Chapter 14: Q14E (page 661)
Refer to the information in Exercise 14-13 to prepare an income statement for Delray Mfg. (a manufacturer). Assume that its cost of goods manufactured is $534,390.
The operating income is computed as $496,860
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In its recent annual report and related Corporate Responsibility Report, Hyatt provides information on company performance on several dimensions. Indicate whether the following items below best fit into the financial (label your answer “Profit”), social (label your answer “People”), or environmental (label your answer “Planet”) aspects of triple bottom line reporting.
1.Sales revenue totaled \(4.4 billion.
2. Increased women in management positions by 8%.
3. Reduced water consumption at its hotels.
4. Invested in career programs in Brazil.
5. Operating cash flows totaled \)473 million.
6. Earned awards for best LGBT workplace.
7. 84% of hotels recycle at least one waste stream.
8. Invested in reading programs for young students.
9. Focused on maximizing long-term shareholder value.
Question: Identify whether each description most likely applies to managerial (M) or financial (F) accounting.
Diez Company produces sporting equipment, including leather footballs. Identify each of the following costs as direct (D) or indirect (I). The cost object is a football produced by Diez.
The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company.
Advertising expenses | \(28,750 | Miscellaneous production costs | \)8,425 |
Depreciation expenses – office equipment | 7,250 | Office salaries expense | 63,000 |
Depreciation expenses – selling equipment | 8,600 | Raw material purchases | 925,000 |
Depreciation expenses – factory equipment | 33,550 | Rent expenses – office space | 22,000 |
Factory supervision | 102,600 | Rent expenses – selling space | 26,100 |
Factory supplies used | 7,350 | Rent expenses – factory building | 76,800 |
Factory utilities | 33,000 | Maintenance expenses – factory equipment | 35,400 |
Direct labor | 675,480 | Sales | 4,462,500 |
Indirect labor | 56,875 | Sales salaries expenses | 392,560 |
Required
1. Classify each cost as either a product or period cost.
2. Classify each product cost as either direct materials, direct labor, or factory overhead.
3. Classify each period cost as either selling expenses or general and administrative expenses.
Question: The following calendar-year information is taken from the December 31, 2017, adjusted trial balance and other records of Dahlia Company
Advertising expense | \( 19,125 | Direct labor | \) 650,750 |
Depreciation expense—Office equipment | 8,750 | Indirect labor | 60,000 |
Depreciation expense—Selling equipment | 10,000 | Miscellaneous production costs | 8,500 |
Depreciation expense—Factory equipment | 32,500 | Office salaries expense | 100,875 |
Factory supervision | 122,500 | Raw materials purchases | 872,500 |
Factory supplies used | 15,750 | Rent expense—Office space | 21,125 |
Factory utilities | 36,250 | Rent expense—Selling space | 25,750 |
Inventories | Rent expense—Factory building | 79,750 | |
Raw materials, December 31, 2016 | 177,500 | Maintenance expense—Factory equipment | 27,875 |
Raw materials, December 31, 2017 | 168,125 | Sales | 3,275,000 |
Work in process, December 31, 2016 | 15,875 | Sales discounts | 57,500 |
Work in process, December 31, 2017 | 14,000 | Sales salaries expense | 286,250 |
Finished goods, December 31, 2016 | 164,375 | ||
Finished goods, December 31, 2017 | 129,000 |
Required
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