managerial accounting

1. Lecture by;
Muhammad Furqan
Lecturer ̶ Finance & Accounting
Managerial Accounting
1
BBA 5th Semester
Section (D)

2. 2
Surah No.02
Ayat No.256-257
‫ة‬‫ر‬‫سو‬
‫البقرة‬
Surah Al Baqrah

3. MANAGEMENT REPORTING
1. Revision of Week # 1 & 2
2. Group discussion of Research Article
3. Application of Microsoft Excel in
Management Accounting for Preparation of:-
i. Cost of Goods Sold Statement.
ii. Income Statement.
iii. Balance Sheet.
Lecture Outlines ̶ Week # 03
3 Muhammad Furqan (Lecturer-Finance & Accounting)

4. 4
1. Accounting, Field of Accounting, Cost &
Managerial Accounting
2. Planning and Control-Objectives in Mgt. Acc.
3. Classification of Cost:-
a. Manufacturing Costs & Non-Manufacturing Costs,
b. Product Costs and Period Costs,
c. Fixed and Variable Costs,
d. Opportunity Cost and Sunk Cost.
Review

5. Historical Evolution of
Management Accounting
Research Article
THE COST AND MANAGEMENT
ISSN 1817-5090, VOLUME-43, NUMBER-4, JULY-AUGUST 2015
5

6. 6
1. Introduction
2. Literature Review
3. Methodology
4. Historical Overview of Introduction of Mgt. Acc. Innovations:-
4.1. Before 1950s
4.2 From 1950s
4.2.1. During 1950 to 1979s
4.2.2. During 1980 to 1989s
4.2.3. From 1990s
5. Factors Determining Management Accounting Change
6. Management Accounting Around the World
6.1. Management Accounting in Some European & Latin American Countries
6.2. Management Accounting Change in China
6.3. Management Accounting Change in Australia
7. Conclusion
Historical Evolution of Mgt. Accounting

7. Application of Microsoft Excel
in Management Accounting
Skills Development
THE COST AND MANAGEMENT
ISSN 1817-5090, VOLUME-43, NUMBER-4, JULY-AUGUST 2015
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8.  A Spreadsheet is a grid of rows and columns in
which you enter text, numbers, and the results
of calculations.
 In Excel, a computerized spreadsheet is called a
Worksheet. The file used to store worksheets is
called a Workbook.
Introduction to Spreadsheets

9. How Many Rows And Columns Are In One Excel Sheet?

10.  MS Excel 2019,
 MS Excel 2016,
 MS Excel 2013,
 MS Excel 2007,
 MS Excel 2003
& earlier
 Having no limit
of sheets in excel workboo
k.
 i.e. Depends on memory while
google sheets are having only
limit of only 200 sheets. By
default there is only
1 sheet but you can create
as many as sheets you need.
How many sheets can we open in MS Excel?

12. 12
List of Formulas & Functions
 Excel makes it a simple task to perform mathematical
operations.
 Using Excel formula syntax, we can calculate and
analyze data in our worksheet.
 Formulas are equations that combine values and cell
references with operators to calculate a result.
 Functions are prebuilt formulas that can be quickly fed
values without the need to write the underlying formula
yourself.

13. 13
List of Formulas & Functions
Mathematical Operators: To perform basic mathematical
operations such as addition, subtraction, or multiplication; to
combine numbers; and to produce numeric results, use the
following ARITHMETIC OPERATORS.
Examples:

14. 14
Application of Microsoft Excel in Mgt Acc.
Microsoft Excel in Mgt Acc for Preparation of:-
i. Cost of Goods Sold Statement.
ii. Income Statement.
iii. Balance Sheet.

15. 15
Calculate the Manufacturing Cost, Costs of Goods Manufactured and
Cost of Goods Sold, The December 31st 2021, trial balance of the
BALKWELL Company showed.
Sales………………..$ 40,0500 Sales return and Allowances……….$ 25,200
Purchases…............$ 24,00,000 Transportation in…………………..…$ 32,000
Direct Labor…. …...$ 32,04,000 Factory Overhead…..………….……$18,85,600
Sales Salaries……..$ 200,000 Advertising expense….………..……$1,55,000
Delivery expenses…………………...$ 65,000
INVENTORIES: 31st - Dec, 2021 1st - January, 2021
Finished Goods……………………… $467400 $ 620000
Work In Process…………………….. $136800 $ 129800
Materials…………………………….. $196000 $ 176000
REQUIRED: Calculate the following
1. Total Manufacturing cost.
2. Cost of Goods Manufactured.
3. Cost of Goods Sold
4. Income Statement
Problem # 01

16. 16
Assume that one of The Hershey Company’s
factories produces 50-pound blocks of dark
chocolate and that it needs to prepare a year-end
balance sheet and income statement, as well as a
statement of cost of goods manufactured.
During the year, the factory purchased $361,920 of
direct materials.
The factory’s direct labor costs for the year were
$99,085 (10,430 hours at $9.50 per hour); its indirect
labor costs totaled $126,750 (20,280 hours at $6.25
per hour).
Problem # 02

17. 17
Account balances for the year were as follows:
Problem # 02

18. 18
Required
1. Compute the cost of materials used during the
year.
2. Given the cost of materials used, compute the total
manufacturing costs for the year.
3. Given the total manufacturing costs for the year,
compute the cost of goods manufactured during the
year.
4. If 13,397 units (1 unit = 50-pound block of dark
chocolate) were manufactured during the year,
what was the actual product unit cost? (Round your
answer to two decimal places.)
Problem # 02

19. 19
The End of Week # 3