Chapter 18

Exercises
Managerial Accounting Concepts and Principles

Managerial Accounting Concepts and Principles

In-Class Exercise: Exercise No. 18- 6 Page 760

Cost Analysis & Identification (Complete schedule in textbook)

Managerial Accounting Concepts and Principles

Exercise 18-4: Georgia Pacific, a manufacturer, incurs the following costs. (1) Classify each cost as either a product or a period cost. If a product cost, identify it as a prime and/or conversion cost. (2) Classify each product cost as either a direct or an indirect cost using the product as the cost objective.

1. 2. 3. 4. 5,

Cost Office supplies used..... Bad debts expense. . Small tools used.. Factory utilities Advertising ...

Product Cost Prime Conversion

Period Cost

Direct Cost

Indirect Cost . . . . .

6. Amortization of patents factory... 7. Payroll taxes for prod. Supervisor.. 8. Accident insurance factory 9. Depreciation factory building 10. State & federal income taxes.. 11. Wages to assembly workers 12. Direct materials used.

. .
. . . . . .

Manufacturing Statement

In-Class Exercise: Exercise No. 18-11 Page 762

Manufacturing Statement

(Use textbook Exhibit 18.16 on Page 745 as an example)

Manufacturing Statement
Exercise 18-11: Given the following selected account balances of Randa Company, prepare its manufacturing statement for the year ended on December 31, 2011 Include a listing of the individual overhead account balances in the statement. Sales.$ 1,252,000 Raw materials inventory, Dec. 31, 2010..... 39,000 Goods in process inventory, Dec. 31, 2010.. 55,900 Finished goods inventory, Dec. 31, 2010.. 64,750 Raw materials purchases.. 177,600 Direct labor.... 227,000 Factory computer supplies used. 19,840 Indirect labor. 49,000 Repairs Factory equipment 7,250 Rent cost of factory building.... 59,000 Advertising expense... 96,000 General and administrative expenses 131,300 Raw materials inventory, Dec. 31, 2011.... 44,700 Goods in process inventory, Dec. 31, 2011.. 43,500 Finished goods inventory, Dec. 31, 2011.. 69,300

Manufacturing Statement

Manufacturing Statement
Exercise 18-11