Study Guides (248,284)
Canada (121,454)
York University (10,193)
Accounting (98)
ACTG 2020 (19)

Schulich ACTG 2020 Class 1 and 2.docx

6 Pages
113 Views
Unlock Document

Department
Accounting
Course
ACTG 2020
Professor
Jean Adams
Semester
Winter

Description
Class 1 Managerial Accounting - Form of accounting concerned with providing information to the manger to use in planning and controlling operations and for decision making. (Internal) - The focus is on providing employees and managers information needed to make better decisions, not on the information needs of external users. - Financial accounting: the form of accounting concerned with providing info to shareholders, creditors and others outside the organization. (External) Role of a Manager - Planning: selecting a course of action and specifying how the action will be implemented. - Directing and motivating: mobilizing people to carry out plans and run routine operations. - Controlling: ensuring plan is actually carried out and is appropriately modified as circumstances change. - Strategy: “game plan” that enables company to attract and retain customers by distinguishing itself from competitors. - Lean production: work is pushed through the system in order to produce as much as possible and to keep everyone busy- even if products cannot be immediately sold. Class 2 Components of Good - Raw materials: materials used to make the product/ all materials not yet used in the manufacturing operations. - Work in progress: inventories consist of units of product that are only partially complete and require further work - Finished goods: inventories consist of completed units of products available for sale. Cost terms, concepts and classifications - 3 types of manufacturing costs; o DM: Direct Materials; those materials that become an integral part of a finished product and can be conveniently traced. Ex. if produce chairs, we can quantify the materials (steel, wood, etc) by tracing the inputs to outputs. o DL: Direct Labor; are reserved for the people who actually produce and create value in the product, also called touch labor (not supervisors, ceos, but only the people directly on the line) o MOH: (Indirect cost) manufacturing overhead- reserved for all other items through 3 components;  Indirect Materials: Materials that are difficult to trace to prime production ex. Spare parts on a machine = difficult to trace a specific cost to the product  Indirect Labor: Labor used to make sure production is running as it should ex. Supervisors, people involved in quality capacity, security personnel, custodians.  Other: Catch-all. Rent, Property taxes, overtime, utilities, insurance, machine amortization, outside services (includes outsourcing) - DM + DL = prime costs - DL + MOH= conversion costs - DM+ DL + MOH= product costs - Product costs will find their way onto the balance sheet first - Raw Material (DL + MOH) Work In Progress (DL+MOH) Final Good  Sale  COGS - Merchandiser B/S: Inventory - Manufacturing/ Services B/S: Inventory (with sub-items RM, WIP, MOH, FG) MOH Account - MOH= DR. Actuals (IM, IL, other) - CR. Application (what we applied to the actuals) - The account must equal 0 Period Costs - Costs expensed in the period in which they are incurred, always go on the income statement - Ex. Commissions, president’s salary, sales and marketing salaries, product launches, website costs, IT expenses, HR, finance, legal, admin Manufacturing Cost Flows Cost of Goods Manufactured Schedule - Calculates cost of raw materials, direct labour and manufacturing overhead used in production - Calculates the manufacturing costs associated with goods that were finished during the period - (Q 2-22) Essential problem: IAs the $31,000 “loss” really a loss? COGM Statement: DM Raw Materials, beg. Balance: 19,000 Add: Purchases: 209, 000 Raw Materials, ending balance: (46,000) Raw materials used in period: 182,000 DL Direct Labor 99,000 MOH Rent on facilities( 85% x 40k)34,000 Insurance (90% x 10k) 9,000 Utilities (80% x 55k ) 44, 000 Indirect Labor 119, 000 Depreciation, factory equipment 13,000 Maintenance, factory 8,000 Total MOH Costs 227, 000 Total MFG costs 508,000 (RM used + DL + MOH) Add: WIP, Beg balance 77,000 585,000 Less: WIP, ending balance (94,000) COGM 491,000 Income Statement: Sales 660,000 COGS FG, Beg, bal
More Less

Related notes for ACTG 2020

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit