Chapter 14: Q21DQ (page 655)
Prepare a proper title for the annual schedule of cost of goods manufactured of Google. Does the date match the balance sheet or income statement? Why?
The date matches the period of the income statement.
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Compute ending work in process inventory for a manufacturer with the following information.
Raw materials purchased . . . . . . . . . . . . . . . \(124,800
Direct materials used . . . . . . . . . . . . . . . . . . 74,300
Direct labor used . . . . . . . . . . . . . . . . . . . . . . 55,000
Total factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . \) 95,700
Work in process inventory, beginning of year . . . . . . . 26,500
Cost of goods manufactured . . . . . . . . . . . . . . . . . . . . . 221,800
Question: Georgia Pacific, a manufacturer, incurs the following costs. (1) Classify each cost as either a product (PROD) or period (PER) cost. If a product cost, identify it as direct materials (DM), direct labor (DL), or factory overhead (FO), and then as a prime (PR) or conversion (CONV) cost. (2) Classify each product cost as either a direct cost (DIR) or an indirect cost (IND) using the product as the cost object.
Cost | Direct or Indirect | Product or period | If product cost, Then: | If product cost, Then: |
Direct material, Direct labor, or Factory overhead | Prime or Conversion | |||
1. Factory utilities | ||||
2. Advertising | ||||
3. Amortization of patent on factory machine | ||||
4. State and federal income taxes | ||||
5. Office supplies used | ||||
6. Insurance on factory building | ||||
7. Wages to assembly workers |
How do an income statement and a balance sheet for a manufacturing company and a merchandising company differ?
Define and describe two measures to assess raw materials inventory management.
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.
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