Research Paper Accounting

8/18/2019 Research Paper Accounting

1/32

Research Paper #1

Chapter 1 - Introduction to Managerial AccountingS1-1

Categorize each of the following activities as to which management responsiplanning, irecting, or controlling! Some activities may" fulll more than one!

a! anagement conucts variance analysis by comparing buget to actual!

b! anagement uses information on prouct costs to etermine sales prices:

c! anagement ecies to increase sales growth by 1%& ne't year! Planning

! (o lower prouct costs, management moves prouction to e'ico! Controll

e! anagement reviews hourly sales reports to etermine the level of sta)n

to service customers! *oth Controlling an $irecting

Chapter 2 - Building Blocks of Managerial AccountingE2_33B

Requireent 1!$ $+ +

irplane seats . /0%!%%

. 1%!%%

achine lubricant . /%!%%

2actory 3anitor wages . 1%!%%

. 01%!%%

plant utilities

. 4%!%%

5et 6ngines . 1,%%%!%%

"#"A$ . 1,/0%!%% . 0%!%% . /%!%% . /%%!%%

Requirement 2-6

Total inventoriable product costs: $2160

Total prime costs: $1950 Total period costs: $470

Total conversion costs: $900 Total manufacturing overhead

prouction supervisorsalaries

$epreciation on2or7lifts

ssembly wor7erwages

Property ta' on corp

mar7etingo)ces

Cost of 8arrantyrepairs

achine operatorshealth insurance

$epreciation on amino)ces

Cost of $esigning new

plant layout


2/32

9anessa Pacheco

bility it fullls:

ontrolling

$irecting

ing

neee

(;6R ; P6R$

. %!%%

. 1

. 1/%!%%

. /1

. =%!%%

. 1=%!%%

. /1%!%% . >=%!%%

costs: $430


3/32

Calculation of %irect Materials &sed

*eginning Raw aterials nventory

Plus: Purchases of irect materials

aterials available for use

+ess: 6ning Raw aterial nventory

$irect materials use

'chedule of Cost of (oods Manufactured

*eginning 8or7 in Process nventory

Plus: anufacturing costs incurre

$irect materials use ?from previous scheule@

$irect labor

anufacturing overhea

(otal manufacturing costs to account for

+ess: 6ning 8or7 in Process nventory

Cost of goos manufacture

Calculation of Cost of (oods 'old

*eginning 2inishe Aoos nventory

Plus: Cost of goos manufacture ?from previous scheule@

Cost of goos available for sale

+ess: 6ning 2inishe Aoos nventory

Cost of goos sol


4/32

. /1,%%%

. =%,%%%

. 1,%%%

. B%,%%%

. 01,%%%

. >1,%%%

. 01,%%%

. 4=,%%%

. 04,


5/32

E2-3)BSti7er Company ncome Statement

2or Current ear

Sales revenue ?B,


6/32

0@

2R6CS(6$ 2E6$ CS( . %!1%

=@

(;6 96RA6 PR$FC( CS( $6CR6S6S S PR$FC(G GCR6S6SS *6GA *RH6G $8G * R6 G$ R6 FG(S 8;6G PR$FC(

(;S GCR6S6S PR$FC(9(


7/32


8/32

*6CFS6 (;6 2E6$ CS( GCR6S6S


9/32

E3-3)B

Preetermine manufacturing overhea rate .


10/32

(otal irect labor

anufacturing verhea llocate:

.4 per $irect +abor ;our

(otal 3ob cost

ReI! /

Sales price per unit

.==!4=<

Aross proDt per unit

.


11/32

(otal

. 1,!%%


12/32

. />1!%%

. 104!%%

. 1,4B!%%


13/32

6B->1*

Direct materials used

Indirect materials used

Direct labor

Indirect labo

Cost of goods manufactured

Cost of goods sold

Actual manufacturing overhead

Allocated manufacturing overhead

Predetermined manufacturingoverhead rate, as a % of direct

labor cost; $42,000 $ !4,!00""""""""""""

#anufacturing overhead is$!4,!00 actual $42,000 allocated& ' $ (2,!00)nderallocated

6>-B0*

1!anufacturing plants ten to be organize with self-containe pro/!aintain greater Iuantities of raw materialsL wor7 in process, an

B! Setup times are longer! (R$(G+

>! ;igh Iuality is stresse in every aspect of prouction! +6G

0! 6mphasis is place on shortening manufacturing times! (R$(


14/32

=! anufacturing plants ten to group in line machinery together in

4! Setup times are shorter +6G

! Prouce in larger batches! (R$(G+

1%! Strive to maintain low inventory levels! +6G

11! Cycle time tens to be longer! (R$(G+1/! Nuality tens to be Oinspect-in rather than Obuil-in - (R$(


