Study Guides (400,000)
CA (150,000)
Western (10,000)
MOS (1,000)
Study Guide

[Management and Organizational Studies 3370A/B] - Final Exam Guide - Comprehensive Notes for the exam (112 pages long!)


Department
Management and Organizational Studies
Course Code
MOS 3370A/B
Professor
Laura Timusk
Study Guide
Final

This preview shows pages 1-3. to view the full 112 pages of the document.
Western
Management and Organizational Studies
3370A/B
FINAL EXAM
STUDY GUIDE

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Lecture 2 – CH2/3 – Summary of Cost Classifications
Table in slideshow/ textbook
Classifications of Manufacturing Costs – What goes into the final product?
Direct materials
oRaw materials that become an integral part of the product that can be conveniently
traced back to it
Direct labour
oLabour costs that can be easily traced to individual units of production
Manufacturing overhead
oManufacturing costs that cannot be easily traced directly to specific units produced
oi.e. indirect materials to support production process (i.e. lubricants, cleaning supplies in
plant)
oindirect labour – wages paid to employees who are not directly involved in production
work – i.e. maintenance workers, janitors, security
Classification of Costs – manufacturing costs often classified as following:
direct material and direct material = prime cost
direct labour and manufacturing overhead = conversion cost
Overtime premiums – usually considered part of manufacturing overhead; product specific
overtime premiums are part of direct labour
Non-manufacturing costs
Marketing/ selling costs – costs necessary to get the order and deliver the product
Administrative costs – all executive, organization, clerical costs
Product Costs vs. Period Costs
Product costs – include direct materials, labour, and manufacturing overhead
oAll costs involved in acquiring or making product – attached to product
oInventory – transferred to COGS expense account
Period costs – include all selling and administrative costs
oDirectly expensed in period they are occurred
Balance Sheet
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Merchandiser
Current assets
oCash
oReceivables
oPrepaids
oMerchandise inventory
Manufacturers
Current assets
oCash
oReceivables
oPrepaid expenses
oInventories
Raw materials – material waiting to be processed
WIP – partially completed products – some material, labour, MOH has been
added
Finished goods – awaiting sale
The Income Statement – comparison in slides
COGS for manufacturers differs only slightly from COGS for merchandisers
Basic Equation for Inventory Accounts
Beginning balance + additions to inventory = Ending Balance + Withdrawals from Inventory
oO/B + Additions = Total available – Withdrawals = Ending Balance
Schedule of Cost of Goods Manufactured (COGM)
Calculates the cost of RM, DL, and MOH used in production
Calculates the manufacturing costs associated with goods that were finished during the period
oPage35 – proper format
Diagram in slides
oConversion costs are costs incurred to convers the DM into a finished product
oAll manufacturing costs incurred during the period are added to the beginning balance
of WIP
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version