Financial & Managerial Accounting
Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 16, Problem 16.1CP
To determine

Case Summary:

In this case Company H allows employees to purchase manufacturing materials for personal use. To avail this, employees must complete a material acquisition form and should get the superior’s approval. Person F is in the process of replacing the deck on his home and has requisitioned lumber for the personal use. He reviewed all the past year invoice, and then used the lowest price to compute the amount due of the company for the lumber.

To discuss: Whether F behaved in an ethical manner.

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Ethics in ActionAvett Manufacturing Company allows employees to purchase materials, such as metal and lumber, for personal use at a price equal to the company’s cost. To purchase materials, an employee must complete a materials requisition form, which must then he approved by the employee’s immediate supervisor. Brian Dadian, an assistant cost accountant, then charges the employee an amount based on Avett’s net purchase cost. Brian is in the process of replacing a deck on his home and has requisitioned lumber for personal use, which has been approved in accordance with company policy. In computing the cost of the lumber, Brian reviewed all the purchase invoices for the past year, He then used the lowest price to compute the amount due the company for the lumber.The Institute of Management Accountants (IMA) is the professional organization for managerial accountants. The IMA has established four principles of ethical conduct for its members: honesty, fairness, objectivity, and…
As a plant accountant, you have been directed by the new plant manager to expense all manufacturing costs as they are incurred. Do you agree with this directive? Explain your answer, including comments concerning product and period costs.
Classify the following costs of this new product as direct materials, direct labor, manufacturing overhead, selling, or administrative 1. President's salary. 2. Packages used to hold the skin wipes. 3. Cleaning materials used to clean the skin wipe packages. 4. Wages of workers who package the product. 5. Cost of advertising the product. 6. The salary of the supervisor of the workers who package the product. 7. Cost accountant's salary (the accountant works in the factory). 8. Cost of a market research survey. 9. Sales commissions paid as a percent of sales. 10. Depreciation of administrative office building. Problem B Classify the costs listed in the previous problem as either product costs or period costs.

Chapter 16 Solutions

Financial & Managerial Accounting

Ch. 16 - Prob. 16.1APECh. 16 - Management process Three phases of the management...Ch. 16 - Prob. 16.2APECh. 16 - Prob. 16.2BPECh. 16 - Prob. 16.3APECh. 16 - Prime and conversion costs Identify the following...Ch. 16 - Product and period costs Identify the following...Ch. 16 - Product and period costs Identify the following...Ch. 16 - Prob. 16.5APECh. 16 - Cost of goods sold, cost of goods manufactured...Ch. 16 - Classifying costs as materials, labor, or factory...Ch. 16 - Classifying costs as materials, labor, or factory...Ch. 16 - Prob. 16.3EXCh. 16 - Classifying costs as product or period costs For...Ch. 16 - Concepts and terminology From the choices...Ch. 16 - Concepts and terminology From the choices...Ch. 16 - Prob. 16.7EXCh. 16 - Classifying costs The following report was...Ch. 16 - Financial statements of a manufacturing firm The...Ch. 16 - Manufacturing company balance sheet Partial...Ch. 16 - Cost of direct materials used in production for a...Ch. 16 - Prob. 16.12EXCh. 16 - Prob. 16.13EXCh. 16 - Income statement for a manufacturing company Two...Ch. 16 - Statement of cost of goods manufactured for a...Ch. 16 - Prob. 16.16EXCh. 16 - Cost flow relationships The following information...Ch. 16 - Prob. 16.18EXCh. 16 - Classifying costs The following is a list of costs...Ch. 16 - Classifying costs The following is a list of costs...Ch. 16 - Cost classifications for a service company A...Ch. 16 - Manufacturing income statement, statement of cost...Ch. 16 - Statement of cost of goods manufactured and income...Ch. 16 - Prob. 16.1BPRCh. 16 - Classifying costs The following is a list of costs...Ch. 16 - Prob. 16.3BPRCh. 16 - Manufacturing income statement, statement of cost...Ch. 16 - Prob. 16.5BPRCh. 16 - Prob. 16.1CPCh. 16 - Prob. 16.2CPCh. 16 - Managerial accounting in the management process...Ch. 16 - Prob. 16.4CPCh. 16 - Using managerial accounting information The...
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