Acc350 Managerial Accounting: Week 1 Assignment (E18-14, E18-22, E18-23, CP18-42)

Acc350 Managerial Accounting
Week 1 Assignment (E18-14, E18-22, E18-23, CP18-42)

E18-14 Comparing managerial accounting and financial accounting
Match the following terms to the appropriate statement. Some terms may be used more than once and some terms may not be used at all.
Budget Managerial
Creditors Managers
Controlling Planning
Financial Stockholders
a. Accounting systems that must follow GAAP.
b. External parties for whom financial accounting reports are prepared.
c. The role managers play when they are comparing the company’s actual results with the planned results.
d. Internal decision makers.
e. Accounting system that provides information on a company’s past performance.
f. Accounting system not restricted by GAAP but chosen by comparing the costs versus the benefits of the system.
g. The management function that involves choosing goals and the means to achieve them.

E18-22 Preparing a schedule of cost of goods manufactured
Knight Corp., a lamp manufacturer, provided the following information for the year ended December 31, 2014.
Inventories: Beginning Ending
Raw Materials 56,000 23,000
Work-in-Process 103,000 63,000
Finished Goods 41,000 48,000
Other information:
Depreciation, plant building and equipment 16,000
Raw materials purchases 159,000
Insurance on plant 22,000
Sales salaries 46,000
Repairs and maintenance—plant 8,000
Indirect labor 32,000
Direct labor 122,000
Administrative expenses 59,000

Requirements
1. Use the information to prepare a schedule of cost of goods manufactured.
2. What is the unit product cost if Knight manufactured 2,160 lamps for the year?

E18-23 Computing cost of goods manufactured and cost of goods sold
Use the following information for a manufacturer to compute cost of goods manufactured and cost of goods sold:
Inventories: Beginning Ending
Raw Materials 29,000 32,000
Work-in-Process 44,000 37,000
Finished Goods 19,000 24,000

Other information:
Purchases of materials 77,000
Direct labor 87,000
Manufacturing overhead 45,000

Problem P18-42 is the first problem in a sequence of problems for Davis Consulting, Inc. This company was also used for the Continuing Problems in the financial accounting chapters as the business evolved from a service company to a merchandising company However, it is not necessary to complete those problems prior to completing P18-42.

Problem 18-42 Schedule of cost of goods manufactured
Davis Consulting, Inc. is going to manufacture billing software. During its first month of manufacturing, Davis incurred the following manufacturing costs:
Inventories: Beginning Ending
Raw Materials 10,800 10,300
Work-in-Process - 21,000
Finished Goods - 31,500
Other information:
Raw materials purchases 19,000
Plant janitorial services 700
Sales salaries expense 5,000
Delivery expense 1,700
Sales revenue 750,000
Utilities for plant 10,000
Rent on plant 13,000
Customer service hotline costs 18,000
Direct labor 190,000
Prepare a schedule of cost of goods manufactured for Davis for the month ended January 31, 2016.
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