| A | B |
|---|
| Direct Materials | Materials that are of significant value in the cost of and that become and identifiable part of a finished product. |
| Direct Labor | Salaries of factory workers who make a product. |
| Factory Overhead | All expenses other than direct materials and direct labor that apply to the making of products. |
| Indirect Materials | Materials used in the completion of a product that are of insignificant value to justify accounting for separately. |
| Indirect Labor | Salaries paid to factory workers who are not actually making products. |
| Applied Overhead | The estimated amount of factory overhead recorded on cost sheets. |
| Cost Ledger | A ledger containing all cost sheets for products in the process of being manufactured. |
| Finished Goods Ledger | A ledger containing records of all finished goods on hand. |
| Work in Process | Products that are being manufactured but are not yet complete. |
| Finished Goods | Manufactured products that are fully completed. |
| Materials Ledger | A ledger containing all records of materials. |
| Underapplied Overhead | The amount by which applied factory overhead is less than actual factory overhead |
| Overapplied Overhead | The amount by which applied factory overhead is more than actual factory overhead |
| Statement of Cost of Goods Manufactured | A statement showing details about the cost of finished goods |
