managerial accounting chap 1 exam 1

balence sheet accounts

assets=liablities=equity

t account

debits goes on right, credits on left add all debits, add all credits, them subtrat deits from credits for -ending balence then goes on credit if +ending balence then goes on debit

journal entry

debits=credits

mangerial accounting is used for

desicion making

product costs

every thing in the factory (DM,DL,OH)

indirect costs

OH (IL,IM,OH-Other)

FIRSST MONTH OF OPERATIONS

all begening balences are 0

manufacturing overhead

all of the other costs

direct labor (DL)

titles of factor, assembly, production ( the hands that are working on the good)

"net"

total or something - something

raw materials ( RM)

unprocessed goods BB + purchases -DM = EB

overhead other

utilities on factory, propery taxes on factory, depreciation

calculating overtime costs factory worker makes $8 per hours and worked 43 hours this week. Overtime pay is 1.5x the normal pay anf the overtime premium is classified as other overhead

$8x$43= 344 DL premium for 3 hours of overtime $8x1.5=12< OT:$4x3=12

DL cost equation

(DM+OH) - manufacturing costs

which of the following statement is false A. There is no overlap between financial and managerial accounting. B. managerial accounting sometimes relies on past information. C. Managerial accounting does not need to conform to GAAP. D.Financial accounting must conform to GAAP.

A

A plant manager's salary is a. a direct cost and an indirect cost b. a direct cost c. an indirect cost d. a period cost

C

The cost of a manufactured product generally consists of which of the following costs? a. direct materials cost and factory overhead cost only b. direct labor cost and factory overhead cost only c. direct labor cost, direct materials cost, and factory overhead cost d. direct materials cost and direct labor cost only

C

WIP inventory equation

COGM- manufatoring costs

finished goods inventory equation

COGS-COGM

Which of the following accounts will be found on the income statement? a. Inventory b. Work in Process c. Finished Goods d. Cost of Goods Sold

D

. Compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,900; and selling expenses, $45,290. a. $543,800 b. $187,900 c. $731,700 d. $384,200

D DL+OH 196,300=187,900= 384,200

. A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is a. $750,000 b. $240,000 c. $600,000 d. $270,000

D sales-COGS= GP 45,000x1.5 =675,000 450,000/50,000=9 45,0000x9=405,0000 675,000-405,000=270,000

conversion cost

DL+OH

prime costs & direct costs

DM+DL

manifacturing costs

DM+DL+OH

Finished goods (FG)

Fully proccessed product BB +COGM -COGS =EB

EX.wages of an assembly line worker

Product (DL)

Liabilities (Debit/Credit)

debit decrease, credit increase

revenunes (debit/credit)

debit decrease, credit increase

equity (debit/credit)

debit decreases, credit increases

assets debit&credit

debit increase, credit decrease

expenses (debit/credit)

debit increases, credit decreases

direct materials (DM)

lumber, fabric, water, metal

a managerial accountant assists by

managing or reducing costs

DM cost equation

materials inventory - purchases

requirements?

no requirements!

$0 in taxes

no taxes or PTI on income statement

period costs

not apart of the factory (SG+A) accounting marketing

indirect labor

peopole working in the factory but not touching the goods factory security guard, factory janitor

ex. factory security guard

period (OH-IL)

EX. attornrey fees

period (SG+A)

ex. overtime paid to the marketing art director

period (SG+A)

ex. safty masks for CEO

period (SG+A)

PPE

plant, property, equipment (depreciation)

taxes income statement

pretax income x tax rate 40x10%=$4

manufaturing firms

producing goods for sale baseball, car, watches

EX. automotive engine

product (DM)

ex. glass used for windsheilds

product (DM)

ex. salary of vehicle safty test driver

product (OH-IL)

EX. depreciation of assembly line equipment

product (OH-Other)

ex. safty masks for facotry workers

product (OH-other)

ex. overtime paid to factory worker

product (overtime labor= DL, overtime premium=OH-other)

service firm

provides services uber, landscaping, hairdresser

merchandising firm

resellers of goods target, walmart

income statement accounts

revenues & expenses

"net profit"

revenues - expenses

managerial income statement

sales (COGS) = Gross profit (SG+A) = Net income or Pretax income (tax) = Net income

emnxples of not a cost on reports (SG+A)

sales, sale salries expense, office salaries expense

COGS equation

sales- gross profit

SG+A

selling, general and administrative costs

Work in procss (WIP)

semi processed materials BB +DM +DL +OH -COGM =EB

indirect materials

small/tiny amounts of materials glue, screws, paint