Introduction to Managerial Accounting Chapter 16 Exercises

Managerial Cost Classifications In-Class Exercise (Form groups and work exercise): Exercise No. Page E16-20 988 Classifying Costs

Managerial Cost Classifications Exercise E16-20: Wheels, Inc. manufactures wheels for bicycles, tricycles, and scooters. For each cost given in the exercise, determine if the cost is a product cost or a period cost. If the cost is a product cost, further determine if the cost is a direct materials (DM), direct labor (DL), or manufacturing overhead (MOH). Then determine if the product cost is a prime cost, conversion cost, or both. If the cost is a period cost, further determine if the cost is a selling expense or administrative expense.

Managerial Cost Classifications

Managerial Cost Classifications End of Exercise

Schedule of Cost of Goods Manufactured In-Class Exercise (Form groups and work exercise): Exercise No. Page E16-22 989 Schedule of Cost of Goods Manufactured

Schedule of Cost of Goods Manufactured Exercise E16-22: Knight Corp., a lamp manufacturer, provided the following information for the year ended December 31, 2014. Inventories Beginning Ending Raw Materials $ 56,000 $ 23,000 Work-in-Process 103,000 63,000 Finished Goods 41,000 48,000 Other Information: Depreciation, plant building and equipment…… $ 16,000 Raw materials purchases………………………….. 159,000 Insurance on plant…………………………………... 22,000 Sales salaries………………………………………… 46,000 Repairs and maintenance – plant………………… 8,000 Indirect labor…………………………………………. 32,000 Direct labor……………………………………………. 122,000 Administrative expenses…………………………… 59,000 Requirements: (1) Use the information to prepare a schedule of cost of goods manufactured. (2) Compute unit product cost if Knight manufactured 2,160 lamps.

Schedule of Cost of Goods Manufactured

Schedule of Cost of Goods Manufactured

Schedule of Cost of Goods Manufactured End of Exercise