Managerial Accounting Formulas Flashcards

Questions and Answers

What is Direct Materials Used calculated from?

Beginning direct materials used + direct materials purchased - direct materials available for production (correct)

Beginning direct materials + direct materials purchased - direct materials sold

Beginning direct materials used + direct materials purchased - direct materials used

Direct materials purchased - direct materials available for production

What does Cost of Goods Manufactured equal?

Beginning work in process inventory + Total manufacturing costs incurred - Ending work in process inventory

How do you calculate Costs of Goods Purchased?

Purchase + Freight-in - Purchase discounts - Purchase returns and allowance

What is Total Overhead?

Fixed overhead + Variable overhead Signup and view all the answers

Cost of Direct Materials Used is calculated using which formula?

Beginning inventory of direct materials + Purchase of direct materials - Ending inventory of direct materials Signup and view all the answers

How do you find Unit Costs?

Total manufacturing costs - Amount produced Signup and view all the answers

What are Direct Manufacturing Labor Costs calculated from?

Total manufacturing costs incurred - Direct materials used - Total manufacturing overhead costs Signup and view all the answers

Manufacturing overhead costs incurred equals what?

Total manufacturing costs incurred - Direct materials used - Direct manufacturing labor Signup and view all the answers

What formula describes Cost of Goods Sold?

Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory Signup and view all the answers

How is Direct Materials Inventory determined?

Beginning direct materials inventory + Direct materials purchased - Direct materials used Signup and view all the answers

What does Work in Process Inventory equal?

Beginning WIP inventory + Total manufacturing costs incurred - Cost of goods manufactured Signup and view all the answers

How is Finished Goods Available for Sale calculated?

Finished goods inventory - Cost of goods manufactured Signup and view all the answers

How do you find Finished Goods Inventory?

Finished goods available for sale - Cost of goods sold Signup and view all the answers

Study Notes

Key Managerial Accounting Formulas

Direct Materials Used: Calculates materials consumed in production by adding beginning materials, purchases, and subtracting materials available for production.
Cost of Goods Manufactured (COGM): Reflects total production costs incurred minus the ending work in process inventory, indicating completed goods ready for sale.
Costs of Goods Purchased: Determines purchase costs by calculating purchases, adding freight-in, and subtracting discounts and returns.
Total Overhead: Sum of fixed and variable overhead costs, essential for determining total manufacturing costs.
Cost of Direct Materials Used: Derived from beginning inventory, purchases, and subtracting ending inventory to find the actual materials used in production.
Unit Costs: Represents the manufacturing costs allocated per unit produced, calculated by dividing total manufacturing costs by the output amount.
Direct Manufacturing Labor Costs: Indicates labor costs incurred by subtracting direct materials and overhead from total manufacturing costs.
Manufacturing Overhead Costs Incurred: Total manufacturing costs minus both direct materials and direct labor, reflecting overhead expenses.
Cost of Goods Sold (COGS): Calculates the cost of goods sold by adding beginning finished goods inventory with COGM and subtracting the ending finished goods inventory.
Direct Materials Inventory: Measures the materials available by starting with beginning inventory, adding purchases, and subtracting used materials.
Work in Process (WIP) Inventory: Represents goods in production by summing beginning WIP inventory with manufacturing costs incurred and subtracting COGM.
Finished Goods Available for Sale: Indicates the remaining finished goods after accounting for COGM.
Finished Goods Inventory: Reveals the inventory left by deducting COGS from finished goods available for sale.

Description

Enhance your understanding of key managerial accounting formulas with these flashcards. Each card provides essential definitions and calculations for concepts like Direct Materials Used and Cost of Goods Manufactured, helping you master the subject.