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M Acc > m acc test 1 > Flashcards

m acc test 1 Flashcards

1
Q

managers three main responsibility’s

A

planning, decision-making, and controlling

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2
Q

planning

A

establishing goals and specifying how to achieve them

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3
Q

decision-making

A

gathering feedback to ensure plans are properly executed or modified

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4
Q

controlling

A

selecting a course of action from competing alternatives

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5
Q

the differences between managerial accounting and financial accounting

A

mgl accounting uses internal users (employees, managers), management sets rules, financial accounting uses external users (auditors, creditors, investors), uses strict GAAP rules

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6
Q

the 4 standards of the IMA Statement of Ethical Professional Practice

A

credibility, confidentiality, competence, integrity

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7
Q

credibility

A

reliability

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8
Q

confidentiality

A

mouth shut on non public info

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9
Q

competence

A

academic knowledge

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10
Q

integrity

A

morality, avoiding conflict of interest

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11
Q

What is a cost object?

A

anything for which cost data are desired-including products, customers, plants, office locations, and departments, classified as direct or indirect

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12
Q

direct cost

A

easily traced to a specified cost object, salary of sales manager

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13
Q

indirect cost

A

cannot be easily traced to a specified cost object, common cost

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14
Q

What are the three manufacturing (product) costs

A

two direct costs (direct materials and direct labor) and one indirect cost (manufacturing overhead)

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15
Q

Non-manufacturing (period) costs?

A

two categories, selling costs and administrative costs

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16
Q

What are conversion costs

A

the sum of direct labor and manufacturing overhead, the two costs incurred to convert direct materials into a finished product

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17
Q

What are Prime costs

A

sum of direct materials cost and direct labor costs

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18
Q

Cost classifications for predicting cost behavior

A

variable, fixed, and mixed

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19
Q

Variable costs

A

varies in total in direct proportion to changes in the level of activity, cost of goods sold for a merchandising company, direct materials, direct labor, variable elements of manufacturing overhead such as indirect materials, supplies, and power, and variable elements of selling and administrative expenses such as commissions and shipping

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20
Q

Fixed costs

A

remains constant in total regardless of changes in the level of activity, manufacturing overhead includes fixed costs like depreciation, insurance, property taxes, rent, and supervisory salaries, selling and administrative costs include administrative salaries, advertising, and depreciation of nonmanufacturing assets

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21
Q

Mixed Costs

A

both variable and fixed costs elements, semivariable costs

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22
Q

absorption costs

A

all manufacturing costs, both fixed and variable are assigned to units of product-units are said to be fully absorb manufacturing costs, conversely all nonmanufacturing costs are treated as period costs and not assigned to products

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23
Q

What is job-order costing

A

used by companies that make different products, each with unique features, costs are traced and allocated to jobs and then the costs of the jobs are divided by the number of units in the job to arrive at an average cost per unit, also called the unit product cost

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24
Q

the various documents used during the manufacture of a product

A

bill of materials, job cost sheet, time tickets

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25
Q

bill of materials

A

a document that lists the quantity of each type of direct materials needed to complete a unit of product

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26
Q

job cost sheet

A

records the materials, labor, and manufacturing overhead costs charged to that job

27
Q

time ticket

A

provides an hour by hour summary of the employees activities throughout the day, direct labor charges are automatically posted to job cost sheets, any indirect labor time is treated as part of manufacturing overhead and is not posted

28
Q

allocation base

A

a measure, such as direct labor hours that is common to all products and used to assign overhead costs to them, direct labor hours, direct labor costs, machine hours, units of product

29
Q

predetermined overhead rate

A

computed by dividing the total estimated manufacturing overhead cost for the period by the estimated total amount of the allocation base, computed before the period using a four step process

30
Q

How are overhead costs assigned to jobs in production

A

the process of assigning overhead costs to jobs, formula for determining amount of overhead costs to apply yo a particular job: overhead= predetermined overhead rate * amount of the allocation base incurred by the job, apply throughout accounting period

31
Q

Identify and apply the four steps to applying overhead using one plantwide overhead rate

A

Find estimated OH costs, Identify the allocation base, and the estimated amount of the allocation base, Calculate the predetermined OH rate., Apply overhead by multiplying the rate by actual amount of the allocation base

32
Q

identify and apply the four steps to applying overhead using the departmental approach

A

Find estimated OH costs for each department, identify the allocation base, and the estimated amount of the allocation base for each
department, Calculate the predetermined OH rate for each department, Apply overhead by multiplying the rate by actual amount of the allocation base for each
department.

