2023 SE1 Managerial Accounting versus Financial Accounting Indicate whether each of the following

SE1 Managerial Accounting versus Financial Accounting

Indicate whether each of the following characteristics relates to managerial accounting (MA) or financial accounting (FA)

a.       Forward looking

b.      Publicly reported

c.       Complies with accounting standards

d.      Usually confidential

e.      Reports past performance

f.        Uses physical measures as well as monetary ones for reports

g.       Driven by user needs

h.      Focuses on business decision making

SE2 Elements of Manufacturing Costs

Stoney Saure, Votives, Inc.’s accountant, must group the costs of manufacturing tealights, Indicate whether each of the following items should be classified as direct materials (DM), direct labor (DL), overhead (O), or none of these (N). Also indicate whether each is a prime cost (PC), a conversion cost (CC), or neither (N)

a.       Cost of wax

b.      Depreciation of the cost of vats to hold melted wax

c.       Cost of Gigi’s time to dip the wicks into the wax

d.      Rent on the factory where candles are made

e.      Cost of coloring for candles

f.        Steve’s commission to sell candles to Brightlights, Inc

g.       Cost of Ramos’ time to design candles for Halloween

SE3 Cost Recognition

Indicate whether each of the following is a direct cost (D) an indirect cost (ID) or neither (N), and whether it is a variable (V) or a fixed (F) cost. Also indicate whether each adds value (VA) or does not add value (NVA) to the product and whether each is a product cost (PD) or a period cost (PER)

A.      Production foreman’s salary

B.      Straight line depreciation on office equipment

C.      Wages of a production line worker

SE4 Cost flow in a Manufacturing Organization

Given the following information, compute the ending balances of the Materials Inventory, Work in Process Inventory, and finished goods inventory accounts

Materials Inventory, beginning balance            $25,000

Work in process inventory, beginning balance 5,750

Finished goods inventory, beginning balance 38,000

Direct materials purchased                                 85,000

Direct materials used                               74,000

Direct labor costs                                      70,000

Overhead costs                                          35,000

Cost of good manufactured                   133,000

Cost of goods sold                                    103,375

SE5 Document Flows in a Manufacturing Organization

Identify the documents needed to support each of the following activities in a manufacturing organization.

a.       Recording direct labor time at the beginning and end of each work shift

b.      Placing an order for direct material with a supplier

c.       Receiving direct materials at the shipping dock

d.      Recording the cost of a specific job’s direct materials, direct labor, and overhead

e.      Issuing direct materials into production

f.        Fulfilling a production department request for the purchase of direct materials

g.       Billing the customer for a completed order

SE6. Income statement for manufacturing organization

Using the following information from Nathan Company, prepare an income statement through operating income for the year

Sales                                               $900,000

Finished goods inventory, beginning 45,000

Cost of goods manufactured            $75,000

Finished goods inventory, ending     80,000

Operating expenses                            300,000

SE7 Computation of product unit cost

What is the product unit cost for Job SZ, which consist of 600 units and has total manufacturing cost of direct materials, $4,800, direct labor, $7,200, and overhead, $3,600? What are the prime cost and conversion cost per unit?

 

SE1 Job Order versus Process Costing System

State whether a job order costing system or a process costing system would typically be used to account for the cost of the following

a.       Manufacturing bottles

b.      Manufacturing custom designed swimming pools

c.       Manufacturing one size fits all robes

d.      Providing babysitting

e.      Manufacturing canned food

f.        Providing accounting services

 

SE2 Transaction in a manufacturer’s job order costing system

For each of the following transaction state which account would be debited and credited in a job ordering cost system

a.       Purchased material on a account, $12,000

b.      Charged direct labor to production $3,000

c.       Requested direct material for production $6,000

d.      Applied overhead to jobs in process, $4,000