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September 22, 2011 @ 10:16 PM
D

Post: 704

Join Date: May 2011

Location: Bucket West

A Corporation reported the following information for the month of October 2011:

Direct materials used in production - $85,000
Manufacturing overhead costs - $62,000
General and administrative expenses - $75,000
Interest expense - $11,000
Direct labor - $52,000
Selling expenses - $65,000

Inventories for 10/31/11:
Raw materials inventory - $32,000
Work in-process inventory - $11,000
Finished goods inventory - $25,000

Inventories for 9/30/11:
Raw materials inventory - $34,000
Work in-process inventory - $13,000
Finished goods inventory - $27,000

Calculate:
1. Total prime costs during October 2011.
2. Total conversion costs during October 2011.
3. Total of the product costs reported by the company in its GAAP balance sheet at October 31, 2011.
4. Amount of cost of goods manufactured reported for October 2011.
5. Amount of cost of goods sold reported for October 2011.

Help a hypebeast brotha out!!
September 22, 2011 @ 10:20 PM
KevBd

Post: 868

Join Date: Nov 2008

Location: Guelph, Ontario

if you wait until tomorrow when i'm ready to think i will 100% do all of this for you.

two of em x hs shit

September 22, 2011 @ 10:22 PM
D

Post: 704

Join Date: May 2011

Location: Bucket West

what time brah? my class is at 8 am sad
September 22, 2011 @ 10:22 PM
jaded

moderator

Post: 7985

Join Date: Feb 2008

Location: ಠ______ಠ

i took accounting too long ago to remember the formulas for each of those problems, so i'd just end up looking them up. just google each one and follow the steps, it's not hard.

i'm the best mayne, i deed it

September 22, 2011 @ 10:29 PM
D

Post: 704

Join Date: May 2011

Location: Bucket West

i took accounting too long ago to remember the formulas for each of those problems, so i'd just end up looking them up. just google each one and follow the steps, it's not hard.


yeah you're right this isn't hard but for some reason the formulas i'm finding don't make any sense according to the information i'm given on the financial report.

example: the formula to find conversion costs is direct labor + overhead costs
im given the number for overhead costs but no number for direct labor.confused

that's how it is for the other formulas too. seems like i'm not given enough information to answer them

edit: nevermind i am given those two numbers to find that one but for the other formulas i'm given one variable but not the other. i chose a bad example lol
September 22, 2011 @ 10:50 PM
jaded

moderator

Post: 7985

Join Date: Feb 2008

Location: ಠ______ಠ

yeah you're right this isn't hard but for some reason the formulas i'm finding don't make any sense according to the information i'm given on the financial report.

example: the formula to find conversion costs is direct labor + overhead costs
im given the number for overhead costs but no number for direct labor.confused

that's how it is for the other formulas too. seems like i'm not given enough information to answer them

edit: nevermind i am given those two numbers to find that one but for the other formulas i'm given one variable but not the other. i chose a bad example lol


you may have to solve for the variable you're missing by using other amounts that you are provided with. i'm sure that every question can be solved with the information provided, it's just a matter of figuring out what you may have to solve first before you can solve the main question.

i'm the best mayne, i deed it

September 22, 2011 @ 10:51 PM
D

Post: 704

Join Date: May 2011

Location: Bucket West

you may have to solve for the variable you're missing by using other amounts that you are provided with. i'm sure that every question can be solved with the information provided, it's just a matter of figuring out what you may have to solve first before you can solve the main question.


thanks man, i will try that
September 22, 2011 @ 10:58 PM
WhiteMike

Post: 755

Join Date: Aug 2008

Location: Seattle

Prime Cost is the sum of direct labor and direct materials. 85k + 52k

Conversion Cost is direct labor and manufacturing overhead. 52k + 62k

Product costs is direct mateiral, labor, overhead. 85k + 62+ 52K


Last two should be easy from there.
September 22, 2011 @ 11:00 PM
jaded

moderator

Post: 7985

Join Date: Feb 2008

Location: ಠ______ಠ

1. The total of direct material costs, direct labor costs, and direct expenses.

2. direct labor plus overhead costs

3. The sum of all costs associated with the production of a specific quantity of a good or service.

4. direct materials used + direct labor + factory overhead + beginning goods in process - ending goods in process.

5. Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold

i'm the best mayne, i deed it

September 22, 2011 @ 11:00 PM
WhiteMike

Post: 755

Join Date: Aug 2008

Location: Seattle

Try to simplify the terms and add meaning to them, its easier like that for me. For example, Product Cost is the total amount to actually make the product. You need to incorporate everything into this, how to store the materials for the product, the materials, the labor. They all go into the product.

Conversion Cost. What you need to convert material to a product. You need the material and you need labor.

