Compare and contrast Managerial and Financial accounting. Explain how product costing differences in service, merchandising and manufacturing companies; show how just in time can increase profitability and identify good business practices and regulations for management accountants.
Product versus selling, general, and administrative costs
The following transactions pertain to 2015, the first year of operations of Tanjin Company. All inventory was started and completed during the accounting period. All transactions were cash transactions.
1. Acquired $64,000 of contributed capital from its owners.
2. Paid $10,500 for materials used to produce inventory.
3. Paid $8,600 to production workers.
4. Paid $4,900 rental fee for production equipment.
5. Paid $2,100 to administrative employees.
6. Paid $2,900 rental fee for administrative office equipment.
7. Produced 1,200 units of inventory of which 1,100 units were sold at a price of $27 each.
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