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.
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.
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.
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.
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
