HIST 1402 Lecture Notes - Lecture 4: Total Absorption Costing, Income Statement, Fixed Cost
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20 multiple choice and true/false question x 3 points each. Choose 3 of 4 problems (details below) x 10 points each. 4-6 what considerations should be made when choosing the allocation base (hint: machines vs. How is overhead applied to jobs? (i. e. what is the formula?) Understand the three inventory accounts that are used in a job-order costing system and how the costs flow through the accounts. 4-11 be able to calculate cost of goods sold using the direct method. 4-12 be able to calculate cost of goods manufactured and cost of goods sold using the indirect method. 4-14 you will have a problem where you must calculate the predetermined overhead rate and use that rate to determine the amount of overapplied or underapplied overhead for the period. Problem will be similar to #2 of your ch 4 homework (exercise 4-8). 5-15 you will have a problem where you have to prepare a segmented income statement.
