work_at_home_soultions_ch10[1]

work_at_home_soultions_ch10[1] - Page 383 Exercise 10-1 a....

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Page 383 Exercise 10-1 Managerial Accounting Financial Accounting a. X b. X c. X d. X e. X f. X g. X h. X i. X j. X Exercise 10-2 Product Cost General, Selling, and Administrative Cost a. X b. X c. X d. X e. X 10-1
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f. X g. X h. X i. X j. X Exercise 10-3 Cost Category Product / Asset / Expense Production supplies Product Asset Depreciation on administration building Expense Depreciation on manufacturing equipment Product Asset Research and development costs Expense Costs to set up manufacturing equipment Product Asset Utilities used in factory Product Asset Cars for sales staff Asset 10-2
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Distributions to stockholders Neither Neither General office supplies Expense Raw materials used in the manufacturing process Product Asset Costs to rent office equipment Expense Wages of production workers Product Asset Advertising Expense Promotion costs Expense Exercise 10-4 Assets Liab. Equity Rev. Exp. Net Inc. Cash Flow NA + NA + NA + + NA NA NA NA NA Exercise 10-5 Assets = Equity Event Manuf. Office Com. Ret. No. Cash + Inventory + Equip. + Furn. = Stk. + Earn. Rev. – Exp. = Net Inc. Cash Flow 1. NA NA NA D NA D NA I D NA 2. NA I D NA NA NA NA NA NA NA 10-3
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Exercise 10-6 a. The three main components of product cost for a manufacturing entity are direct materials, direct labor, and manufacturing overhead. b. The product cost in a merchandising company, such as a retail toy store, is relatively easy to determine. It includes vendor’s price charged on the invoice, freight cost, and other necessary costs to make the inventory available for sale. Measuring product cost for a manufacturing entity, though, requires a more complex system. First of all, the manufacturing firm has to classify its costs between product costs and period costs. The firm has to accumulate product costs such as direct materials, direct labor, and manufacturing overhead. Once the product costs have been accumulated, the firm has to classify the cost of a product that has been sold as expense, and the cost of an unsold product as inventory, an asset. c.
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This document was uploaded on 08/24/2011.

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work_at_home_soultions_ch10[1] - Page 383 Exercise 10-1 a....

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