ACG 2071 Formula Questions with Verified
Correct Answers
prime costs
direct materials + direct labor
conversion costs
direct labor + manufacturing overhead
calculation of direct materials used (raw materials inventory account)
Beg. Raw Inventory + Purchase of Direct Materials = Materials Available for Use - Ending
Raw Material Inventory = Direct Materials Used
calculation of cost of goods manufactured (work in process inventory)
Beg. Work in Process Inventory + Manufacturing Cost Incurred (DM + DL + MOH) = Total
Manufacturing Costs to Account for - Ending Work in Process Inventory = Cost of Goods
Manufactured
calculation of cost of goods sold (finished goods inventory)
Beg. Finished Goods Inventory + Cost of Goods Manufactured = Cost of Goods Available
for Sale - Ending Finished Goods Inventory = Cost of Goods Sold
inventoriable product cost
Direct Materials + Direct Labor + Manufacturing Overhead
total cost
total fixed cost + (variable cost per unit x number of units)
average cost per unit
, total cost / number of units
predetermined MOH rate
total estimated manufacturing overhead costs / total estimated amount of the allocation base
MOH allocated to a job
predetermined MOH rate x actual amount of allocation base used by the job
total MOH allocated
predetermined MOH rate x actual total amount of allocation base used on all jobs
predetermined indirect cost allocation rate
total estimated indirect costs / total estimated amount of the allocation base
departmental overhead rate
total estimated departmental overhead cost pool / total estimated amount of the departmental
allocation base
activity cost allocation rate
total estimated activity cost pool / total estimated activity allocation base
total variable cost (y)
variable cost per unit of activity (v) x volume of activity (x)
total mixed cost (y)
variable cost component (vx) + fixed cost component (f)
variable cost per unit of activity
change in cost / change in volume
Correct Answers
prime costs
direct materials + direct labor
conversion costs
direct labor + manufacturing overhead
calculation of direct materials used (raw materials inventory account)
Beg. Raw Inventory + Purchase of Direct Materials = Materials Available for Use - Ending
Raw Material Inventory = Direct Materials Used
calculation of cost of goods manufactured (work in process inventory)
Beg. Work in Process Inventory + Manufacturing Cost Incurred (DM + DL + MOH) = Total
Manufacturing Costs to Account for - Ending Work in Process Inventory = Cost of Goods
Manufactured
calculation of cost of goods sold (finished goods inventory)
Beg. Finished Goods Inventory + Cost of Goods Manufactured = Cost of Goods Available
for Sale - Ending Finished Goods Inventory = Cost of Goods Sold
inventoriable product cost
Direct Materials + Direct Labor + Manufacturing Overhead
total cost
total fixed cost + (variable cost per unit x number of units)
average cost per unit
, total cost / number of units
predetermined MOH rate
total estimated manufacturing overhead costs / total estimated amount of the allocation base
MOH allocated to a job
predetermined MOH rate x actual amount of allocation base used by the job
total MOH allocated
predetermined MOH rate x actual total amount of allocation base used on all jobs
predetermined indirect cost allocation rate
total estimated indirect costs / total estimated amount of the allocation base
departmental overhead rate
total estimated departmental overhead cost pool / total estimated amount of the departmental
allocation base
activity cost allocation rate
total estimated activity cost pool / total estimated activity allocation base
total variable cost (y)
variable cost per unit of activity (v) x volume of activity (x)
total mixed cost (y)
variable cost component (vx) + fixed cost component (f)
variable cost per unit of activity
change in cost / change in volume
