accounting formulas

cost of goods manufactured

beginning WIP+ total. manuf. costs - ending WIP

total manufacturing costs

direct materials + direct labor + MOH

cost of goods sold

beginning inventory + Cogs manufactured-Ending inventory

Direct materials used

Beginning inventory + Purchase -Ending inventory

applied MOH

manufacturing overhead rate x actual amount of activity base

manufact. overhead cost rate

estimated manufacturing overhead cost/ estimated activity base

traditional costing

estimated overhead/ estimated activity base

contribution margin

sales- variable costs

unit contribution margin

selling price per unit- variable cost per unit

contribution margin ratio (%)

contribution margin/ net sales revenue

contribution margin per unit ratio

contribution margin per unit/ selling price

Breakeven point (units)

fixed costs/ contribution margin per unit

Breakeven point ($)

fixed costs/ contribution margin ratio

Target Net Income

fixed costs + target profit/ contribution margin ratio

target required sales

fixed costs + target profit/ contribution margin per unit 

margin of safety $

actual (expected) sales - breakeven sales

margin of safety ratio

margin of safety/ expected actual sales

WACM

sales mix x product contribution margin

sales mix limited resources

unit contribution margin/ amount of limited resources required

controllable margin

contribution margin- controlled fixed costs

ROI

controllable margin/ average total assets

current ratio

current assets/ current liabilities

Accounts receivable turnover

net credit sales/ average accounts receivable

inventory turnover

COGS/ average inventory

Return on assets

net income/ average total assets

profit margin

net income/ net sales

price earnings

market price per share/ earnings per share

earnings per share

net income- preferred dividends/ # of common shares outstanding

effective tax rate

total tax liability/ total taxable income