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Print by: LIBBY DELACUEVA ACCT 2402 Managerial Accounting (McHaney) 2nd Fall 2011 / Chapter 01 Homework

BE1-6
Correct. Identify whether each of the following costs should be classified as product costs or period costs. (a) Product costs Manufacturing overhead. (b) Period costs Selling expenses. (c) Period costs Administrative expenses. (d) Period costs Advertising expenses. (e) Product costs Direct labor. (f) Product costs Direct material. Question Attempts: 1 of 3 used

Copyright 2000-2011 by John Wiley & Sons, Inc. or related companies. All rights reserved.

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Print by: LIBBY DELACUEVA ACCT 2402 Managerial Accounting (McHaney) 2nd Fall 2011 / Chapter 01 Homework

BE1-7
Correct. Presented below are Reyes Company's monthly manufacturing cost data related to its personal computer products. (a) (b) (c) (d) Utilities for manufacturing equipment Raw material (CPU, chips, etc.) Depreciation on manufacturing building Wages for production workers $116,000 $85,000 $880,000 $191,000

Enter each cost item in the following table, placing an "X" under the appropriate headings. (For each answer that does not have an "X", enter "O". Do not leave any fields blank.) Product Costs Direct Labor O O O X

(a) (b) (c) (d)

Direct Materials O X O O

Factory Overhead X O X O Question Attempts: 2 of 3 used

Copyright 2000-2011 by John Wiley & Sons, Inc. or related companies. All rights reserved.

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Print by: LIBBY DELACUEVA ACCT 2402 Managerial Accounting (McHaney) 2nd Fall 2011 / Chapter 01 Homework

E1-1
Correct. Kenneth Hubbard has prepared the following list of statements about managerial and financial accounting. Identify each statement as true or false. 1. Financial focuses on providing information to internal users. False Analyzing cost-volume-profit relationships is part of managerial accounting. True Preparation of budgets is part of financial accounting. False Managerial applies only to merchandising and manufacturing companies. False Both managerial accounting and financial accounting deal with many of the same economic events. True Managerial accounting reports are prepared only quarterly and annually. False Financial accounting reports are general-purpose reports. True Managerial accounting reports pertain to subunits of the business. True Managerial accounting reports must comply with generally accepted accounting principles. False Although managerial accountants are expected to behave ethically, there is no code of ethical standards for managerial accountants. False Question Attempts: 2 of 3 used

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Copyright 2000-2011 by John Wiley & Sons, Inc. or related companies. All rights reserved.

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Print by: LIBBY DELACUEVA ACCT 2402 Managerial Accounting (McHaney) 2nd Fall 2011 / Chapter 01 Homework

E1-6
Correct. The administrators of Washington County's Memorial Hospital are interested in identifying the various costs and expenses that are incurred in producing a patient's X-ray. A list of such costs and expenses in presented below. The administrators want these costs and expenses classified as: (a) direct materials, (b) direct labor, or (c) service overhead. List the items (1) through (10). For each item, indicate the cost category to which the item belongs. 1. Salaries for the X-ray machine technicians. Direct labor Wages for the hospital janitorial personnel. Service overhead Film costs for the X-ray machines. Direct materials Property taxes on the hospital building. Service overhead Salary of the X-ray technicians' supervisor. Service overhead Electricity costs for the X-ray department. Service overhead Maintenance and repairs on the X-ray machines. Service overhead X-ray department supplies. Service overhead Depreciation on the X-ray department equipment. Service overhead Depreciation on the hospital building. Service overhead Question Attempts: 2 of 3 used

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Copyright 2000-2011 by John Wiley & Sons, Inc. or related companies. All rights reserved.

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Print by: LIBBY DELACUEVA ACCT 2402 Managerial Accounting (McHaney) 2nd Fall 2011 / Chapter 01 Homework

P1-4A
The following data were taken from the records of Stellar Manufacturing Company for the fiscal year ended June 30, 2011. Raw Materials Inventory 7/1/10 Raw Materials Inventory 6/30/11 Finished Goods Inventory 7/1/10 Finished Goods Inventory 6/30/11 Work in Process Inventory 7/1/10 Work in Process Inventory 6/30/11 Direct Labor Indirect Labor Accounts Receivable Factory Insurance $ 48,000 39,600 96,000 95,900 19,800 18,600 149,250 24,460 27,000 4,600 Factory Machinery Depreciation Factory Utilities Office Utilities Expense Sales Sales Discounts Plant Manager's Salary Factory Property Taxes Factory Repairs Raw Materials Purchases Cash $ 16,000 27,600 8,650 554,000 4,200 29,000 9,600 1,400 96,400 32,000

Your answer is correct. Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.) (List manufacturing overhead entries from largest to smallest e.g. 10, 5, 3, 2. Enter all amounts as positive amounts and subtract where necessary.) STELLAR MANUFACTURING COMPANY Cost of Goods Manufactured Schedule For the Year Ended June 30, 2011 Work in process, July 1, 2010 Direct materials Raw materials inv., July 1, 2010 Raw materials purchases Total raw materials available for use Less: Raw materials inv., June 30, 2011 Direct materials used Direct labor Manufacturing overhead Plant manager's salary Factory utilities Indirect labor Factory machinery depreciation Factory property taxes Factory insurance Factory repairs Total manufacturing overhead Total manufacturing costs Total cost of work in process Less: Work in process, June 30, 2011 Cost of goods manufactured $ 19800 $ 48000 96400 144400 39600 $ 104800 149250 29000 27600 24460 16000 9600 4600 1400 112660 366710 386510 18600 $ 367910

Your answer is correct. Prepare an income statement through gross profit. (Enter all amounts as positive amounts and subtract where necessary.) STELLAR MANUFACTURING COMPANY (Partial) Income Statement For the Year Ended June 30, 2011 Sales revenues Sales Less: Sales discounts Net sales Cost of goods sold Finished goods inventory, July 1, 2010 Cost of goods manufactured Cost of goods available for sale Less: Finished goods inventory, June 30, 2011 Cost of goods sold Gross profit $ 554000 4200 $ 549800 96000 367910 463910 95900 368010 181790

Your answer is correct. Prepare the current assets section of the balance sheet at June 30, 2011. (List current assets in order of liquidity.) STELLAR MANUFACTURING COMPANY (Partial) Balance Sheet June 30, 2011 Current assets Cash Accounts receivable Inventories Finished goods $ 32000 27000 $ 95900

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Work in process Raw materials Total current assets

18600 39600

154100 $ 213100 Question Attempts: 1 of 3 used

Copyright 2000-2011 by John Wiley & Sons, Inc. or related companies. All rights reserved.

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