PE 16-1 Management process Which phase of the management process does each activity relate?

PE 16-1 Management process

Which phase of the management process does each activity relate? a. Developing long-range courses of action to achieve goals b. Isolating significant departures from plans for further investigation and possible remedial action. It may lead to a revision of future plans c. Process by which managers, given their assigned levels of responsibilities, run day-to-day operations

PE 16-2 Direct materials, direct labor, and factory overhead

Identify the following costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher:

1. Staples used to bind magazines 2. Wages of printing machine employees 3. Maintenance on printing machines 4. Paper used in the magazine

PE 16-3 Prime and conversion costs

Identify the following costs as a prime cost (P), conversion cost (C), or both (B) for a magazine publisher:

1. Paper used for the magazine 2. Wages of printing machine employees 3. Glue used to bind magazine 4. Maintenance on printing machines

PE 16-4 Product and period costs

Identify the following costs as a product cost or a period cost for a clothing manufacturer:

1. Research and development costs 2. Depreciation on sewing machines

3. Fabric used during production 4. Advertising expense 5. Factory janitorial supplies

EX 16-5 Cost of goods manufactured 

The following information is available for Casey Manufacturing Company for the month ending January 31, 2017: 

Cost of direct materials used in production

390,000

Direct labor

336,000

Work in process inventory, Jan 1

162,000

Work in process inventory, Jan 31

170,400

Total factory overheard

234,000

Determine Casey’s cost of goods manufactured for the month ended January 31, 2017.

EX 16-6 Concepts and Terminology

From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:

1. A product, sales territory, department, or activity to which costs are traced is called a (direct cost, cost object). 2. The balance sheet of a manufacturer would include an account for (cost of goods sold, work in process inventory). 3. Factory overhead costs combined with direct labor costs are called (prime, conversion) costs. 4. The implementation of automatic, robotic factory equipment normally (increases, decreases) the direct labor component of product costs.