Cost Terms and Purposes
DM Used Beg DM Inv + DM Purchases - End
DM Inv
RM Used Beg RM + Purchases - End RM
Man Costs added to WIP DM Used+DL+OH
MOH (IM, IL, dep of plant, facility,
machinery, equip(not office), supplies, plant
util, rent of factbuild, rent of prodequip)
*Gen, admin, selling exp not OH
COGM Beg WIP Inv + TMC - End WIP Inv
COGS Beg FG Inv + COGM - End FG Inv
TC of Prod DM + DL + Var OH + Fixed OH
MC DM Used + DML + MOH
Prime Costs DM Used + DL
Conver Costs DML + MOH
CVP Analysis (SP-VC=CM-FC=OI)
BEP Sales Total FC/CMR or BEPu x SPu
BEP Units Total FC/CMu
CMR CM/Sales
Units Attain TP (FC + TP)/CMu
Sales Attain TP (FC + TP)/CMR
TP = % of Sales [FC + (%)(SPu)(x)]/CMu
MoS Sales Actual Sales - BEPsales
DOL CM/OI or CM/Profit bef Tax
%Change in OI DOL x % Change in Sales
Sales Mix
CMperSM TCM / Total # of Units
BEP Units Ratio of Prod x BEPu
SM Ratio Prod#1 Sales / Total Sales
BEP Sales FC / W.Ave CM Ratio
*Sales > SM Ratio > (VC) = CM (then get
CMR)
W.Ave CM Ratio CMR x Ratio (add all)
Job Costing (DM+DL+(DLH x Normal Rate of
DLH) = Total Cost) or (DM+DL+MOH+Beg
WIP = Total Cost)
*Check if C or Sold
Material Inv Purchased RM - Used RM
Used RM Total DM
WIP Inv not completed
FG Inv completed but not sold
Under-/Overapplied OH Applied - Actual
Actual OH VC + FC
Applied OH Total DLH x Normal Rate
Total Applied OH Total OH from table
MOH Rate MOH / DL
MOH Rate x DL
Predeter OH Rate (use any job started in
that month) MOH / DL Cost
Total WIP Inv DM + DL + MOH
COGM jobs not completed are not included