Managerial Accounting: Cost of Goods Manufactured
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/29
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai | Chat |
|---|
No analytics yet
Send a link to your students to track their progress
30 Terms
Cost of Goods Manufactured (COGM) formula
Total Manufacturing Cost + Beginning Work in Process − Ending Work in Process
Total Manufacturing Cost formula
Direct Materials Used + Direct Labor + Manufacturing Overhead
Direct Materials Used formula
Beginning Raw Materials Inventory + Purchases − Ending Raw Materials Inventory
What does manufacturing overhead include?
All plant related costs such as depreciation, supplies, and property taxes
Which costs are excluded from the COGM schedule?
Period costs such as advertising, sales commissions, and store property taxes
Cost of Goods Sold (COGS) formula
Cost of Goods Manufactured + Beginning Finished Goods − Ending Finished Goods
Gross Profit formula
Sales Revenue − Cost of Goods Sold
The three inventory accounts on a manufacturer's balance sheet
Raw Materials, Work in Process, and Finished Goods
Inventory accounts on a merchandiser's balance sheet
Only one: Inventory (merchandise inventory)
Factory rent is classified as
Manufacturing Overhead
Factory insurance is classified as
Manufacturing Overhead
Factory utilities are classified as
Manufacturing Overhead
Factory manager salary is classified as
Manufacturing Overhead
Factory property taxes are classified as
Manufacturing Overhead
Factory equipment depreciation is classified as
Manufacturing Overhead
Raw materials for the bicycle helmets are classified as
Direct Material
Assembly line workers are classified as
Direct Labor
Miscellaneous factory materials are classified as
Manufacturing Overhead
Office supplies are classified as
Period Cost
Office equipment depreciation is classified as
Period Cost
Advertising is classified as
Period Cost
Sales commissions are classified as
Period Cost
What is a product cost?
A manufacturing cost assigned to inventory: direct materials, direct labor, and manufacturing overhead
What is a period cost?
A nonmanufacturing cost expensed in the period incurred, such as selling and administrative costs
What is Work in Process inventory?
Partially completed goods still in production
What is Finished Goods inventory?
Completed products not yet sold
Total product cost at 10,000 units
$155,100
Cost per unit at 10,000 units
$15.51
Exam logistics: laptops
Personal laptops are not permitted on the exam; practice on classroom machines
Where does Cost of Goods Manufactured appear?
On the schedule of cost of goods manufactured, then it flows into Cost of Goods Sold on the income statement