Chapter 2 Flashcards
MIC
materials purchased to make the products (Material Inventory Control)
WIP
units of products that are partially completed & require more work before they are sold (Work In Process)
FG
completed units that have yet to be sold (Finished Goods)
Inventory Calculation
Beginning Balance (BB) + Additions (AD) - Withdrawals (WD) = Ending Balance (EB) BB + AD - EB = WD
MIC (Accounting Movements) Calculation
BB + AD (Purchase of materials) - WD (DM used in WIP & IDM used in MOH) = EB
WIP (Accounting Movement) Calculation
BB + AD [DM + DL + MOH] - WD [Transfer to FG COGM] = EB
FG (Accounting Movement) Calculation
BB + AD [COGM Transfer from WIP] - WD [COGS] = EB
Contributional Margin (SCI)
by behaviour (used primarily by internal management
Functional Approach for Contributional Margin (SCI)
used for external reporting
Direct Costs
DM & DL
Indirect Costs
VMOH + FMOH + FSE & VSE + VAE + FAE
Variable Product Costs
DM + DL + VMOH
Product Costs
VMOH + FMOH + DM + DL
Period Costs
Variable & Fixed Selling Expense + Variable & Fixed Admin Expense
Full Cost
Period + Product Costs