week 4 key learnings review

Question 1

what are the three differences between managerial and finacial accounting

Answer 1

managerial
internal uses
future outlook
not held to any standards

finacial
external users
historical outlook
uses gaap / ifrs

Question 2

what are the three functions of managment

Answer 2

planning
directing
controlling

Question 3

what are prime costs

Answer 3

direct materials + direct labour

Question 4

what are conversion costs

Answer 4

direct labour + manufacturing overhead

Question 5

what is process costing and how are things accounted for during the “process”

Answer 5

used when similar products are made in large quantity

accumulate the costs then assign them to work in process
when the unit is completed the costs are transferred to finished goods inventory
when the unit is sold the cost goes to COGS

Question 6

what are the two types of factors you should consider when doing incremental analysis

Answer 6

financial and non financial

Question 7

what would the journal entry be for purchasing materials

Answer 7

debit raw materials , credit accounts payable

Question 8

what would the journal entry be for when the materials are being used in a job

Answer 8

debit work in process , credit raw materials

Question 9

what would the journal entry be for direct labour

Answer 9

debit factory labour , credit wages payable

Question 10

how should factory costs like rent and depreciation be recorded as

Answer 10

manufacturing overhead

Question 11

what would the journal entry be for finished goods inventory

Answer 11

debit finished goods inventory, credit work in process

Question 12

what would the journal entry be for when finished goods are sold

Answer 12

debit COGS and credit finished goods inventory