ACC-1B Lecture Notes - Lecture 1: Operations Management, Financial Accounting

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26 Oct 2020

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Work in process inventory (wip inventory) the cost of products that are partially complete. Controlling the function of keeping activities in accordance with plans. Managerial accounting primarily concerned with internal users and reports pertain to subunits of the entity. Direct materials materials that can be physically and directly associated with manufacturing a product. Raw materials that can be traced to a profit. Planning the function of setting goals and objectives. Manufacturing overhead indirect costs of manufacturing a product all manufacturing costs except direct materials and direct labor. Financial accounting primarily concerned with external users and reports pertain to the entity as a whole. Value chain all business processes associated with providing a product or service. Directing the function of coordinating diverse activities to produce a smooth running operation. Planning directing controlling = key roles of a management accountant. Manufacturing costs activities and processes that convert raw materials into finished goods . Product costs direct materials, direct labor, manufacturing overhead.

Related Questions

1. Yummy Tummy Desserts has 3,000 quarts of ice cream in WIPInventory, with all materials already added. What are equivalentunits in ending WIP Inventory for materials if the ice cream is 67%through the process?

	990
	3,000
	0
	2,010

2. How do fixed costs react in total and on a per unitbasis?

Fixed costs increase in total asproduction increases and remain constant on a per unit basis.

Fixed costs remain constant intotal and on a per unit basis as production increases.

Fixed costs remain constant intotal and decrease per unit as production increases.

Fixed costs increase in total and on a per-unit basis.

3. Sykes Company has sales revenue of $585,700. Cost of goodssold before adjustment is $335,900. The company's actualmanufacturing overhead is $91,900 while allocated manufacturingoverhead is $105,300. What is the actual gross profit?

$263,200

$249,800

$157,900

$236,400

4. Baxter Company produces Frisbees using athree-step sequential process that includes molding, coloring, andfinishing. At what stage would the sets be allocated ManufacturingOverhead?

When the Frisbees are in WIPInventory-Coloring

When the Frisbees are in WIPInventory-Finishing

When the Frisbees are in WIPInventory-Molding

All of the above

5. Which method are managers using when they use their judgmentto classify costs as variable, fixed, or mixed?

Low-high method

Regression analysis

Account analysis

High-low method

6. Which of the following is not a way in which management canuse job cost information?

Determining the balance in rawmaterials inventory

Preparing the financialstatements

Assessing and comparing theprofitability of each product type

Using the cost information in determining the bid price forcustom orders

7. Which of the following is not a way in which management canuse job cost information?

Determining the balance in rawmaterials inventory

Preparing the financialstatements

Assessing and comparing theprofitability of each product type

Using the cost information in determining the bid price forcustom orders

8. Tall Timbers reports the following data for its first year ofoperation:

Work in process inventory, beginning	$ 0
Work in process inventory, ending	$50,200
Manufacturing overhead	$25,400
Direct materials used	$7,700
Direct Labor	$60,000
Finished goods inventory, beginning	$ 0
Finished goods inventory, ending	$20,000
Cost of goods manufactured	$42,900

What is the cost of goods sold?

$22,900

$76,000

$73,100

$42,900

A deodorant manufacturer offers the following information:

WIP Inventory, January 1	0 units
Units started	33,600 units
Units completed and transferred out	11,200 units
WIP Inventory, December 31	22,400 units
Direct materials	$276,480
Direct labor	$585,000
Manufacturing Overhead	$328,920

The units in ending WIP Inventory were 60% complete formaterials and 40% complete for conversion costs.

On December 31, what are the total equivalent units for directmaterials?

47,040

33,600

20,160

24,640

10. How is the cost of indirect materials used in the factoryrecorded?

Credit to Raw Materials Inventoryaccount

Credit to Manufacturing Overheadaccount

Credit to Direct Materials Expenseaccount

Credit to Work-in-Process Inventory account

11. XYZ uses job costing. Actual manufacturing overhead for theperiod is $20,300 while allocated manufacturing overhead is$18,200. What entry will close the manufacturing overheadbalance?

	Debit the Cost of Goods Soldaccount and credit the Finished Goods Inventory account for$2,100.
	Debit the Manufacturing Overheadaccount and credit the Work-in-Process account for $2,100.
	Debit the Cost of Goods Soldaccount and credit the Manufacturing Overhead account for$2,100.
	Debit the Manufacturing Overheadaccount and credit the Cost of Goods Sold account for $2,100.

Yoder Furniture Works----the question is a the very end,I just provided supporting documents.

