Exam 2 (Chapter 5)
Net Operating Income Under Absorption Costing
(Sales - COGS = Contribution Margin) - Fixed and Variable Selling and Admin Expense = NOI
Net Operating Income Under Variable Costing
(Sales - Variable Expenses = Contribution Margin) - Fixed Expenses = NOI
Inventory deferred in Ending Inventory
(Units Produced - Units Sold) x Fixed MOH per Unit
Segment Margin
Segment Contribution Margin - Traceable fixed costs of a Segment
Total Gross Margin under Absorption Costing
Sales (Units Sold x Selling Price) - COGS (Units Sold x UPC)
Unit Product Cost under Variable Costing
DM + DL + Var MOH
Unit Product Cost under Absorption Costing
DM + DL + Var MOH + Fix MOH
Fixed MOH Per Unit
Fixed MOH/Units Produced
Dollar Value of Ending Finished Goods Inventory under Absorption Costing
Fixed Manufacturing Unit Product Cost x Units in Ending Inventory
Reconcile Variable Costing NOI to Absorption Costing NOI
Variable Costing NOI + Inventory deferred in Ending Inventory
Dollar Value of Ending Finished Goods Inventory under Variable Costing
Variable Manufacturing Unit Product Cost x Units in Ending Inventotry
