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12 Cards in this Set
- Front
- Back
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How to calculate Direct Materials used (DM Used)
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*DM (Raw Materials)*
Beginning Inventory (BI) + Purchases - Ending Inventory (EI) = DM Used |
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How to calculate COGM
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*WIP*
Beginning Inventory (BI) + DM Used + Direct Labor + MOH - Ending Inventory (EI) = COGM ***OR*** COGS - Beginning Inventory (Finished Goods) + Ending Inventory (Finished Goods) = COGM |
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How to calculate COGS
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*Finished Goods*
Beginning Inventory (BI) + COGM - Ending Inventory = COGS |
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How to calculate Profit (Operational Profit)
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Sales - COGS - Sales & Admin Expense
= Operational Profit |
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How to Calculate COGM (Manuf)
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Beginning WIP + MOH - Ending WIP =
COGM |
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When Overhead is APPLIED to jobs, WHICH account is DEBITED?
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MOH (Manufacturing OH)
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How to find total cost of job XXX
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Accumulated Labor DIVIDE BY DM Labor rate per hour
MULTIPLY BY Direct Labor Hour + DM COST = TOTAL COST OF JOB |
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How is MOH allocated to jobs in ABC system?
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Activity cost allocation rate *TIMES* Actual amount of activity allocation base of job
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Define Prevention costs
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avoid poor quality goods
or services ex: – Employee training – Improved materials – Preventive maintenance |
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Define Appraisal costs
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detect poor quality goods
or services ex: – Inspection throughout production – Inspection of final product – Product testing |
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Define Internal failure costs
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avoid poor quality goods
or services before delivery to customers EX: – Production loss caused by downtime – Rejected product units |
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Define External failure costs
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incurred after defective
product is delivered EX: – Lost profits from lost customers – Warranty costs – Service costs at customer sites – Sales returns due to quality problems |
