BMGT 221 Study Guide - Final Guide: Income Statement

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 221
• Professor: Gary Bulmash

Document Summary

Selling, general and administrative expense- mixed, period cost. Estimated manufacturing overhead divided by estimated base = the pohr (predetermined overhead rate) Predetermined overhead rate times actual base=manufacturing overhead applied. Manufacturing overhead applied minus the actual manufacturing overhead= over/under applied manufacturing overhead. Statements of cost of goods manufactured and sold: Beginning materials inventory (raw materials, last year"s ending inventory) + purchases available (it"s either on hand at end, you used some in production) Ending materials inventory raw materials used in production (direct materials, doesn"t mean they"ve been sold) Ending work in process inventory cost of goods manufactured (also called cost of goods completed) Ending finished goods inventory cost of goods sold. If you know cost of goods sold you can work backwards by changing the sign: cost of goods sold + ending finished goods inventory beginning finished goods inventory. Gives you cogs based on applied overhead.