Ch 1 -4 Formulas

Ending RM Inventory

= Beginning RM Inventory + Purchases - Direct Materials Used

Direct Materials Used

= Beginning RM Inventory + Purchases - Ending RM Inventory

Cost of Goods Manufactured (COGM)

= DM Used + Direct Labor + MOH + Beginning WIP - Ending WIP

Cost of Goods Sold (COGS) - Manufacturer

= Beginning FG Inventory + COGM - Ending FG Inventory

COGS - Merchandising Company

= Beginning Inventory + Purchases - Ending Inventory

Total Product Cost

= Direct Materials + Direct Labor + Manufacturing Overhead

Predetermined Overhead Rate (POHR)

= Estimated Total MOH / Estimated Activity Base (e.g., DLH or MH)

Applied MOH

= POHR × Actual Activity Used

Total Job Cost

= DM + DL + Applied MOH

Unit Cost

= Total Job Cost / Number of Units

Over/Underallocated Overhead

= Applied MOH - Actual MOH

Departmental Overhead Rate

= Estimated Dept OH / Estimated Dept Activity Base

ABC Rate

= Total Estimated Activity Cost / Estimated Activity Base

ABC Cost Allocation

= Activity Rate × Actual Activity Used

Total Cost (Mixed Cost)

= Fixed Cost + (Variable Cost per Unit × Number of Units)

Average Cost per Unit

= Total Cost / Number of Units

Sales Revenue

= Sales Price per Unit × Units Sold

Cost-Plus Pricing

= Cost + (Markup % × Cost)