aCCOUNTING

Essay text:

COST OF GOODS MANUFACTURED SCHEDULE Direct Materials: Raw Materials Inventory _______ Add: Purchases of raw materials _______ Raw Materials Available for Use _______ Deduct: Raw Materials Inventory _______ Raw Materials ________ Direct Labor ________ Manufacturing Overhead: Rent on Facilities ________ Insurance ________ Indirect Labor ________ Utilities ________ Maintenance, factory ________ Depreciation, factory ________ Total Overhead Costs ________ Total Manufacturing Costs ________ Work in process inventory ________ Deduct: Work in process inventory ________ Cost of Goods Manufactured ________ COST OF GOODS SOLD Beginning Finished Goods Inventory ________ Add: Cost of Goods Manufactured ________ Cost of Goods Available for Sale ________ Deduct: Finished Goods Inventory, ________ Cost of Goods Sold ________ INCOME STATEMENT Sales ________ Less: Cost of Goods Sold _______ Gross Margin ________ Less: Administrative Expenses _______ Less: Selling Expenses _______ Net Operating Income ________ ******************************************************************************************************* JOINT PRODUCT COSTING Units Price Total Product A (# of Units) x Unit Price = $$$ Product B Total Revenue, if processed further Less: Additional Opportunity Costs ($$$) Total Cost of Processing Net Disadvantage of Processing _______________________________________ Alternative Method: Revenue if processed further $$$$ Revenue if Sold As Is -($$$) Incremental Revenue Incremental Cost of Processing -($$$) Incremental Disadvantage $$$$ MAKE/BUY DECISION Make Buy (Seller Offering Goods) Direct Materials Direct Labor Variable Overhead (% x #) Total Cost to Make Cost To Buy Cost Saving ****************************************************************************************************** FLEXIBLE BUDGETING Original Budget Actual Costs Direct Materials Direct Labor Variable Overhead Fixed Overhead Total (Note: Divide Units by each of the above to get Unit Price) Cost Formula: Total Cost = Variable Cost + Fixed Cost (SP x SQ) (AQ x SP) (AQ x AP) (2-3) Original Budget Flexed Budget Actual (Units) (Units) Cost Variance Item (Always Given) (Always Given) (Price divided by Units = Unit Price) (Note: Subtract Flexed Budget # from Actual # to get Variance) CONTRIBUTION MARGIN INCOME STATEMENT Sales (Unit Price x Units Sold) ____________ Variable Costs: Manufacturing (Unit Cost x Units Sold) _________ Selling and Administrative (Unit Cost x Units Sold) ________ ____________ Contribution Margin ____________ Fixed Costs Manufacturing ________ Selling and Administrative ________ ____________ Operating Income ____________ (TRADITIONAL) Sales __________ Cost of Goods Sold Variable: ________ Fixed ________ __________ Gross Profit __________ Selling and Administrative Expenses Variable _______ Fixed _______ __________ Operating Income __________ NET PRESENT VALUE FOR LEASE/BUY METHODS Note: Annual Cash Inflows: (use 14C-4 table) Single Years: (Use 14C-3 table) Item Year Amt of Cash Flows PV Factor PV of Cash Flows (NOW) ($$$) (%) ($$$$) (Note: NOW values are always in deficit) ********************************************************************************************************* MACRS and NET PRESENT VALUE (NET PRESENT VALUE) (1) (2) ITEM YEARS AMOUNT TAX EFFECT CASH FLOWS PV FACTOR PRESENT VALUE (1 ? TAX RATE) (1 X 2) MACRS TABLE COST OF EQUIPMENT MACRS% DEP...