MGT101 Quiz No.3 Important Formulas Shared by Innocent Parizay

Cost of Goods Manufactured and Sold Statement Formulas:

1)Prime Cost = Direct Materials Cost + Direct Labor Cost

2)Total Factory Costor Manufacturing Cost = Direct Materials + Direct Labor Cost + Factory Overhead

3)Conversion Cost = Direct Labor Cost + Factory Overhead Cost

4)Cost of Goods Manufactured (COGM) = Total Factory Cost + Opening Work in Process Inventory - Ending Work in Process Inventory

OR

4)Cost of Goods manufactured = Direct materials cost + Direct labor cost + Factory overhead cost + Opening work in process inventory - Ending work in process inventory

5)Cost of goods sold (COGS) = Cost of goods manufactured + Opening finished goods inventory - Ending finished goods inventory Or

5)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

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

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

8)Materials used or consumed = Opening inventory or materials + Net purchases of materials - Ending inventory of materials

Income statement formulas:

1)Gross profit = Net sales - Cost of goods sold

2)Operating profit = Gross profit - Operating expenses

3)Operating or commercial expenses = Selling or marketing expenses+General or administrative expenses

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

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

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

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