Chapter 1
Manufacturing overhead, direct labor, and direct materials.
What are manufacturing costs?
Used when products are manufactured to order
What is job-order costing?
A measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects
What is an allocation base?
Direct labor + MOH =
What is conversion cost?
The selling cost of an item that costs $250 to make with a 65% markup
What is $412.5?
units transferred in = 325
beginning inventory = 200
units transferred out = 17
ending inventory = ?
What is 508?
Ending inventory = beginning inventory + units transferred in - units transferred out
Ending inventory = 200 + 325 - 17 = 508
Costs that you ignore because they cannot be changed by any decision
What are sunk costs?
Total machine hours: 10 machines used 8 hours per day, 5 days a week, for 52 weeks out of the year.
What is 20,800 machine hours?
When recording purchases on a T-chart, direct costs go to __ and indirect costs go to __
What are work in process, manufacturing overhead?
A line on the cost object graph that represents a relationship between cost and activity that is not constant
What is Economist’s Curvilinear Cost Function?
(slide 27)
Predetermined overhead rate for a company with the following costs:
$200,000 factory rent, $150,000 CEO salary, $65 worth of indirect materials per product, and 10,000 direct labor hours
What is $95 per DLH?
Journal entry for :
Applied $45,000 in MOH and 16,000 machine hours. Actual $30,000 and 15,000 machine hours.
answer should be
(debit $__ to __, credit $__ to __)
What is debit $15,000 MOH, credit $15,000 COGS?