...AC505 Final Exam Review Answers Chapter 2 COG Mfg & COGS – Traditional Costing – TCO A East of the Border Garage incurred the following costs during January: Raw materials $45,100 Direct labor 48,300 Manufacturing overhead 34,600 Selling expenses 29,800 Administrative expenses 36,700 Interest expense 8,500 During the month, 6,400 units of product were manufactured and 5,900 units of product were sold at $ 35 each. On January 1, East of the Border carried no inventories. a. Cost of goods manufactured: Current period manufacturing costs - Raw materials $ 45,100 Direct labor 48,300 Manufacturing overhead 34,600 Total $128,000 Cost per unit = $128,000 / 6,400 = $20 b. Cost of goods sold = $20 * 5,900 = $118,000 c. The difference between cost of goods manufactured and cost of goods sold is in the finished goods inventory account on the balance sheet. In this case, since more units were produced (6,400) than sold (5,900), the finished goods account will increase by $10,000 ($20 per unit * 500 units). Ch 5 High Low Method – TCO E | |Week 1 Chapter 5 Exercise 6 Data | | | | | | | | | | | | | | |1.) | ...
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...Internal Control: Case Study 2 1. Inform the President of any new internal control requirements if the company decides to go public. (7 points) According to the Sarbanes Oxley Act of 2002, all publicly traded U.S. corporations are required to maintain an adequate system of internal control at all time. As LJB Company President, you should be aware that a control environment must be presented at all times, and “that unethical activity will not be tolerated.” Your companies must identify and analyze the various factors that could create risk for your business and how your team can manage those risks. The overall internal control system needs to show and communicate all appropriate information within the organization, to ensure that the communicated information has reached the organization. According to the textbook, “It is very important to have testing and auditing of controls to build a long lasting organization. 2. Advise the President of what the company is doing right (they are doing some things well) and also recommend to the President whether or not they should buy the indelible ink machine. When you advise the President, please be sure to reference the applicable internal control principle that applies. (13 points) Its good that this company has been doing well with creating a balance environment for employees due to the long-term employees that are currently there. I can see that the managers and employees have a great balance, which keeps good control within the...
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...Abivo Goursam Elvis Dominguez yanjianhai ACC505-Managerial Accounting General Motors Financial Project Tammy Straus, CPA April, 2010 Keller Graduate School of Management. Introduction The objective of the project is to collect and analyze financial information of the main divisions of General Motors Company in order to provide accurate and useful information to the management in their effort to assess a long-run financial viability of the divisions and serve as basis to arrive at a conclusion whether a division should be dropped or retained. Our group related the General Motors Company decision based on the outcome of our research like the one in problem # 13-20 Pg 614 which is about whether or not a Jackson County Senior Services should drop or retain the housekeeping program that provides weekly maintenance services to seniors. The project is divided into the following sections in order to help in the decision making process for deciding which segment or production line has to be dropped, retained or needs improvements. PROBLEM STATEMENT The dilemma that GM face is whether the company should drop or retain a division that does not provide value to the firm because it is not meeting the projected the financial goals set by the management. The objective of the restructuration program is designed to give General Motors Company the competitive edge over companies like Ford, Toyota, Nissan, and many others in the automobile industry. There are three major...
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