Knowledge Targets
I can define the following terms as they relate to our unit:
| Direct Cost | Indirect Cost | Prime Cost |
Conversion Cost
|
| Product Cost | Period Cost | Direct Material |
Direct Labor
|
| Overhead | Raw Materials | Indirect Materials |
Indirect Labor
|
| Cost of Goods Sold | Variable Cost | Fixed Cost |
Cost of Goods Manufactured
|
| Financial Accounting | Managerial Accounting | Goods in Process |
Finished Goods
|
Reasoning Targets
- I can identify differences between financial and managerial accounting.
- I can classify costs as direct or indirect, fixed or variable, prime or conversion, and product or period.
- I can identify product costs as direct materials, direct labor or overhead.
- I can understand the flow of goods from raw materials inventory to goods in process inventory to finished goods inventory.
- I can understand the difference between cost of goods manufactured and cost of goods sold in a manufacturing environment.
- I can prepare a manufacturing statement with cost of goods manufactured calculated.
Skill Targets
- I can calculate direct materials used from raw materials inventory data.
- I can calculate cost of goods manufactured for a manufacturer.
- I can calculate cost of goods sold for a merchandiser and a manufacturer.
- I can prepare a manufacturing statement with cost of goods manufactured calculated.
Click Chapter 1 Plan for a printable copy.