See attached file and answer questions.

Graded Assignment Chapter 2 3 Questions Question 1 Babe Ruth Manufacturing Company incurs the following manufacturing costs and expenses during the month of May. 1. Assembly line wages 2. Raw materials used directly in product 3. Depreciation on office equipment 4. Property taxes on factory building 5. Rent on factory building 6. Sales commissions 7. Depreciation on factory equipment 8. Factory utilities 9. Wages for factory maintenance workers 10. Advertising 11. Indirect materials used in production 12. Factory manager's salary Instructions Complete the following matrix by placing an X mark under the appropriate headings. Cost Item 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Direct Materials Direct Labor Manufacturing Overhead Period Costs Question 2 Data for the cost of direct materials for the month ended March 31, 2010, are as follows: Materials inventory, March 1, 2010 $76,000 Materials inventory, March 31, 2010 85,000 During March, the company purchased $220,000 of raw materials on account from Krupka Company and $72,000 of raw materials for cash from Frye Company. In addition, $50,000 was paid on the Pine account balance. Instructions Compute the cost of direct materials used during March. Question 3 1. Financial accounting information is prepared mainly for ______________ users, while managerial accounting information is prepared primarily for ______________ users. 2. Three broad managerial functions are: (1)______________, (2)______________, and (3)______________. 3. The ______________ function is concerned with setting goals and objectives for the entity. 4. Exercising good judgment in performing the managerial functions and choosing among alternative courses of action is called ______________. 5. The three cost elements in manufacturing a product are (1)______________, (2)______________, and (3)______________. 6. The work of factory employees that can be physically and directly associated with converting raw materials into products is classified as ______________. 7. Indirect materials and indirect labor are classified as ______________. 8. Each of the manufacturing cost components is a ______________ cost. 9. A manufacturing company computes cost of goods sold by adding cost of goods manufactured to the ___________________ and subtracting the __________________. 10. A manufacturing company usually has three inventory accounts which are (1)___________________, (2)___________________, and (3)___________________