ACC212 Exam 1 Study Guide
ACC212 Exam 1 Study Guide ACC 212
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This 5 page Study Guide was uploaded by taylor Notetaker on Wednesday March 11, 2015. The Study Guide belongs to ACC 212 at University of Miami taught by Mario Perez in Winter2015. Since its upload, it has received 51 views.
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Date Created: 03/11/15
1 ACC212 Exam 1 Study Guide 3 free response 50 of test grade 1 Chapter 2 PREPARE ALL JOURNAL ENTRIES 0 all 6 from chap 2 1 Purchase of materials Raw materials inventory 120000 Accounts payable 120000 Use of materials from step 1 Work in process inventory 118000 Raw materials inventory 118000 Direct labor cost from step 2 Work in process inventory 250000 Cash or wages payable 250000 Manufacturing overhead from step 3 Work in process inventory 140000 quotVarious Accountsquot 140000 Cost of goods manufactured from step 4 Finished goods inventory 512000 Work in process inventory 512000 Sale of goods To record the re venue Accounts Receivable 600000 Sales Revenue 600000 To record cost of goods sold Cost of goods sold from cost of goods sold schedule 516000 Finished goods inventory 516000 know schedules in order to do quotquotquot income statement looks like sales revenue less cost of goods solds expense gross pro t less operating expenses selling expenses administrative exoenses net income retailer cost of goods sold schedule beginning nished goods inventory costs of goods available for sale ending nished goods inventory cost of goods sold manufacturer cost of goods sold schedule beginning nished goods inventory costs of goods available for sale ending nished goods inventory cost of goods sold H4t UH4 2 ACC212 Exam 1 Study Guide to get this number create cost of goods manufactured schedule Step 1 gure out direct materials that were USED beginning raw materials inventory raw materials purchased raw materials available for use ending raw materials inventory direct materials USED Step 2 direct labor cost assembly line workers Step 3 manufacturing overhead indirect materials indirect labor ltltltltltquotat the factoryquot other costs Step 4 total manufacturing costs for the period 123 beginning workinprocess inventory cost of goods available to be nished endind workinprocess inventorv A cost of goods manufactured ltltwe nished completed quotquotmeans if you make a mistake in 1 2 or 3 you39re screwed for 4 2 Chapter 3 PROCESS COSTING AVG COST PER UNIT 0 0 two different percentages 0 materials 0 conversion 0 problem 353 in book pg 124 0 sheet 12 of building blocks project 3 Chapter 4 JOB ORDER COSTING a more accurateprecise way of allocating manufacturing overhead to ourjobs and items 0 more than one cost pool D more than one cost driver for ex depreciation l machine hours indirect labor D direct labor hours engineering costs of engineering changes other costs D direct labor hours 0 Find rates then allocate 596469 rate overhead 249450 4989direct labor hour cost driver 5000 direct labor hours then allocate 20 direct labor hours 4989 0 like chapter 4 practice problem handout see handout and notes 34 multiple choice 3 ACC212 Exam 1 Study Guide 0 most do not require calculations 0 read powerpoint on chapter 1 but don39t worry too much about it 0 chapter 2 l 17 multiple choice 0 know all terms not just de nitions but also how to apply direct cost vs indirect cost ea 5 I b I e ex salary of speci c department39s manager is direct cost to that speci c department not easily traceable allocate these costs depending on size of department product cost vs period cost cost of our product cost of our inventory 0 asset in balance sheet 0 once sold becomes cost of goods sold D expense in balance sheet selling and administrative expenses 0 reported on income statement as they are incurred three types of inventory materials that have been purchased but not yet used items started but not yet nished items nished but not yet sold once sold become cost of goods sold on income statement formulas for cost of goods manufactured and sold 0 retailer beginning nished goods inventory costs of goods available for sale endino nished ooods inventorv cost of goods sold manufacturer beginning nished goods inventory costs of goods available for sale ending nished goods inventory cost of goods sold cost of goods manufactured schedule Step 1 gure out direct materials that were USED beginning raw materials inventory raw materials purchased raw materials available for use endino raw materials inventorv direct materials USED Step 2 direct labor cost assembly line workers Step 3 manufacturing overhead 596469 indirect materials chapter 3 4 ACC212 Exam 1 Study Guide indirect labor ltltltltltquotat the factoryquot other costs Step 4 total manufacturing costs for the period 123 bedinnind workinprocess inventorv cost of goods available to be nished ending workinprocess inventory 4 cost of goods manufactured ltltwe nished completed quotquotmeans if you make a mistake in 1 2 or 3 you39re screwed for 4 0 difference between job order costing and process costing keep track of product cost by each individual item orjob calculate the average cost per unit at the end of each period 0 how to use traditional approach estimate the amount of manu overhead for the year calculate overhead application rate total est overheadcost driver 0 if machine hour D means that every time a job or item uses 1 machine hour we will allocate 4 of manu overhead 0 if D means that overhead will be of the direct labor D for every 1 spent on labor allocate 050 of manu overhead there s a difference at the end of the year D must make an adjustment D difference will be recorded to COST OF GOODS SOLD EXPENSE KNOW o when actual manu overhead lt applied overhead allocated too much GOOD spent under 0 when actual manu overhead gt applied overhead didn39t allocate enough BAD spent over 0 know the three journal entries for manufacturing overhead 1 Manu overhead incurred 100000 quotVarious accountsquot 100000 2 WlP Inventory 80000 5 ACC212 Exam 1 Study Guide Manu overhead applied 80000 3 Manu overhead applied 80000 Cost of goods sold 20000 Manu overhead incurred 100000 debits to cost of goods sold make expenses go up 0 documents used by manufacturing companiesneed to know but don39t have to make 1 only used in job order costing gt purpose is to keep track of the cost of each item or job 2 prepared by the department that needs the materials gt request for materials gt sent to purchasing department 3 prepared by the purchasing department and sent to the vendor prepared by the receiving department gt we record purchase in our Raw Materials Inventory this will document the transfer from Raw Materials Inventory to WorkinProcess Inventory 6 only used in job order costing gt this doc keeps track of employee hours by job when sending receiving department the purchase order we don39t include quantitygtgtin order to make sure receiving department checks 0 chapter 4 o in theory difference between ABC and traditional approach ABC is more accurate traditional is cheaper O COStS
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