ACCT208 Study Guide - Midterm Guide: Net Income, Deutsche Luft Hansa, Statistical Process Control
18 Apr 2018
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Indirect material -- cost of materials that cannot be traced (nuts, bolts, screws) Indirect labor -- supervisors, admin assistants, factory janitor. Selling cost -- sales salaries, sales commissions, advertising. Costs incurred to reduce number of defects. Act of looking for defective items while still in factory (wip) Depreciation on testing equipment, calibration testing equipment. Cost when defective unit is found in inspection process. Cost when defective unit is in hands of customer. Close under or overapplied oh 100% to unadjusted cogs on the income statement. Most accurate -- adjust by allocating oh balance proportionately to: Under/overapplied oh = actual oh - applied oh. Sales units = (fc + noi) / unit cm. Sales dollars = (fc + noi) / cmr. Margin of safety = actual sales - bep. Ending balance materials inventory = dm total cost - amount used. Ending balance wip = dm used + (dl/oh) Total cost job 1 + total cost job 2 = cogm (?)
