Exam 3 Formulas Flashcards
Formula for Cost of Goods Sold (COGS)
Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory
Formula for Cost of Goods Manufactured (COGM)
Beginning Work in Process (WIP) + Total Manufacturing Cost = (Total Cost of WIP) - Ending Inventory = COGM
Formula for Unit Contribution Margin Ratio (UCM)
Unit Selling Price (USP) - Unit Variable Cost (UVC)
Formula for Contribution Margin Ratio (CMR)
UCM/USP
Formula for Unit Selling Price
UCM/CMR
Formula for mathematical for B/E Units
Sales - Variable Cost - Fixed Cost = Net Income (zero)
Formula for mathematical for B/E $
B/E units x selling price
Formula for Contribution Margin Approach for B/E Units
Fixed Cost/ UCM
Formula for Contribution Margin Approach for B/E $
Fixed Cost/ CMR
Formula for mathematical for Target Net Income Units
Sales - Variable Cost - Fixed Cost = Target Net Income
Formula for mathematical Target Net Income $
Target Net income Units x Selling Price
Formula for Contribution Margin Approach for Target Net Income units
(Fixed Cost + Target Net Income)/UCM
Formula for Contribution Margin Approach for Target Net Income $
(Fixed Cost + Target Net Income)/CMR
Main components of a Cost Volume Proft (CVP) income statement
Sales - Variable Costs = (Contribution Margin) - Fixed Cost = Net Income
Formula for Required Production Units
Sales Units + Desired Fixed Goods (FG) Inventory - Beginning FG Inventory
