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17 Cards in this Set
- Front
- Back
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Absorption costing
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all manufacturing costs, both fixed and variable, are assigned to units of product
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Job-Order costing
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where many different products are produced in each period
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Bill of materials
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document that lists the type and quantity of each type of direct material needed to complete a unit of product
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Job cost sheet
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records the materials labor and manufacturing overhead costs charged to that job
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Predetermined overhead rate
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Etimated total manufacturing overhead cost/ Estimated total amount of the allocation base
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Do most companies use predetermined or actual overhead rates in their cost accounting systems
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predetermined overhead rates
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Cost driver
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a factor, such as machine hours, beds occupied, computer time, or flight hours, that causes overhead costs
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Floe of costs
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Raw materials, Work in Process, Finished goods, cost of goods sold
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Work in process
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These are the direct materials. units of product that are only partially complete and will require further work before they are ready for sale to the customer. Direct labor costs are added directly to work in process
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Finished goods
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completed units of product that have not yet been sold to customers.
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Cost of goods manufactured
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amount transferred from work in process to finished goods. Includes the manufacturing costs associated with the goods that were finished during the period.
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Do period costs flow through inventories on the balance sheet?
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No
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Where do and don't actual overhead costs appear
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They don't appear on the job cost sheet or in the work in process account, this is applied overhead cost.
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Period expenses should be directly charged to...
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the income statement
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Do nonmanufacturing costs go into the manufacturing overhead account?
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NO
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Job order costing is used when
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1. many different products are produced in each period
2. products are manufactured to order 3. the unique nature of each order requires tracing or allocating costs to each job and maintaining cost records for each job |
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Normal costing
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company takes actual direct material and labor costs, and manufacturing overhead is applied to jobs using a pre-determined overhead rate
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