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37 Cards in this Set

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Cost of Goods Sold (Formula)
Beginning Work in Process + Direct Materials + Direct Labor + Manufactured Overhead - Ending Work in Process
Product Costs vs. Period Costs
Product: Manufacturing Costs
Direct Materials
Direct Labor
Overhead (Indirect Materials, Indirect Labor, other indirect costs)

Period Costs: Nonmanufacturing Costs
Selling Expenses
Administrative Expenses
Raw Materials Costs
Raw Materials Inventory Debit
Accounts Payable Credit
Factory Costs
Factory Labor Debit
Factory Wages Payable Credit
Overhead
Overhead Debit
Overhead Costs Credit
Raw Materials Costs (Assigning to Overhead)
Work in Process Inventory Debit
Overhead Debit
Raw Materials Inventory Credit
Facotry Labor Costs (Assigning to Overhead)
Factory Labor Debit
Factory Wages Payable Credit
Overhead Costs (paying)
Work in Process Inventory Debit
Overhead Credit
Assigning Costs to Finished Goods
Finished Goods inventory Debit
Work in Process Inventory Credit
Assigning Costs to Cost of Goods Sold
(1)
Accounts Receivable Debit
Sales Credit
(2)
Cost of Goods Sold Debit
Finished Goods Inventor Credit
Year-End Balance
Overhead Debit
Cost of Goods Sold Credit
Process Cost System
Overhead Costs assigned to Work in Process Machining Department costs transferred out to Work in Process Assymble Department cost of completed work transfered to Finished Goods Inventory cost of goods sold transferred to Cost of Goods Sold
Equivalent Units of Production
Units Completed and Transferred Out + Equivalent Units of Ending Work in Process (WIP End x 100% (Materials) or % for Conversion Costs) = Equivalent Units of Production
Activity-Based Overhead Rate (Formula)
Estimated overhead per Activity ∻ Expected Use of Cost Drivers per Activity
Variable Cost per Unit (formula)
Change in Total Costs ∻ High minus Low Activity Level
Contribution Margin per Unit (formula)
Unit Selling Price - Unit variable Costs
Contribution Margin Ratio (formula)
Contribution Margin per Unit ∻ Unit Selling Price
Sales (Formula)
Variable Costs + Fixed Costs + Net Income
Break-Even Point in Units (formula)
Fixed Costs ∻ Contribution Margin per Unit
Break-Even Point in Dollars (formula)
Fixed Costs ∻ Contribution Margin Ratio
Margin of Safety (formula)
Sales - Break-Even Sales
Break-Even Sales (formula)
Fixed Costs ∻ Contribution Margin per Unit
Make or Buy
Make and Buy:
Direct Materials
Direct Labor
Variable Overhead
Fixed Overhead
Purchase Price (Units x buy unit price)
Total Annual Costs
Make - Buy = NI (negative-decline)
Order at a Special Price
Revenues (Units x Price) - Cost of Goods Sold - Expenses = Net Income
Negative-Reject
Cost of Goods Sold (Expenses): VC (%) x CGS = Cost per Unit (Expenses)
CGS (Expenses) = Unit x Price
Product Cost using Variable Costing
Direct Materials
Direct Labor
Variable Overhead
=Total Variable Costing
Product Cost using Absorption Costing
Direct Materials
Direct Labor
Variable Overhead
Fixed Overhead
=Total Absorption Costing
Target Cost (formula)
Market Price - Desired Profit
Target Selling Price (formula)
Cost + (Markup Percentage x Cost)
Markup Percentage (formula)
Desired ROI per Unit ∻ Total Unit Cost
Return on Investment (ROI) (formula)
Net Income ∻ Invested Assets
Net Present Value (formula)
Present Value - Investment
Present Value
Future Value x Present Value %
Profitability Index (formula)
Present Value ∻ Investment
Payback Period
Investment ∻ Net Cash Flow
Internal Rate of Return (IRR) (formula)
Investment ∻ Net Cash Flow = IRR Factor
Find Closest on Table
Annual Rate of Return (ARR) (formula)
Net Income ∻ Average Investment
Average Investment
(Investment + Salvage Value) ∻ 2