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38 Cards in this Set

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Manudacturing Overhead
All costs of manufactering except direct materials and direct labor.

meaintenace, repairs, heat, rent
Manufacturing overhead + Direct Labor
Conversion Costs
Conversion Costs
Manufacturing overhead + Direct Labor
Direct Labor plus direct materials
Prime Costs
Prime Costs
Direct Labor plus direct materials
Product Cost
Goods involved in acquiring or making a product
Period Costs
All the costs not included in product cost, like selling and administrative expenses
Beginning Merchandise inventory + purchases
=Ending mechandise inventory + Cost of goods sold
Ending mechandise inventory + Cost of goods sold
= Beginning Merchandise inventory + purchases
Cost of goods sold
= beginning merchandise + purchases - ending merchandise inventory
Beginning finished goods inventory + Cost of goods manufactured
= Ending finished goods inventory + cost of goods sold
In absorption costing
All manufacturings costs, fixed and variable, are assigned to units of product - full cost approach
Process costing system
Used when the company produces many units of a single product for long periods
Unit Product Cost (per gallon, pound, bottle)
= Total manufacturing cost/total units produced
Job-order costing system
Many different products are produced each period
Allocation base
A measure such as direct labor-hours or machine hours that is used to assign overhead costs to products and services
Predetermined overhead rate
= Estimated total manufaturing overhead cost/estimated total units in the allocation base
Raw Materials
Goes as raw materials and accounts payable
Direct Materials
Word in Process --- Raw Materials
Indirect Materials
Manufacturing overhead --- Raw materials
Direct Labor
Work In Process --- Salaries and wages payable
Indirect Labor
Manufacturing overhead ---- Salaries and wages payable
Manufacturing overhead
Manufacturing overheaa ---- accounts payable
Cost of goods manufactured
Finished goods --- work in process
Sales!!
Accounts receivable --- Sales
Costs of Goods sold
Cost of goods sold --- finished goods
If it is under or overapplied overhead balance
1.) Close out to cost of goods sold or allocate between work in process, finished goods, and cost of goods sold
Close out to cost of goods sold
Cost of goods sold --- manufacturing overhead
Allocated
Just do it by percentages for work in process, finished goods, cost of goods sold....and then manufacturing overhead
Process costing
More department shit...JOb order is like job shit
Equivalent Units
Number of partially completed units times Percentage completion
Weighted average method
Equivalent Units of production = Units transferred to the next department or to finished goods = Equivalent units in ending work in process inventory
Its always assumed that units transferred out of a department are
100% complete
Equivalent units of production are
Equivalent units pls transferred out
The cost of beginning inventory under the weighted-average method is
Added in with current period costs in determining costsper equivalent unit for a given period
A company should use process costing rather than job order costing if
The product is composed of mass-produced homogeneous units
What applies to job-order costing but not to process costing?
many different jobs are worked on during each period

Costs are accumulated by individual job

the job cost sheet is the key document

Unit costs are computed by job on the job cost sheet
What applies to process but not job order
A single product is produced

Cpsts are accumulated by department

Use of equilavent units of production

The department production report is the key document

Unit costs are computer by department