Test 3 Exam Review - FinalExamReview Fall2010 Chapter1...

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Fall 2010 Final Exam Review 1 Chapter 1 Managerial Accounting o Reports to managers about performance within the organization You Get what you measure o All you ask for is all you receive back Total Cost = Fixed Cost + (Variable Cost x Units) Chapter 2 Manufacturing Cost o Direct Materials o Direct Labor o Manufacturing Overhead Nonmanufacturing Cost o Selling Cost o General and Administrative Cost Accounts Flow Raw Materials Work In Process Finished Goods Beginning Inventory Beginning Inventory Beginning Inventory + Purchases + DL +COGM - (Ending Inventory) DM used -(Ending Inventory) DM used + MOH Cost of Goods Sold -(Ending Inventory) Cost of Goods  Manufactured => Income Statement Manufacturing Overhead o Overhead Cost / Allocation Base o Over applied Actual is less than applied Cost   Profit  o Under applied Actual is higher than applied Cost   Profit 
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Fall 2010 Final Exam Review 2
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Fall 2010 Final Exam Review 3 Chapter 3 Equivalent Units o =(Finished Units)(100%) + Ending Inventory (% Complete) o Weighted Average/Cost per equivalent Unit Cost in beginning WIP+ Cost incurred in Current Period Units Completed + Equivalent units in WIP Beginning Inventory $ + Started $ # of Equivalent Units (DM) Beginning Inventory = Finished +Added + Ending Inventory Conversion Cost o Direct Labor o Manufacturing Overhead Cost Value of Finished Goods o # of finished Goods x (Cost of Conversion Cost + DM) Value of Ending Inventory o (# of Equivalent Units for Conversion Cost X Cost per Equivalent Conversion  Cost)  +  (# of Equivalent Units for Direct Material X Cost per Equivalent  Direct Material )
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Fall 2010 Final Exam Review 4 Chapter 4 Profit Equation Revenue - Total Cost Sales Price x Quantity [Variable Cost x Quantity + Total Fixed Cost] (Sales Price - Variable Cost) x Quantity Total Fixed Cost Contribution Margin Total Fixed Cost Total Cost o (Variable Cost x Quantity) + Total Fixed Cost  Contribution Margin o The difference between selling price and variable cost per unit o Sales Price – Variable Cost  o Sales - COGS Contribution Margin Ratio o Contribution of every sales dollar to converting fixed cost Sales Price -Variable Cost = CM per Unit = Total CM Sales Price SP per Unit Total Sales Break Even Point o Sales Total Fixed Cost Contribution Margin Ratio o Units Total Fixed Cost Contribution Margin o Earn Profit Total Fixed Cost+ Desired Profit Contribution Margin  Opportunity Cost o What you give up to get something Sunk Cost o Cost incurred in the past, irrelevant to current decisions
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Fall 2010 Final Exam Review 5 Chapter 5 Variable Costing o ONLY  Direct Material, Direct Labor, and Variable Manufacturing Overhead 
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Test 3 Exam Review - FinalExamReview Fall2010 Chapter1...

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