Managerial Accounting Basics Flashcards
1
Q
How is total cost of WIP calculated? (WIP = Work in Process)
A
Beginning WIP Inventory + Total Manufacturing Costs
2
Q
How is COGM calculated?
A
Total WIP -minus- Ending WIP Inventory
3
Q
The three main types of product costs are… ___?
A
Direct Materials, Direct Labor, Manufacturing Overhead
DM + DL + MO
4
Q
How do you find Direct Materials (DM) used?
A
Beginning Materials + Purchases -minus- Ending Materials = DM used
5
Q
How do you find total manufacturing costs?
A
Add DM used, DL and MO.
6
Q
How do you find total cost of work in process?
A
Add total manufacturing costs to beginning WIP
7
Q
How do you find cost of goods available for sale?
A
Add COGM and beginning finished goods inventory.
