ACC MAN Formuals exam 3

absorbtion costing unit product cost

direct materials+direct labor+variable manu oh

and

fixed manu oh/#units produced

variable costing unit product cost

direct materials+direct labor+variable manu oh

variable income statement

sales: units soldxprice per unit

-variable exp: COGS : units soldxvariable per unit and ————-seling and admin variable: units soldxvariable per unit

= contribution margin

-fixed expenses

= net income

absorption costing net op inc

variable net op inc

-difference in inventoryxfixed manu per unit cost

=absorbtion costing net op inc

units produced > units sold

+inventory

absorption > variable

defferred overhead

inventory increase xfixed oh per unit

or

absorbtion - variable

variable contribution margin

sales: units soldxprice per unit

-variable exp: COGS=units soldx variable per unit and ———— selling and admin variable=units sold x variable per unit

= contribution margin

absorbtion income statement

sales: units soldxunits price per unit

-COGS: units soldxabsorbtion per unit

=gross margin

-selling and admin exp: variable:units soldxvariable per unit and fixed

=net income

variable income

affected by changed in unit sales

absorbtion income

affected by unit sales and units of production

• adds fixed manu oh as a product cost

production budget

budgeted unit sales

+desired units of ending fin goods inv

=total needs

-units of beg fin goods inv

= required production of units

direct materials budget

required production

xmaterials per unit

= production needs

+desired units of ENDING raw mat inv

=total raw materials needed

-units of BEG raw mat inv

=materials to be purchased

manufacturing OH budget

budgeted direct labor hours

xvariable mfg oh rate

=variable mfg oh cost

+fixed mfg oh costs

=total mfg oh costs

-non cash costs

=cash dispersement for mfg oh

cash budget

bag bal

+cash recipets

-disbursements

= excess cash

_ plug

=desired end bal

budgeted income statement

sales (sales budget)

-COGS (ending fin goods inv)

=gross margin

-selling and admin exp (sell and a exp budget0

=op inc

-interest exp (cash budget)

= net income

margin

net op inc/sales

turnover

sales/avg op assets

ROI

net op inc/avg op assets

or

marginxturnover

residual income

net op inc - (avg op assets x min required rate of return)