| Chapter 6 Product and Service Costing | Chapter 7: Job Costing | Chapter 7: Job Costing (Cont'd) | Chapter 8: Process Costing | Chapter 9 Activity-Based Costing |
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What is two-stage cost allocation
The process of first allocating costs to intermediate cost pools and then to the individual cost objects using different allocation bases.
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What is Normal Cost
The cost of a job determined by actual direct material and labor costs plus overhead applied using a predetermined overhead rate and an actual allocation base.
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What is a Job
A home renovation and audit engagement is considered a ____ type?
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What is Production cost report
Summarizes production and cost results for a period.
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What is Death spiral
Process that begins by attempting to increase price to meet reported product costs, losing market, reporting still higher costs, and so on, until the firm is out of business.
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What is Operation costing
A hybrid costing system often used in manufacturing goods that have some common characteristics plus some individual characteristics.
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What is a Project
A complex job that often takes months or years to complete and requires the work of many different departments, divisions, or subcontractors.
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What is Underapplied overhead
The actual overhead costs incurred are in excess of the applied overhead costs.
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What is Weighted-average process costing
An inventory costing method that combines costs and equivalent units of a period with the costs and the equivalent units in beginning inventory from the last period.
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What is Activity Based Costing
Costing method that first assigns costs to activities and then assigns them to products based on the products’ consumption of activities.
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What are Job order system and process system
Both of these two systems require inputs of direct materials, direct labor, and overhead.
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What is Job Costing
An accounting system that traces costs to individual units or to specific jobs, contracts, or batches of goods.
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What is Cost of Goods Sold
The shipping of the completed jobs is transferred out of the Finished Good account and into the ____
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What is Step 1 of 5 of the Process Costing
"Measure the physical flow of resources" is what step of the process costing
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What is predetermined rate
Estimated indirect Costs
_______________________ Estimated Volume of allocation base = |
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What is Predetermined overhead rate
Represents the cost per unit of the allocation base used to charge manufacturing overhead to products and is calculated from the budgeted data.
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What is Overapplied Overhead
The actual overhead costs incurred are less than the applied overhead costs.
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What is underapplied overhead
If the applied overhead costs (the credit balance of Applied Manufacturing Overhead account) are in excess of the actual overhead costs incurred (the debit balance of Manufacturing overhead control account), the difference is called
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What is First-in, first-out FIFO process costing
An inventory costing method whereby the first goods received are the first ones charged out when sold or transferred.
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What is Manufacturing Overhead
When applied Overhead is recorded, this account is credited
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What is Work-in-Process Account
This Account is Debited when Direct Materials are used for a specific project (hint: think of T Accounts)
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What is Work-In-Process account
Salaries incurred against a job, there is a Debit to this T Account
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What is overapplied overhead
If the applied overhead costs (the credit balance of Applied Manufacturing Overhead account) are in excess of the actual overhead costs incurred (the debit balance of Manufacturing overhead control account), the difference is called
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What is Weighted-average unit cost
Beginning work-in-process costs + Current period costs
_________________________________________ Beginning work-in-process Equivalent Units + Current period Equivalent Units |
What are current period costs
In computing the current period's manufacturing cost per equivalent unit, the FIFO method of process costing considers
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What is $50 per machine hour
$120,000 ÷ 2,400 = $50 per machine hour. KC Manufacturing uses job costing. Its annual estimated manufacturing overhead and machine hours (the allocation base) were $120,000 and 2,400 hours, respectively. Job #06-07 was completed in July and incurred direct materials $4,800, direct labor $3,400,
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