Term
|
Definition
Beginning finished goods Inventory
Add COGM
Subtract: ending finished goods inventory
Equals COGS |
|
|
Term
|
Definition
Beginning WIP Inventory
Add DM Used
Add DL
Add Applied overhead
Subtract WIP Ending inventory
Equals COGM |
|
|
Term
|
Definition
Sales revenue
Subtract COGS
Subtract S & A Expenses
Equals Net Income |
|
|
Term
|
Definition
| Pre determined overhead rate |
|
|
Term
|
Definition
Estimated Manufacturing OH Cost
Divided by Estimated activity level |
|
|
Term
APPLIED OVERHEAD
cALCULATION |
|
Definition
| PDR TIMES ACTUAL ACTIVITY |
|
|
Term
|
Definition
Direct Labor
add Applied Overhead |
|
|
Term
|
Definition
OVERHEAD
-----------------------
ACTUAL OH | APPLIED OH
------------------------
UNDER APPLIED | OVER APPLIED |
|
|
Term
DIRECT MATERIALS INVENTORY
Calculation |
|
Definition
Beginning Direct Materials Inventory
Add Direct Materials Purchases
Subtract Ending Direct Materials Inventory |
|
|
Term
| Name THREE TYPES OF INVENTORY |
|
Definition
DIRECT (RAW) MATERIALS
Work in Progress (WIP)
Finished Goods (FG) |
|
|
Term
Term
DIRECT MATERIALS INVENTORY |
|
Definition
| Materials that have been purchased and are available in the store room |
|
|
