Final

Question 1

Determine Direct Materials Used

Answer 1

(Beginning Raw Materials + Raw Material Purchases) –> Raw Materials Available - Ending Raw Materials

Question 2

Determine Cost of Goods Manufactured

Answer 2

Beginning Work in Process (WIP) + Manufacturing Costs (DM Used, Direct Labor, Manufacturing Overhead) –> Total WIP - Ending WIP

Question 3

Determine Cost of Goods Sold

Answer 3

Beginning Finished Goods + COGM –> Cost of Goods Available for Sale - Ending FG

Question 4

Predetermined Overhead Rate (POR)

Answer 4

Estimated OH Cost/ Estimated Activity Base

Question 5

Applied Manufacturing Overhead for a Specific Job

Answer 5

POR x Actual Activity Base for the Job

Question 6

Variable Cost/Unit

Answer 6

(High Cost - Low Cost) / (High Activity - Low Activity)

Question 7

Fixed Cost

Answer 7

Total Cost - (VC/unit x Unit Production)

Question 8

Contribution Margin

Answer 8

Sales - Variable Cost

Question 9

Unit Contribution Margin

Answer 9

Sales Prices Per Unit - Variable Cost Per Unit

Question 10

Contribution Margin Ratio

Answer 10

(Sales Price - VC) / Sales Price

Question 11

Target Net Income

Answer 11

(fixed cost + TNI) / UCM

Question 12

Target Net Income in Dollars

Answer 12

(fixed cost + TNI) / CM ratio

Question 13

Margin of Safety in Dollars

Answer 13

Sales - BE Point

Question 14

Margin of Safety Ration

Answer 14

MoS ($) / Sales

Question 15

CVP Income Statement

Answer 15

Sales - Variable Costs –> Contribution Margin - Fixed Costs –> Net Income