Wild /fand /fShaw, /fManagerial /fAccounting /f8e Solutions /fManual: /fChapter /f1
1
Copyright /f© /f2022 /fby /fMcGraw /fHill.
All /frights /freserved. /fNo /freproduction /for /fdistribution /fwithout /fthe /fprior /fwritten /fconsent /fof /fMcGraw
Hill.
, Wild /fand /fShaw, /fManagerial /fAccounting /f8e Solutions /fManual: /fChapter /f1
Conceptsand Principles /f
QUICK STUDIES ww
Quick Study 1-1 (5 minutes)
/f /f /f / f
1.
Its primary users are company managers Managerial
..............................
2. Its informationis oftenavailableonlyafteranaudit iscomplete. Financial
ww /f ww /f /f /f /f ww /f /f / f
3. Its primary/ f / f focus is on / f the organization as / f a whole
Financial
/f
..............
4. Its principles and practices are relatively flexible ................. Managerial
/f /f /f /f /f /f
5. It focuses mainly on past results............................................... Financial
/f /f /f /f /f
Quick Study 1-2 (10 minutes)
/f /f /f / f
1. Indirect cost /f
2. Direct cost /f
3. Indirect cost /f
4. Indirect cost /f
5. Direct cost /f
Quick Study 1-3 (10 minutes)
/f /f /f / f
1. Direct materials /f
2. Factory overhead /f
3. Direct labor /f
4. Factory overhead /f
5. Factory overhead /f
6. Direct materials /f
2
Copyright /f© /f2022 /fby /fMcGraw /fHill.
All /frights /freserved. /fNo /freproduction /for /fdistribution /fwithout /fthe /fprior /fwritten /fconsent /fof /fMcGraw
Hill.
, Wild /fand /fShaw, /fManagerial /fAccounting /f8e Solutions /fManual: /fChapter /f1
Quick Study 1-4 (10 minutes)
/f /f /f / f
1. Product cost /f
2. Period cost /f
3. Product cost /f
4. Period cost /f
5. Product cost /f
6. Period cost /f
7. Period cost /f
8. Product cost /f
Quick Study 1-5 (10 minutes)
/f /f /f / f
1. Prime cost /f
2. Conversion cost /f /f (Glue is / f / f an indirect
/ f / f material)
3. Both
4. Conversion cost /f
5. Conversion cost /f
6. Prime cost /f
Quick Study 1-6 (10 minutes)
/f /f /f / f
Ending work in process inventory is computed as:
/f /f /f /f /f /f /f
Work in process inventory, beginning ............... $
/f /f /f /f /f 26,000
Direct materials used ....................................... /f 74,000
Direct labor used ..............................................
/f 55,000
Factory overhead .............................................
/f /f 95,000
Total manufacturing costs ..............................
/f /f /f 224,000
Total cost of work in process 250,000
.............................. 220,000
Less cost of goods manufactured ......................
/f /f /f / f /f
Work in process inventory, ending $ 30,000 /f
.....................
3
Copyright /f© /f2022 /fby /fMcGraw /fHill.
All /frights /freserved. /fNo /freproduction /for /fdistribution /fwithout /fthe /fprior /fwritten /fconsent /fof /fMcGraw
Hill.
, Wild /fand /fShaw, /fManagerial /fAccounting /f8e Solutions /fManual: /fChapter /f1
Quick Study 1-6 (continued)
/f /f /f
Alternative calculation using T-account:
/f / f / f
Work in Process ww ww
Inventory /fww
Beginning 26,000
Direct materials 74,000 / f
Direct labor 55,000 / f
Factory 95,000
overhead
220,000 COGM
Ending 30,000
Quick Study 1-7 (10 minutes)
/f /f /f / f
Cost of goods sold is computed as:
/f /f /f / f /f /f
Finished goods inventory, beginning $ 500
.................
Cost of goods manufactured 4,000
...............................
Goods available for sale ......................................
/f /f /f /f 4,500
Less finished goods inventory, ending / f / f 700
..............
Cost of goods sold ...............................................
/f /f /f /f $3,800
Quick Study 1-8 (10 minutes)
/f /f /f / f
Finished goods inventory, beginning $ 345,000
................
Cost of goods manufactured 918,000 / f / f
..............................
Goods available for sale .....................................
/f /f /f 1,263,000
/f
/ f
Less finished goods inventory, ending 283,000 / f
.............
Cost of goods sold $ 980,000 /f /f /f
..............................................
/f
Alternative calculation using T-account:
/f / f / f
Finished Goods ww
Inventory /fww
Beginning 345,000
COGM 918,000
4
Copyright /f© /f2022 /fby /fMcGraw /fHill.
All /frights /freserved. /fNo /freproduction /for /fdistribution /fwithout /fthe /fprior /fwritten /fconsent /fof /fMcGraw
Hill.
