Chapter 2

Question 1

MIC

Answer 1

materials purchased to make the products (Material Inventory Control)

Question 2

WIP

Answer 2

units of products that are partially completed & require more work before they are sold (Work In Process)

Question 3

FG

Answer 3

completed units that have yet to be sold (Finished Goods)

Question 4

Inventory Calculation

Answer 4

Beginning Balance (BB) + Additions (AD) - Withdrawals (WD) = Ending Balance (EB)
BB + AD - EB = WD

Question 5

MIC (Accounting Movements) Calculation

Answer 5

BB + AD (Purchase of materials) - WD (DM used in WIP & IDM used in MOH) = EB

Question 6

WIP (Accounting Movement) Calculation

Answer 6

BB + AD [DM + DL + MOH] - WD [Transfer to FG COGM] = EB

Question 7

FG (Accounting Movement) Calculation

Answer 7

BB + AD [COGM Transfer from WIP] - WD [COGS] = EB

Question 8

Contributional Margin (SCI)

Answer 8

by behaviour (used primarily by internal management

Question 9

Functional Approach for Contributional Margin (SCI)

Answer 9

used for external reporting

Question 10

Direct Costs

Answer 10

DM & DL

Question 11

Indirect Costs

Answer 11

VMOH + FMOH + FSE & VSE + VAE + FAE

Question 12

Variable Product Costs

Answer 12

DM + DL + VMOH

Question 13

Product Costs

Answer 13

VMOH + FMOH + DM + DL

Question 14

Period Costs

Answer 14

Variable & Fixed Selling Expense + Variable & Fixed Admin Expense

Question 15

Full Cost

Answer 15

Period + Product Costs

Question 16

Per Unit GP (Profit)

Answer 16

Selling - COGS (DM + DL + VMOH + FMOH) per unit

Question 17

Per unit of Contribution Margin

Answer 17

Selling Price - Total Variable Costs (DM + DL + VSE + VAE) per unit

Question 18

POR

Answer 18

Estimated Total Manufacturing Costs / Estimated total amt of allocation bases

Question 19

Overhead Applied

Answer 19

POR * Actual Allocation Bases