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    Managerial Accounting Formulas

    Uploaded by

    Kristine Esplana Toralde
    This document provides definitions and equations for key cost accounting concepts. It defines basic cost flow equations that calculate unknown balances using beginning balances, transfers in, ending balances, and transfers out. It also defines schedules for raw materials, cost of goods manufactured, cost of goods sold, predetermined overhead rates, process costing, mixed costs, contribution margin income statements, and cost-volume-profit analysis.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Managerial Accounting Formulas

    Uploaded by

    Kristine Esplana Toralde
    52 views6 pages
    This document provides definitions and equations for key cost accounting concepts. It defines basic cost flow equations that calculate unknown balances using beginning balances, transfers in, ending balances, and transfers out. It also defines schedules for raw materials, cost of goods manufactured, cost of goods sold, predetermined overhead rates, process costing, mixed costs, contribution margin income statements, and cost-volume-profit analysis.

    Original Title

    MANAGERIAL ACCOUNTING FORMULAS

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    This document provides definitions and equations for key cost accounting concepts. It defines basic cost flow equations that calculate unknown balances using beginning balances, transfers in, ending balances, and transfers out. It also defines schedules for raw materials, cost of goods manufactured, cost of goods sold, predetermined overhead rates, process costing, mixed costs, contribution margin income statements, and cost-volume-profit analysis.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    52 views6 pages

    Managerial Accounting Formulas

    Uploaded by

    Kristine Esplana Toralde
    This document provides definitions and equations for key cost accounting concepts. It defines basic cost flow equations that calculate unknown balances using beginning balances, transfers in, ending balances, and transfers out. It also defines schedules for raw materials, cost of goods manufactured, cost of goods sold, predetermined overhead rates, process costing, mixed costs, contribution margin income statements, and cost-volume-profit analysis.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6
    At a glance
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    The document discusses concepts related to cost accounting such as cost flows, process costing, and break-even analysis.

    The basic cost flow equation states that the beginning inventory plus goods manufactured equals the ending inventory plus goods sold.

    The steps in process costing include calculating the units started and completed, determining the equivalent units and costs per equivalent unit, and assigning costs to the production completed and transferred out as well as to the ending work in process inventory.

    Basic Cost Flow Equation To calculate UNKNOWN BALANCES

    = Beginning Balance (BB) + Transfer In (TI) - Ending Balance (EB) = Transfers Out (TO)

    Schedule of Raw Materials Placed In Schedule of Cost of Goods Manufactured


    Raw Materials, Beginning Balance (BB) WIP Inventory, Beginning Balance (BB)
    Add: Current period raw materials purchased (TI) Add: Current period manufacturing cost:
    Raw Materials Available For Production/Use Direct Materials (result in Sched of RM)
    Less: Raw Materials, Ending Balance (EB) Direct Labor
    Raw Materials Placed In Production/Used (TO) Manufacturing Overhead
    Less: Indirect Materials included in FOH Total current period manufacturing costs (TI)
    Direct Materials Placed In Production Total Cost of Work-In-Process
    Less: WIP Inventory, Ending Balance (EB)
    Cost of Goods Manufactured (TO)

    Schedule of Cost of Goods Sold


    Finished Goods Inventory, Beginning Balance (BB)
    Add: Cost of Good Manufactured (TI)
    Cost of Goods Available for Sales
    Less: Finished Goods Inventory, Ending Balance (EB)
    Cost of Goods Sold (TO)

    Predetermined Rate
    = Estimated Overhead Cost / Estimated Activity in Allocation base

    Overhead Applied
    = Allocation Base x Predetermined Rate

    Manufacturing Overhead Actual Manufacturing Overhead


    Actual Overhead Overhead Costs
    UnDErapplied OverApplied
    Costs incurred Applied to Jobs
    PROCESS COSTING
    Units To Be Accounted For
    Units in Beginning WIP Inventory (BB + TI)
    Units Started During the Month
    Total Units To Be Accounted For

    Units Accounted For


    Units Competed and Transferred Out (EB + TO)
    Units in Ending WIP Inventory
    Total Units Accounted For

    Cost To Be Accounted For DM DL MO TOTAL


    Cost in Beginning WIP Inventory xx xx xx xx
    Cost Incurred During the Month xx xx xx xx
    Total Costs To Be Accounted For xx xx xx xx
    Total Equivalent Units Accounted For xx xx xx xx
    Cost per Equivalent Unit xx xx xx xx
    Dapat Magkaparehas!
    Cost Assigned to Units Transferred Out xx xx xx xx
    Cost Assigned to Ending WIP Inventory xx xx xx xx
    Total Cost Accounted For xx

    Mixed Costs Contribution Margin Income Statement


    Total Fixed Cost (f) + (Variable Cost Per Unit Sales xx
    Y =
    (v) x Number of Units (X)) Variable Costs:
    Y = Total Cost Cost of Goods Sold xx
    Selling and Administrative costs xx
    Total Variable Costs xx
    Fixed Costs:
    Cost of Goods Sold xx
    Selling and Administrative costs xx
    Total Fixed Costs xx
    Operating Profit xx
    COST-VOLUME-PROFIT ANALYSIS
    Single Product Companies Multiple Product Companies Service Companies
    Total Revenues (Selling Price (S) x
    (Unit CM for Product No.1 x
    Number of Units (Q)) - Total
    Quantity of Pr. No.1) + (Unit CM Can be Single or Multiple Product
    Profit Equation Variable Costs (Variable Cost Per
    for Product No.2 x Quantity of Pr. Company
    Unit (v) x Number of Units (Q)) -
    No.2) -F
    Total Fixed Costs
    Break - Even Point PROFIT IS EQUAL TO ZERO

    Q = F/ Weighted Average
    In Units Q = F/ (S - V)
    Contribution Margin Per Unit

    Weighted Average (CM Per Unit of Pr. No.1 x Sales


    Contribution Margin Per Mix) + (CM Per Unit of Pr. No.2 x
    Unit Sales Mix)
    F/Weighted Contribution Margin
    In Sales Dollar F /Contribution Margin Ratio
    Ratio
    Contribution Margin Per
    S-V
    Unit
    Can be Single or Multiple Product
    Contribution Margin
    (S - V)/S Company
    Ratio
    Weighted Average
    Contribution Margin Total Contribution Margin/Sales
    Ratio
    Target Profit PROFIT IS NO LONGER EQUAL TO ZERO
    Q = (F + Target Profit)/ Weighted
    In Units Q = (F + Target Profit )/ (S - V) Average Contribution Margin Per
    Unit
    F + Target Profit/Contribution (F + Target Profit)/Weighted Can be Single or Multiple Product
    In Sales Dollar
    Margin Ratio Contribution Margin Ratio Company

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