DM Used Calc Beg Raw Materials Inv Purch of raw materials Freight in import duties Materials Avail for use end raw materials inv DM Used COGS Calc Beg Inv COG manufactured Purch Import Duties Freight in COG available for sale End Inv Managerial internal plan direct control decide focus on future must be relevant reports prepared in parts internal reports are prepared as needed not governed by legal requirements manager at sales department regional offices Financial reports based on whole company prepared quarterly and annually external focus on past GAAP date must be reliable and objective current shareholders Wall Street analyst news reporter SEC employee external auditor potential shareholders shareholders loan officer bookkeeping department IRS agent state tax agency auditor Both company division controller board of directors internal auditor Company Name Income statement for year ended or current year Sales Revenue COGS Beg Inv Purch COG avail for sale end inv COGS Gross Profit Operating Exp Marketing General Admin Operating income COG Manufactured Calc Beg Work in Process Inv DM DL MOH MOH Indirect Labor depr repairs mainten insurance total cost incurred during a pd Total Man costs to account for end work in process inv COG manufactured Total Product Costs TVC TFC Current Avg Product Cost per Unit TPC Current year s Produced Units Current Fixed Cost per Unit TFC Current year s Produced Untis Forecasted TPC Forecasted TVC TFC Forecasted Average Product Cost per Unit Forecasted TPC Next year s Forecasted Units Forecasted FC per Unit TFC Next year s Forecasted Units POHR per DL Hr Estimated Man OH Costs Estimated DL Hrs POHR of DL cost Estimated Man OH Costs Estimated DL POHR per Machine Hr Estimated Man OH Costs Estimated MH POHR p h Estimated yearly overhead costs estimated yearly DL hr POHR of DL cost Estimated yearly overhead costs estimated DL cost Man OH Allocated Actual DL costs x POHR POHR per machine hr Estimated yearly OH costs estimated yearly MH Man OH Allocated Actual MH x POHR Activity OH rate part setup part hr total activity OH cost allocation base Plantwide OH rate Total Man OH Cost Allocation base Mach Depart OH Rate per mach hr Total depart OH cost allocation base Finish Depart OH Rate per DL hr Total depart OH cost allocation base Job 450 Allocated Man OH Plantwide cost allocation rate x cost allocation base Job 455 Allocated Man OH Plantwide cost allocation rate x cost allocation base sales price at 125 job cost is affected sales price will be affected by allocation system Inventoriable Product Costs Merchandiser Purch price from suppliers cost to get ready for sale freight in import duties or tarrifs Plantwide OH rate per MH Total Man OH Total MH Depart OH Rate per MH total depart OH depart MH Planning setting goals and objectives generate more sales via opening stores reduce labor costs by reducing store hours Directing overseeing day to day operations using daily weekly sales reports to adjust marketing strategies using product cost reports to adjust raw materials usage Controlling evaluating results of operations comparing budgeted sales with actual sales to take corrective actions comparing budgeted product costs against actual product costs to take correct actions Production depreciation on plant purchase of plastic used in printer casings plant manager s salary Customer Service coats of a customer support center website Distribution transportation costs to deliver product depreciate on delivery vehicles Research and Development salaries on scientists who are developing technologies Design salary of engineers who are redesigning the printer s on off switch Marketing cost of prime time TV ad featuring the new logo Purple Product Cost Green Period cost Manufacturer DM DL MOH Unit Level direct labor materials order processing shipment of an order to a customer cost to inspect each product as it is finished Batch Level machine setup costs that are incurred whenever a new production order is started order processing shipment of an order to a customer Product Level product line manager salary engineering costs for new product patent for new product Facility Level factory utilities depreciation on factory CEO salary Direct Trace wages of store employees cost of product offered for rent cost of gas oil sold at the store store utilities cost of chainsaws offered for rent sales commissions cost of new car cost of car detailing salary of the sales manager new car brochures Indirect Allocate cost of operating the corporate payroll department CEO s salary cost of national advertising salary of manager at dealership receptionist depreciation on building advertising in local newspaper costs of drinks provided in reception area cost of gasoline used at dealership utilities expense for building
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