Able Baker Charlie Company Charles Maxwel is starting a cheesecake bakery, Abie Baker Charlie Company, to produce and sell different flavored cheesecakes to restaurants and the general public. He has just begun his study of accounting, and is a bit confused out the m types of reports he has read about and how they will help him run his business. He asks you to help hen darfy what the differences between managerial accounting and financial acting are. He's ase wondering how to this antary, how to classify the costs of his business, and how to fill in some missing informatio Managerial vs. Financial Select whether the following charactematics are most often associated with managerial accounting or financial accounting Primarily used for internal decision making Generally Accepted Accounting Principles (GAAP) must be used a whole rather than individual departments or products Prepared statements usually pertain to the company as Information provided will often be subjective, such as estimated future results often prepared on an as-needed basis rather than at fixed intervals Cost Classification Charles has provided some of the ses he expects to incur as folos Decide on the desuteatine that could be applied to each of these as using the taped. The bot in each case is the chak (Select "es" from the below dropdown) Cost Product Cost Eggs s to make bater Delivery driver wap offe Power to h the President's Salary Sales Spe salary Period Cost Direct Material Direct Overhead Administrative O Indi Conversion Cest Cost Cast Cont Financial Statements Charles found some sample income statements and balance sheets on the Internet, and asked which of them might be mest appropriate for a manufacturing business the his. Review income statements A and B, and balance sheets C and D. Determine which income statement and balance sheet would be most appropriate for a manufacturing business like Able Baker Charlie Company Income Statement A Sample Company A Income Statement For the Year Ended December 31, 2018 $42,000 Finished goods inventory, January 1, 2018 $5,250 Cost of goods manufactured 6,400 Cost of finished goods available for sale $11,650 Finished goods inventory, December 31, 2018 (400) Cost of goods sold (11,250) Gross profit $30,750 Operating expenses: Selling expenses $6,400 Administrative expenses 5,250 Total operating expenses (11,650) Net income $19,100 Income Statement B Sample Company B Income Statement For the Year Ended December 31, 2018 Sales $42,000 Beginning inventory $5,250 Net purchases 6,400 Inventory available for sale $11,650 Ending inventory (400) Cost of goods sold (11,250) Gross profit $30,750 Operating expenses: Selling expenses $6,400 Administrative expenses 5,250 Total operating expenses (11,650) $19,100 Net income Balance Sheet C Cash . Accounts receivable (net) Inventory Supplies Land Total assets Sample Company C Balance Sheet December 31, 20Y8 Assets Liabilities $20,800 10,000 6,000 2,100 17,000 $55,900 Accounts payable $17,800 Stockholders' Equity Common stock $19,000 Retained earnings 19,100 Total stockholders' equity Total liabilities and stockholders' equity 38,100 $55,900 Balance Sheet D Cash Accounts receivable (net) Inventory: Direct materials Work in process Finished goods Total inventory Supplies Land Total assets Sample Company D Balance Sheet December 31, 20Y8 Assets Liabilities $20,800 10,000 $2,500 1,500 2,000 6,000 2,100 17,000 $55,900 Accounts payable $17,800 Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $19,000 19,100 38,100 $55,900 Which income statement is most appropriate for a manufacturing business? Which balance sheet is most appropriate for a manufacturing business? Costs and Balances At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the date he's collected, but he was unable to figure out some of the amounts. Review the following data and in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured Data for February Decrease in materials inventory Materials inventory on Feb. 28 Direct materials purchased Direct materials used Total manufacturing costs incurred in period Total manufacturing costs incurred in period Total manufacturing costs incurred in period Account Materials Inventory $3,300 50% of materials inventory on Jan. 31 $11,700 3 times the direct labor incurred $27,300 70% of Cost of Goods Manufactured $10,000 less than Cost of Goods Sold Account Balances Jan. 31 Feb. 28 Costs Incurred Direct Materials Used Work in Process Inventory 21,000 Finished Goods Imventory Direct Labor Incurred 15,500 Factory Overhead Incurred Cost of Goods Sold 0000 Able Baker Charlie Company Charles Maxwell is starting a cheesecake bakery, Able Baker Charlie Company, to produce and sell different flavored cheesecakes to restaurants and the general public. He has just begun his study of accounting, and confused about the many types of reports he has read about and how they will help him run his business. He asks you to help him clarify what the differences between managerial accounting and anciling are. He's al wandering how to set up his inventory, how to classify the costs of his business, and how to fill in some missing information Managerial vs. Financial Select whether the following characteristics are most often associated with managerial accounting or financial accounting. Primarily used for internal decision making Generally Accepted Accounting Principles (GAAP) must be used Managerial Accounting Financial Accounting Prepared statements usually pertain to the company as a whole rather then individual departments or products Financial Accounting Information provided will often be subjective, such as estimated future results Oftan prepared on an as-needed basis rather than at fixed intervals Manegerial Accounting Managerial Accounting Cost Classification Charles has provided some of the costs he expects to incur as follows. Decide on the classifications that could be applied to each of these costs using the table provided. The cast stpect in each case is the cheesecake. (Select "Yes" or "No" from the below dropdowns.) Cost Product Cost Period Direct Direct Factory Selling Administrative Direct Indirect Prime Conversion Cost Materials Labor Overhead Expense Cost Cost Cest Eggs used to make cheesecakes Yes No Yes No No Yes Yes No Baker's wages Yes No No Yes No No No Yes Mo Yes No Delivery driver wages No Yes No No No Yes No No Yes No. No Depreciation of office computers No Yes No No No No Yes No Yes No No Power to run the cheesecake ovens Yes No No No. Yes No No Yes No. No President's salary No Yes No No No No Yes No Yes No No Sales commissions No Yes No No No No Yes No No No Factory supervisor salary Yes No No No. Yes No No Yes No No Costs and Balances At the end of February, after the second morth of operations of Able Baker Charlie Company, Charles shows you the data he's collected, but he was unable to figure out some of the amounts. Review the following data and filin the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured. Data for February Decrease in materials inventory Materials inventory on Feb, 28 Direct materials purchased Direct materials used Total manufacturing costs incurred in period Total manufacturing costs incurred in period Total manufacturing costs incurred in period $3,300 50% of materials inventory on Jan. 31 $11,700 3 times the direct labor incurred $27,300 70% of Cost of Goods Manufactured $10,000 less than Cost of Goods Sold Account Materials Inventory Work in Process Inventory Finished Goods Inventory Account Balances Jan. 31 Feb. 28 Costs Incurred Direct Materials Used 21,000 Direct Labor Incurred 15,500 Factory Overhead Incurred Cost of Goods Sold 0000