Managerial Accounting

I chapter 2 Basic cost Management concepts and Accounting for Mass cust'mizati.n ,perati,ns

Atl applicabte Exercises are available with lrrcGnw-H*I,s connect Accountiftgt.. H cormect For cach casc beloi.r,.. {incl the rnissing amount.

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Exercises

Begi-uing invenlory 0f ljnishe{.j g00ds ...... Cost 0f g00ds manufacturerj rlrrjng peri0d Endjirg inventory 0f iinished g00ds

Exercise Z-24 Cost of Goods Manufactured and Sold; l\4issing Data

Exercise 2-25 ldle Time

Exercise 2-27 Il,4ass Customization: Use of lnternet

Exercise 2-2g Cost Classiiications

Gasel GFef Garofr ? sl2,000

$41 9,000 $95.000 98,000 8.000 21,000

405,000 ? 304,rJ00

- operates and serves its customers. .fhen thc besl rype ol manulacturing process

$ 7.000 1

I

I

Cost of qoods sold

f;fJ?t#J#llff;:;5'l;JJ,fTji.o"n*r shift. but rour hours were idre ou.,;;; Reguired:

I' Calculate the emproyee's totar compensation tbr the week.2. FIow much of this compensation is a direct_labor costJ How much is or,erhead?

A loom operator in a textiles,f'actolv.eams Si6 per hour. By contract, ,n. "*o,or=.IIGfrE ^

Exercise 2-26time hours The operator worked 1i ho;;;a-"r,!1* ri^, rveek of Ma1,, instead tf the usuar 40 hours. uvenrme cost Bequirett:

,: Cornpute the loont operator,s compensation for the u.eek.L calcurate the emproyee's totar overtime premium for the week.t *:;I:rr'

of rhe emplovee's total compensation rbr the rvcek is direcrlabor cost? How much is

Find 's \Vcb sitc on thc Intemet. urv-rv.dell.com

Ir3t*r Read on the company,s briefly explain whether you believe for Dell.

Web site about how Dell mass customization to be

C.onsider the fbllou,ing costs that u,cre incurrecl durin_q the current vear: l. Tire costs incurred by 2. Sales conrmissions paid to rhL, salcs lbrce of3. Wood glue consumed in the rnanufacture of furniture.4. Hourly rvages of refinery security guards employed by5. The salary ofa financial vicc president of

' ) -- "r 6. Advertising cosls ol 7. Straight-line depreciation on factory machinery of8. Wages ofassemblyJine personnel of 9. Deliverv costs on customer shiprnents of

10. Nelvsprint consumed rn printing ,ce cream'

I l. Plant insurance costs of. 12. Glass costs incurred in light-bulb manufacturing of Required: Eraruate each of trre preceding and determine,*l.^,h.r the cost is (a) a prodr.rct cost or apenod 9651. (6) variabte or fixed i; ,.;.;i;;Jror.'uro (r.) tor rhc pro,j,;.;-;_,, onty. r.rherher the ;'JJ;#?"n,

classified as direct matcriar, ,;;;;l;;;; or manuracruring overhead. rtem r is <lone as Trre cosls: product cost, variable, direct material