*check the attached photo for the problem REQUIRED: What is the total cost per unit?
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.
*check the attached photo for the problem
REQUIRED:
- What is the total cost per unit?
- What is the biggest cost per unit?
- Are there possible ways of reducing the cost per unit?
![After understanding what the crucial inputs are, Gigi rolled up her sleeves and decided to
compute something that she'd been afraid to do. Determine the cost of undertaking the entire
project. While Mrs. Manalastas has been kind enough to provide a hefty 50% down payment to
cover upfront expenses, Gigi was nonetheless nervous that the cost would be tremendous. The
words of Mrs. Manalastas was always resonating at the back of her mind: "They are paying
P150 and they are expecting a meal worth P150." By rescarching on the internet, she arrived at
the conclusion that, if she will serve fried chicken, 300 grams of chicken and a cup of rice or
roughly 50 grams of uncooked rice per student is sufficient enough as a serving size. The
cheapest chicken that Gigi saw in the market costs P150 per kilo, while the cheapest rice of
acceptable quality was P50 per kilo. Gigi estimated that for every kilo of chicken to be fried, one
(1) liter of cooking oil will be needed, with each liter of oil capable of being used three (3) times.
Gigi also estimated that the seasoning costs (salt, soy sauce, calamansi, etc.) would add up to
about P40 per kilo. She also guessed that she'll use up P1,200 worth of firewood to fuel the
entire cooking spree, but must be more costly if she will use LPG. Finally, the styro packaging
costs P5 per piece. With these guidelines, Gigi decided to compute for her unit cost.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd4c64c6-4f21-4209-a489-192ff1a6f057%2F199861c6-617b-4a01-a51d-31d6e5197129%2Fxeykh58_processed.jpeg&w=3840&q=75)
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