Exam1 Cheat Sheet

Exam1 Cheat Sheet - -Manufacturing costs: DM, DL, OH...

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-Manufacturing costs: DM, DL, OH -Contribution margin = Selling price – Total (all ) variable costs -Prime costs = DM + DL; Conversion costs = DL + OH Product Costs -Product: sum of direct and indirect manufacturing costs assigned to product -Direct materials, direct labor, manufacturing overhead costs -Direct materials inv -> WIP inv -> Finished goods inv -> COGS -Period: all other operating costs expensed, not in value of inventory -Beg Finished Goods + COGM – End Finished Goods = COGS -WIP Inv: direct materials used, direct manuf labor, indirect manuf labor, plant insurance, depreciation, repairs/maintenance -absorption costing: DM, DL, OH included in WIP Budgeting -Production budget: #units to be produced = sales forecast + desired end inv – open inv -Manuf cost budgets: dir materials, labor, OH based on budg production Job Costing -Job costing: relatively unique products/distinct batches of similar products -Job: cost object that represents a specific product/batch of similar products -Process costing: large quantities of goods that are identical
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