BUS 1 Cost Accounting (3) Flashcards
What is Product Cost?
*Sum of prime costs + applied overhead
*Applied overhead = overhead rate x est hours
*Assigned to goods that were either purchased or manufactured for resale
- Product Costs
- Prime Costs
- Conversion Costs
- Period
- FIFO
- WA
- Product: DM, DL, MO
- Prime: DM, DL
- Conversion: DL, MO
- Period: Wages, Sales, G&A, Interest Exp
- FIFO: (Beg WIP x % Comp) + (Units start/completed completed - (started-completed)) + End WIP x % Comp
*Total Costs-Costs incurred during curr period
- Take Beg - Completed for units
6. WA: (Units Comp-Trans Out) + End WIP x % Comp)
*Total Costs-Costs in beg WIP + Costs incurred during curr period
-Take Completed
Manufacturing Overhead
*Applied on the basis of direct labor dollars
*Indirect costs are manufacturing overhead
- Ending Inventory in a Manufacturing Environment how do you calcuate?
- Actual Overhead Costs Dr/Cr?
- Applied Overhead Costs Dr/Cr?
- Beg Inventory
+ Product Cost
- COGS
End Inventory (do not include direct labor)
- As Actual Overhead Costs incurred (debit) account
- As Applied Overhead Costs occur (credit) account
- Cost of jobs completed or (cost of goods manufactured)?
- Factory overhead control?
- Direct materials used?
- Cost of Jobs Completed (or cost of goods manufactured) =
direct materials used +
direct labor +
overhead applied +
beginning WIP − ending WIP
- Indirect Materials
- Direct Materials Used =
direct manufacturing labor costs
indirect manufacturing labor costs
other factory expenses
(NOT INCLUDE: Purchases Salaries Selling /Admin Exp)
*Sales units Needed to Obtain a Desired Profit?
*Sales dollars to Obtain Desired Profit?
*Sales units = (Fixed cost + Pretax profit) / Contribution margin per unit
*Sales dollars = Variable Costs + (Fixed Costs + NI b/f Taxes)
Components of Inventory Cost what gets transferred to next section?
- Raw Materials
- WIP
- Finished Goods
- Raw materials -> Direct Material
Beg Bal Materials
+ Purchases
+ Transportation in
- Purchase returns / allowances
- Materials available*
- End Materials
COST OF MATERIALS USED (SQUEEZED)
- WIP -> Finished Goods
Beg Bal WIP
+ Total Manufact Cost (DM (MATERIALS USED) + DL + MO)
- Goods available to transfer*
- End WIP
FINISHED GOODS (SQUEEZED)
- Finished Goods -> COGS
Beg Bal Finished Goods
+ FINISHED GOODS
- Finished goods available*
- End Finished Goods
COGS
Job Costing?
Process Costing?
Job Costing –> Selling expense deducted Margin
Process Costing –> Selling expense netted Selling price
