Print Item Mastery Problem: Introduction to Managerial Accounting Managerial vs. Financial Cost Classification Financial Statements Able Baker Charlie Company Charles Maxwell is starting a cheesecakn bakery, Able Baker Charlie Company, to produce and sell different flavored cheesecakes to restaurants and the general public. He has just bogun his study of accounting, and is a bit 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 clarity what the differences between managerial accounting and financial accounting are. He's also wondering how to set up his inventory, how to classify the costs of his business, and how to fill in some missing information Required: 1. Choose whether the characteristics on the Managerial vs. Financial panel are most often associated with managerial accounting or financial accounting 2. Charles has provided some of the costs he expects to incur on the Cost Classification panel. Decide on the classifications that could be applied to each of these costs using the table provided. The cost obiect in each case is the cheesecake 3. Charles found some sample income statements and balance sheets on the internet, and asked which of them might be most appropriate for a manufacturing business like his Review income statements A and B on the Income Statements panel, and balance sheets and on the Balance Sheets panel. Determine which income statement and balance sheet would be most appropriate for a manufacturing business like Able Baker Charlie. Then, on the Financial Statements panel donore which income statement and balance sheet would be most appropriate for a manufacturing business. 4. At the end of February, after the second month of operations of Able Baker Charte Company, Charles shows you the data he's collected, but he was unable to figure out some of the amounts. On the costs and Betances panel, determine the missing amounts Note: It may be helpful to use Taccounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. Check My Work Previous Next All work saved Email Instructor Save and Exit Submit Assignment for Grace Able Baker Charlie Company Managerial vs. Financial Cost Classification Financial Stateme Income Statements Income Statement For the Year Ended December 31, 2048 1 Sales $42.000.00 2 Beginning inventory $5,250.00 3 Net purchases 6,400.00 Inventory available for sale $11.650.00 Ending inventory (400.00 Cost of goods sold 11 250.00 2 Gross profit $0.750.00 3 Operating expenses: $6,400.00 Selling expenses Administrative expenses 525000 11650,00 Total operating expenses 519100100 1 Net income Balance Sheets Balance Sheet December 31, 20Y6 Assets 2 Cash $20,800.00 5 Accounts receivable (net) 10,000.00 & Inventory: 5 Direct materials $2,500.00 6 Work in process 1,500.00 Finished goods 2.000.00 Total inventory 6.000.00 Supplies 2,100.00 10 Land 17.000.00 11 Total assets 555.300.00 12 Liabilities 11 Accounts payable 578000 Stockholders Equity Commons 5900000 Balance Sheets Inventory 5 Direct materials $2,500.00 1,500.00 6 Work in process 7 Finished goods 2,000.00 8 6.000.00 Total inventory 9 Supplies 2,100.00 10 Land 17,000.00 11 Total assets $55,900.00 57 Liabilities 1 Accounts payable $12.800.00 14 Stockholders Equity 5 common stock 11900000 1910000 13 Retained earings 38,100.00 17 Total stockholders' equity 555,900.00 Total abilities and stockholders equity Item Able Baker Charlie Company Managerial vs. Financial Cost Classification Financial Statements costs and Balances At the end of February, after the second month of operations of Able Baker Charte Company, Charles shows you the data he's collected, but he was unable to figure out some of the mounts. Review the following data and in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use accounts to map the flow of the mounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the stops 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 $12,600 3 times the direct tabor incurred $29.400 70% of Cost of Goods Manufactured $7.000 less than Cost of Goods Sold Account Balances Account Feb. 28 Coats incurred Materials Inventory Jan. 31 $6,000 X 27,000 Direct Materials Used $3,000 X 8.400 X Work in Process Inventory Direct Labor incurred $5,000 X 5,000 X 9.400 X 36,400 Finished Goods inventory 16.000 Factory Overhead incurred Cost of Goods Sold Previous Ne My Work