6. The phases of the management process are listed below. Match each phase to the appropriate description. Planning Directing Controlling Improving Decision making a) Used by managers for continuous improvement b) Managers must decide how to respond to unfavorable performances c) Used by management to develop the organization's objectives and goals d) Monitoring the operating results of implemented plans and comparing actual results to expected results e) Process by which managers run day-to-day operations 9. Differentiate between a line department and a staff department. 10. Identify the following costs as (a) prime cost, (b) conversion cost, or (c) both for a cake factory 1. Frosting 2. Wages of the baker 3. Sprinkles for the topping (considered an indirect material) 4. Depreciation on oven 10. Classify the following costs as direct, indirect, or neither: a) Labor for machine maintenance b) Factory equipment depreciation Materials not traceable to specific products d) Office equipment depreciation e) Materials traceable to specific products 1) Insurance expired on administrative facilities g) Product assembly labor incurred h) Administrative office salaries 1) Salespersons salaries 1) Utilities on factory building 1) Utilities on administrative facilities 12. Differentiate between period and product costs, including examples of each type of cost. 13. The following information is available for Carter Corporation: 1) Materials inventory decreased $4,000. 2) Materials inventory on December 31 was 50% of materials inventory on January 1. 3) Beginning work in process inventory was $145,000 4) Ending finished goods inventory was $65,000. 5) Purchases of direct materials were $154,700. 6) Direct materials used were 2.5 times the cost of direct labor. 7) Total manufacturing costs incurred were $246,400, 80% of cost of goods manufactured and $156,000 less than cost of goods sold. Compute: (a) Finished goods inventory on January 1 (b) Work in process inventory on December 31 (c) Direct labor incurred (d) Factory overhead incurred (e) Materials inventory on January 1 (1) Materials inventory on December 31 (g) Direct materials used