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Accounting Chapter 3
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Abrosbtion Costing
all manufacturing costs, fixed and variable, assigned to units of product
Process Costing
used in companies that produce many units of a single product for long periods
Unit Product Cost Equation
Unit product cost = total manufacturing cost / total units produced
Job order costing
used in situations where many different products are produced each period.
Bill of Materials
is a document that lists the type and quantity of each type of direct material needed to complete a unit of product.
Materials requisition form
Specifies the type and quantity of materials to be drawn from the storeroom and identifies the job that will be charged for the cost of materials.
Job cost sheet
a form prepared for a job that records the materials, labor, and manufacturing overhead costs charged to that job
Allocation Base
is a measure such as direct labor hours, or machine hours that is used to assign overhead costs to products and services
Predetermined overhead rate equation
POH = Estimated total manufacturing overhead cost / estimated total amount of the allocation base POH = OH$ / DLH
Overhead application equation
Overhead applied to a particular job = predetermined OH rate X amount of the allocation base incurred by the job
Applied overhead = POH * Actual DLH
Author
ASchrepfer
ID
37299
Card Set
Accounting Chapter 3
Description
Terms and Equations for Chapter 3
Updated
2010-09-26T00:16:08Z
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