Job
Direct Labor Journal Entry
WIP
RM
Formula for reconcile units
+ +
US EB
Traditional Formula
Estimated Total FOH/Estimated Total CD
What are 2 differences between managerial and financial accounting
User, accordance with, how many statements, how often
Glue Screw and Threads are
Indirect Materials
How many PDOH
1
UC: 800
EB: 500
50%
What is EQ
1,050
Activity Rate Formula
Estimated Activity FOH/ Estimated Total Activity CD
Difference between direct and indirect materials
An opportunity cost is
The potential value lost when choosing one option over another
PDOH when
Estimated Total FOH: 100,000
Estimated Total CD: 5,000
20
How many WIP
How ever many processes there are
Total Activity FOH: 20,000
Estimated Total Activity CD: 10,000
Activity Rate is
2
A relevant cost is
A cost that will influence decisions
Over Applied J/E
FOH
COGS
Job 1 is finished
Job 2 is in progress
Job 3 was sold
What will the EB of FG be
Job 1
Allocate cost formula
Step 2 x Step 3
Then add
Using Proportions
Total Activity FOH: 20,000
Standard: 200 machine hours
Deluxe: 200 machine hours
10,000 each
Prime cost is
DM+DL
A sunk cost is
indirect Cost J/E
FOH
Cash or A/P
Total Cost: 600,000
EQ: 10,000
What is cost/EQ
60
Standard: 200 Inspections
Deluxe: 100 Inspections
Total Activity FOH: 10,000
How much FOH is applied to each job
Standard: 6,666
Deluxe: 3,333
CEO Salary
Period, Admin, Neither
Most of the time, are variable costs relevant or irrelevant
Relevant