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Introduction to Managerial Accounting

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Presentation on theme: "Introduction to Managerial Accounting"— Presentation transcript:

1 Introduction to Managerial Accounting
Chapter 16 Exercises

2 Managerial Cost Classifications
In-Class Exercise (Form groups and work exercise): Exercise No Page E Classifying Costs

3 Managerial Cost Classifications
Exercise E16-20: Wheels, Inc. manufactures wheels for bicycles, tricycles, and scooters. For each cost given in the exercise, determine if the cost is a product cost or a period cost. If the cost is a product cost, further determine if the cost is a direct materials (DM), direct labor (DL), or manufacturing overhead (MOH). Then determine if the product cost is a prime cost, conversion cost, or both. If the cost is a period cost, further determine if the cost is a selling expense or administrative expense. Use the chart shown on the following slide to complete the exercise.

4 Managerial Cost Classifications

5 Managerial Cost Classifications
End of Exercise

6 Schedule of Cost of Goods Manufactured
In-Class Exercise (Form groups and work exercise): Exercise No Page E Schedule of Cost of Goods Manufactured

7 Schedule of Cost of Goods Manufactured
Exercise E16-22: Clarkson Corp., a lamp manufacturer, provided the following information for the year ended December 31, 2016. Inventories Beginning Ending Raw Materials $ 58,000 $ 22,000 Work-in-Process 100, ,000 Finished Goods , ,000 Other Information: Depreciation, plant building and equipment…… $ 13,000 Raw materials purchases………………………… ,000 Insurance on plant………………………………… ,000 Sales salaries………………………………………… ,000 Repairs and maintenance – plant………………… ,000 Indirect labor………………………………………… ,000 Direct labor…………………………………………… ,000 Administrative expenses…………………………… ,000 Requirements: (1) Use the information to prepare a schedule of cost of goods manufactured. (2) Compute unit product cost if Clarkson manufactured 2,135 lamps.

8 Schedule of Cost of Goods Manufactured

9 Schedule of Cost of Goods Manufactured

10 Schedule of Cost of Goods Manufactured
End of Exercise


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