Grand Canyon ACC 350 Module 1 Assignment Managerial Accounting

Please complete the following exercises and/or problems from the textbook:

• E18-14
• E18-22
• E18-23
• CP18-42

Prepare your answers in an Excel workbook, using one worksheet per exercise or problem.

E18-14

a. Accounting systems that must follow GAAP.

b. External parties for whom financial accounting reports are prepared.

c. The role managers play when they are comparing the company’s actual results

with the planned results.

d. Internal decision makers.

e. Accounting system that provides information on a company’s past performance.

f. Accounting system not restricted by GAAP but chosen by comparing the costs

versus the benefits of the system.

g. The management function that involves choosing goals and the means to

achieve them.

E18-22 Preparing a schedule of cost of goods manufactured

Knight Corp., a lamp manufacturer, provided the following information for the

year ended December 31, 2014.

Inventories: Beginning Ending

Raw Materials $ 56,000 $ 23,000

Work-in-Process 103,000 63,000

Finished Goods 41,000 48,000

Other information:

Depreciation, plant building and equipment $ 16,000

Raw materials purchases 159,000

Insurance on plant 22,000

Sales salaries 46,000

Repairs and maintenance—plant 8,000

Indirect labor 32,000

Direct labor 122,000

Administrative expenses 59,000

Requirements

1. Use the information to prepare a schedule of cost of goods manufactured.

2. What is the unit product cost if Knight manufactured 2,160 lamps for the year?

E18-23 Computing cost of goods manufactured and cost of goods sold

Use the following information for a manufacturer to compute cost of goods

manufactured and cost of goods sold:

Inventories: Beginning Ending

Raw Materials $ 29,000 $ 32,000

Work-in-Process 44,000 37,000

Finished Goods 19,000 24,000

Other information:

Purchases of materials $ 77,000

Direct labor 87,000

Manufacturing overhead 45,000

Problem P18-42 is the first problem in a sequence of problems for Davis Consulting, Inc.

This company was also used for the Continuing Problems in the financial accounting

chapters as the business evolved from a service company to a merchandising company.

However, it is not necessary to complete those problems prior to completing P18-42.

Davis Consulting, Inc. is going to manufacture billing software. During its first

month of manufacturing, Davis incurred the following manufacturing costs:

Inventories: Beginning Ending

Raw Materials $ 10,800 $ 10,300

Work-in-Process 0 21,000

Finished Goods 0 31,500

Other information:

Raw materials purchases $ 19,000

Plant janitorial services 700

Sales salaries expense 5,000

Delivery expense 1,700

Sales revenue 750,000

Utilities for plant 10,000

Rent on plant 13,000

Customer service hotline costs 18,000

Direct labor 190,000

Prepare a schedule of cost of goods manufactured for Davis for the month ended January 31, 2016.