Carla Vista Company sells its product for $10400 per unit. Variable costs per unit are: manufacturing, $5000; and selling and administrative, $120. Fixed costs are: $34000 manufacturing overhead, and $44000 selling and administrative. There was no beginning inventory at 1/1/20. Production was 34 units per year in 2020–2022. Sales were 34 units in 2020, 30 units in 2021, and 38 units in 2022
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.
Income under variable costing for 2021 is
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