Accounting Final 2 2
Terms
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- Cost of Goods Sold (Formula)
- Beginning Work in Process + Direct Materials + Direct Labor + Manufactured Overhead - Ending Work in Process
- Product Costs vs. Period Costs
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Product: Manufacturing Costs
Direct Materials
Direct Labor
Overhead (Indirect Materials, Indirect Labor, other indirect costs)
Period Costs: Nonmanufacturing Costs
Selling Expenses
Administrative Expenses - Raw Materials Costs
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Raw Materials Inventory Debit
Accounts Payable Credit - Factory Costs
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Factory Labor Debit
Factory Wages Payable Credit - Overhead
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Overhead Debit
Overhead Costs Credit - Raw Materials Costs (Assigning to Overhead)
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Work in Process Inventory Debit
Overhead Debit
Raw Materials Inventory Credit - Facotry Labor Costs (Assigning to Overhead)
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Factory Labor Debit
Factory Wages Payable Credit - Overhead Costs (paying)
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Work in Process Inventory Debit
Overhead Credit - Assigning Costs to Finished Goods
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Finished Goods inventory Debit
Work in Process Inventory Credit - Assigning Costs to Cost of Goods Sold
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(1)
Accounts Receivable Debit
Sales Credit
(2)
Cost of Goods Sold Debit
Finished Goods Inventor Credit - Year-End Balance
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Overhead Debit
Cost of Goods Sold Credit - Process Cost System
- Overhead Costs assigned to Work in Process Machining Department costs transferred out to Work in Process Assymble Department cost of completed work transfered to Finished Goods Inventory cost of goods sold transferred to Cost of Goods Sold
- Equivalent Units of Production
- Units Completed and Transferred Out + Equivalent Units of Ending Work in Process (WIP End x 100% (Materials) or % for Conversion Costs) = Equivalent Units of Production
- Activity-Based Overhead Rate (Formula)
- Estimated overhead per Activity ∻ Expected Use of Cost Drivers per Activity
- Variable Cost per Unit (formula)
- Change in Total Costs ∻ High minus Low Activity Level
- Contribution Margin per Unit (formula)
- Unit Selling Price - Unit variable Costs
- Contribution Margin Ratio (formula)
- Contribution Margin per Unit ∻ Unit Selling Price
- Sales (Formula)
- Variable Costs + Fixed Costs + Net Income
- Break-Even Point in Units (formula)
- Fixed Costs ∻ Contribution Margin per Unit
- Break-Even Point in Dollars (formula)
- Fixed Costs ∻ Contribution Margin Ratio
- Margin of Safety (formula)
- Sales - Break-Even Sales
- Break-Even Sales (formula)
- Fixed Costs ∻ Contribution Margin per Unit
- Make or Buy
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Make and Buy:
Direct Materials
Direct Labor
Variable Overhead
Fixed Overhead
Purchase Price (Units x buy unit price)
Total Annual Costs
Make - Buy = NI (negative-decline) - Order at a Special Price
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Revenues (Units x Price) - Cost of Goods Sold - Expenses = Net Income
Negative-Reject
Cost of Goods Sold (Expenses): VC (%) x CGS = Cost per Unit (Expenses)
CGS (Expenses) = Unit x Price - Product Cost using Variable Costing
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Direct Materials
Direct Labor
Variable Overhead
=Total Variable Costing - Product Cost using Absorption Costing
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Direct Materials
Direct Labor
Variable Overhead
Fixed Overhead
=Total Absorption Costing - Target Cost (formula)
- Market Price - Desired Profit
- Target Selling Price (formula)
- Cost + (Markup Percentage x Cost)
- Markup Percentage (formula)
- Desired ROI per Unit ∻ Total Unit Cost
- Return on Investment (ROI) (formula)
- Net Income ∻ Invested Assets
- Net Present Value (formula)
- Present Value - Investment
- Present Value
- Future Value x Present Value %
- Profitability Index (formula)
- Present Value ∻ Investment
- Payback Period
- Investment ∻ Net Cash Flow
- Internal Rate of Return (IRR) (formula)
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Investment ∻ Net Cash Flow = IRR Factor
Find Closest on Table - Annual Rate of Return (ARR) (formula)
- Net Income ∻ Average Investment
- Average Investment
- (Investment + Salvage Value) ∻ 2