Flashcard Set Preview
| Side A | Side B | ||
| 1 |
Cost accounting involves
|
measuring, recording and reporting of product costs
|
|
| 2 |
how is unit product cost used?
|
product pricing, product mix, offering of new products
|
|
| 3 |
2 basic cost accounting systems
|
Job Order Cost SystemProcess Cost System
|
|
| 4 |
Job Order Cost system
|
costs are assigned to each job or batch
|
|
| 5 |
a job in job order cost system may be
|
for a specific order of inventory, may be a unit, or batch of units
|
|
| 6 |
Job order cost system key feature
|
inventory is unique (customized)
|
|
| 7 |
measures costs for each job completed- not for set time periods
|
job order cost system
|
|
| 8 |
Average cost Per Unit=
|
Total Product Costs for the Job__________________________Number of units in the job
|
|
| 9 |
used when a large volumed of similar products are mnaufactured
|
Process cost system
|
|
| 10 |
cost are accumulated by ___________ for a specific time period in ________ ________ _________
|
department, process cost system
|
|
| 11 |
comput ____ ______ ______ _____ for each department
|
average cost per unit
|
|
| 12 |
Non manufacturing costs in Job order system
|
(selling and admin costs)Expensed in the period incurred
|
|
| 13 |
the cost flow parallels the physical flow of the materials as they are converted into finished...
|
Job order system manufacturing costs
|
|
| 14 |
Actual Costing
|
(manufacturing costs) job order systemassign ACTUAL costs incurred to inventory producedDM...
|
|
| 15 |
problem with actual costing
|
OH costs are difficult to trace to a unit produced (oil for a machine) and some OH costs are...
|
|
| 16 |
normal costing
|
(manufacturing costs job order system)assign actual DM and DL to inventoryallocate OH to inventory...
|
|
| 17 |
manufacturing costs are assigned to
|
WIP inventory
|
|
| 18 |
cost of completed jobs is transferred to
|
FG inventory
|
|
| 19 |
when units are sold the cost is transferred to
|
COGS (income stmt)
|
|
| 20 |
use a ___ ______ _______ to record the costs related to a specific job on a ________ basis;...
|
job cost sheet, daily, unit
|
|
| 21 |
when raw materials (direct or indirect) are purchased
|
debit raw materials inventory
|
|
| 22 |
materials requisition form
|
shows writtne authorization when materials are issued to (used in) production
|
|
| 23 |
when raw materials are used in production:DM used:Indirect Materials Used:
|
debit WIP inventory (also record DM used on job cost record for the job)treat as actual OH...
|
|
| 24 |
DL costs
|
consists of gross earnings of factory workers, employer payroll taxes on such earnings, and...
|
|
| 25 |
when DL is recorded
|
debit WIP inventory (also record DL on Job cost record for specific job
|
|
| 26 |
when indirect labor is recorded
|
treat as actual OH ( debit OH)
|
|
| 27 |
assigning manufacturing OH costs to a specific job is difficult (indirect cost). Therefore,...
|
allocation process
|
|
| 28 |
Manufacturing OH account keeps track of
|
actual OH costs incurred and OH costs assigned to inventory (OH applied)
|
|
| 29 |
debit manufacturing OH- control when
|
actual manufacturing OH costs are incurred
|
|
| 30 |
controlling entry is a
|
debit to manufacturing OH
|
|
| 31 |
the subsidiary ledger consists of
|
individual accounts for each type of OH cost
|
|
| 32 |
credit manufacturing OH- Control when
|
OH is applied to production
|
|
| 33 |
credit manufacturing OH control and assign to
|
WIP to specific jobs on an estimated basis by using a predetermined OH rate
|
|
| 34 |
Predetermined OH Rate
|
-established at the beginning of the year-based on the relationship between estimated annual...
|
|
| 35 |
3 step processing to assign OH costs to inventory using Normal costing
|
1. determine Pre determined OH rate2. OH is applied or assigned to WIP inventory based on actual...
|
|
| 36 |
OH rate=
|
estimated OH costs__________________estimated activity
|
|
| 37 |
OH applied=
|
OH rate x actual activity
|
|
| 38 |
at the end of the period the OH cost assigned to WIP inventory will likely not be equal to
|
the actual OH cost incurred during the period
|
|
| 39 |
Debit balance in manufacturing OH means
|
OH is under-applied(actual OH costs incurred were greater than OH costs assigned to inventory)
|
|
| 40 |
a credit balance in manufacturing OH means
|
OH is overapplied(actual OH costs incurred were less than OH costs assigned to inventory)
|
|
| 41 |
if immaterial in amount any year-end balance in manufacturing OH is
|
eliminated by adjusting COGS
|
|
| 42 |
underallocated:
|
COGS xx OH-Control xx
|
|
| 43 |
overallocated:
|
OH-control xx COGS xx
|
|
| 44 |
summary of cost flows
|
debit WIP inventory -> FG inventory -> COGS
|
|
| 45 |
Debit WIP inventory -> FG inventory -> COGS
|
DM are used, DL recorded, OH applied -> when units completed -> when inventory is sold
|
|
| 46 |
Job order costing in service company incur only
|
non-inventoriable costs
|
|
| 47 |
Job order costing in service company still need to know cost of a ____ or _______ of service...
|
job, unit
|
|
| 48 |
Job order costing in service company assign ___ _____ to each job and allocated indirect costs...
|
Direct Costs, Cost Allocation Rate
|
|
| 49 |
The COGM schedule now shows manufacturing OH ________ rather than actual OH costs
|
applied
|
|
| 50 |
now current production costs include
|
DM used, DL, OH applied
|
|
| 51 |
The _______ schedule will show an adjustment for over or under applied OH for the period
|
COGS
|
|
| 52 |
COGM completed
|
B WIP inventoryCurrent Production Costs DM used DL OH Applied...
|
|
| 53 |
COGS
|
B FG inventoryCOGM(end FG inventory)____________________COGS before adjustment+/- Under/ Over...
|
|
| 54 |
income statement
|
uses after adjustment COGS
|
No comments yet! Be the first to add a comment below!
Please login to post comments.
After login, we will forward you back to this flashcard.