. Activity Area Usage . Ordering (purchase orders Delivery (deliveries) Shelf stocking (hours) Customer support (items sold) 44 120 170 15,400 24 60 150 20,200 14 36 20 Under the simple costing system. Cal's Sporting Goods allocated support costs (overhead) to products at the rate of 30% of cost of goods sold. 7,960 Using the simple costing system, prepare an income statement showing operating income for each product line and the total for the company. Using the ABC system, prepare an income statement showing operating income for each product line and the total for the company.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Please do not give solution in image format thanku
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
