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Chapter 2 Managerial Accounting
Terms in this set (21)
A costing method that includes all manufacturing costs-direct materials, direct labor, and both variable and fixed manufacturing overhead-in the cost of a product.
A measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects.
Bill of materials
A document that shows the quantity of each type of direct material required to make a product.
A factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs
Cost of goods manufactured
The manufacturing costs associated with the goods that were finished during the period.
Units of product that have been completed but not yet sold to customers
Job cost sheet
A form that records the materials, labor, and manufacturing overhead costs charged to a job.
A costing system used in situations where many different products, jobs, or services are produced each period
Materials requisition form
A document that specifies the type and quantity of materials to be drawn from the storeroom and that identifies the job that will be charged for the cost of those materials.
Multiple predetermined overhead rates
A costing system with multiple overhead cost pools and a different predetermined overhead rate for each cost pool, rather than a single predetermined overhead rate for the entire company. Each production department may be treated as a separate overhead cost pool.
Normal cost system
A costing system in which overhead costs are applied to a job by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job.
A credit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost applied to Work in Process exceeds the amount of overhead cost actually incurred during a period.
The process of charging manufacturing overhead cost to job cost sheets and to the Work in Process account.
Plantwide overhead rate
A single predetermined overhead rate that is used throughout a plant.
Predetermined overhead rate
A rate used to charge manufacturing overhead cost to jobs that is established in advance for each period. It is computed by dividing the estimated total manufacturing overhead cost for the period by the estimated total amount of the allocation base for the period.
Any materials that go into the final product
Schedule of cost of goods manufactured
A schedule that contains three elements if product costs-direct materials, direct labor, and manufacturing overhead-and that summarizes the portions of those costs that remain in ending Work in Process inventory and that are transferred out of Work in Process into Finished Goods.
Schedule of cost of goods sold
A schedule that contains three elements if product costs-direct materials, direct labor, and manufacturing overhead-and that summarizes the portions of those costs that remain in ending Finished Goods inventory and that are transferred out of Finished Goods into Cost of Goods Sold.
A document that is used to record the amount of time an employee spends on various activities.
A debit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost actually incurred exceeds the amount o overhead cost applied to Work in Process during a period.
Work in process
Units of product that are only partially complete and will require further work before they are ready for sale to the customer.
This set is often in folders with...
Managerial Account test #1
Chapter 1 Managerial Accounting
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