E19-1 Richard Larkin has prepared the following list of


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Hi, can you please answer the homework problems attached? HW2_Acct.docx E19-1 Richard Larkin has prepared the following list of statements about managerial accounting and financial accounting. 1. Financial accounting focuses on providing information to internal users. 2. Analyzing cost-volume-profit relationships is part of managerial accounting. 3. Preparation of budgets is part of financial accounting. 4. Managerial accounting applies only to merchandising and manufacturing companies. 5. Both managerial accounting and financial accounting deal with many of the same economic events 6. Managerial accounting reports are prepared only quarterly and annually. 7. Financial accounting reports are general –purpose reports. 8. Managerial accounting reports pertain to subunits of the business. 9. Managerial accounting reports must comply with generally accepted accounting principles. 10. Although managerial accountants are expected to behave ethically, there is no code of ethical standards for managerial accountants. Instructions: Identify each statement as true or false. If false, indicate how to correct the statement E19-2 Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory. 1. Salaries for assembly line inspectors 2. Insurance on factory machines 3. Property taxes on the factory building 4. Factory repairs 5. Upholstery used in manufacturing furniture 6. Wages paid to assembly line workers 7. Factory machinery depreciation 8. Glue, nails, paint, and other small parts used in production 9. Factory supervisor’s salaries 10. Wood used in manufacturing furniture Instructions: Classify the above items into the following categories (a) direct materials, (b) direct labor, and (c) manufacturing overhead E19-4 Knight Company reports the following costs and expenses in May Factory utilities Depreciation on factory equipment Depreciation on delivery trucks Indirect factory labor Indirect materials Direct materials used Factory manager’s salary Direct labor Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising Office supplies used $15,500 12,650 3,800 48,900 80,800 137,600 8,000 69,100 46,400 2,500 1,300 2,000 15,000 2,640 Instructions: From the information, determine the total amount of: (a) Manufacturing overhead (b) Product costs (c) Period costs E19-5 Ikerd Company is a manufacturer of personal computers. Various costs and expenses associated with its operations are as follows: 1. Property taxes on the factory building 2. Production superintendents salaries 3. Memory boards and chips used in assembling computers 4. Depreciation on the factory equipment 5. Salaries for assembly-line quality control inspectors 6. Sales commissions paid to sell personal computers 7. Electrical components used in assembling computers 8. Wages of workers assembling personal computers 9. Soldering materials used on factory assembly lines 10. Salaries for the night security guards for the factory building The company intends to classify these costs and expenses into the following categories: (a) Direct materials, (b) direct labor, (c) manufacturing overhead, and (d) period costs. Instructions: List the items 1 through 10. For each item, indicate the cost category to which it belongs. E19-12 Cepeda Corporation has the following cost records for June 2014 Indirect factory labor Direct materials used Work in process 6/1/2014 Work in process 6/30/2014 Finished goods 6/1/2014 Finished goods 6/30/2014 Factory utilities Depreciation, factory equipment Direct labor Maintenance, factory equipment Indirect materials Factory manager’s salary $ 4,500 20,000 3,000 3,800 5,000 7,500 400 1,400 40,000 1,800 2,200 3,000 Instructions: (a) Prepare a cost of goods manufactured schedule for June 2014 (b) Prepare an income statement through gross profit for June 2014 assuming sales revenue is $92,100 P19-1A Lott Comp

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