Term
|
Definition
Planning
Directing-putting plans into action
Controlling-review of actions |
|
|
Term
| Managerial vs. financial accounting |
|
Definition
| Managerial provides info for internal users |
|
|
Term
| Classes of manufacturing costs |
|
Definition
Direct materials
Direct labor
Manufacturing overhead |
|
|
Term
|
Definition
Product=factory
Period=office |
|
|
Term
| Total cost of Work in Process |
|
Definition
| Beginning WIP+Direct materials+direct labor+ MOH |
|
|
Term
| Cost of goods manufactured |
|
Definition
| Total cost of WIP-ending WIP inventory |
|
|
Term
| Cost of goods available for sale |
|
Definition
| Beginning finished goods inventory + COGM |
|
|
Term
|
Definition
| Cost of goods available for sale-ending finished goods inventory |
|
|
Term
|
Definition
| Cost assigned to each job/batch |
|
|
Term
|
Definition
| Used for large volume similar products; costs accumulated for a time period and assigned to departments |
|
|
Term
| Journal entry for raw materials |
|
Definition
| Debit raw materials, credit A/P |
|
|
Term
| Journal entry for direct labor |
|
Definition
| Debit factory labor, credit factory wages payable & employer payroll taxes payable |
|
|
Term
| Journal entry for manufacturing overhead |
|
Definition
| Debit manufacturing overhead, credit each overhead cost |
|
|
Term
| Journal entries to assign costs through production process |
|
Definition
1. Debit WIP inventory, credit raw materials inventory, factory labor, or MOH
2. Debit Finished goods inventory, credit WIP inventory
3. Debit COGS, credit finished goods inv; debit A/R, credit Sales Revenue |
|
|
Term
| Calculate predetermined overhead rate & apply to jobs |
|
Definition
Estimated overhead costs/expected annual operating activity
Multiply rate by machine hours each job |
|
|
