ACG2031: Cost of Goods Manufactured Intro

Cost of Goods Manufactured INTRO
Burger Shop Example
sales price 4.00 Chef
08 parts per hour
Tomato 05
Lettuce 02 6 818 84Tour
Cheese 15 15 per hour
Patty 10 of an hour
Direct Materials 1.50 per burger Direct Labor DL

Overhead Account MOH
Mayyffuring
Rent Estimate Total Overhead Predetermined
Estimate Cost OverheadRate
CleaningSupplies
Gas for grill
Dried
depreciation
Est
others 1 per DL hour
0.10 or 10
6min to make burger
Direct Materials into
Direct Labor per
burger
M
total cost 3 not enough
8 margin

Examples of Costs A cost is the measure of
resources given up to achieve
a particular purpose
manufacturing
Business
EffigyEfficient
the cost is generally
measured
erchandising by determining the
Business resources given up or expended


nice Business all cost related to
ftp.fggfffef equipment the production of goods are
called manufacturingcosts
OR product costs

Basic Cost Management Concepts

anagers need cost information to perform each of these functions
Control Decision Making Directing Planning Strategy Formulation