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