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  • Cost of Goods Manufactured and Sold Formulas

    Caricato da

    Ian Calinawan
    104 visualizzazioni2 pagine
    This document provides formulas for calculating key costs and metrics related to manufacturing and selling goods. It defines prime cost, total factory cost, conversion cost, cost of goods manufactured, cost of goods sold, number of units manufactured, per unit cost of goods manufactured, materials used or consumed, gross profit, operating profit, operating expenses, per unit gross profit, per unit net profit, percentage of gross profit to sales, percentage of net profit to sales, contribution margin, net operating income, contribution margin ratio, break even point in units and dollars, units and dollars sales to attain target profit, margin of safety, margin of safety percentage, and degree of operating leverage.

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    53127423-COGM-COGS-Formula.pdf

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    This document provides formulas for calculating key costs and metrics related to manufacturing and selling goods. It defines prime cost, total factory cost, conversion cost, cost of goods manufactured, cost of goods sold, number of units manufactured, per unit cost of goods manufactured, materials used or consumed, gross profit, operating profit, operating expenses, per unit gross profit, per unit net profit, percentage of gross profit to sales, percentage of net profit to sales, contribution margin, net operating income, contribution margin ratio, break even point in units and dollars, units and dollars sales to attain target profit, margin of safety, margin of safety percentage, and degree of operating leverage.

    Copyright:

    © All Rights Reserved
    Scarica in formato PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    104 visualizzazioni2 pagine

    Cost of Goods Manufactured and Sold Formulas

    Caricato da

    Ian Calinawan
    This document provides formulas for calculating key costs and metrics related to manufacturing and selling goods. It defines prime cost, total factory cost, conversion cost, cost of goods manufactured, cost of goods sold, number of units manufactured, per unit cost of goods manufactured, materials used or consumed, gross profit, operating profit, operating expenses, per unit gross profit, per unit net profit, percentage of gross profit to sales, percentage of net profit to sales, contribution margin, net operating income, contribution margin ratio, break even point in units and dollars, units and dollars sales to attain target profit, margin of safety, margin of safety percentage, and degree of operating leverage.

    Copyright:

    © All Rights Reserved
    Scarica in formato PDF, TXT o leggi online su Scribd
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    di 2

    Cost of Goods Manufactured and Sold

    Statement Formulas:
    Prime Cost = Direct Materials Cost + Direct Labor Cost

    Total Factory Cost or Manufacturing Cost = Direct Materials + Direct Labor Cost + Factory
    Overhead

    Conversion Cost = Direct Labor Cost + Factory Overhead Cost

    Cost of Goods Manufactured (COGM) = Total Factory Cost + Opening Work in Process
    Inventory - Ending Work in Process Inventory
    Or
    Cost of Goods manufactured = Direct materials cost + Direct labor cost + Factory overhead
    cost + Opening work in process inventory - Ending work in process inventory

    Cost of goods sold (COGS) = Cost of goods manufactured + Opening finished goods
    inventory - Ending finished goods inventory
    Or
    Cost of goods sold = Direct materials cost + Direct labor cost + Factory overhead cost +
    Opening work in process inventory - Ending work in process inventory + Opening finished
    goods inventory - Ending finished goods inventory

    Number of units manufactured = Units sold + Ending Finished Goods units - Opening
    finished goods units

    Per unit cost of goods manufactured = Cost of goods manufactured / Units manufactured

    Materials used or consumed = Opening inventory or materials + Net purchases of materials


    - Ending inventory of materials

    Income statement formulas:


    Gross profit = Net sales - Cost of goods sold

    Operating profit = Gross profit - Operating expenses

    Operating or commercial expenses = Selling or marketing expenses + General or


    administrative expenses

    Per unit gross profit = Gross profit / No. of units sold

    Per unit net profit = Net profit / No. of units sold

    Percentage of GP to sales = (Gross profit / Net sales) × 100

    Percentage of net profit to sales = (Net profit / Net sales) × 100


    Cost Volume Profit (CVP) Formulas:
    Contribution margin = Sales - Variable expenses (manufacturing and non-manufacturing)

    Net operating income = Contribution margin - Fixed expenses (manufacturing and non
    manufacturing)

    Contribution margin ratio = Contribution margin / Sales

    Break even point (units) = Fixed expenses / Unit contribution margin

    Break even point (dollar sales) = Fixed expenses / CM ratio

    Units sales to attain target profit = (Fixed expenses + Target profit) / Unit contribution
    margin

    Dollar sales to attain target profit = (Fixed expenses + Target profit) / Contribution margin
    ratio

    Margin of safety = Total budgeted or actual sales - Break even sales

    Margin of safety percentage or margin of safety ratio = Margin of safety / Total budgeted or
    actual sales

    Degree of operating leverage = Contribution margin / Net operating income

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