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Presentation/PPT
27/08/2022
PE 16-1 Management process
Which phase of the management process does each activity relate? a. Developing long-range courses of action to achieve goals b. Isolating significant departures from plans for further investigation and possible remedial action. It may lead to a revision of future plans c. Process by which managers, given their assigned levels of responsibilities, run day-to-day operations
PE 16-2 Direct materials, direct labor, and factory overhead
Identify the following costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher:
1. Staples used to bind magazines 2. Wages of printing machine employees 3. Maintenance on printing machines 4. Paper used in the magazine
PE 16-3 Prime and conversion costs
Identify the following costs as a prime cost (P), conversion cost (C), or both (B) for a magazine publisher:
1. Paper used for the magazine 2. Wages of printing machine employees 3. Glue used to bind magazine 4. Maintenance on printing machines
PE 16-4 Product and period costs
Identify the following costs as a product cost or a period cost for a clothing manufacturer:
1. Research and development costs 2. Depreciation on sewing machines
3. Fabric used during production 4. Advertising expense 5. Factory janitorial supplies
EX 16-5 Cost of goods manufactured
The following information is available for Casey Manufacturing Company for the month ending January 31, 2017:
Cost of direct materials used in production
390,000
Direct labor
336,000
Work in process inventory, Jan 1
162,000
Work in process inventory, Jan 31
170,400
Total factory overheard
234,000
Determine Casey’s cost of goods manufactured for the month ended January 31, 2017.
EX 16-6 Concepts and Terminology
From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:
1. A product, sales territory, department, or activity to which costs are traced is called a (direct cost, cost object). 2. The balance sheet of a manufacturer would include an account for (cost of goods sold, work in process inventory). 3. Factory overhead costs combined with direct labor costs are called (prime, conversion) costs. 4. The implementation of automatic, robotic factory equipment normally (increases, decreases) the direct labor component of product costs.
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