ACIS 2116 FINAL EXAM STUDY GUIDE
1. product cost: -costs associated with factory
-manufacturing cost or inventoriable cost
-goes to balance sheet THEN income sheet
2. 3 categories of product costs: 1) Direct Material (DM)
2) Direct Labor (DL)
3) Overhead (OH, MOH, FOH)
3. period cost: -cost associated with oflce
-DOES NOT include production/purchases
-nonmanufacturing costs
-goes DIRECTLY to income sheet
-operating expenses or selling, general, & administrative expenses (S,G,A)
4. PART 1: COGS equation: DM used
+DL
+Factory Overhead "applied"
=Total Manufacturing Cost (TMC)
5. PART 2: COGS equation: Total Manufacturing Cost (TMC)
+Beg. WIP Inv.
-End WIP Inv
=Cost of Goods Manufacturing (COGM)
6. PART 3: COGS equation: Cost of Goods Manufacturing (COGM)
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, +Beg. Finished Goods
-End Finidhed Goods
=Cost of Goods Sold (COGS)
7. Total Fixed Cost: -remains the SAME when production increases/decreases
-y-intercept
8. Fixed Cost per Unit: -has INVERSE ettect when production is
changed (production increases, fixed cost/unit decreases)
9. fixed cost examples: -depreciation
-insurance
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1. product cost: -costs associated with factory
-manufacturing cost or inventoriable cost
-goes to balance sheet THEN income sheet
2. 3 categories of product costs: 1) Direct Material (DM)
2) Direct Labor (DL)
3) Overhead (OH, MOH, FOH)
3. period cost: -cost associated with oflce
-DOES NOT include production/purchases
-nonmanufacturing costs
-goes DIRECTLY to income sheet
-operating expenses or selling, general, & administrative expenses (S,G,A)
4. PART 1: COGS equation: DM used
+DL
+Factory Overhead "applied"
=Total Manufacturing Cost (TMC)
5. PART 2: COGS equation: Total Manufacturing Cost (TMC)
+Beg. WIP Inv.
-End WIP Inv
=Cost of Goods Manufacturing (COGM)
6. PART 3: COGS equation: Cost of Goods Manufacturing (COGM)
1/
10
, +Beg. Finished Goods
-End Finidhed Goods
=Cost of Goods Sold (COGS)
7. Total Fixed Cost: -remains the SAME when production increases/decreases
-y-intercept
8. Fixed Cost per Unit: -has INVERSE ettect when production is
changed (production increases, fixed cost/unit decreases)
9. fixed cost examples: -depreciation
-insurance
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10
