Exam 15: Introduction to Management Accounting

For each item listed below, choose whether the item would be considered an inventoriable cost or a period cost for a manufacturing company. Use the following code: -Sales commissions

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories: -Insurance on factory equipment

Craft Manufacturing Company's accounting records reflect the following inventories: During 2019, $500,000 of raw materials were purchased, direct labour costs amounted to $600,000, and manufacturing overhead incurred was $480,000. -The total raw materials available for use during 2019 for Craft Manufacturing Company is:

Prime costs of a company are $3,000,000, manufacturing overhead is $1,500,000 and direct labour is $750,000. What is the amount of direct materials?

Match the descriptions with their terms: -Primarily concerned with external users and reports pertain to the entity as a whole.

For each item, choose all applicable cost labels. Use the codes below in your answer. More than one code may be applicable. -Advertising

Product costs consist of:

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories: -Carpeting for the vehicles

For the work of factory employees to be considered as direct labour, the work must be conveniently and:

Fill in the missing information on the cost of goods manufactured schedule of Perth Ltd:

Among the items that Patrick's Print Shop accounts for are the following: Lane prepares the following schedule and financial statements on a yearly basis: (a) cost of goods manufactured schedule (b) income statement (c) statement of financial position. Instructions: For each item, indicate by using the appropriate letter(s) the schedule and/or financial statements in which the item will appear.

For each item, choose all applicable cost labels. Use the codes below in your answer. More than one code may be applicable. -Indirect materials

Craft Manufacturing Company's accounting records reflect the following inventories: During 2019, $500,000 of raw materials were purchased, direct labour costs amounted to $600,000, and manufacturing overhead incurred was $480,000. -Craft Manufacturing Company's total manufacturing costs incurred in 2019 amounted to:

Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by choosing the letter F and indicate those characteristics which are more closely associated with managerial accounting by choosing the letter M : -Prepared in accordance with generally accepted accounting principles

Aquasure manufactures boats. During September 2019, the company purchased 100 cellular phones at a cost of $150 each. Aquasure withdrew 70 phones from the warehouse during the month. Twenty of these phones were installed in salesmen's cars and the remaining 50 phones were put in boats manufactured during the month. Of the boats put into production during September 2019, 80% were completed and transferred to the company's storage lot. 50% of the boats completed during the month were sold by 30 September. Instructions: Determine the cost of cellular phones that would appear in each of the following accounts at 30 September 2019: Raw materials inventory Work in process inventory Finished goods inventory Cost of sales Selling expenses

Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by choosing the letter F and indicate those characteristics which are more closely associated with managerial accounting by choosing the letter M : -General-purpose reports

Ethics: Merino Mills is a textile manufacturing firm located in one state. The company carefully prepares all financial statements in accordance with GAAP, and gives a copy of all financial statements to each department. In addition, the company keeps records on quality control, safety and environmental pollution by the company. It then prepares 'scorecards' for each department indicating their performance. Recently, the financial impact of the second set of information was added, and the information has been used in the evaluation of employees for merit pay and promotions. At the most recent employee meeting, Tyler Hanes, marketing manager, expressed his discomfort with the system. He said that there was no guarantee that the second set of information was fair, since there were no generally accepted principles for this kind of information. He also said that it was kind of like keeping two sets of books - one following all legal requirements, and the other one actually used by the company. Required: 1. Is it ethical to evaluate managers in the way described? Explain briefly. 2. Name at least two safeguards the company could build into its system to ensure the ethical treatment of employees

Yates Ltd incurs the following manufacturing costs and expenses during the month of May: 1.Assembly line wages 2.Raw materials used directly in product 3.Depreciation on office equipment 4.Property rates on factory building 5.Rent on factory building 6.Sales commissions 7.Depreciation on factory equipment 8.Factory electricity and power 9.Wages for factory maintenance workers 10.Advertising 11.Indirect materials used in production 12.Factory manager's salary Instructions : Complete the following matrix by placing an X mark under the appropriate headings.

Match the descriptions with their terms: -Direct labour and manufacturing overhead costs incurred in converting raw materials into finished goods.

Match the descriptions with their terms: -Primarily concerned with internal users and reports relate to sub-units of the entity.