Managerial Accounting, homework help

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Running head: MANAGERIAL VS FINANCIAL ACCOUNTING Managerial vs Financial Accounting 1 2 MANAGERIAL VS FINANCIAL Managerial vs Financial Accounting Page 30: Questions 1, 2, 4, 5, 8 Page 31: Brief Exercises 1-2, 1-3, 1-4, 1-5 Page 75: Brief Exercises 2-1 through 2-5 1a) “Managerial Accounting is a field of accounting that provides economic information for all interested parties.” Do you agree? Explain. 1 b) Joe Delong believes that managerial accounting serves only manufacturing firms. Is Joe correct? Explain. 2.Distinguish between managerial and financial accounting as to (a) primary users of reports, (b) types and frequency of reports, and (c) purpose of reports. 4.Linda Olsen is studying for the next accounting midterm examination. Summarize for Linda what she should know about managerial functions. 5.Decision- making is management’s most important function. Do you agree? Why or why not? 8. Jerry Lang is unclear as to the difference between balance sheets of a merchandising company and a manufacturing company. Explain the difference to Jerry. MANAGERIAL VS FINANCIAL BE 1-2 Listed below are the three functions of the management of an organization. 1.Planning 2. Directing 3. Controlling Identify in which of the following statements best describes each of the above functions. (a)__ requires management to look ahead and to establish objectives. A key objective of management is to add value to the business. (b)__involves coordinanting the diverse activicties and human resources of a company to produce a smooth running operation. This function relates to the implementation of planned objectives. (c) __is the process of keeping the activicties on track. Management determines whether goals are being met and what changes are necessary when there are deviations. BE 1-3 Determine whether each of the following costs should be classified as direct materials(DM), direct labor(DL), or manufactuaring overhead(MO). (a)_Frames and tires used inmanufacturing bicycles. (b)_Wages paid to production workers (c)_Insurance on factory equipment and machinery. (d)_Depreciation on factory equipment. BE 1-4 Indicate weather each of the following costs of an automobile manufacturer would be classified as direct materials, direct labor, of manufacturing overhead. (a)_windshield (e)_factory machinery lubricants (b)_engine (f)_tires (c)_wages of assembly line work (g)_steering wheel (d)_depreciation of factory machinery (h)_salary of painting supervisor 3 MANAGERIAL VS FINANCIAL BE 1-5 Identify weather each of the following costs should be classified as product costs or period costs. (a)_manufacturing overhead (d)_advertising expenses (b)_selling expense (e)_direct labor (c)_Admin expenses (f)_Direct materials BE 2-1 Dieker Company begins operations o January 1. Because all work is done to customer specifications, the company decides to use a job order cost system. Prepare a flow-chart of a typical job order system with arrows showing the flow of costs. Identify the eight transactions. BE2-2 During January, its first month of operations, Dieker Company accumulated the following manufacturing costs: raw materials $4,000 on account, factory labor $6,000 of which $5,200 relates to factory wages payable and $800 relates to payroll taxes payable, and utili-ties payable $2,000. Prepare separate journal entries for each type of manufacturing cost. BE2-3 In January, Dieker Company requisitions raw materials for production as follows: Job 1 $900, Job 2 $1,200, Job 3 $700, and general factory use $600. Prepare a summary journal entry to record raw materials used. BE2-4 Factory labor data for Dieker Company is given in BE2-2. During January, time tickets show that the factory labor of $6,000 was used as follows: Job 1 $2,200, Job 2 $1,600, Job 3 $1,400, and general factory use $800. Prepare a summary journal entry to record factory labor used. BE2-5 Data pertaining to job cost sheets for Dieker Company are given in BE2-3 and BE2-4. Prepare the job cost sheets eachof the three jobs 4 5 MANAGERIAL VS FINANCIAL References
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Explanation & Answer

Hello,Attached please find the completed assignment in the Word file provided. Also attached is the Excel doc I used to create the work flowchart and the journal entries.Thanks again,Selenica

Running head: MANAGERIAL VS FINANCIAL ACCOUNTING

Managerial vs Financial Accounting

1

2

MANAGERIAL VS FINANCIAL

Managerial vs Financial Accounting
Page 30: Questions 1, 2, 4, 5, 8
Page 31: Brief Exercises 1-2, 1-3, 1-4, 1-5
Page 75: Brief Exercises 2-1 through 2-5
1a) “Managerial Accounting is a field of accounting that provides economic
information for all interested parties.” Do you agree? Explain.
I agree with this statement. Managerial accounting is designed to present information that
must be used to make decisions that are economic in nature, as opposed to “financial”. The
difference between economic and financial decisions, as managerial accounting is concerned, are
the end-users: shareholders and investors do not require this information. However, managers
and those who run the business do require the information presented by managerial accounting.
Decisions are made regarding economic factors: production volume, costs, fixed and variable
expenses, overhead, and similar things all interested parties need.

1 b) Joe Delong believes that managerial accounting serves only manufacturing
firms. Is Joe correct? Explain.
Joe would be wrong. Managerial accounting is of critical value for all businesses. Every
business has to deal with costs, expenses, overhead, and performance evaluation. Even service
firms need managerial accounting.

MANAGERIAL VS FINANCIAL

3

2.Distinguish between managerial and financial accounting as to (a) primary users of
reports, (b) types a...


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