MANUFACTURING PHISICAL

FLOWS
Material

Labor
Finished
Goods

Overhead

1
 Costing
Direct Cost Cost Object
Direct
Material
Cost
Direct
Product
Labor Cost

Indirect Cost

Factory Overhead Allocation

Cost

2
MANUFACTURING COST FLOWS
Direct
Material
Material
Indirect
Material
Work in Finished
Process Goods
Overhead
(WIP)

Indirect Cost of
Direct Goods
Labor Sold
Labor

Labor

3
 MANUFACTURING COST FLOWS
MATERIAL Inv
XX XX
WIP FINISH
XX
Goods Inv
XX XX XX X
XX
F O H Control
XX
XX XX
Cost
XX
XX of GS
Rate
X

F O H Applied
LABOR COST
XX XX

XX XX

XX

4
 Relationship of Cost Accumulation, Cost
Measurement, and Cost Assignment
Cost Cost Cost
Accumulation Measurement Assignment
Record Costs: Classify Costs: Assign to Cost Objects:

Purchase materials
Direct Materials
Assemblers payroll Product 1
Finishers payroll
Direct Labor
Supervisors Payroll
Depreciation
Product 2
Utilities
Property taxes Overhead
Landscaping
5
 Factory Overhead (FOH)
Indirect Material Cost
Indirect Labor Cost
Plant Depreciation
Utilities
Etc

6
 Assigning FOH to Product

Actual Costing Normal Costing

FOH Rate