1
Copyright /f© /f2022 /fby /fMcGraw /fHill.
All /frights /freserved. /fNo /freproduction /for /fdistribution /fwithout /fthe /fprior /fwritten /fconsent /fof /fMcGraw
Hill.
, Wild /fand /fShaw, /fManagerial /fAccounting /f8e Solutions /fManual: /fChapter /f1
Conceptsand Principles /f
QUICK STUDIES ww
Quick Study 1-1 (5 minutes)
/f /f /f / f
1.
Its primary users are company managers Managerial
..............................
2. Its informationis oftenavailableonlyafteranaudit iscomplete. Financial
ww /f ww /f /f /f /f ww /f /f / f
3. Its primary/ f / f focus is on / f the organization as / f a whole
Financial
/f
..............
4. Its principles and practices are relatively flexible ................. Managerial
/f /f /f /f /f /f
5. It focuses mainly on past results............................................... Financial
/f /f /f /f /f
Quick Study 1-2 (10 minutes)
/f /f /f / f
1. Indirect cost /f
2. Direct cost /f
3. Indirect cost /f
4. Indirect cost /f
5. Direct cost /f
Quick Study 1-3 (10 minutes)
/f /f /f / f
1. Direct materials /f
2. Factory overhead /f
3. Direct labor /f
4. Factory overhead /f
5. Factory overhead /f
6. Direct materials /f
2
Copyright /f© /f2022 /fby /fMcGraw /fHill.
All /frights /freserved. /fNo /freproduction /for /fdistribution /fwithout /fthe /fprior /fwritten /fconsent /fof /fMcGraw
Hill.
, Wild /fand /fShaw, /fManagerial /fAccounting /f8e Solutions /fManual: /fChapter /f1
Quick Study 1-4 (10 minutes)
/f /f /f / f
1. Product cost /f
2. Period cost /f
3. Product cost /f
4. Period cost /f
5. Product cost /f
6. Period cost /f
7. Period cost /f
8. Product cost /f
Quick Study 1-5 (10 minutes)
/f /f /f / f
1. Prime cost /f
2. Conversion cost /f /f (Glue is / f / f an indirect
/ f / f material)
3. Both
4. Conversion cost /f
5. Conversion cost /f
6. Prime cost /f
Quick Study 1-6 (10 minutes)
/f /f /f / f
Ending work in process inventory is computed as:
/f /f /f /f /f /f /f
Work in process inventory, beginning ............... $
/f /f /f /f /f 26,000
Direct materials used ....................................... /f 74,000
Direct labor used ..............................................
/f 55,000
Factory overhead .............................................
/f /f 95,000
Total manufacturing costs ..............................
/f /f /f 224,000
Total cost of work in process 250,000
.............................. 220,000
Less cost of goods manufactured ......................
/f /f /f / f /f
Work in process inventory, ending $ 30,000 /f
.....................
3
Copyright /f© /f2022 /fby /fMcGraw /fHill.
All /frights /freserved. /fNo /freproduction /for /fdistribution /fwithout /fthe /fprior /fwritten /fconsent /fof /fMcGraw
Hill.
, Wild /fand /fShaw, /fManagerial /fAccounting /f8e Solutions /fManual: /fChapter /f1
Quick Study 1-6 (continued)
/f /f /f
Alternative calculation using T-account:
/f / f / f
Work in Process ww ww
Inventory /fww
Beginning 26,000
Direct materials 74,000 / f
Direct labor 55,000 / f
Factory 95,000
overhead
220,000 COGM
Ending 30,000
Quick Study 1-7 (10 minutes)
/f /f /f / f
Cost of goods sold is computed as:
/f /f /f / f /f /f
Finished goods inventory, beginning $ 500
.................
Cost of goods manufactured 4,000
...............................
Goods available for sale ......................................
/f /f /f /f 4,500
Less finished goods inventory, ending / f / f 700
..............
Cost of goods sold ...............................................
/f /f /f /f $3,800
Quick Study 1-8 (10 minutes)
/f /f /f / f
Finished goods inventory, beginning $ 345,000
................
Cost of goods manufactured 918,000 / f / f
..............................
Goods available for sale .....................................
/f /f /f 1,263,000
/f
/ f
Less finished goods inventory, ending 283,000 / f
.............
Cost of goods sold $ 980,000 /f /f /f
..............................................
/f
Alternative calculation using T-account:
/f / f / f
Finished Goods ww
Inventory /fww
Beginning 345,000
COGM 918,000
4
Copyright /f© /f2022 /fby /fMcGraw /fHill.
All /frights /freserved. /fNo /freproduction /for /fdistribution /fwithout /fthe /fprior /fwritten /fconsent /fof /fMcGraw
Hill.
