Managerial Accounting Equations

Merchandising - Cost of Goods Sold (COGS)
- + Beginning Inventory
- + Purchases
- + Import duties or tariffs
- + Freight-in
- = Cost of goods available for sale
- - Ending inventory
- = Cost of goods sold
Direct Materials Used - Manufacturer
- + Beginning raw materials inventory
- + Purchases of raw materials
- + Freight in
- = Materials available for use
- - Ending raw materials inventory
- = Direct materials used
Income Statement - Merchandiser
- + Sales
- - Cost of goods sold
- = Gross profit
- - Operating expenses
- = Operating Income
Manufacturing Overhead
- + Indirect Materials
- + Indirect Labor
- + Other Indirect Manufacturing Costs
Period Costs
- + R&D costs
- + Design costs
- + Marketing
- + Distribution
- + Customer Service
- (Later converted into Operating expenses)
Prime Costs
- + Direct Materials
- + Direct Labor
Conversion Costs
- + Direct Labor
- + Manufacturing Overhead
Cost of Goods Manufactured (CGM)
- + Beginning Work in Process Inventory
- + Manufacturing costs incurred (Direct labor Direct materials + Manufacturing overhead)
- = Total manufacturing costs to account for
- - Ending Work in Process Inventory
Manufacturing - Cost of Goods Sold (COGS)
- + Beginning finished goods inventory
- + Cost of goods manufactured
- = Cost of goods available for sale
- - Ending finished goods inventory
- = Cost of goods sold
Predetermined Manufacturing Overhead Rate (PMOHR)
- Total estimated mfg overhead costs
- Total estimated amount of allocation base

Author

Drizzle

282403

Card Set

Managerial Accounting Equations

Description

TBD, Income Statement, Calculations, etc

Updated

2014-09-09T22:43:23Z

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