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Chapter 2

Managerial accounting chapter 2

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70 views15 pages

Chapter 2

Managerial accounting chapter 2

Uploaded by

irshan amir
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF or read online on Scribd
e Chapter 2 Basic Cost Management Concepts salesperson recently tried (o sell the manager a new computer-integrated checkout system forthe store, The new system would save the store a substantial amount of money each year. The recently purchased scanners ‘could be sold in the secondhand market for $19,000. ‘The store manager refused (o listen tothe salesperson, saying, “Ijust bought those scanners. can't get rid of them unl I get my money's worth out of them.” ‘What type of cost is the cost of purchasing the old bar code scanners? What common behavioral tendency Indicate whether each ofthe following costs is a diect cost o an indirect cost ofthe restaurant in «hotel, ‘a. Cost of food served. b. Chef's salary and fringe benefits. ‘¢ Part ofthe cost of maintaining the grounds around the hotel, which is allocated tothe restaurant 4. Par of the cost of advertising the hotel, which is allocated to the restaurant, is the manager exhibiting? Exercises 1m Exercise 2-24 ‘ost Terminology (102-2, 245, 2-8) Exercise 2-25 Cost of Gands Nanctactured and Sod; Missing Data apples xr are aaale wt MeSrawtsComectAccuntng®, CONNEC ‘Consider the following cost that were incurred during the curent year: I. Advertising costs of Nike 3. Straight-line depreciation on factory machinery of ‘ich Indie ‘Wages of assembly-line personnel of Ams I. Delivery costs on customer shipments of Ben & Jens fee ream, . Plant insurance cote of Lo Sous Gass costs incurred in light-bulb manufacturing of General Hlecic . Tite cons incurted by Soars . Sales commissions paid to the tales force of Apple 10, Wood glue consumed inthe manufactae of Those furniture 1. Hourly wages of refinery security guards employed by Bxxon Coxparation 12, The salary ofa financial view president of Micsos0" 1 2 3 4 5. Newsprint consumed in printing the P's ladelphie Inquirer C 1 8 9. Required: Evaluate each of the preceding and determine whether the cost is (a) a product cost or a period cost, (b) variable or fixed in terms of behavir, and (¢) for the product costs only, whether the cost is properly classified as direct material, direct labor, or manufseturing overhead. Item $ is done as an example: Te ore: rode ot, vale, et mater For each case below, find the missing amount. a case (10241,23,2-6) Begining verry of feist gods ? $ 18.000 $3500 (Cos of gods manufactures utr pert $108,780 42500 7 Eager offs gps 500 12,000 10500 Coot gods std 101250 * 152.000 wm Exercise 2-26 ——_ ea ‘An employee of Olentangy Foundry ne, worked a normal 40-hour shift, but four hours were ide du to (on) 1 small fire i the plant The employee earns $16 per hour. Required: 4, Calculate the employee's total compensation for the week, 2, How much of this compensation isa direct-labor cost? How much is overhead? 1m Exercise 2-27 el oer cot ‘A loom operator in « Carolina Textiles factory earns $17 per hour. The employee earns $22 for overtime 025) ‘hours. The operator worked 43 hours during the first week of May, instead of the usual 40 hour. Chapter 2 Basic Cost Maragement Concep’s 6 Required: 1, Compute the loom operator's compensation for the week. 2, Calculate the employee's total overtime premium forthe week. '3. How much ofthe employee's total compensation forthe week is direc-Iabor cost? How much is overhead? ease uses Annu Companys mane eee oa as ble ova enay SOME ee aaa ace eee ae Se aa sass vss 2060 tye eng as esse amen see Fearon Pe a eee eae aie tad by Cou wt one cago mace 228 Required: Read on the company’s website about how Boeing operates and serves its customers, Then PYOeesss; Use of nteet ‘osetly explain what type of manufacturing process would be best for Boeing (02-4) Q ————_ 5 Enereise 2-30 ‘Mighty Mutler, Inc. operates an automobile service favlty that specializes in replacing mullles on com- Fed an Yrabe Cots; pact cars, Te following table shows the costs incued ding a month when 700 mulflrs were replaced. _.tomobile Sone, Missing Data (024,24) Talc Fd ot 4 som Vola ts. = mow Total costs

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