1 HASF Corporation began operations at the beginning of the current year. one of the year company product a compressor sells for 370 per unit’s information related to the current year activities follows Variable cost per unit Direct material 40 Direct labor 74 Manufacturing overhead 96 Annual fixed cost Manufacturing cost 1,200,000 Selling and administrative 1,720,000 Sales and production Sales in units 20,000 Production 24,000 Required - Cost of the December 31 finished goods inventory Net income for the current year Dec 31 If next year production decrease to 22,500 units and general cost behavior patterns do not change what is the likely effect on The direct labor cost of 74 per units? why? The fixed manufacturing overhead of 1,200,000? why? The fixed selling and administrative cost of1,7200,000? why? Per unit cost production why?
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.
1 HASF Corporation began operations at the beginning of the current year. one of the year company product a compressor sells for 370 per unit’s information related to the current year activities follows
Variable cost per unit
Direct material 40
Direct labor 74
Manufacturing overhead 96
Annual fixed cost
Selling and administrative 1,720,000
Sales and production
Sales in units 20,000
Production 24,000
Required -
Cost of the December 31 finished goods inventory
Net income for the current year Dec 31
If next year production decrease to 22,500 units and general cost behavior patterns do not change what is the likely effect on
- The direct labor cost of 74 per units? why?
- The fixed manufacturing overhead of 1,200,000? why?
- The fixed selling and administrative cost of1,7200,000? why?
- Per unit cost production why?
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