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23 Cards in this Set
- Front
- Back
Prime costs |
Direct materials and direct labor |
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Conversion costs |
Direct labor and FOH |
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Entry for materials purchased |
Materials
Accts payable |
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Entry for requisitioned materials |
WIP Materials |
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Entry for recording direct labor |
WIP Wages payable |
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Recording FOH |
FOH Materials Wages payable Utilities payable Accumulated depreciation |
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Entry for recording applied FOH |
WIP FOH |
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Entry to record under applied FOH |
CGS FOH |
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Entry to record over applied FOH |
FOH CGS |
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Entry to record jobs being transferred from WIP to finished goods |
Finished goods WIP |
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Entry to record the sale |
Accounts rec Sales
CGS Finished goods |
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Pre-Determined overhead rate |
Estimated total FOH cost ➖➖➖➖➖➖➖➖➖➖ Estimated activity base |
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Process cost system
Entry to record transfer of goods to one dept from another |
WIP - packaging WIP- mixing |
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High low method:
V/c per unit
Fixed portion |
Vc/unit = Difference in total cost ➖➖➖➖➖➖➖➖ Difference in units produced
Fixed portion:
TC= (VC/unit x #of units) + FC |
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Contribution margin |
Sales - VC |
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Income from op |
CM - FC |
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Cm ratio |
Cm ➖➖➖ Sales
|
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Break even point |
FC ➖➖➖➖ Unit cm |
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Sales necessary to achieve a target profit |
FC + TP ➖➖➖➖➖ Unit cm |
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Unit CM |
Sales per unit - VC per unit |
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Sales mix |
Have to calculate a weighted cm
Unit cm x percent (for all)
And add all to get weighted
FC/weighted = break even |
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Operation leverage |
CM ➖➖➖ Income from op |
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Margin of safety |
Dollars : sales - Break even
Unit:
Percent: sales - break even ➖➖➖➖➖➖➖ Sales |