Below is the partial list of sales and cost information for Syntax Line for the calendar year 2002. Sales (18,000 units) $630,000 Manufacturing costs: Prime costs $252,000 Variable MOH 84,000 Budgeted and actual fixed MOH 100,000 Operating expenses: Variable selling expense 54,000 Fixed selling expense 45,000 Fixed administrative 90,000 Calculate cost of goods sold, contribution margin, and net income using both the absorption costing format and the variable costing format.
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.
Below is the partial list of sales and cost information for Syntax Line for the calendar year 2002.
Sales (18,000 units) $630,000
Prime costs $252,000
Variable MOH 84,000
Budgeted and actual fixed MOH 100,000
Operating expenses:
Variable selling expense 54,000
Fixed selling expense 45,000
Fixed administrative 90,000
Calculate cost of goods sold, contribution margin, and net income using both the absorption costing format and the variable costing format.
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