40609046
Description
Flashcards by David Esch, updated 28 days ago
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Created by David Esch
28 days ago
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| Question | Answer |
| Absorption Costing | A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in unit product costs. |
| Allocation Base | A measure of activity such as direct labor-hours or machine-hours used to assign costs to cost objects. |
| Cost of Goods Manufactured | The manufacturing costs associated with units of product completed during the period. |
| Finished Goods | Units of product completed but not yet sold to customers |
| Job Cost Sheet | A form that records the direct materials, direct labor, and manufacturing overhead cost charged to a job. |
| Job Order Costing | A costing system used in situations where many different products, jobs, or services are produced each period. |
| Normal Costing | A costing system that applies overhead to a job by multiplying a predetermined overhead rate by the actual amount of the allocation base used by the job. |
| Overapplied Overhead | A credit balance in the Manufacturing Overhead account that occurs when the overhead cost applied to Work in Process is greater than the overhead cost actually incurred during a period. |
| Overhead Application | The process of assigning overhead cost to specific jobs |
| 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. |
| Raw Materials | Any materials going into the final product |
| Schedule of Cost of Goods Manufactured | A schedule containing three product costs—direct materials, direct labor, and manufacturing overhead—that summarizes the portions of those costs remaining in ending Work in Process and transferred out to Finished Goods. |
| Schedule of Cost of Goods Sold | A schedule containing three product costs—direct materials, direct labor, and manufacturing overhead—that summarizes the portions of those costs remaining in ending Finished Goods and transferred out to Cost of Goods Sold. |
| Underapplied Overhead | A debit balance in the Manufacturing Overhead account occurring when the overhead cost applied to Work in Process is less than the overhead cost actually incurred. |
| Work in Process | Partially completed units of product requiring more work before they are ready for sale to the cutomer |
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