| A | B |
|---|
| Actual indirect labor | Recorded as DR to MOH |
| Estimated indirect costs | Recorded as CR to MOH |
| Actual direct labor used in production | Recorded as DR to WIP |
| Finished goods out of production | Recorded as CR to WIP |
| Cost of good sold | Recorded as CR to FG |
| New direct material purchased | Recorded as DR to DMI |
| Direct material used in production | Recorded as CR to DMI |
| Scheduling production | 1st step-Conversion process |
| Physically obtain raw materials | 2nd step-Conversion process |
| Use labor and other resources to make finished goods | 3rd step-Conversion process |
| Store finished goods until sold | 4th step-Conversion process |
| Trial Balance | prove DR=CR |
| Income Stmt | shows and calculated net income |
| Balance Sheet | proves A=L+OE |
| Net profit | =Rev - Exp |
| Gross profit | =Rev - Cost of Sales |
