Chapter 16: Q1TI_1 (page 865)
Identify the following characteristics as primarily related to financial accounting (FA) or managerial accounting (MA): 1. Helps creditors make lending decisions
The creditors are the party to whom the business owes money and the correct answer to this question is financial accounting.
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Preparing a schedule of cost of goods manufactured Wilson Corp., a lamp manufacturer, provided the following information for the year ended December 31, 2018:
Balances: Beginning Ending
Direct Materials \( 59,000 \) 23,000
Work-in-Process Inventory 109,000 62,000
Finished Goods Inventory 41,000 44,000
Other information:
Depreciation, plant building and equipment $ 16,000
Direct materials purchases 151,000
Insurance on plant 24,000
Sales salaries 47,000
Repairs and maintenance—plant 10,000
Indirect labor 39,000
Direct labor 121,000
Administrative expenses 60,000
Requirements 2. What is the unit product cost if Wilson manufactured 3,700 lamps for the year?
How do period costs differ from product costs?
Question:Calculating income and cost per unit for a merchandising company
Conway Brush Company sells standard hair brushes. The following information summarizes Conway’s operating activities for 2018:
Selling and Administrative Expenses $ 47,058
Purchases 85,800
Net Sales Revenue 151,800
Merchandise Inventory, January 1, 2018 7,920
Merchandise Inventory, December 31, 2018 11,748
Requirements
1. Calculate the operating income for 2018.
2. Conway sold 6,600 brushes in 2018. Compute the unit cost for one brush.
Explain the differences between planning, directing, and controlling.
Calculating income and cost per service for a service company
Buddy Grooming provides grooming services for pets. In April, the company earned \(16,300 in revenues and incurred the following operating costs to groom 660 dogs:
Wages Expense \) 4,061
Grooming Supplies Expense 1,675
Building Rent Expense 900
Utilities Expense 305
Depreciation Expense—Equipment 55
Requirements 2. What is the cost of service to groom one dog?
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