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Manufacturing Inventory Accounts
Classifying Costs
Job Order Costing
CVP Analysis
Activity Based Costing
100
This account contains the purchases of both direct and indirect materials
What is Raw Materials
100
Classifying Cost Behavior: A fixed cost ___________ per unit.
What is varies per unit
100
These two amounts when divided by one another give the predetermined overhead rate.
What is total estimated MOH cost divided by the estimated total amount of the allocation base.
100
This equation represents the contribution margin (CM) ratio
What is contribution margin (sales- variable expenses)/ sales
100
This is the main difference between traditional job order costing and activity based costing:
What is traditional costing uses one predetermined overhead rate to assign MOH, whereas ABC costing calculates several different activity rates based on different indirect cost pools to calculate MOH.
200
Direct materials flow through this account when requisitioned for use
What is Works In Process
200
This cost represents the potential benefit that is given up when one alternative is selected over another.
What is an opportunity cost.
200
This journal entry represents the following transaction: $52,000 in raw materials were requisitioned for use in production. Of this, $50,000 was for direct materials and $2,000 was for indirect materials.
What is debit works in process for 50,000 and MOH for 2000, and credit raw materials for the full 52,000.
200
Profit would equal this if the contribution margin ratio was .40, sales were $130,000, and fixed expenses totaled $35,000
What is $17,000
200
Setting up equipment is an example of this level of activity.
What is a batch level activity
300
These three quantities are debited to Works in Process
What is the cost of Direct Materials, Direct Labor, and Applied Manufacturing Overhead
300
Period costs are expensed when....
What is when they are incurred.
300
This journal entry represents closing overapplied manufacturing overhead of $12,000 to cost of goods sold.
What is a debit to MOH and a credit to COGS for the overapplied amount of $12,000.
300
Dollar sales to break even would equal this if fixed expenses were $35,000, selling price per unit was $100, and variable expenses were $30 per unit
What is $50,000
300
This amount of MOH would derive from design costs given the following information: estimated total design costs: $100,000 estimated amount of designs: 400 actual designs: 300
What is $75,000 of manufacturing overhead
400
This represents a credit to Works in Process
What is Cost of Goods Manufactured
400
Direct materials + direct labor represent this cost.
What is prime cost.
400
This journal entry represents the cost of goods manufactured, totaling $120,000.
What is a debit to finished goods and a credit to works in process for $120,000.
400
This is a measure of how sensitive net operating income is to a given change in sales dollars; it is also calculated as this equation.
What is operating leverage and contribution margin/ net operating income
400
Customer margin would be this amount given the following: sales: 300 computers at a price of $500 each direct materials: 75 per unit direct labor: 80 per unit customer order: 100 per unit product design: 100 per unit customer relations: 35 per unit
What is $33,000
500
What do debits represent to Manufacturing Overhead? Credits?
What is Actual overhead costs (debits) and Applied overhead costs (credits)
500
If the high level of activity is 8000 units at $9800, and the low activity is 5000 units at $7400, what is the variable cost per unit and what are fixed costs? Hint: remember the total cost function y= a + bx
What is $.80 and $3,400.
500
The value of adjusted COGS would be ________ given the following information: estimated MOH cost.... $100,000 estimated amount of allocation base.... 50,000 machine hour actual MOH cost... $90,000 actual machine hours.... 40,000 balance before adjustment.... 50,000
What is $60,000.
500
Margin of safety would equal this given the following information: 1,000 units sold selling price per unit: $30 variable expenses: $20 per unit fixed expenses: $7500 per month
What is $7,273
500
Name three out of five of the activity levels for ABC costing and give an example of each
What is unit-level activities (powering a machine), batch-level activities (placing purchase orders, setting up equipment), product-level activities (design, advertising), customer-level activities (sales calls, technical support), and organization-sustaining activities (heating the factory, paying executive officers)