Term
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Definition
| a costing method that includes all manufacturing costs (direct materials, direct labor, variable/fixed manufacturing overhead) in the cost of a product |
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Term
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Definition
| A measure of activity such as direct labor-hours or machine hours that is used to assign costs to cost objects |
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Term
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Definition
| a document that shows the quantity of each type of direct material required to make a product |
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Term
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Definition
| a factor, such as machine hours, beds occupied, computer time, or flight-hours, that causes overhead costs |
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Term
| Cost of goods manufactured |
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Definition
| manufacturing costs associated with the goods that were finished during the period |
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Term
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Definition
| units of production that have been completed but not yet sold to customers |
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Term
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Definition
| a form that records the materials, labor, and manufacturing overhead costs charged to a job |
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Term
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Definition
| a costing system used in situations where many different products, jobs, or services are produced each period |
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Term
| Materials requisition form |
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Definition
| a document that specifies the type and quantity of materials to be drawn from the storeroom and that identifies the job that will be charged for the cost of those materials |
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Term
| Multiple predetermined overhead rates |
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Definition
| a costing system with multiple overhead cost pools and a different predetermined overhead rate for each cost pool, rather than a single predetermined overhead rate for the entire company |
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Term
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Definition
| a costing system in which overhead costs are applied to a job by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job |
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Term
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Definition
| a credit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost applied to Work in Process exceeds the amount of overhead cost actually incurred during a period |
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Term
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Definition
| the process of charging manufacturing overhead cost to a job cost sheets and to the Work in Process account |
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Term
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Definition
| a single predetermined overhead rate that is used throughout a plant |
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Term
Predetermined overhead rate
(term)
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Definition
| a rate used to charge manufacturing overhead costs to jobs that is established in advance for each period by the estimated total amount of the allocation base for the period |
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Term
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Definition
| any materials that go into the final product |
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Term
| Schedule of cost of goods manufactured |
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Definition
| schedule that contains three elements of product costs (direct materials, direct labor, and manufacturing overhead) and that summarizes the portions of those costs that remain in ending Work in Process inventory that are transferred out of Finished Goods into CGS |
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Term
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Definition
| document that is used to record the amount of time an employee spends on various activities |
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Term
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Definition
| a debit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost actually incurred exceeds the amount of overhead cost applied to Work in Process during a period |
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Term
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Definition
| units of production that are only partially complete and will require further work before they are ready for sale to the customer |
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Term
Predetermined overhead rate
(equation)
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Definition
| (Estimated total manufacturing overhead cost) / (Estimated total amount of the allocation base) |
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Term
| Overhead applied to a particular job |
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Definition
| (Predetermined overhead rate) * (Amount of the allocation base incurred by the job) |
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Term
| Unadjusted cost of goods sold |
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Definition
| (Beginning finished goods inventory) + (Cost of goods inventory) - (Ending finished goods inventory) |
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