MOH Allocation
This is often a credit
What is allocated MOH?
This is the sum of all indirect product costs
What is MOH?
This includes costs like raw materials.
What is direct materials?
This is for internal decision makers
What is Managerial?
This is when costs are accumulated by job
What is job-order costing?
The primary factor that causes a cost to increase or decrease
What is the cost driver?
Beginning Direct Materials + Purchases of Direct Materials - Ending Direct Materials
What is Direct Materials Used?
This includes costs such as the wages of the production supervisor
What is MOH?
This has to follow GAAP
What is financial accounting?
This is used for similar or identical products
What is process costing?
predetermined overhead allocation rate * actual quantity of allocation base used by each job
What is the allocated amount of MOH?
Direct Materials Used + Direct Labor + Manufacturing Overhead
What is Total Manufacturing Cost?
This includes direct materials, direct labor, and MOH
What are product costs
This is focused on the past rather than the future
What is managerial?
These costs are recorded for each job
What is job order costing?
Total estimated overhead costs / Total estimated quantity of the overhead allocation base
What is the predetermined overhead allocation rates?
Beginning Work-In-Process Inventory + Total Manufacturing Costs - Ending Work-In-Process Inventory
What is COGM?
This includes sales salaries and office supplies
What are period costs?
This focuses on both financial and non-financial information for people like managers, supervisors, and directors
What is managerial accounting?
This often is used for low volume products.
What is job order costing?
Actual amount is 238,000 while allocated is 250,000
What is overallocation?
Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods
What is COGS?
What is prime and conversion costs?
Reports are ran on a daily or weekly basis
What is financial accounting?
These costs are transferred at the end of the accounting period
What is process costing?