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25 Cards in this Set
- Front
- Back
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prime cost = ? |
DM + DL |
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conversion cost = ? |
MOH + DL |
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COGS in a manufacturing company = ? |
beginning FG inventory + COGM - ending FG inventory |
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what are the 3 types of inventories? |
raw materials, work in process, and finished goods |
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what is the journal entry at the time of sale in a manufacturing company? |
dr: COGS, cr: FG inventory |
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how do you determine COGM? |
RM used + DL + MOH + beginning WIP inventory - ending WIP inventory |
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a cost that is incurred to support a number of cost objects but cannot be traced to any of them individually (a type of indirect cost) = ? |
common cost |
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differential cost = ? |
a difference in cost between any two alternatives |
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incremental cost = ? |
an increase in cost between two alternatives |
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product costs are assigned to ______ and considered _______ until _______. |
inventory, assets, the products are sold |
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period costs are expensed in the period in which they are _______ |
incurred |
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when is a process costing system used? |
in situations where the company produces many units of a single product for long periods at a time |
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what is the basic formula for process costing? |
unit product cost = total manufacturing cost / total units produced |
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what is job order costing used? |
in situations where many different products or services are produced each period |
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in normal costing what uses the actual costs and what uses applied cost |
DM and DL = actual costs. MOH = applied costs. |
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a measure of activity, such as direct labour hours, that is used to assign costs to cost objects = ? |
allocation base |
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predetermined overhead rate = ? |
estimated total MOH cost / estimated total units in the allocation base |
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predetermined overhead rate X amount of the allocation base incurred by the job = ? |
overhead applied to a particular job |
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what are the 3 reasons for using a predetermined overhead rate? |
avoid seasonal fluctuations, timeliness, simplifies the accounting process |
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a factor that causes overhead costs, such as machine-hours, beds occupied, computer time, or flight hours = ? |
cost driver |
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actual < applied = |
over applied MOH |
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actual > applied = |
under applied MOH |
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where do you close out MOH? |
to COGS |
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What is the journal entry if MOH is over applied? |
dr: MOH, cr: COGS |
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what is the journal entry if MOH is under applied? |
dr: COGS, cr: MOH |
