1. Managerial accounting information differs from financial accounting information in manyrespects. Give at least four differences between financial accounting and managerialaccounting!2. Green Day wants to estimate the total cost of manufacturing 20,000 packs tea next year.Total fixed manufacturing costs for the year at the tea production are $1,000,000 and thevariable cost of manufacturing each pack is $20. How much total manufacturing costshould Green Day budget for the year? And what is the average cost of manufacturingeach pack next year?3. Show how to compute cost of goods manufactured. Use the following amounts: directmaterials used $24,000, direct labor $9,000, manufacturing overhead $17,000, beginningwork in process inventory $5,000, and ending work in process inventory $4,000.4. Glance Cosa makes custom handbags for high-end clothing boutiques. Record summaryjournal entries for each of the following transactions that took place during the month ofJanuary, the first month of the fiscal year.During January, $150,000 of raw materials was purchased on account.а.During the month, $140,000 of raw materials was requisitioned. Of this amount,$135,000 was traced to specific jobs, while the remaining materials were forgeneral factory use.b.Manufacturing labor (both direct and indirect) for the month totaled $80,000. Ithas not yet been paid. Of this amount, $60,000 was traced to specific jobs.с.d.Manufacturing overhead was allocated to jobs by using a predeterminedmanufacturing overhead rate of 75% of direct labor cost. (hint: Total direct laborcost is found in transaction c).Several jobs were completed during the month. According to the job cost records,these jobs cost $255,000 to manufacture.е.

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Answered: 1. Managerial accounting information…

1. Managerial accounting information differs from financial accounting information in many respects. Give at least four differences between financial accounting and managerial accounting!

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

1. Managerial accounting information differs from financial accounting information in many
respects. Give at least four differences between financial accounting and managerial
accounting!
2. Green Day wants to estimate the total cost of manufacturing 20,000 packs tea next year.
Total fixed manufacturing costs for the year at the tea production are $1,000,000 and the
variable cost of manufacturing each pack is $20. How much total manufacturing cost
should Green Day budget for the year? And what is the average cost of manufacturing
each pack next year?
3. Show how to compute cost of goods manufactured. Use the following amounts: direct
materials used $24,000, direct labor $9,000, manufacturing overhead $17,000, beginning
work in process inventory $5,000, and ending work in process inventory $4,000.
4. Glance Cosa makes custom handbags for high-end clothing boutiques. Record summary
journal entries for each of the following transactions that took place during the month of
January, the first month of the fiscal year.
During January, $150,000 of raw materials was purchased on account.
а.
During the month, $140,000 of raw materials was requisitioned. Of this amount,
$135,000 was traced to specific jobs, while the remaining materials were for
general factory use.
b.
Manufacturing labor (both direct and indirect) for the month totaled $80,000. It
has not yet been paid. Of this amount, $60,000 was traced to specific jobs.
с.
d.
Manufacturing overhead was allocated to jobs by using a predetermined
manufacturing overhead rate of 75% of direct labor cost. (hint: Total direct labor
cost is found in transaction c).
Several jobs were completed during the month. According to the job cost records,
these jobs cost $255,000 to manufacture.
е.

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