The process of assigning overhead cost to specific jobs.
Overhead application/applying overhead
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15
A costing method that includes all manufacturing costsโdirect materials, direct labor, and both variable and fixed manufacturing overheadโin unit product costs.
Absorption costing
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monster
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gift
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fairy
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baam
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thief
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rocket
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gift
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lifesaver
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15
The manufacturing costs associated with units of product that were finished and sold during the period.
Cost of goods sold (COGS)
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15
A form that records the direct materials, direct labor, and manufacturing overhead cost charged to a job.
Job cost sheet
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15
A schedule that contains three elements of product costsโDM, DL, and MOHโand that summarizes the portions of those costs that remain in ending WIP inventory and that are transferred out of Work in Process into Finished Goods.
Cost of goods manufactured (COGM)
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15
A rate used to charge MOH cost to jobs that is established in advance for each period. It is computed by dividing the estimated total MOH cost for the period by the estimated total amount of the allocation base for the period.
Predetermined overhead rate (POHR)
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monster
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fairy
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gift
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lifesaver
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15
A costing system in which overhead costs are applied to a job by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job (as opposed to using quantity and price standards)
Normal cost system
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15
A measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects.
Allocation base
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Any materials that go into the final product.
Raw materials
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A costing system used in situations where many different products, jobs, or services are produced each period (as opposed to mass production of homogeneous goods)
Job-order costing
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15
A schedule that contains three elements of product costsโDM, DL, and MOHโand that summarizes the portions of those costs that remain in ending FG inventory and that are transferred out of FG into COGS.
Schedule of cost of goods sold
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15
Units of product that have been completed but not yet sold to customers.
Finished goods (FG)
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Units of product that are only partially complete and will require further work before they are ready for sale to the customer.