Chapter 16 AMA

advertisement
Chapter 1
Managerial Accounting
Concepts and Principles
Financial Accounting
 External








Shareholders
Creditors
Government Agencies
General Public
GAAP
Direct current operations
Plan future operations
Evaluate past activities
Managerial Accounting
 Meets the specific needs of a company’s
management
 Historical data (objective)
 Estimated data (subjective)
 Prepared as needed for management
needs
Financial Accounting and
Managerial Accounting
1-1
8
Management Process





Planning (strategic/operational)
Directing
Controlling
Improving
Decision Making
Operations of a Business
 Service
 Merchandising
 Manufacturing
Costs
 Cost object
 Direct vs Indirect Cost
 Direct Materials Cost (D)
 Direct Labor Cost (D)
 Factory Overhead Cost (I)
 Prime Cost/Conversion Cost
 Product/Period Costs
1-2
Example Exercise 1-2
Identify the following costs as (a) direct materials, (b) direct labor, or
(c) factory overhead for a baseball glove manufacturer.
1. _______________ Leather used to make a baseball
glove
2. _______________ Coolants for machines that sew
baseball gloves
3. _______________ Wages of assembly line employees
4. _______________ Ink used to print a player’s autograph
on the baseball glove
2
7
1-2
Follow My Example 1-2
Identify the following costs as (a) direct materials, (b) direct labor, or
(c) factory overhead for a baseball glove manufacturer.ss
1. _______________
Leather used to make a baseball
(a) Direct
materials
glove
(c) Factory overheadCoolants for machines that sew
2. _______________
baseball gloves
(b) Direct labor
3. _______________
Wages of assembly line employees
4. _______________
(c) Factory overheadInk used to print a player’s autograph
on the baseball glove
Left click mouse for answers.
For Practice: PE 1-2A, PE 1-2B
2
8
1-2
Example Exercise 1-4
Identify the following costs as a (a) product cost, or
for a baseball glove manufacturer.
(b) period cost
1. _______________ Leather used to make a baseball
glove
2. _______________ Cost of endorsement from a
professional baseball player
3. _______________ Office supplies used at the company
headquarters
4. _______________ Ink used to print a player’s autograph
on the baseball glove
3
9
1-2
Follow My Example 1-4
Identify the following costs as a (a) product cost, or
(b) period cost for a baseball glove manufacturer.
(a) Product cost
1. _______________
Leather used to make a baseball
glove
(b) Period cost
2. _______________
Cost of endorsement from a
professional baseball player
(b) Period cost
3. _______________
Office supplies used at the company
headquarters
(a) Product cost
4. _______________
Ink used to print a player’s autograph
on the baseball glove
4
Left click the mouse to reveal answers.
For Practice: PE 1-5A, PE 1-5B
0
Financial Statements
(Manufacturing Company)
 Balance Sheet
 Materials (Raw) Inventory
 Work in Process (WIP) Inventory
 Finished Goods Inventory
 Income Statement
 Cost of Goods Manufactured
Flow of Manufacturing Costs
1-3
46
1-3
Determining the Cost of Goods
Manufactured
STEP 1:
Materials inventory, December 1, 2008
$ 65,000
Add: materials purchased during December 100,000
Cost of materials available for use
$165,000
Less: materials inventory, Dec. 31, 2008
35,000
Cost of materials placed in production $130,000
to total manufacturing cost
47
1-3
Determining the Cost of Goods
Manufactured
STEP 2:
Cost of materials placed in production
$130,000
from Step 1
48
Determining the Cost of Goods
Manufactured
1-3
STEP 2:
Cost of materials placed in production
Direct labor
Factory overhead
Total manufacturing costs added
$130,000
110,000
44,000
$284,000
to cost of goods
manufactured section
49
1-3
Determining the Cost of Goods
Manufactured
STEP 3:
Work in process inventory, Dec. 1, 2008
Add: total manufacturing costs added
$ 30,000
284,000
from Step 2
50
1-3
Determining the Cost of Goods
Manufactured
STEP 3:
Work in process inventory, Dec. 1, 2008
Add: total manufacturing costs added
Total manufacturing costs
Less: work in process inventory
Cost of goods manufactured
$ 30,000
284,000
$314,000
24,000
$290,000
51
Manufacturing Company—
Income Statement with
Statement of Cost of
Goods Manufactured (cont’d)
1-3
to income
statement
52
Manufacturing Company—
Income Statement with
Statement of Cost of
Goods Manufactured
1-3
from
statement of
cost of goods
manufactured
53
Download