Transcript Chapter 16 - Accounting

Introduction to
Managerial
Accounting
Chapter 16
Exercises
Managerial Cost Classifications
• In-Class Exercise (Form groups and work exercise):
• Exercise No.
E16-20
Page
988
Classifying Costs
Managerial Cost Classifications
Exercise E16-20:

Wheels, Inc. manufactures wheels for bicycles, tricycles, and scooters.

For each cost given in the exercise, determine if the cost is a product
cost or a period cost.

If the cost is a product cost, further determine if the cost is a direct
materials (DM), direct labor (DL), or manufacturing overhead (MOH).


Then determine if the product cost is a prime cost, conversion cost,
or both.
If the cost is a period cost, further determine if the cost is a selling
expense or administrative expense.
Managerial Cost Classifications
Managerial Cost Classifications
End of Exercise
Schedule of Cost of Goods Manufactured
• In-Class Exercise (Form groups and work exercise):
• Exercise No.
E16-22
Page
989
Schedule of Cost of Goods
Manufactured
Schedule of Cost of Goods Manufactured
Exercise E16-22:
Knight Corp., a lamp manufacturer, provided the following information for the
year ended December 31, 2014.
Inventories
Raw Materials
Work-in-Process
Finished Goods
Beginning
$ 56,000
103,000
41,000
Ending
$ 23,000
63,000
48,000
Other Information:
Depreciation, plant building and equipment…… $ 16,000
Raw materials purchases………………………….. 159,000
Insurance on plant…………………………………... 22,000
Sales salaries…………………………………………
46,000
Repairs and maintenance – plant…………………
8,000
Indirect labor………………………………………….
32,000
Direct labor……………………………………………. 122,000
Administrative expenses…………………………… 59,000
Requirements:
(1) Use the information to prepare a schedule of cost of goods manufactured.
(2) Compute unit product cost if Knight manufactured 2,160 lamps.
Schedule of Cost of Goods Manufactured
Schedule of Cost of Goods Manufactured
Schedule of Cost of Goods Manufactured
End of Exercise