15/32

. /4,


16/32

iMerent parts of the factory! (R$(G+

G+


17/32

E*-2,BGR(;

Computation of C

C(9( ((+ 6S((6$ CS(

(6R+S ;G$+GA . 1/,%%%

achine setup . B,>%%

nsertion . >4,%%%

2inishing . 4%,%%%

5*

C(9( C(F+ NFG((

(6R+S ;G$+GA1


18/32

E*-3)B

Prevention costs:

(raining employees in (N

(raining suppliers in (N

entifying preferre suppliers who commit to on-time elivery

ppraisal costs:

Strength-testing one item from each batch of panels

voi inspection of raw materials

nternal failure costs:

voi rewor7 an spoilage

6'ternal failure costs:

voi lost proDts from lost sales ue to isappointe customer

voi warranty costs

"he should adopt the ne. progra! It .ill sa/e the 01


19/32

S(R

st llocation Rates

B%%% PR(S . >!%%

1% S6(FPS . B>%!%%

B%%% PR(S . 10!%%

/%%% ;FRS . >%!%%

/%CS( ++C(G R(6 ; SSAG6$

. >!%% . 0%%

. B>%!%% . 04%

. 10!%% . /,>%%

. >%!%% . >,%%%

. =,04%!%%

1%CS( ++C(G R(6 ; SSAG6$

. >!%% . /,%%%

. B>%!%% . 1,B0%

. 10!%% . 4,%%%

. >%!%% . 1/,>%%

. /B,=0%!%%

6S((6$ NFG(( 2 CS(++C(G *S6

C(9( CS( ++C(GR(6


20/32

-. />,%%%

-. BB,%%%

of perfect Iuality materials -.


21/32


22/32


23/32


24/32


25/32

6>-/*


26/32


27/32

Alison*s A++le Pieslo- of Ph.sical )nits and Com+utation of /uiv

)nits to account for1

eginning -or3 in +rocess, une ( 20(,000"00

5tarted in +roduction during une (,020,000"00

6otal +h.sical units to account for (,22(,000"00

)nits accounted for1

(,070,000"00

/nding -or3 in +rocess, une 80 (!(,000"00

6otal +h.sical units accounted for (,22(,000"00

6otal /uivalent )nits

lo- of Ph.sicalunits

Com+leted and transferred out during une


28/32

lent )nits

/uivalent )nitsDirect #aterials Conversion Costs

(,070,000"00 (,070,000"00

((8,2!0"00 (8!,900"00

(,(:8,2!0"00 (,20!,900"00


29/32

/!4(

$(6 CCFG(S G$ 6EP+G(GS $6*(

a! Raw aterials nventory ,%%

ccounts Payable

b! 8or7 in Process nventoryQssembly >,>%%

Raw aterials nventory

8or7 in Process nventoryQ2inishing /4%%

Raw aterials nventory

c! 8or7 in Process nventory - ssembly 1%B%% Cash

! anufacturing verhea 1%=%%

Property (a'es PayableQPlant

Ftilities Payable

Prepai nsuranceQPlant

ccumulate $epreciationQPlant

e! 8or7 in Process nventoryQssembly =,=%%

8ages Payable anufacturing verhea

f! 8or7 in Process nventoryQ2inishing 1%B%%

8ages Payable

anufacturing verhea

g! 8or7 in Process nventoryQ2inishing 1%/%%

8or7 in Process nventoryQssembly

h! 2inishe Aoos nventory 1


30/32

CR6$(

,%%

>,>%%

/4%%

1%B%%

1%%

BB%%

B%%

0%%%

1%/%%

1


31/32

e5-45b

Assign Costs

a& Com+leted and transferred out1 /uivalent units com+leted and transferred out #ulti+l. b.1 Cost +er euivalent unit

Cost assigned to units com+leted and transferred out

b& /nding -or3 in +rocess inventor.1 /uivalent units in ending


32/32

Direct #aterials Conversion Costs 6otal

77000 77000 $ 2":= $ 2"80

$ (78,:00 $ 2(8,800 $ 8:7,(00

!(00 (700 $ 2":= $ 2"80$ (4,!70"92 $ 8,90:":7 $ (:,4:0

$ 40!,!:0

alDebit Credit

$ 8:7,(00$ 8:7,(00

Documents

Research Paper Accounting