Chap 14 assign answers PDF

Preview

Summary

Chapter 14 Assignment...

Description

Financial Accounting Primary users of reports Types of reports Frequen cy of reports Purpose of reports Content of reports Verificati on process

Managerial Accounting

External users

Internal users

Financial statements

Internal reports

Quarterly and annually

As frequently as needed

General-purpose

Special-purpose information for specific decisions

Generally accepted accounting principles

Relevance to decisions

Annual audit by certified public accountant

No independent audits

(a)

Direct Materials

Frames and tires used in manufacturing bicycles.

(b)

Direct Labor

Wages paid to production workers.

(c)

Manufacturing Overhead

Insurance on factory equipment and machinery.

(d)

Manufacturing Overhead

Depreciation on factory equipment.

(a)

Direct Materials

Windshield.

(b)

Direct Materials

Engine.

(c)

Direct Labor

Wages of assembly line worker.

(d)

Manufacturing Overhead

Depreciation of factory machinery.

(e)

Manufacturing Overhead

Factory machinery lubricants.

(f)

Direct Materials

Tires.

(g)

Direct Materials

Steering wheel.

(h )

Manufacturing Overhead

Salary of painting supervisor.

(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.

Item

Category

1.

Salaries for assembly line inspectors.

Direct Labor

2.

Insurance on factory machines.

Manufacturing Overhead

3.

Property taxes on the factory building.

Manufacturing Overhead

4.

Factory repairs.

Manufacturing Overhead

5.

Upholstery used in manufacturing furniture.

Direct Materials

6.

Wages paid to assembly line workers.

Direct Labor

7.

Factory machinery depreciation.

Manufacturing Overhead

8.

Glue, nails, paint, and other small parts used in production.

Manufacturing Overhead

9.

Factory supervisors’ salaries.

Manufacturing Overhead

10.

Wood used in manufacturing furniture.

Direct Materials

Manufacturing Overhead (a )

Factory utilities

$16,349

Depreciation on factory equipment 13,558 Indirect factory labor 52,938 Indirect materials 85,161 Factory manager’s salary 8,712 Property taxes on factory building 2,823 Factory repairs 2,125 Manufacturing overhead $181,666

Product Cost (b )

Direct materials

$137,735

Direct labor 74,092 Manufacturing overhead 181,666 Product costs $393,493

Period Cost (c) Depreciation on delivery trucks $4,078 Sales salaries 51,248 Repairs to office equipment 2,099 Advertising 16,312 Office supplies used 2,871 $76,608 Period costs...