ACC 102 test notes

ACC 102 test notes - TO CALCULATE Predetermined Overhead...

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KEY FORMULAS TO CALCULATE FORMULA Predetermined Overhead Rate Estimated Total Manufacturing Overhead Cost Estimated Units of the Allocation Base Applied Overhead POHR x Actual Units of the Allocation Base Overapplied or Underapplied Overhead Applied Overhead – Actual Overhead *A positive value indicates OH was overapplied *A negative value indicates OH was underapplied Reconcile # of Physical Units Beg Units in Process + Units Started = Units Completed + Ending Units in Process Cost per Equivalent Unit Current Period Costs Equivalent Units 1. a. Process costing is used in companies that make very homogeneous products using a continuous production process. Mfg costs are recorded in the Raw Materials, WIP & FG inventory accts until product is sold, at which point they become part of the Cost of Goods Sold. **Maintain separate WIP inv acct for each major production process. As product flows thru various production processes, the total cost is transferred from one WIP Inv acct to the next. b. Job order costing is used in companies that make unique products or provide specialized services. Recorded on Job Cost Sheet. 2. a. Initially, raw material purchases are recorded in the Raw Material Inventory Acct. b.
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This note was uploaded on 01/14/2012 for the course ACC 102 taught by Professor Mandau during the Fall '10 term at Piedmont TC.

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ACC 102 test notes - TO CALCULATE Predetermined Overhead...

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