/1)
Direct materials
Raw materials inventory (1/1)
210,000
401,000
$
$
611,000
81,000
530,000
54,500
158,000
212,500
$
$
$
22,500
190,000
89,000
$
$
$
18,000
36,000
68,000
122,000
E14-12
Cepeda Corporation has the following cost records for June 2014.
Indirect factory labor
$
4,500
Direct materials used
$
20,000
Work in process, 6/1/14
$
3,000
Work in process, 6/30/14
$
3,800
Finished goods, 6/1/14
$
5,000
Finished goods, 6/30/14
$
7,500
(a)
CEPEDA CORPORATION
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2014
Work in process, June 1
Direct materials used
Direct labor
Manufacturing overhead
Indirect labor
$
Factory manager's salary
$
Indirect materials
$
Maintenance, factory
$
equipment
Depreciation, factory
equipment
Factory utilities
Total manufacturing
overhead
Total manufacturing costs
Total cost of work in process
Factory utilities
Depreciation, factory equipment
Direct labor
Maintenance, factory equipment
Indirect materials
Factory manager's salary
$
$
20,000
40,000
13,300
4,500
3,000
2,200
1,800
1,400
400
(b)
CEPEDA CORPORATION
Income Statement (partial)
For the Month Ended June 30, 2014
Sales Revenue
Cost of goods sold
Finished goods inventory, June
1
$
Cost of goods manufactured
(from (a) above)
$
72,500
77,500
7,500
Gross profit
92,100
$
$
70,000
22,100
5,000
(151,000)
296,000
310,000
True
False, managerial reports do not have
to comply to any external standards or
principles
True
Direct labor
Manufacturing overhead
Manufacturing overhead
Manufacturing overhead
Direct materials
Period cost
Manufacturing overhead
Manufacturing overhead
Period cost
Manufacturing overhead
$
$
69,100
46,400
2,500
$
$
$
$
1,300
2,000
15,000
2,640
$
$
$
$
$
$
400
1,400
40,000
1,800
2,200
3,000
3,000
73,300
76,300
3,800
72,500