accounting

6. Finally, Jerry had provided the following segment disclosures from this year's financial reports that he now routinely prepares for Nick and Ray. As before, they use this information to make decisions about the company's operations. Additionally, any transactions and/or adjustments recorded during the year related to the operations of the newly acquired LS-Pump assets were recorded in the

1. A company’s ending accounts receivable balance and the period’s advertising expense would be found on which financial statements, respectively

Again, this is a balance sheet account. See below for more information concerning this account.

The ledger of Wainwright Company at the end of the current year shows Accounts Receivable $78,000; Credit Sales $810,000; and Sales Returns and Allowances $40,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

2. Lee Company manufactures chemical additives for industrial applications. As the new cost accountant for Lee, you have been assigned the task of completing the production cost report for January. Lee uses Weighted-Average Method of process costing. The following info pertains to January:

Item 7.|  |MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS|  | |25|  |

d. use a host of different cost drivers (e.g., number of production setups, inspection hours,

More paperwork is required in a job-order system. Labor & materials are assigned to departments in a process-costing system. In a job-order system, labor and materials must be tracked to each job, requiring time tickets and more use of materials requisitions.

Refer to SFAS 146 (June 2002 "Accounting for Costs Associated with Exit or Disposal Activities");

The company accounts for these transactions as sales in accordance with Statement of Financial Accounting Standards No. 77, ‘’Reporting

Blanco Company estimates that its variable manufacturing overhead (all requiring cash expenditures) is $32 per direct labor hour. The total fixed manufacturing overhead of $1,881,120 per month includes depreciation on the factory building of $120,000 per month and depreciation on the factory equipment of $30,000 per month for total depreciation of $150,000 per month. (Thus, the cash spent for fixed manufacturing overhead is $1,731,120 ($1,881,120 – $120,000 – $30,000) per month.) Cash disbursements for manufacturing overhead occur in the same month in which the company incurs the cost. Be sure to show the calculation of the average predetermined overhead rate for the quarter as a whole only—total budgeted manufacturing overhead cost

Warehouse Club, Supermarket and Consumer Products firm. Remaining financial statements are B, E & H.

Bhimani, A., Horngren, C., Datar, S., Rajan, M. et al. (2012) Management and Cost Accounting. 5th ed. Edinburgh: Prentice Hall, p.369 - 378.

* Level of completion of the transaction at the balance sheet date can be assessed;

There are different costs that respond to the different activities like variable costs are directly associated with the products sold. The cost behavior patterns of selling, general, administrative, and other operating expenses are determined, and these expenses are budgeted accordingly. For example, sales commissions will be a function of the forecast of either sales dollars or units. The historical pattern of some expenses will be affected by changes in strategy that management may plan for the budget period. In a participative budgeting system, the manager of each department or cost responsibility center will submit the anticipated cost of the department 's planned activities, along with descriptions of the activities and explanations of significant differences from past experience. After review by higher levels of management, and perhaps negotiation, a final budget will be established. Because of the necessity to recognize cost behavior patterns for planning and control purposes, overhead costs will be classified as variable or fixed.