Summary
Summary Financial Management 1
- Course
- Institution
Summary of exam content for chapters 15, 19 and 21
[Show more]
Seller
Follow
michelleriksen
Content preview
Chapter 15Financial accounting provides info to external stakeholders about the financial
performance and the economical health of a company.
Management accounting provides info to management for business decision making.
Unlike financial statements prepared in
financial accounting, managerial
accounting reports do not always have to
be:
- Prepared according to generally
accepted accounting principles (GAAP)
this is because only one company uses
the information.
- Prepared for the business as a whole.
Most management reports are prepared
for products, projects, sale territories, or
other segments of the company.
Multiple-step income statement: Classified balance sheet:
, Costs of goods manufactured (balance sheet) to costs of goods sold (income
statement)
Step 1: the cost of materials used.
beginning materials (65.000) + material purchased (100.000)
= materials available for use (165.000)
materials available (165.000) - materials not used (35.000)
= materials used (130.000)
Step 2: the manufacturing cost in the period.
material used in production (130.000) + direct labor (110.000) + factory overhead (44.000)
= total manufacturing costs (284.000)
Step 3: the total cost of a manufacturing.
start work in process (30.000) + manufacturing costs (284.000)
= total manufacturing cost (314.000)
Step 4: the total cost of goods manufactured:
total manufacturing (314.000) - end work in process (24.000)
= cost goods manufactured (290.000)
Step 5: the cost of goods sold.
start finished goods (60.000) + cost goods manufactured (290.000)
= cost goods for sale (350.000)
cost goods for sale (350.000) – finished goods not used (62.500)
= costs of goods sold (287.500)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller michelleriksen. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.86. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
51036 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 15 years now