EUP
Step 1: Physical Reconcilliation
Beg. Inv
Units started
total to account for
EQUALS
Step 2: EUP (WGT AVG METHOD )
Units
Completed and transferred
100000
Ending Inventory
5000
Total to account for
Step 3: Compute the cost per EUP
Dollars spent to date
Cost per EUP
Cost for a single unit
EXAMPLE
Beg. Inv
60000
Completed and transferred
Units started
820000
End. Inv.
Total to account for
880000
Total to account for
%Completed
Completed and transferred
700000
100%
End. Inv.
180000
100%
Total to account for
Dollars spent to date
Materials
Beg. Inv
420,000
$
Dollards added this month
2,220,000
$
2,640,000
$
3
$
8
$
Chapter 5 Contr. Margin
SP
250
VC
125
Cont. Margin
Cont. Margin Ratio
0%
Fixed Costs
387,000
$
Target Operating Income
138,000
$
Break-Even in units
#DIV/0!
Break-Even in dollars
#DIV/0!
Target Operating Income in Units
#DIV/0!
Target Operating Income in Dollars
#DIV/0!
Margin of Safety
1104
#DIV/0!
276000%
#DIV/0!
Operating Leverage
Operating Income
550000
Contribution Margin
550
Chapter 6
Traditional/ Absorption
DM
$15
$15
DL
$25
$25
VOH
$300,000
$1.33
FOH
$750,000
$4.29
$1,050,040
$45.62
Production
225000
Sales
175000
Sales
$13,125,000.00
COGS
$7,983,333.33
Gross Profit
$5,141,666.67
Chapter 3: EUP
Step 1: Physical reconciliation
Beg Inv
60000
Comp. & Trans.
Units started
820000
Ending Inv
Total to account for
880000
Total to account for
Step. 2: EUP
% completed
Comp. & Trans.
700000
100%
Ending Inv
180000
100%
Total to account for
880000
Completed and transferred
100000
Ending Inventory
5000
Total to account for
% Completed
Conversion
%Completed
Materials
100%
100000
100%
100000
35%
1750
100%
5000
101750
105000
Conversion
Materials
101750
105000
650,000
$
355,000
$
6.39
$
3.38
$
9.77
$
700000
180000
880000
Conversion
Materials
% Completed
700000
700000
100%
54000
180000
30%
754000
880000
Conversion
139,000
$
3,254,000
$
3,393,000
$
4.50
$
Variable/ CM
DM
$15
DL
$25
VOH
$1.33
$41
Sales
$13,125,000.00
Var. Product Cost
$7,233,333.00
SG&A Var cost
700000
180000
880000
Materials
% completed
Conversion
700000
100%
700000
180000
30%
54000
880000
754000
