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