Cost Accounting -- Exam 1

Front 1

This type of accounting is concerned with reporting financial information to external parties, such as stockholders, creditors, and regulators.

Back 1

Financial accounting

Front 2

This type of accounting is concerned with providing information to managers for use within the organization.

Back 2

Managerial accounting

Front 3

A difference in costs between any two alternatives

Back 3

Differential cost

Front 4

A difference in revenues between any two alternatives

Back 4

Differential revenue

Front 5

A cost that is incurred to support a number of cost objects but that cannot be traced to them individually

Back 5

Common cost

Front 6

Conversion Cost

Back 6

Direct labor + Manufacturing overhead

Front 7

Contribution Margin

Back 7

The amount remaining from sales revenues after all variable expenses have been deduced.

Front 8

Manufacturing Overhead

Back 8

All manufacturing costs except direct materials and direct labor.

Front 9

Prime Cost

Back 9

Direct materials + Direct labor

Front 10

Unadjusted COGS

Back 10

Beginning finished goods inventory + COGM - Ending finished goods inventory

Front 11

A credit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost applied to WIP exceeds the amount of overhead cost actually incurred during the period.

Back 11

Overapplied overhead.

Front 12

A debit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost actually incurred exceeds the amount of overhead cost applied to WIP during a period.

Back 12

Underapplied overhead

Front 13

COGM

Back 13

The manufacturing costs associated with the goods that were finished during the period.

Front 14

Conversion Cost

Back 14

Direct labor + Manufacturing Overhead

Front 15

Equivalent Units (Weighted Average)

Back 15

Units transferred out + EU in the ending WIP

Front 16

A process costing method in which equivalent units and unit costs relate only to work done during the current period.

Back 16

FIFO

Front 17

COGM Schedule

Back 17

Direct Materials
BB_Raw Mat
Add New Purchases
Deduct EB_Raw Mat
Deduct Ind. Mat in MO
Direct Labor
MO applied
Add BB_WIP
Deduct EB_WIP

Front 18

COGS Schedule

Back 18

BB_FG
Add COGM
Deduct EB_FG
Add Underapplied MO or
Subtract Overapplied

Front 19

Applied Overhead =

Back 19

POHR * Amount of Allocation Incurrred

Front 20

Raw Materials T-Chart

Back 20

Front 21

Manufacturing Overhead T-Chart

Back 21

Front 22

WIP T-Chart

Back 22

Front 23

Finished Goods T-Chart

Back 23

Front 24

COGS T-Chart

Back 24