Accounting 2521: Managerial & Financial Accounting Summary - Costs & Inventory - Prof. Reb, Study notes of Management Accounting

Download Accounting 2521: Managerial & Financial Accounting Summary - Costs & Inventory - Prof. Reb and more Study notes Management Accounting in PDF only on Docsity! ACCT 2521 Summary Chapters 1 & 2 Best examples of exam questions are Review Problems (at end of each chapter), Practice Problems (in Connect), and Practice Questions (on Blackboard). Chapter 1 1. Differences between Managerial and Financial Accounting 2. Direct versus Indirect costs (examples) 3. Manufacturing and nonmanufacturing costs Manufacturing Costs (Product Costs): a. Direct Materials b. Direct Labor c. Manufacturing Overhead (Indirect Materials, Indirect Labor, and all other non-direct manufacturing costs) Be able to calculate from a list of costs Prime Cost = DM + DL (direct costs) Conversion Cost=DL+MOH (costs added to materials to “convert” them to FG) Nonmanufacturing Costs (Period Costs): a. Selling costs b. Administrative costs 4. Variable and fixed costs a. Definitions b. Behavior (in total and per unit) 5. Calculate COGM, COGS, and IS Inventory accounts: A. Raw Materials (RM) Beginning Inventory – RM + Purchases (Additions) Goods Available – RM -Ending Inventory – RM Direct Materials Used (DM) B. Work in Process (WIP) Beginning Inventory – WIP + Manufacturing Cost ( DM used , DL, MOH applied**) Goods Available for Manufacturing – GAM -Ending Inventory – WIP Cost of Goods Manufactured (CGM) ** Need to be able to compute MOH applied using POHR from Chapter 2 1