Hope I'm helping, this is a nice refresher on managerial accoutning before i start intermediate next week smile
September 22, 2011 @ 11:07 PM
D

Post: 704

Join Date: May 2011

Location: Bucket West

@whitemike i was getting those number too but wasn't too sure about them, now i feel confident with the answers.
@jaded i appreciate the formula layouts, helped a bunch.

good looks hb fam cool
September 22, 2011 @ 11:09 PM
D

Post: 704

Join Date: May 2011

Location: Bucket West

mike dont i need the direct expenses too to find the prime costs? as i was saying to jaded earlier, some of the formulas seem to need numbers that aren't given to me in the financial report.
September 22, 2011 @ 11:22 PM
WhiteMike

Post: 755

Join Date: Aug 2008

Location: Seattle

mike dont i need the direct expenses too to find the prime costs? as i was saying to jaded earlier, some of the formulas seem to need numbers that aren't given to me in the financial report.


Formula I have written down is direct materials cost + direct labor cost. You may want to check your textbook or if you have lecture notes because there can be minor differences in equation subtleties.
September 22, 2011 @ 11:26 PM
JCrewkid

Post: 809

Join Date: Mar 2010

You's the type of ♥♥♥♥♥ that bags groceries after college. LOL, real talk.
September 22, 2011 @ 11:26 PM
D

Post: 704

Join Date: May 2011

Location: Bucket West

Formula I have written down is direct materials cost + direct labor cost. You may want to check your textbook or if you have lecture notes because there can be minor differences in equation subtleties.


i'm gonna go with the ones you said. i don't have any of the formulas in my notes ..but that seems about right
September 22, 2011 @ 11:30 PM
D

Post: 704

Join Date: May 2011

Location: Bucket West

You's the type of ♥♥♥♥♥ that bags groceries after college. LOL, real talk.


yeah i am. real talk
September 23, 2011 @ 12:07 AM
tmwtg

Post: 3096

Join Date: Jun 2009

Nah, accounting isn't for everyone.

Safe and secure job, sure, and I can do the work, but I never want to take an accounting class again.

Managerial Accounting ruined it for me (Fin. Accting was cool for me).
September 23, 2011 @ 01:14 AM
Cybrax2

Post: 529

Join Date: Mar 2009

yeah i am. real talk


real talk, real talk.
September 23, 2011 @ 10:01 AM
Brian@ONLY

Post: 345

Join Date: Apr 2010

Location: uptown

you know back in my days when we didn't have the internet to ask people to do our homework we went to school early like 6am to meet up with other people to help us with our homework vol get off your lazy ass and figure shit out

these are very easy questions when you boil it down to a mathematical expression it's like addition and division with words.

i'm a sr business analyst this should be a walk in the park kids if you can't figure this out I'd suggest paying more attention in class.
September 23, 2011 @ 11:10 AM
D

Post: 704

Join Date: May 2011

Location: Bucket West

you know back in my days when we didn't have the internet to ask people to do our homework we went to school early like 6am to meet up with other people to help us with our homework vol get off your lazy ass and figure shit out

these are very easy questions when you boil it down to a mathematical expression it's like addition and division with words.

i'm a sr business analyst this should be a walk in the park kids if you can't figure this out I'd suggest paying more attention in class.


We weren't given notes on that material yet or else I would of never asked. You must be an old ass salty dude. What you need to do is get off these forums. Smh at 40 year olds trynna relive their younger days by going on forums and shit
September 23, 2011 @ 03:44 PM
Brian@ONLY

Post: 345

Join Date: Apr 2010

Location: uptown

We weren't given notes on that material yet or else I would of never asked. You must be an old ass salty dude. What you need to do is get off these forums. Smh at 40 year olds trynna relive their younger days by going on forums and shit


not quite 40 yet but i'm getting there...just breakin 30 in 2 weeks to be honest. def not a salty dude but certainly don't need anyone telling me what i needs to do. you naive young bucks think i'm trying to relive my younger days? you'd be still flipping magic cards if it wasn't for us old salty ass dudes paving the way for this fashion street cred world you kids live in now. don't dish the hate my dude, you taking 'business accounting' classes because us old salty dudes monetized our hobby and turning this into a proper business.
September 23, 2011 @ 06:48 PM
D

Post: 704

Join Date: May 2011

Location: Bucket West

not quite 40 yet but i'm getting there...just breakin 30 in 2 weeks to be honest. def not a salty dude but certainly don't need anyone telling me what i needs to do. you naive young bucks think i'm trying to relive my younger days? you'd be still flipping magic cards if it wasn't for us old salty ass dudes paving the way for this fashion street cred world you kids live in now. don't dish the hate my dude, you taking 'business accounting' classes because us old salty dudes monetized our hobby and turning this into a proper business.


I ain't trying to argue or any of that. That's not me. I just didn't like how you talking about getting my lazy ass off the Internet and figuring it out myself when you don't even know the situation. 80% of the class wasn't understanding it because the material wasn't covered in class. It's all good though go on with your day and I'll go on with mine. I don't want to keep bumping this thread

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