Yoder Furniture Works manufactures a high-quality, woodenrocker-recliner. A key differentiating feature of thisrocker-recliner is the ease with which a hand-operated lever raisesand lowers the footrest. Yoder left the prototype phase and begancommercial production on January 1, 2015. A retired accountant ofthe founder, Steve Yoder, maintained the accounting records on atemporary basis through January 31, 2015. Now, Yoder is searchingfor a replacement. Potential candidates are being askedto evaluate the information from the first month of commercialoperation as follows:

Cost information
Administrative expenses	$22,000
Advertising expenses	11,700
Cash account balance, January 1, 2015	0
Depreciation on production equipment and factory building	2,000
Depreciation on administrative offices	750
Insurance on production equipment and factory building	1,700
Administrative supplies expense	550
Property taxes on production equipment and factory building	425
Sales commissions	18,700
Utilities for production equipment and factory building	1,650
Wages paid to production workers	67,800
Direct materials inventory, January 1, 2015	0
Direct materials inventory, January 31, 2015	0
Direct materials purchases during January 2015	83,400
Work in process inventory, January 1, 2015	0
Work in process inventory, January 31, 2015	0
Finished goods inventory, January 1, 2015	0

Production and sales information
Units produced during January 2015	600
Units sold during January 2015	490
Sales price per unit	$500

Based on the above information, answer the followingquestions:

Classify costs as either product costs or period costs using theformat shown below. Enter the dollar amount for each cost in theappropriate column and total each classification.

Item	Product Costs			Period Costs
Item	Direct Materials	Direct Labor	Manufacturing Overhead	Period Costs
Admin Expenses				22,000
Advertising Exp				11,700
Depreciation Equipment and Building			2,000
Depreciation on Admin Offices				750.00
Insurance on production Equip and Fac.Building			1,700
Administrative Supplies Exp				550.00
Property taxes on production Equipment and FactoryBuild.			425.00
Sales commissions				18,700
Utilities for production equipment and factorybuilding			1,650.00
Wages paid to production workers		67,800
Direct materials purchases during January2015	83,400.00
Total	83,400	67,800	5,775	53,700

Classify costs as either variable costs or fixed costs. Assumethere are no mixed costs. Enter the dollar amount for each cost inthe appropriate column and total each classification. Use theformat shown below. Assume that Utilities for production equipmentand factory building are a fixed cost

Item	Variable Costs	Fixed Costs	Total Costs
Admin Expenses		22,000
Advertising Exp		11,700
Depreciation Equipment and Building		2,000
Depreciation on Admin Offices		750.00
Insurance on production Equip and Fac.Building		1,700
Administrative Supplies Exp		550
Property taxes on production Equipment and FactoryBuild.		425
Sales commissions	18,700
Utilities for production equipment and factorybuilding		1,650.00
Wages paid to production workers	67,800
Direct materials purchases during January2015	83,400.00
Total	169,900	40,775.00

The ones below, I am having trouble with.

Determine the per-unit variable cost of a chair.

Determine the per-unit contribution margin and the contributionmargin percentage.

azurebear488

In absorption costing, fixed manufacturing overhead is expensed________.

A) when all the other non-manufacturing fixed costs areexpensed

B) when the product is sold

C) at the end of the period in which it is paid

D) when the units are produced

50) Volplex, Inc. produces paper and office supplies and usesthe just-in-time inventory system. Currently, the company is usingvariable costing. Which of the following is true of the effect ofcosting systems on the financial results of Volplex?

A) Its operating income will besignificantly higher if the company uses absorption costing insteadof variable costing.

B) Its operating income will besignificantly lower if the company uses absorption costing insteadof variable costing.

C) Its operating income will vary alittle if the company uses absorption costing instead of variablecosting.

D) Its operating income will benegative if the company uses absorption costing instead of variablecosting.

51) For which of the following decisions is absorption costingmost appropriate?

A) decisions related to using the sales mix to maximizeprofitability

B) decisions related to controlling short-term costs

C) decisions related to setting sales prices in the long run

D) decisions related to increasing contribution margin

61) The direct materials budget is prepared using informationfrom the ________ budget.

A) cash

B) master

C) capital expenditure

D) production

64) The budgeted income statement________.

A) reports cash paid for purchases of direct materials

B) includes amounts from the sales, cost of goods sold, cash,and capital expenditures budgets

C) is accrual-based

D) does not include depreciation expense

68) Which of the following best describes a standard?

A) a sales price, cost, or quantity that is expected undernormal conditions

B) costs incurred to produce a product

C) budgeted amount for total product cost

D) actual sales price, cost, or quantity

69) A company is setting its direct materials and direct laborstandards for its leading product. Direct material costs from thesupplier are $9 per square foot, net of purchase discount.Freight-in amounts to $0.30 per square foot. Basic wages of theassembly line personnel are $19 per hour. Payroll taxes areapproximately 23% of wages. How much is the direct labor coststandard per hour? (Round your answer to the nearest cent.)

A) $4.37

B) $19.00

C) $23.37

D) $32.37

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ACC-1B Lecture Notes - Lecture 1: Operations Management, Financial Accounting

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