[33:010:275] - Final Exam Guide - Comprehensive Notes fot the exam (25 pages long!)

• School: Rutgers University
• Department: Accounting
• Course: 33:010:275
• Professor: S A V I T A S A H A Y

Document Summary

Lecture 2 chapter 2 continued: 3 types of firms, manufacturing-sector companies purchase materials and components and convert them into finished products. Ex) ford, apple, pizza hut: merchandising-sector companies purchase and then sell tangible products without changing their basic form. Ex) target, barnes and noble, macys: service-sector companies provide services (intangible products) Indirect costs indirect materials, indirect labors, other manufacturing overheads. Indirect materials materials used to support the production process. Indirect labor costs (cid:449)ages paid to e(cid:373)ployees (cid:449)ho are(cid:374)"t dire(cid:272)tly i(cid:374)(cid:448)ol(cid:448)ed i(cid:374) production work. Indirect manufacturing overhead costs property taxes, depreciation on ppe: period costs (non-manufacturing costs, aka non-inventoriable costs. Inventory: ending balance = beginning balance + additions to inventory withdrawals from. Inventory: statement of cost of goods sold, compute the cost of direct materials used during the period. Costs of direct materials used = materials inventory beginning balance + direct. Materials purchased materials inventory ending balance: calculate total manufacturing costs for the period.