Exam 1 Flashcards
Profit=
Sales- total costs
Total costs=
Variable+ fixed
Variable=
M
Fixed=
B
RM=
Price
x
Quantity
What are the components of the journal entries for RM?
Debit- RM
Credit- Cash
WIP includes what components?
DM
DL
OH
DM=
[(standard material per unit
x units in progress)
x price]
DL=
[(standard time per unit
x units in progress)
x rate per hour]
OH=
DLH
x
Rate per DLH
What are the components of the journal entries for WIP-DM?
Debit- WIP DM
Credit- RM
What are the components of the journal entries for WIP-DL?
Debit- WIP DL
Credit- Wages
What are the components of the journal entries for OH?
Debit- WIP OH
Credit- Expenses
FG=
[(# of finished goods / # of units in progress) x (WIP DM + DL + OH)]
Sales includes
Sales
Costs
Profit
Sales=
of units sold
x
price sold at
Costs=
[(FG costs / FG produced) x units sold]
Profit=
Sales- costs
What are the components of the journal entries for Sales?
Debit- Accounts Receivable
Credit- Sale
What are the components of the journal entries for Costs?
Debit- Costs
Credit- FG
Raw materials used in production=
Beginning raw material inventory \+ Purchases of raw material - Ending raw material
Total manufacturing costs=
Direct materials \+ Direct labor \+ Manufacturing overhead applied to WIP
Cost of goods manufactured
Total manufacturing costs \+ Beginning WIP inventory - Ending WIP inventory
Unadjusted costs of goods sold=
Beginning finished goods inventory \+ Costs of goods manufactured - Ending finished goods inventory
The slope of a line
y=mx+b
