Cost & Management Accounting

Slides:

Advertisements

Similar presentations

Schedule of Cost of Goods Manufactured

Advertisements

Introduction to Financial Accounting Unit 6 1 Introduction to Financial Accounting Unit 6 Income Statement – Structure, Categories and Formats.

Merchandising Business: Financial Statements. Cost of Goods Sold Merchandising businesses have the extra cost of inventory compared to service businesses.

BUS 2101 Decision Making Financial Information Financial Statement Analysis Financial Statements GAAP Income Statement Statement of Cash Flow Balance Sheet.

Accounting 3 Chapter 22 Section 3. Estimating Inventory- Gross Profit Method Gross Profit Method -Estimating inventory by using the previous year’s percentage.

Running Case - Dirt Bikes U.S.A. Back to Dirt Bikes U.S.A Back to Dirt Bikes U.S.A Previous.

Projected Income Statement Jeff’s Really Cool Stuff.

Contemporary Engineering Economics, 4 th edition, © 2007 Estimating Profit from Production Lecture No. 31 Chapter 8 Contemporary Engineering Economics.

Income Statement Net Sales - COGS = Gross Profit - Operating Expenses = Operating Income - Interest expenses & taxes = Net Income.

Variable and Full Costing Managerial Accounting Prepared by Diane Tanner University of North Florida Chapter 3.

1. Describe and illustrate income reporting under variable costing and absorption costing. 2. Describe and illustrate income analysis under variable costing.

Profit Reporting for Management Analysis Chapter M 4.

1 POINT 2 POINTS 3 POINTS 4 POINTS 5 POINTS Choc. Creme 1 POINT 4 POINTS 3 POINTS 2 POINTS2 POINTS 3 POINTS 2 POINTS 5 POINTS 2 POINTS 3 POINTS 4.

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4-4 Responsibility Statements for a Merchandising Business.

LESSON 15-1 Preparing an Income Statement

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-1 Preparing an Income Statement.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-1 Preparing an Income Statement  Uses of financial statements  Income statement.

CHAPTER 15 FINANCIAL STATEMENTS FOR A CORPORATION

INCOME STATEMENT Also known as the P & L statement is the only financial statement that enables a business to look at its PROFIT over a period of time.

Income Statement Issues. Questions What can be done to improve profits?

Problems In Preparation Of Financial Statements Lecture-5 BY AHSAN RIAZ SHEIKH.

Contemporary Engineering Economics, 6 th edition Park Copyright © 2016 by Pearson Education, Inc. All Rights Reserved Estimating Profit from Production.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-2 Interim Departmental Statement of Gross Profit.

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4-2 Interim Departmental Statement of Gross Profit.

Estimating Inventory Cost Retail Method of Inventory CostingRetail Method of Inventory Costing –based on the ratio of the cost of merchandise available.

Cost & Management Accounting Break-even Analysis Lecture-31 Mian Ahmad Farhan (ACA)

Financial Accounting 1 Lecture – 16 Recap Stock accounts Purchases account Stock in trade Other manufacturing costs Cost of goods sold Recording of stock.

Advanced Financial Accounting FIN-611 Mian Ahmad Farhan Lecture-5 Single Entry & Accounting for Non- Profit organizations.

Cost & Management Accounting Financial Statements Lecture-3 Mian Ahmad Farhan (ACA)

Cost & Management Accounting Material Lecture-7 Mian Ahmad Farhan (ACA)

Quicker Liquor Financial Statement Present by Dongmin.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-2 Interim Departmental Statement of Gross Profit.

Cost Accounting FOH Lecture-17 Main Ahmad Farhan (ACA)

Advanced Financial Accounting Lec-43 Main Ahmad Farhan.

Managerial Accounting

Cost & Management Accounting

Advanced Financial Accounting FIN-611

Estimating Inventories

Cost & Management Accounting

LESSON 15-1 Preparing an Income Statement

Advanced Financial Accounting FIN-611

Advanced Financial Accounting FIN-611

Advanced Financial Accounting FIN-611

Process Costing System

Projection of Financial Requirements

LESSON 15-1 Preparing an Income Statement

Accounting and Financial Information

LESSON 6-3 Estimating the Inventory

INCOME STATEMENT INFORMATION ON A WORK SHEET

ESTIMATING ENDING MERCHANDISE INVENTORY

LESSON 4-2 Interim Departmental Statement of Gross Profit

INCOME STATEMENT 1. Net Sales 2. Net Purchases

Process Costing System

Cost & Management Accounting

Cost & Management Accounting

Overview of Financial Reporting

Cost & Management Accounting

Inventory Valuation Example

LESSON 15-1 Preparing an Income Statement

LESSON 15-1 Preparing an Income Statement

Cost Volume Profit Analysis

GROSS PROFIT METHOD OF ESTIMATING INVENTORY

LESSON 15-1 Preparing an Income Statement

LESSON 15-1 Preparing an Income Statement

Cost & Management Accounting

Advanced Financial Accounting FIN-611

Process Costing System

Cost & Management Accounting

INCOME STATEMENT INFORMATION ON A WORK SHEET

Presentation transcript:

Cost & Management Accounting Problems In Preparation Of Financial Statements Lecture-5 Mian Ahmad Farhan (ACA)

Income Statement Ratios Gross Margin Rate This ratio identify the ratio of gross margin over sales. Example: 2,90,000 / 6,00,000 * 100 = 48.33% Gross Profit Sales 100

Income Statement Ratios Gross Markup Rate This ratio identify the ratio of gross margin over cost of goods sold. Example: 2,90,000 / 3,10,000 * 100 = 93.5% Gross Profit COGS 100

Income Statement Ratios Net Margin Rate This ratio identify the ratio of gross margin over sales. Example: 90,000 / 6,00,000 * 100 = 15% Net Profit Sales 100

Income Statement Ratios Expense Ratio This ratio identify the ratio of gross margin over sales. Example: 50,000 / 6,00,000 * 100 = 8.33% Expense Sales 100

Problems Sales = 8,00,000 Markup = 25% of cost Calculate = COGS and Gross profit margin.

Problems COGS = 50,000 GP Margin = 25% of sales Calculate = Sales and gross profit margin

Problems Gross profit = 40,000 GP Margin = 25% of cost Calculate = Sales and cost of goods sold

Problems Gross profit = 60,000 GP Margin = 25% of sales Calculate = Sales and cost of goods sold

Practice Question Direct Material purchased Rs. 1,00,000 Direct Labor 80,000 FOH 70,000 Increase in material inventory 10,000 Decrease in WIP inventory 5,000 Increase in finish goods inventory 30,000 Prepare cost goods sold statement

Practice Question Total factory cost ? WIP opening 20,000 WIP closing 10,000 Finish goods opening 30,000 Finis goods closing 50,000 Cost of goods sold 1,90,000 Find total factory cost

Practice Question Opening material inventory Rs. 10,000 Closing material inventory 5,000 Direct Labor 30,000 FOH 20,000 Total factory cost 80,000 Calculate the value of purchase (25000)