Tutorial 7 on Topic 7 Accounting for Manufacturing Operations Due date: 19 November 201 b! " pm #art A 1.

Managerial accounting is also called (a) Management accounting (b) Controlling (c) Analytical accounting (d) Inside reporting

2. Which of the following is not an internal user (a) Creditor (b) !epartment manager (c) Controller (d) "reasurer

#. Managerial accounting is applicable to (a) $er%ice entities (b) Manufacturing entities (c) &ot'for'profit entities (d) All of these

(. Managerial accounting does not encompass (a) Calculating product cost (b) Calculating earnings per share (c) !etermine cost beha%ior
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). *oth direct materials and indirect materials are (a) +aw materials (b) Manufacturing o%erheads (c) Merchandise in%entory (d) $old directly to customers by a manufacturing company

,. Which of the following would not be classified as manufacturing o%erhead (a) Indirect labor (b) !irect materials (c) Insurance on factory buildings (d) Indirect materials

-. Which one of the following is not a cost element in manufacturing a product (a) Manufacturing o%erhead (b) !irect materials (c) .ffice salaries (d) !irect labor

/. A manufacturing process re0uires a small amount of glue. "he glue used in the production process is classified as (a) A prime cost (b) An indirect material (c) A direct material (d) Miscellaneous e1pense
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2. "he wages of a time 3eeper in the factory would be classified as (a) A prime cost (b) !irect labor (c) Indirect labor (d) Compliance cost

14. Which of the following are period costs (a) +aw materials (b) 5rime costs (c) Con%ersion costs (d) $elling e1penses

#art $ 1. 6rom the account balances listed below7 prepare a schedule of cost of goods manufactured for $iti &utraceuticals manufacturing company for the month ended #1 !ecember 2412 6inished goods in%entory7 !ecember #1 6actory super%isory salaries
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Account balances (+M) (27444 127444

Income ta1 e1pense +aw materials in%entory7 !ecember 1 Wor3 in process in%entory7 !ecember #1 $ales salaries e1pense 6actory depreciation e1pense 6inished goods in%entory7 !ecember 1 +aw materials purchases Wor3 in process in%entory7 !ecember 1 6actory utilities e1pense !irect labor +aw materials in%entory7 !ecember #1 $ales returns and allowances Indirect labor

1/7444 127444 #).444 1(7444 )7444 #)7444 ,47444 #47444 (7444 -47444 127444 )7444 217444

2. 8nci3 9arim .sman is the owner of 9arim *esi $dn. *hd. (9*$*). It is a family'owned manufacturing company producing %arious types of ball bearings for the automoti%e industries. "he following financial information relates to its operation for the year ended #1 !ecember 2412. %arim $esi &dn $'d &tatement of #rofit or (oss and Ot'er )ompre'ensive *ncome for t'e !ear ended 1 December 2012 +M +M $ales 27)447444 :ess; $elling e1penses 1(47444 <tilities = factory #,7444 !irect labor cost 1)47444 !epreciation ' factory 1,27444 +aw material purchased -)47444 Insurance = factory (47444 $upplies = factory 1)7444 Administrati%e e1penses 2-47444 Indirect labor #447444 Maintenance = factory /-7444 172)47444 &et profit In%entory balances for the year 2412 are as follows; 1 ,anuar! 2012 -+M. 247444
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))47444

+aw materials

1 December 2012 -+M. ,47444

Wor3 in process 6inished goods

1/47444 2,47444

1447444 2147444

+/01*+/D: (a) (b) 5repare a complete $chedule of Cost of >oods Manufactured for the year ended #1 !ecember 2412. ($how clearly all wor3ings.) <se the answer in (a) and prepare a $tatement of 5rofit or :oss and .ther Comprehensi%e Income for the year ended #1 !ecember 2412.