Chapter 1 1. Manufacturing and Nonmanufacturing Cost- Leighton, Inc., incurred costs for the following items. 1. Janitorial services in the production facility

2. Personnel department supplies

3. Shipping costs for raw materials purchased from a supplier, easily traced to the product

4. Newspaper advertisements

5. Supervisor of several production lines

6. Insurance for factory equipment

7. Production line workers

8. Clerical support for sales staff

1. Indicate whether each item should be categorized as a product or period cost.

2. Indicate whether each item should be categorized as direct materials, direct labor, manufacturing overhead, selling, or general and administrative.

2. Match each of the following accounts with the appropriate description that follows.

_____ Raw materials inventory

_____ Work-in-process inventory

_____ Finished goods inventory

_____ Cost of goods sold

1. Used to record product costs associated with goods that are sold

2. Used to record the cost of materials not yet put into production

3. Used to record product costs associated with goods that are complete and ready to sell

4. Used to record product costs associated with incomplete goods in the production process

3. Organizational Structure. The following list of personnel within organizations comes from Figure 1.2 IMA Statement of Ethical Professional Practice.

1. Board of directors

2. Chief financial officer

3. Controller

4. Managerial accountant

5. Financial accountant

6. Tax accountant

7. Treasurer

8. Internal auditor

Match each previous item with the most accurate description as follows.

1. Assists in preparing information used for decision making within the organization

2. Assists in preparing tax reports for governmental agencies, including the IRS

3. Responsible for confirming that controls within the company are effective in ensuring accurate financial data, and serves as an independent link with the board of directors

4. Responsible for all finance and accounting functions in the organization and typically reports to the CEO

5. Elected by the shareholders of the company

6. Oversees the managerial accountant, financial accountant, and tax accountant

7. Responsible for obtaining financing for the organization, projecting cash flow needs, and managing cash and short-term investments 8. Assists in preparing financial information, usually in accordance with U.S. GAAP