Managerial Accounting

ACCT – 2210

Assignment 1

Name: ID:

Part One: MCQ

1) Management accounting focuses primarily on providing data for:
a. internal uses by managers.
b. external uses by stockholders and creditors.
c. external uses by the Internal Revenue Service.
d. external uses by the Securities and Exchange Commission.

2) Managerial accounting:
a. is more future oriented than financial accounting.
b. tends to summarize information more than financial accounting
c. is primarily concerned with providing information to external users.
d. is more concerned with precision than timeliness.

3) The person MOST likely to use management accounting information is a(n):

a. banker evaluating a credit application.
b. shareholder evaluating a stock investment.
c. governmental taxing authority
d. assembly department supervisor

4) Which of the following is not one of the four primary responsibilities of management?
a. Controlling
b. Costing
c. Directing
d. Planning
5) Which of the following statements is true?
a. The COO reports to the CFO.
b. The treasurer reports to the CEO.
c. The internal audit department reports to the audit committee.
d. The controller reports to the internal auditor.
Managerial Accounting
ACCT – 2210

Part two:
Hannah decided to manufacture her own brand of pet toys—Best Friends Manufacturing. At the
end of December 2017, her accounting records show the following:

Work in process ending inventory 720

Finished goods beginning inventory 400
Finished goods ending inventory 5,500
Sales revenue 105,000
Customer service hotline expense 1,000
Utilities for plant 4,500
Sales salaries expense 5,000
Plant janitorial services 1,250
Direct labor 18,200
Direct material purchases 31,000
Rent on manufacturing plant 9,000
Raw materials beginning inventory 13,000
Raw materials ending inventory 9,270
Work in process beginning inventory 200

Requirements
1. Calculate the DM used, COGM , and COGS
2. Prepare the income statement of best friends manufacturing company.
Managerial Accounting
ACCT – 2210

Part three:

Given the following information for Circuits Plus, an electronics e-tailer, compute the cost of
goods sold and prepare the income statement for Circuits Plus.

Website maintenance $ 7,000

Delivery expense 1,500
Freight-in 2,500
Import duties 1,000
Purchases 30,000
Ending inventory 5,000
Revenues 90,000
Marketing expenses 15,000
Beginning inventory 6,000