Acct 202- Final Exam / ACCT 202 Final
Exam Study Guide | Financial &
Managerial Accounting Review
MANAGERIAL ACCOUNTING
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
product costs - ---✔✔✔ANSWER----- manufacturing costs
- 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
,inventory accounts - ---✔✔✔ANSWER----
COGM (calculation) - ---✔✔✔ANSWER----work in process inventory,
beginning + total manufacturing costs = total cost of work in process - work in
process, ending = ____________
COGS (calculation) - ---✔✔✔ANSWER----finished goods inventory,
beginning + cost of goods manufactured = cost of goods available for sale -
finished goods inventory, ending = ___________________
JOB ORDER COSTING - ---✔✔✔ANSWER----
job order costing - ---✔✔✔ANSWER----- assigns costs to each job or batch
of goods
- each job has some distinguishing characteristic such as a house that is custom
built, a CPA firm's consulting engagement, or a print shop's batch of brochures
- the goal is to assign costs to the individual jobs
process costing - ---✔✔✔ANSWER----- used when companies manufacture
a large volume of similar good such as cereal or paint
predetermined overhead rate - ---✔✔✔ANSWER----estimated annual
overhead cost / estimated annual activity base = ________
, - is then applied to the actual activity level to assign overhead to the individual jobs
- the estimated numbers are used to calculate the predetermined rate and then never
used again
- use the predetermined overhead rate to assign overhead to work in process
over applied overhead - ---✔✔✔ANSWER----- if applied costs are greater
than actual, the account will have a credit balance
- Manufacturing Overhead
Cost of Goods Sold
under applied overhead - ---✔✔✔ANSWER----- if actual costs are greater
than applied costs, the account will have a debit balance
- Cost of Goods Sold
Manufacturing Overhead
determine the cost of a job (calculation) - ---✔✔✔ANSWER----
CVP ANALYSIS - ---✔✔✔ANSWER----
cost behavior - ---✔✔✔ANSWER----
CVP income statement - ---✔✔✔ANSWER----- classifies all costs as either
variable or fixed, and compute a contribution margin
Exam Study Guide | Financial &
Managerial Accounting Review
MANAGERIAL ACCOUNTING
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
product costs - ---✔✔✔ANSWER----- manufacturing costs
- 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
,inventory accounts - ---✔✔✔ANSWER----
COGM (calculation) - ---✔✔✔ANSWER----work in process inventory,
beginning + total manufacturing costs = total cost of work in process - work in
process, ending = ____________
COGS (calculation) - ---✔✔✔ANSWER----finished goods inventory,
beginning + cost of goods manufactured = cost of goods available for sale -
finished goods inventory, ending = ___________________
JOB ORDER COSTING - ---✔✔✔ANSWER----
job order costing - ---✔✔✔ANSWER----- assigns costs to each job or batch
of goods
- each job has some distinguishing characteristic such as a house that is custom
built, a CPA firm's consulting engagement, or a print shop's batch of brochures
- the goal is to assign costs to the individual jobs
process costing - ---✔✔✔ANSWER----- used when companies manufacture
a large volume of similar good such as cereal or paint
predetermined overhead rate - ---✔✔✔ANSWER----estimated annual
overhead cost / estimated annual activity base = ________
, - is then applied to the actual activity level to assign overhead to the individual jobs
- the estimated numbers are used to calculate the predetermined rate and then never
used again
- use the predetermined overhead rate to assign overhead to work in process
over applied overhead - ---✔✔✔ANSWER----- if applied costs are greater
than actual, the account will have a credit balance
- Manufacturing Overhead
Cost of Goods Sold
under applied overhead - ---✔✔✔ANSWER----- if actual costs are greater
than applied costs, the account will have a debit balance
- Cost of Goods Sold
Manufacturing Overhead
determine the cost of a job (calculation) - ---✔✔✔ANSWER----
CVP ANALYSIS - ---✔✔✔ANSWER----
cost behavior - ---✔✔✔ANSWER----
CVP income statement - ---✔✔✔ANSWER----- classifies all costs as either
variable or fixed, and compute a contribution margin
