[AFA 100] - Final Exam Guide - Comprehensive Notes for the exam (29 pages long!)

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scarletfly893

1 Dec 2016

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Continuously update inventory and cost of goods sold. Updates inventory + cogs at the end off accounting period. Accounting - the information system that identifies, records, and communicates the economic events of an organization to a wide variety of interested users. The world"s economic systems depend on highly transparent and relevant financial reporting that provides a true representation of the economic events. An example is lehman brothers, (one of u. s banks that lead to great depression) Internal users - this type of users plan, organize, and run companies. Examples: finance directors, marketing managers, human resources personnel, production supervisors, and company officers. Investors, who are owners or potential owners of the business, use accounting information to make decision to buy, hold, or hold their ownership interest. Creditors - persons or other businesses that are owed money by the business, mainly bankers or suppliers. Creditors use accounting information to evaluate the risks of granting credit or lending money.

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just a quick study guide for final exam

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magentalizard912

EXERCISE 7-15 Comprehensive Activity-Based Costing Exercise [LO7-2, L07-3, L07-4, LO7-5] Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries .... Other overhead costs .. Total overhead costs ........ $300,000 100,000 $400,000 Total Activity for the Year Activity Cost Pool Activity Measure Supporting direct labor ..... Order processing ..., Customer support ....... Other ............... Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Order Direct Labor Processing Customer Support Other Total Wages and salaries ..... Other overhead costs ... 40% 30% 30% 10% 20% 20% 10% 40% 100% 100% During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not order any other products during the year. Data concerning that order follow: Data concerning the Shenzhen Enterprises Order Units ordered Direct labor-hours .... Selling price ....... Direct materials .... Direct labor 10 units 2 DLHs per unit $300 per unit $180 per unit $50 per unit Required: 1. Using Exhibit 7–6 as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. 2. Using Exhibit 7–7 as a guide, compute the activity rates for the activity cost pools. 3. Prepare a report showing the overhead costs for the order from Shenzhen Enterprises includ- ing customer support costs. 4. Using Exhibit 7–12 as a guide, prepare a report showing the customer margin for Shenzhen Enterprises.

The following information is from Marchant Manufacturing Co. forSeptember:

Direct materials used in production $ 95,000

Direct labor 67,000

Interest expense 4,000

Raw materials inventory, Sept. 1 24,000

Raw materials inventory, Sept. 30 15,000

Work in process inventory, Sept. 1 6,000

Work in process inventory, Sept. 30 26,000

Finished goods inventory, Sept. 1 101,000

Purchases of raw materials 102,000

Factory supervisors 33,000

Administrative expense 41,000

Factory maintenance 35,000

Selling expense 56,000

Sales 400,000

Depreciation machinery 27,000

Utilities for the factory 30,000

Gross Margin 150,000

Required: a. Compute Net Income. ______________

b. Compute the balance in Finished Goods Inventory at September30. ______________

c. Compute the cost of goods manufactured. ______________

d. Compute total manufacturing overhead. ______________

*Please post solutions - using as a test study guide. Thankyou.

cerisehound365

[AFA 100] - Final Exam Guide - Comprehensive Notes for the exam (29 pages long!)

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