ACIS 2116 Equations to Know
ACIS 2116 Equations to Know ACIS 2116
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This 1 page Class Notes was uploaded by Shannon Cummins on Thursday September 22, 2016. The Class Notes belongs to ACIS 2116 at Virginia Polytechnic Institute and State University taught by Chris Sherman in Fall 2016. Since its upload, it has received 4 views. For similar materials see Principles of Accounting in Managerial Accounting at Virginia Polytechnic Institute and State University.
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Date Created: 09/22/16
ACIS 2116 Equations to Know for Exam #1: Cost of goods sold (retailer) = beginning inventory + purchases – ending inventory Cost of goods sold (manufacturer): o beginning raw materials inventory + purchases – ending raw materials inventory = amount that goes to WIP o Beginning WIP + requisitioned raw materials (amount that goes to WIP) + direct labor + manufacturing overhead applied – ending WIP = cost of goods manufactured o Cost of goods manufactured + beginning finished goods – ending inventory = cost of goods sold o Cost of goods available for sale = cost of goods manufactured + beginning inventory Prime costs = direct materials + direct labor Conversion costs = direct labor + manufacturing overhead Traditional Format Income Statement Contribution Format Income Statement Sales + Sales + Cost of Goods Sold - Variable Manufacturing Cost - Gross Profit = Variable Sales and Admin Cost - Sales Expense - Contribution Margin = General Admin - Fixed Manufacturing Cost - Net Income or Loss = Fixed Sales and Admin Cost - Net Income or Loss = Cost function equation: o Total costs = total fixed costs + total variable costs o Total costs = total fixed costs + (variable cost per unit * number of units) o Y = a + bX High-low method: o (costhigh quantitytlow quantityhigh quantity – low quantity) = variable cost o Cost = (high quantity * variable cost) + b; b = fixed cost high quantity Predetermined overhead rate = estimated overhead spend (such as utilities, depreciation, safety gear, etc., salaried factory staff, etc.) / estimated production output Overhead applied = estimated overhead rate * actual activity
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