Accounting 201B Final: Formulas and
Terms Questions and All Correct
Answers.
Prime Costs - Answer Direct Materials + Direct Labor
Conversion Costs - Answer Direct Labor + Manufacturing Overhead
Cost of Goods Manufactured - Answer Beg. WIP+ Direct Materials + Direct Labor +
Manufacturing Overhead - End WIP
Finished Goods - Answer Beg. WIP + Direct Materials + Direct Labor + Manufacturing
Overhead - End WIP
Cost of Goods Sold - Answer Beg. Finished Goods + Cost of Goods Manufactured - Ending
Finished Goods
Raw Materials used in Production - Answer Beg. Raw Materials Inventory + Purchases - Ending
Raw Materials Inventory
Y= A + Bx where - Answer Y= ESTIMATED TOTAL MFGOVHD COST
A=ESTIMATED TOTAL FIXED MFGOVHD COST
B=ESTIMATED VARIABLE MFGOVHD COST PER UNIT OF ALLOCATION BASE
X=ESTIMATED TOTAL AMOUNT OF ALLOCATION BASE
Variable Cost Per Unit of Activity - Answer Change in Cost/ Change in activity
Predetermined Overhead Rate - Answer Estimated Total Manufacturing Overhead Cost/
Estimated total amount of allocation base
Overhead Applied - Answer Predetermined Overhead Rate x Actual Amount of Allocation base
Contribution Margin - Answer Sales - Variable Expenses
Contribution Margin Ratio - Answer Contribution Margin/Sales
, Unit Sales to Attain Target Profit - Answer Fixed Expenses + Target Profit/ Unit Contribution
Margin
Dollar Sales to Attain Target Profit - Answer Fixed Expenses + Target Profit/ Contribution
Margin Ratio
Break Even Point in Unit Sales - Answer Fixed Expenses/Unit CM
Break Even Point in Dollars - Answer Fixed Expenses/Contribution Margin Ratio
Margin of Safety in Dollars - Answer Total Budgeted ( or actual ) Sales - Break Even Sales
Margin of Safety in Percentage - Answer Margin of Safety/ Total Budgeted ( or actual ) Sales
Degree of Operating Leverage - Answer Contribution Margin/Net Income
Production Budget Format - Answer Budgeted Unit Sales
(Add) Desired Ending Inventory
(Less) Beg. Inventory
=Required Production
Direct Materials Budget Format - Answer Raw Materials Required
(Add) Desired Ending Inventory
=Total Raw Materials Needs
(Less) Beg. Inventory
=Raw Materials to be Purchased
Cash Budget Format - Answer Cash Balance Beg.
(Add) Receipts
=Total Cash Available
(Less) Disbursements
=Excess of Cash Available
+Financing
=Cash Balance Ending
Terms Questions and All Correct
Answers.
Prime Costs - Answer Direct Materials + Direct Labor
Conversion Costs - Answer Direct Labor + Manufacturing Overhead
Cost of Goods Manufactured - Answer Beg. WIP+ Direct Materials + Direct Labor +
Manufacturing Overhead - End WIP
Finished Goods - Answer Beg. WIP + Direct Materials + Direct Labor + Manufacturing
Overhead - End WIP
Cost of Goods Sold - Answer Beg. Finished Goods + Cost of Goods Manufactured - Ending
Finished Goods
Raw Materials used in Production - Answer Beg. Raw Materials Inventory + Purchases - Ending
Raw Materials Inventory
Y= A + Bx where - Answer Y= ESTIMATED TOTAL MFGOVHD COST
A=ESTIMATED TOTAL FIXED MFGOVHD COST
B=ESTIMATED VARIABLE MFGOVHD COST PER UNIT OF ALLOCATION BASE
X=ESTIMATED TOTAL AMOUNT OF ALLOCATION BASE
Variable Cost Per Unit of Activity - Answer Change in Cost/ Change in activity
Predetermined Overhead Rate - Answer Estimated Total Manufacturing Overhead Cost/
Estimated total amount of allocation base
Overhead Applied - Answer Predetermined Overhead Rate x Actual Amount of Allocation base
Contribution Margin - Answer Sales - Variable Expenses
Contribution Margin Ratio - Answer Contribution Margin/Sales
, Unit Sales to Attain Target Profit - Answer Fixed Expenses + Target Profit/ Unit Contribution
Margin
Dollar Sales to Attain Target Profit - Answer Fixed Expenses + Target Profit/ Contribution
Margin Ratio
Break Even Point in Unit Sales - Answer Fixed Expenses/Unit CM
Break Even Point in Dollars - Answer Fixed Expenses/Contribution Margin Ratio
Margin of Safety in Dollars - Answer Total Budgeted ( or actual ) Sales - Break Even Sales
Margin of Safety in Percentage - Answer Margin of Safety/ Total Budgeted ( or actual ) Sales
Degree of Operating Leverage - Answer Contribution Margin/Net Income
Production Budget Format - Answer Budgeted Unit Sales
(Add) Desired Ending Inventory
(Less) Beg. Inventory
=Required Production
Direct Materials Budget Format - Answer Raw Materials Required
(Add) Desired Ending Inventory
=Total Raw Materials Needs
(Less) Beg. Inventory
=Raw Materials to be Purchased
Cash Budget Format - Answer Cash Balance Beg.
(Add) Receipts
=Total Cash Available
(Less) Disbursements
=Excess of Cash Available
+Financing
=Cash Balance Ending
