Cost of Goods Manufactured (COGM)

Answer:

BB Work-in-Process
+ Current Manufacturing Costs
= Total Costs to Account For
- EB Work-in-Process
= Cost of Goods Manufactured

Revenue Principle

Answer:

1. Transaction has been complete; good/service has been delivered
2. The price is fixed or determinable
3. Collection from customer of payment is reasonably assured

If cash was received in the past (creating a deferred revenue [liability] account in the past)

Answer:

End of Period u2192 reduce the liability account [usually Unearned Revenue] that was recorded when cash was received b/c some or all of the liability has been earned since then

Manufacturing Overhead (MOH)

Answer:

All FACTORY costs other than DM and DL. (3 types; indirect materials, indirect labor, other OH)

Current Manufacturing Costs (CMC)

Answer:

Direct Materials Used
+ Direct Labor
+ Manufacturing Overhead
= Current Manufacturing Costs

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