Term
| Raw Materials Used in Production |
|
Definition
Beginning Raw Materials Inventory
+ Raw Materials Purchased
- Ending Raw Materials Inventory |
|
|
Term
| Cost of Goods Manufactured |
|
Definition
Raw Materials Used in Production
+ Direct Labor
+ Applied Manufacturing Overhead
+ Beginning WIP Inventory
- Ending WIP Inventory |
|
|
Term
| Adusted Cost of Goods Manufactured |
|
Definition
| Take the CoGM and adjust for over or underapplied overhead |
|
|
Term
| Cost of Goods Available for Sale |
|
Definition
CoGM
+ beginning finished goods inventory
- endng finished goods inventory |
|
|
Term
|
Definition
Beginning finished goods inventory
+ CoGM
- Ending finished goods inventory
-/+ over or underapplied manufacturing overhead |
|
|
Term
| Predetermined manufacturing overhead rate |
|
Definition
| divide the total estimated manufacturing ovehead by the total estimated activity level |
|
|
Term
| total estimated manufacturing overhead includes all manufacturing costs except for |
|
Definition
| direct labor and direct materials |
|
|
