A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 150 Units in beginning inventory 150 Units produced 7,300 Units sold 6,900 Units in ending inventory 550 Variable costs per unit: Direct materials $ 48 Direct labor $ 43 Variable manufacturing overhead $ 8 Variable selling and administrative expense $ 4 Fixed costs: Fixed manufacturing overhead $ 233,600 Fixed selling and administrative expense $ 82,800 What is the total period cost for the month under variable costing?
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.
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
| Selling price | $ | 150 |
| Units in beginning inventory | 150 | |
| Units produced | 7,300 | |
| Units sold | 6,900 | |
| Units in ending inventory | 550 | |
| Variable costs per unit: | ||
| Direct materials | $ | 48 |
| Direct labor | $ | 43 |
| Variable manufacturing |
$ | 8 |
| Variable selling and administrative expense | $ | 4 |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 233,600 |
| Fixed selling and administrative expense | $ | 82,800 |
What is the total period cost for the month under variable costing?
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