Coa

Front 1

Cost accounting

Back 1

An area of accounting that involves measuring, recording, and reporting product and service costs.

Front 2

Cost accounting system

Back 2

Manufacturing and service cost accounts that are fully integrated into the general ledger of a company.

Front 3

Job cost sheet

Back 3

A document used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job.

Front 4

Process costing

Back 4

A cost accounting system used when a company company manufactures a large volume of similar products.

Front 5

Job order cost system

Back 5

A cost accounting system in which costs are assigned to each job or batch.

Front 6

Can a company use both job order and processes costing?

Back 6

Yes.

Front 7

What are the two major steps in the flow of costs?

Back 7

1. Accumulating the manufacturing costs

2. Assigning the accumulated costs.

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Flow of costs

Back 8

Direct materials, direct labor, and manufacturing overhead

Front 9

Flow of costs in job order cost accounting parallels the physical flow of the materials as they are converted into finished goods and sold

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Front 10

Period costs

Back 10

All non-manufacturing costs

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Product cost

Back 11

All manufacturing costs

Front 12

Job cost sheet

Back 12

A job cost sheet is a document used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job.

Front 13

What constitute the subsidiary ledger for the Work-in-Process inventory?

Back 13

Job cost sheets

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Subsidiary ledger

Back 14

A subsidiary ledger consists of individual records for each individual item.

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Control account

Back 15

The account that summarizes detailed data of its corresponding subsidiary ledger.

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Material requisition slip

Back 16

A document authorizing the issuance of raw materials from the storeroom to production

Front 17

How do companies assign factory labor costs to jobs?

Back 17

Companies assign factory labor costs to jobs on the basis of time tickets prepared when the work is performed.

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Time ticket

Back 18

A document that indicates the employee, the hours worked, the account and the job to be charged, and the total labor cost.

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Predetermined overhead rate

Back 19

Manufacturing overhead cannot be directly assigned to a specific job or process. So companies assign manufacturing overhead to work in process and to specific jobs on an estimated basis called the predetermined overhead rate.

Front 20

Formula for predetermined overhead rate

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Estimated Annual Overhead Costs ÷ Estimated annual operating activity = Predetermined overhead rate

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Finished good is a control account

Back 21

It controls individual finished goods records in a finished goods subsidiary ledger

Front 22

When is the cost transferred from Finished Goods Inventory to Cost of Goods Sold?

Back 22

Companies recognize cost of goods sold when each sale occurs.

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Back 23

Front 24

What is the Work-in-Process equivalent for service a service company?

Back 24

Service Contracts in Process

Front 25

When is Manufacturing Overhead have a debit or credit balance?

Back 25

- Manufacturing overhead has a debit balance when overhead is under-applied

- Manufacturing overhead has a credit balance when its over-applied.

(Manufacturing Overhead is an expense account)

Front 26

Where are the adjusting entries of over-or under-applied overhead made to?

Back 26

Cost of Goods Sold and Manufacturing Overhead accounts