Management process

1. Example Exercise 16-1 Three phases of the management process are controlling, planning, and decision making. Match the following descriptions to the proper phase:

Description

a. Monitoring the operating results of implemented plans and comparing the actual results with expected results

b. Inherent in planning, directing, controlling, and improving

c. Long-range courses of action

Phase of management process

Controlling

Planning

Decision making

2. Example Exercise 16-2 Identify the following costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for an automobile manufacturer:

a. Wages of employees that operate painting equipment

b. Wages of the plant supervisor

c. Steel

d. Oil used for assembly line machinery

3. Example Exercise 16-3 Identify the following costs as a prime cost (P), conversion cost (C), or both (B) for an automobile manufacturer:

a. Wages of employees that operate painting equipment

b. Wages of the plant manager

c. Steel

d. Oil used for assembly line machinery

4. Example Exercise 16-4 Identify the following costs as a product cost or a period cost for an automobile manufacturer:

a. Steel

b. Wages of employees that operate painting equipment

c. Rent on office building

d. Sales staff salaries

5. Example Exercise 16-5 Timbuk 3 Company has the following information for March:

Cost of direct material used in production $21000

Direct labor $54,250

Factory overhead $35,00

Work in process inventory, March 1 $87,500

Work in prosed inventory, March 31 $92,750

Finish good inventory, March 1 $36,750

Finish good inventory, March 31 $42,000

For March, determine (a) the cost of goods manufactured and (b) the cost of goods sold.