Accounting 202- Exam 1 / Accounting 202
Exam 1 Study Guide | Financial &
Managerial Accounting Review
managerial accounting - ---✔✔✔ANSWER----- primary users: internal
users
- reports: internal reports issued as needed
- purpose: special purpose for a particular user
- content: pertains to subunits, may be detailed, use of relevant data
- verification: no independent audits
product costs (manufacturing costs) - ---✔✔✔ANSWER----- direct
materials, direct labor, and manufacturing overhead
- recorded as inventory
- expenses when the product is sold
- on the Balance Sheet as Inventory until the product is actually sold
- then it moves to the Income Statement as COGS
direct materials - ---✔✔✔ANSWER----- raw materials that can be
physically and directly associated with finished product
, direct labor - ---✔✔✔ANSWER----- the work of factory employees that can
be physically and directly associated with turning raw materials into finished
products
manufacturing overhead - ---✔✔✔ANSWER----- AKA factory overhead,
indirect manufacturing cots, and burden
- consists of all the costs that are indirectly associated with manufacture of finished
product
- examples: indirect materials, indirect labor, factory depreciation, factory
insurance, factory taxes, factory maintenance
period costs - ---✔✔✔ANSWER----- costs that are expensed in the period in
which they are incurred
- examples: selling and administrative expenses
- found only on the Income Statement
cost of goods sold - ---✔✔✔ANSWER----finished goods inventory,
beginning + cost of goods manufactured = cost of goods available for sale -
finished goods inventory, ending = ___________________
cost of goods manufactured - ---✔✔✔ANSWER----work in process
inventory, beginning + total manufacturing costs = total cost of work in process -
work in process, ending = ____________________________
Exam 1 Study Guide | Financial &
Managerial Accounting Review
managerial accounting - ---✔✔✔ANSWER----- primary users: internal
users
- reports: internal reports issued as needed
- purpose: special purpose for a particular user
- content: pertains to subunits, may be detailed, use of relevant data
- verification: no independent audits
product costs (manufacturing costs) - ---✔✔✔ANSWER----- direct
materials, direct labor, and manufacturing overhead
- recorded as inventory
- expenses when the product is sold
- on the Balance Sheet as Inventory until the product is actually sold
- then it moves to the Income Statement as COGS
direct materials - ---✔✔✔ANSWER----- raw materials that can be
physically and directly associated with finished product
, direct labor - ---✔✔✔ANSWER----- the work of factory employees that can
be physically and directly associated with turning raw materials into finished
products
manufacturing overhead - ---✔✔✔ANSWER----- AKA factory overhead,
indirect manufacturing cots, and burden
- consists of all the costs that are indirectly associated with manufacture of finished
product
- examples: indirect materials, indirect labor, factory depreciation, factory
insurance, factory taxes, factory maintenance
period costs - ---✔✔✔ANSWER----- costs that are expensed in the period in
which they are incurred
- examples: selling and administrative expenses
- found only on the Income Statement
cost of goods sold - ---✔✔✔ANSWER----finished goods inventory,
beginning + cost of goods manufactured = cost of goods available for sale -
finished goods inventory, ending = ___________________
cost of goods manufactured - ---✔✔✔ANSWER----work in process
inventory, beginning + total manufacturing costs = total cost of work in process -
work in process, ending = ____________________________
