Midterm_Review_StudyGuide

Midterm_Review_StudyGuide - Chapter 1 An Introduction to...

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Chapter 1 – An Introduction to Managerial Accounting and Cost Concepts Managers have three major activities: 1) Planning 2) Directing & Motivating 3) Controlling Planning and Control Cycle Comparison of Financial and Managerial Accounting General Cost Classifications: - Manufacturing Costs 1) Direct Materials 2) Direct Labor 3) Manufacturing Overhead - Non-Manufacturing Costs 1) Selling Costs 2) Administrative Costs Product Costs vs. Period Costs Cost classifications on financial statements Basic equation for inventory accounts: Beg. Balance + Additions to Inventory = Ending Balance + Withdrawals from Inventory Cost of Goods Sold in Merchandising Company Beg. Merchandise Inventory + Purchases = End Merchandising Inventory + Cost of Goods Sold Cost of Goods Sold in a Manufacturing Company Beg. Finished Goods Inventory + COGM = End Finished Goods Inventory + COGS Schedule of Cost of Goods Manufactured Direct Materials: Beginning Raw Materials Inventory Add: Purchases of Raw Materials Raw Materials Available for Use Deduct: Ending Raw Materials Inventory Raw Materials Used in Production Direct Labor Manufacturing Overhead TOTAL MANUFACTURING COST Add: Beginning Work in Process Inventory Deduct: Ending Work in Process Inventory
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This test prep was uploaded on 02/24/2009 for the course AEM 323 taught by Professor As during the Spring '09 term at Cornell.

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Midterm_Review_StudyGuide - Chapter 1 An Introduction to...

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