Exam 2 Flashcards
How do you Calculate operating income
Revenue -Cost of Goods Sold = Gross Profit - Variable Costs = Operating Income
How do you calculate Gross margin Percentage
Gross Margin/Revenue
How do you calculated Sales Volume Variance
Sales Volume Variance = (Actual Units Sold - Budgeted Units Sold) x Contribution Margin Per Unit
How do you calculate Sales Mix Variance
Sales Mix Variance = Actual Units sold of ALL units x (Actual sales mix -Budgeted Sales Mix) x Budgeted Contribution Margin
How do you calculate Sales Quantity Varience
Sales Quantity Variance = (Actual units of ALL units sold-Budgeted units of ALL units sold) x Budgeted Sales Mix x Budgeted Contribution Margin
How do you calculate Flexible Budget Variance
Actual units of ALL units Sold x Actual Sales Mix x Budgeted Contribution Margin
How do you calculate Static Budget Variance
Flexible Budget Variance and Sales Volume Variance Added Together or subtracted depending on the favorable unfavorable results
how is weighting determined in physical measurement method
by the total number of a product produced
how is weighting determined in a NRV method
weighting is determined after all the separable costs are taken out and then based on the total weightings are determined
How is weighting determined in split-off method
weighting is determined by the costs of each products at the split-off points
How is weighting determined in NRV gross margin method
their is no weighting gross margin is determined by subtracting the revenues from the separable and joint costs then gross margin percentage is subtracted from each products revenues to calculate production costs and then separable costs are subtracted from production costs to determine the amount of joint costs allocated to each product
how is the cost per product determined
by adding the joint and separable costs and then dividing the amount by the total units produced
how are costs allocated in the stand alone method
costs are allocated by taking weighted average of the costs that would have been incurred had costs not been consolidated and then that weighted average is multiplied by the cost of event
how are costs allocated in the incremental method
in the incremental method the one cost is determined to be the primary cost which is the cost if the goods hadn’t been consolidated then the secondary cost is figured by subtracting the primary cost from the current cost
how are costs allocated in the shapely method
an average of the incremental costs where the both the primary and the secondary
how do you calculate physical units in the weighted average method
you add the beginning inventory and the units that were started in the period
how do you calculate physical units in the FIFO method
you add the beginning inventory and the units that were started in the period
how do you calculate equivalent units using the weighted average method
equivalent units are the units that were completed and transferred out and the ending inventory is multiplied by the percentage completed to
how do you calculate equivalent units using the FIFO method
equivalent units are calculated by multiplying the beginning inventory by 1- %age of goods completed in the previous period adding the goods completed and transferred out and then adding in the ending inventory multiplied by the %age of work completed
how do you total cost in the weighted average method
add BI cost with costs added in
how do you calculate total cost in the FIFO method
add BI cost with costs added in
how do you calculate unit costs in Weighted average method
you take the total cost and divide by the equivalent units
how do you calculate unit costs in the FIFO method
you take the COSTS ADDED IN and divide them by the equivalent units
how do you calculate total costs of goods completed and transferred out in weighted average method
you take the UNIT COST and multiply them by the equivalent units
how do you calculate ending inventory in the weighted average method
you take the UNIT COST and multiply them by the equivalent units
how do you calculated total costs of beginning inventory in the FIFO method
you take the beginning inventory costs and add in the costs that were added for the units completed in the current period
how do yo calculate the total costs of completed and transferred out inventory in the FIFO method
you take the UNIT COST and multiply them by the equivalent units
how do you calculate ending inventory in the FIFO method
you take the UNIT COST and multiply them by the equivalent units
What is the journal entry for dealing with the direct costs
WIP Assembly
A/P Control
What is the journal entry for dealing with conversion costs
WIP Assembly
Various Accounts
What is the journal entry for dealing with goods completed and transferred out
WIP Testing
WIP Assembly
How do you calculate total spoilage
Total spoilage = (Units in Beginning inventory + Units Started) - (Good units completed and transferred out + Units in ending inventory)
How do you calculate Abnormal Spoilage
Abnormal Spoilage = Total Spoilage -Normal Spoilage
What is the journal entry for accounting for normal spoilage attributable to a specific job
Materials Control
WIP Control
What is the journal entry for accounting for normal spoilage not attributable to a specific job
Materials Control
Manufacturing Overhead Control
WIP Control
What is the journal entry for abnormal spoilage
Materials Control
Loss from Abnormal Spoilage
WIP Control