33
Q

Which steps for applying overhead are performed at the beginning of the year, and which are
performed throughout the year

A
34
Q

How do you calculate the total cost/manufacturing cost of a job

A

direct materials + direct labor + manufacturing overhead

35
Q

Identify the three inventory accounts for a manufacturer, and the flow of costs through the inventory
accounts

A

raw materials, work in process, and finished goods

36
Q

raw materials

A

any materials that go into the final product, when used in production as direct materials, their costs are transferred to work in process inventory

37
Q

work in process

A

consists of units of product that are only partially complete and will require further work before sale, to transform direct materials into completed jobs, direct labor is added to WIP and manufacturing overhead cost is applied to WIP by multiplying the predetermined overhead rate by the actual quantity of the allocation base consumed by each job, when jobs are completed their costs are transferred from WIP to finished goods

38
Q

finished goods

A

completed units of product that havent been sold

39
Q

costs of goods manufactured

A

the amount transferred from WIP to FG includes the manufacturing costs associated with units of product finished during the period, beginning WIP + total mfg costs production (DM AND DL AND TOTAL GIVEN)p- ending WIP

40
Q

balance sheet

A

raw materials (raw materials inventory), manufacturing overhead (direct labor, WIP, FG)

41
Q

income statement

A

selling and administrative (costs of goods sold, selling and administrative expenses)

42
Q

purchase of materials

A

debit raw materials, credit accounts payable

43
Q

issuance of raw materials

A

debit WIP, debit MO, credit RM

44
Q

direct and indirect labor costs

A

debit WIP, debit MO, credit salaries and wages payable

45
Q

record MO applied to job

A

debit WIP, credit MO

46
Q

administrative salaries

A

debit salaries expense, credit salaries and wages payable

47
Q

completed job

A

DM + DL + MO: debit FG, credit WIP

48
Q

rent and utlities

A

debit MO, credit accounts payable

49
Q

goods sold on account

A

debit COGS and credit finished goods, debit AR and credit sales

50
Q

depreciation

A

debit MO, credit accumulated dep

51
Q

other MO costs accrued

A

debit MO, credit AP

52
Q

costs of goods sold

A

debit COGS, credit FG

53
Q

sales on account

A

debit AR, credit sales; x * % = y; x + y = number used

54
Q

schedule of costs of goods manufactured

A

contains 3 elements of product costs- direct materials, direct labor, and MO- and it summarizes the portions of those costs remaining in ending WIP inventory and transferred out to FG,

55
Q

schedule of costs of goods sold

A

contains 3 product costs, direct materials, direct labor, and MO- and summarizes the portions of those costs remaining in ending FG inventory and transferred out to COGS

56
Q

costs of DM on schedule of costs of goods manufactured

A

cost of indirect materials is subtracted from raw materials used in production

57
Q

costs of goods available for sale

A

beginning FG + costs of goods manufactured

58
Q

unadjusted COGS

A

costs of goods available for sale = ending FG

59
Q

adjusted COGS

A

unadjusted COGS + underapplied overhead (or - overapplied)

60
Q

cost of direct materials used in production

A

beginning RM + purchases of RM - ending RM - indirect materials

61
Q

over or under applied formula

A

predetermined overhead rate * actual total allocation base = total manufacturing overhead; actual total MO cost - total MO applied = under/over applied

62
Q

underapplied overhead

A

debit COGS, credit MO; estimated < actual

63
Q

overapplied overhead

A

debit MO, credit COGS; estimated > actual

M Acc (1 decks)

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