Page1 / 13

AC505 Formula Template-Final Prep - WK 1: COST OF GOODS...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
AC505 Formula Template-Final Prep

AC505 Formula Template-Final Prep - WK 1: COST OF GOODS...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
WK 1: COST OF GOODS SOLD Direct Materials (DM) = $100 Direct Labor (DL) = $200 Answered in Question Overhead (OH) = $230 Answered in Question Total Manufactured Cost = $530 Beginning Raw Materials Inventory $10 (+) Purchases $120 Raw Materials Avail for Use $130 (-) End Raw Materials Inv. $30 (=) Raw Materials Used In Prod. $100 Sales Revenue $950 (-) Cost of Goods Sold (Product Cost) (CGM) $560 (=) Gross Margin (CGM) $390 Beginning Work in Progress Inventory $70 (+) Current Month Manufactured $530 Total Manufactured Cost $600 (-) End Work In Progress $40 (=) Cost of Goods (Manufactured) (CGM) $560 Sales Revenue $950 (=) Cost of Goods Sold (CGM&S) $580 (=) Gross Margin $370 (-) Period Cost Selling Cost $100 General and Admin Cost $140 (=) Net Operating Cost/Income $130 Beginning Finished Goods Inventory $100 (+) Cost of Goods Manufactured $560 Goods Available for Sale $660 (-) End Finished Goods Inventory $80 (=) Cost of Goods Sold (CGM&S) $580 (=) Cost of Goods Sold (CGM&S) $580 (=) Gross Margin $370 (=) Net Operating Income $130
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
WEEK 1: HI-LO METHOD Step 1 Chg $ X Y (Divide) Chg Units Machine Hours Indirect Mfg. Labor Costs High Observation -Week 8 Low Observation -Week 3 Step 2 Y = A + B(X) Fixed Cost Element = Total cost -Variable Cost Element Y = Money High and Low Variable A= Fixed Monthly Maint Cost #DIV/0! B = Variable Cost #DIV/0! X = Units High and Low Variable Step 1 High (-) Low (=) Sum Total Money $- $- $- #DIV/0! (=) B Value Units 0 0 0 High Y = A (+) B (X) Sum B(X) $- #DIV/0! #DIV/0! 0 #DIV/0! Formula #DIV/0! #DIV/0! #DIV/0! Low Y = A (+) B (X) Sum B(X) $- #DIV/0! #DIV/0! 0 #DIV/0! Formula #DIV/0! #DIV/0! #DIV/0!
Background image of page 2
WEEK 2: Job Order-Process Costing MASTER FORMULA MASTER FORMULA Problem Problem S1: Units to Account For: Units Percentage Completed S1: Units to Account For: Units Percentage Completed Beginning WIP Inventory 400 Direct Materials 80% Beginning WIP Inventory 700 Direct Materials 80% (+) Units Started 6,000 15% (+) Units Started 7,200 25% (=) Units to Account For 6,400 Units (Step 1 & 2 Must Match) (=) Units to Account For 7,900 Units (Step 1 & 2 Must Match) S2: Account for Them Units Percentage Completed S2: Account for Them Units Percentage Completed Completed & Shipped Out 5,600 Direct Materials 70% Completed & Shipped Out 6,400 Direct Materials 80% WIP Ending Inventory 800 30% WIP Ending Inventory 1,500 70% (=) Units to Account For 6,400 Units (Step 1 & 2 Must Match) (=) Units to Account For 7,900 Units (Step 1 & 2 Must Match) S3: Equivalent Units Direct Materials S3: Equivalent Units Direct Materials Completed & Shipped Out 5,600 5,600 Completed & Shipped Out 6,400 6,400 WIP Ending Inventory 560 240 WIP Ending Inventory 1,200 1,050 (=) Units to Account For 6,160 5,840 (=) Units to Account For 7,600 7,450 S4: Get the $$ Amounts Direct Materials Total S4: Get the $$ Amounts Direct Materials Total Spent $ Last Month $6,900.00 $2,500.00 $9,400.00 Spent $ Last Month $9,100.00 $5,400.00 $14,500.00 Spent $ This Month $112,500.00 $210,300.00 $322,800.00 Spent $ This Month $96,700.00 $180,700.00 $277,400.00 Total $119,400.00 $212,800.00 $332,200.00 Total $105,800.00 $186,100.00 $291,900.00 S5: Get Per Unit Cost Sample $ XX,XXX S5: Get Per Unit Cost Sample $ XX,XXX XXX,XXX Units XXX,XXX Units Direct Materials Direct Materials Cost $119,400.00 $212,800.00 Cost $105,800.00 $186,100.00 Equivalent Units (eq) 6,160 5,840 RATE Equivalent Units (eq) 7,600 7,450 RATE Total $19.38 $36.44 $55.82 Total $13.92 $24.98 $38.90 S6: Reconcile Units Rate Total S6: Reconcile Units Rate Total Transfer Out 5,600 $55.82 $312,600.25 Transfer Out 6,400 $38.90 $248,965.88 Ending WIP Units Rate Total Ending WIP Units Rate Total Direct Materials 560 $19.38 $10,854.55 Direct Materials 1,200 $13.92 $16,705.26 240 $36.44 $8,745.21 1,050 $24.98 $26,228.86 Subtotal $19,599.75 Subtotal $42,934.12 Total $332,200.00
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.
Ask a homework question - tutors are online