Formulas Flashcards
1
Q
Cost Direct Materials Used
A
CostofMaterialsUsed = BeginningRawMaterialsInventory + RawMaterialsPurchased − EndingRawMaterialsInventory
2
Q
Total Manufacturing Costs Incurred
A
TotalManufacturingCosts=DirectMaterialsUsed+DirectLabor+FactoryOverhead
3
Q
Cost of Goods Manufactured (COGM)
A
COGM=TotalManufacturingCosts+BeginningWorkinProcessInventory−EndingWorkinProcessInventory
4
Q
Cost of Goods Sold (COGS)
A
COGS=COGM+BeginningFinishedGoodsInventory−EndingFinishedGoodsInventory
5
Q
Gross Margin
A
GrossMargin=SalesRevenue−COGS
6
Q
Net Income
A
NetIncome=GrossMargin−OperatingExpenses
7
Q
Breakeven Units
A
BreakevenUnits
FixedCosts/
UnitContributionMargin
8
Q
Breakeven Dollars
A
FixedCosts/
UnitContributionRatio
