question 16.13

Ridgeway Company reports the following information pertaining to its operating activities: During the year, the company purchased $35,000 of direct materials and incurred $22,000 of direct labor costs. Total manufacturing overhead costs for the year amounted to $30,000 and the company's annual sales amounted to $80,000. Prepare Ridgeway's schedule of the cost of finished goods manufactured. Prepare Ridgeway's income statement (ignore income taxes). Boeing Company has had its financial ups and downs. Recently, the CFO for Boeing helped turn its problems around by analyzing the amount of value each product was providing to the company's bottom line. The analysis ultimately determined which programs were making or losing money for Boeing. Based on the analysis, key operational metrics were established and reported to managers on a regular basis. These performance metrics detailed the company's progress toward reducing inventory, reducing costs, and streamlining operations. Managers were evaluated based on these metrics. Explain how the above description of activities at Boeing Company is consistent with the three principles that govern how management accounting systems are designed and used in companies. The accounting records of Hobart Industries show the following information for the most recent year ended December 31: Find the amount debited to the Work In Process Inventory account during the year. What is the cost of goods manufactured for the year? What is the cost of goods sold for the year? What are the total manufacturing costs for the year? Classify each of the following costs as a product cost or period cost. If it is a product cost, classify it as direct (or indirect) materials, direct or indirect) labor or overhead. Wheat used to make flour at General Mills. Sales commissions paid to sales personnel at Gap retail stores. Costs incurred by General Motors to ship automobile seats purchased from the Lear Corporation to GM assembly plants. Insurance paid on the Target retail stores in Michigan. Insurance paid on the Target warehouse holding merchandise inventory. Bonus paid to all production employees of General Motors at the end of a profitable fiscal year. Health care costs for the office workers at the headquarters of Johnson & Johnson Company. Bolts used by Trek Bicycle Corporation to secure the bike parts to the frame