ACCT 2302 Lecture Notes - Lecture 12: Making Money, Gross Margin, Direct Labor Cost
Document Summary
Total product cost = direct materials cost + direct labor cost + manufacturing overhead cost. Per unit cost = total product cost/number of units. Office supplies, research and development activities, the ceo salary and advertising. Capitalize in asset then put in depreciation expense. R&d research, development and general administration of the organization. Indirect labor is included in overhead: these costs do not affect calculations, exm. How much more we need to purchase. How much more need to bring in: direct materials used (moved equations) + direct labor + manufacturing overhead costs + Beginning wip inventory ending wip inventory = cost of goods manufactured: if no wip given, then assume there is no wip. The ones that have been started, but not finished. 46,000 + 210,000 + 135,000 +150,000 = total manufacturing cost for may: 541,000. Cost of goods sold: beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory = cost of goods sold.
