Description

Identifies the three manufacturing cost until the goods are sold; a detailed manufacturing process between inventories until convert of raw material to finished goods. Explain the difference of merchandising company and manufacturing company.

Objectives

1. Explain the distinguishing features of managerial accounting
2. Identify the three broad functions of management.
3. Identify the three broad manufacturing cost.
4. Distinguish between product and period cost.
5. Explain the difference between a merchandising and a manufacturing Income Statement.
6. Indicate how cost of goods manufactured is determined.
7. Explain the difference between a merchandising and manufacturing Balance Sheet.

Duration:

1 Week

Activities

1. Read the chapter 19 from Textbook 13 ed.
2. Read the Continuation Chapter 19 Summary.
3. Hear and/or read the chapter summary provided by the instructor in Spanish language.
4. Read the Glossary and practice the Multiple Choice Questions (p. 897 - 903) 13 ed.
5. Visit the Student Companion Site (Chapter 19) to view the Chapter PowerPoint and practice the Self Tests and Additional Self Tests files.
6. Review the discussion problem included in the folder P 19-3A -Discussion Problem (Practice).

Evaluation:

1. Complete the Ch.19 Assignment (continuation) Chapter 19 (continuation) Summary: III. Manufacturing Cost in Financial Statements: A. Income Statement. Merchandisers and manufacturing companies differs in the way to compute the cost of good sold. Merchandisers: Beginning Cost of Ending Merchandise + Goods - Merchandise = Inventory Purchased Inventory Cost of Manufacturer: Good Sold Beginning Cost of Ending Finished goods + Goods - Finished Goods = Inventory Manufactured Inventory a. Cost of goods manufactured: The cost of good manufactured is a combination of raw material inventory used into production that is a process of the work in process inventory by combining direct material, direct labor and manufacturing overhead to get finished good inventory. In this chapter we are going to learn how these three (3) inventories interact each other until it is sold and charged to cost of good manufactured in the income statement. First is necessary to determine the amount of raw material used for the period. It is determined in the raw material inventory control account by adding to the begin inventory the purchases and subtract the end inventory to determine the raw material used, this amount then is added as direct material in work in process inventory or indirect material as factory overhead (control account), the work in process also is charge with direct labor and factory overhead applied from the overhead control account using a pre-determine rate or specific amounts and accounts. Once the product is complete in the work in process inventory it is transfer to the finished good inventory until it is sold and charged as an expense in the income statement as a cost of good sold. 2 XYZ Co. Cost of Goods Manufactured Schedule 1/31/X7 W.I.P. 1/1 $ 1,000 Direct Material: Raw Material 1/1 $ 500 Raw Material Purchased $ 3,000 Total Material Available $ 3,500 Less: Raw Material 1/31 $ 1,000 Direct Material used $ 2,500 Direct Labor $ 5,000 Factory Overhead $ 3,000 $ 8,000 Total Mfg Cost $10,500 Total Cost of Work In process $11,500 Less W.I.P. 1/31 $ 1,500 Cost of Goods Manufactured $10,000 The schedule of good manufactured is an example of various internal reports that management use within their responsibility plan, direct and control. Managerial accounting is a function Responsibility Accounting, B. Balance Sheets In the current asset section the only differences is that there are three different inventories (1) Finished goods inventory (2) Work in process inventory and (3) Raw material inventory that are showed in the manufactures balance sheet in that same order. References: Weygandt, J.; Kieso, D.E. & Kimmel, P.D. (2015). Accounting principles (12 ed.). NJ: John Wiley & Sons, Inc. https://bcs.wiley.com/he-bcs/Books?action=chapter&bcsId=11104&itemId=1119411017&chapterId=129571 Ch.19 Continuation - Assignment #2 - (10 points),

Requisitos de finalizacin

Apertura:martes, 10 de septiembre de 2024, 08:00

Cierre:jueves, 26 de septiembre de 2024, 23:59

Instructions:

1. Download the attached document and identify it with your name.

2. Complete the exercise with the problem, save and send it as an attachment in the Ch. 19 cont. Assignment.

Chapter 19 cont. Assignment.docx 13 de agosto de 2024, 10:09

Name:________________________

CONT 4006

Chapter 19 (Continuation) Assignment

Instructions:

1. Download the attached document and identify it with your name.

2. Complete the exercise, save and send it as an attachment in the Ch. 19 cont. Assignment.

I. Problem

1. The Zoe Corporation has the following information for the month of March.

Purchases	$90,000
Materials inventory, March 1	7,000
Materials inventory, March 31	9,000
Direct labor	23,000
Factory overhead	39,000
Work in process, March 1	20,000
Work in process, March 31	18,000
Finished goods inventory, March 1	20,000
Finished goods inventory, March 31	24,000
Sales	250,000
Sales and administrative expenses	80,000

2. Prepare the following statements with the information provided in the problem:

• (a) schedule of cost of goods manufactured
• (b) an income statement for the month ended March 31
• (c) prepare only the inventory section of the balance sheet

Your answers will be accepted only in Word or Excel format as an attachment.