Managerial Accounting - 608 Words

H. Xue Managerial Accounting 2015 Spring Homework 1 (Individual Assignment, Due on 02/11) 1. Das Doors Inc. has recorded the following costs at various volumes of production: Production Volume Total Costs 600,000 $700,000 400,000 500,000 200,000 300,000 Determine the fixed cost and per-unit variable cost using High-Low method. 2. Adams Company sells a single product. The product sells for $100 per unit. The company’s variable expenses are 80% of sales and its fixed expenses total $150,000 per year. a: What is the company’s contribution margin ratio? b: What is the company’s break-even point? (Give answer in dollars and in units.) 3. Jefferson Company reported $4,000,000 of sales during the month and incurred variable†¦show more content†¦Why or why not? 5. (More difficult) Pendleton Engineering makes cutting tools for metalworking operations. It makes two types of tools: R3, a regular cutting tool, and HP6, a high-precision cutting tool. R3 is manufactured on a regular machine, but HP6 must be manufactured on both the regular machine and a high-precision machine. The following information is available. Additional information includes the following: †¢ Pendleton faces a capacity constraint on the regular machine of 50,000 hours per year. Notice that both products need some regular machine time. †¢ The capacity of the high-precision machine is not a constraint. †¢ Of the $550,000 budgeted fixed overhead costs of HP6, $300,000 are lease payments for the highprecision machine. This cost is charged entirely to HP6 because Pendleton uses the machine exclusively to produce HP6. The lease agreement for the high-precision machine can be canceled at any time without penalties. †¢ All other overhead costs are fixed and cannot be changed. a. What product mix—that is, how many units of R3 and HP6—will maximize Pendleton’s operating income? Show your calculations. b. Suppose Pendleton can increase the annual capacity of its regular machines by 15,000 machinehours by leasing more machines at a cost of $150,000. Should Pendleton increase the capacity of the regular machines by 15,000 machine hours? ByShow MoreRelatedRole Of Managerial And Managerial Accounting1029 Words   |  5 PagesThe role of managerial accounting has played a significant role in the success of businesses dating as far back as the 19th century. Service and production operations during the days of the industrial revolution were not nearly as sophisticated then as they are today. The current initial purpose of managerial accounting is comparable to its purpose throughout history. Managerial accounting has historically been useful in assisting managers with the information they need to make important decisionsRead MoreManagerial Accounting2802 Words   |  12 Pages1. Basic Concepts Product cost = Direct Labor (DL) + Direct Materials (DM) + Manufacturing Overhead (MOH) Financial accounting Managerial Accounting + Sales + Sales - COGS - Variable Costs = Gross Profit = Contribution Margin - SGA - Fixed Costs = Net Profit = Net Profit COGS (Cost of Goods Sold) is an â€Å"inventoriable cost† ( recorded in the Balance Sheet as inventory and expensed (Income Statement) when goods are sold SGA (Selling, General Administrative) areRead MoreFinancial Accounting And Managerial Accounting1613 Words   |  7 PagesIntroduction: Both financial accounting and managerial accounting provide important information about the business process. On the one hand, financial accounting provides only financial information to its internal users and external users. On the other hand, managerial accounting basically communicates about financial and non-financial information with internal users such as managers, employees and owners of the company. 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Raw Materials Factory Insurance $ 4600 Inventory 7/1/13 $ 48000 Factory Machinery Raw Materials Depreciation 16,000 Inventory 6/30/14 39,600 Factory Utilities 27,600 Finished Goods Office Utilities Expenses 8,650 Inventory 7/1/13 96,000 Sales Revenue 534,000 Finished Goods Sales DiscountsRead MoreManagerial Accounting And Its Techniques2715 Words   |  11 PagesRunning head: MANAGERIAL ACCOUNTING AND ITS TECHNIQUE 1 MANAGERIAL ACCOUNTING AND ITS TECHNIQUES 12 Managerial Accounting and Its Techniques Melissa Reppert BUS 630: Managerial Accounting Dr. Veliota Drakopoulou May 11, 2015 Introduction Management Accounting is an important activity within an organization. It plays several functions in any organization through the actions undertaken by management accountants. AccordingRead MoreIssues of Managerial Accounting1047 Words   |  5 PagesINTRODUCTION : Managerial accounting is concerned with providing information to managers – that is , people inside an organization who direct or control it’s operations. Via managerial accounting managers understood that good business results come from dynamic processes , procedures and practices that are well designed and properly implemented and managed. Certified management accountants are qualified to help their fellow managers achieve good business results because they have earned an advancedRead MoreImportance of Managerial Accounting1005 Words   |  5 PagesIntroduction The purpose of management accounting in the organization is to support competitive decision making by collecting, processing, and communicating information that helps management plan, control, and evaluate business processes and company strategy. The interesting thing about management accounting is that it is rare to find an individual within a company with the title of â€Å"management accountant.† Often many individuals function as accountants within the organization, but these individualsRead MoreThe Purpose Of Managerial Accounting2785 Words   |  12 PagesManagerial accounting is helpful to the managers in of identifying, measuring, analyzing, interpreting and communicating information for the pursuit of organization’s goals. It contrast with financial accounting in that later is aimed to provide information to external user of accounting information while managerial accounting it’s aimed at helping the mangers to make decision in the organization. Purpose of managerial accounting The purpose of management accounting in the organization is to supportRead MoreManagerial Accounting Testbank2711 Words   |  11 PagesManagement Accounting MULTIPLE CHOICE C 1. 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