Accounting 201B Final Formulas and Terms Questions with 100% Correct Answers 2025 | 2026.

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Accounting 201B Final: Formulas and Terms Questions
with 100% Correct Answers 2025 | 2026




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

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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