Data Section: Production costs: Direct materials Direct labor Factory overhead Selling expenses: Sales salaries & commissions Advertising Miscellaneous selling expense General expenses: Office salaries Supplies Miscellaneous general expense Total Additional information: Selling price per unit Expected unit sales Target profit Answer Section: Contribution margin per unit Contribution margin (Total) Contribution margin ratio Break-even point in units Break-even point in sales dollars Target profit (Unit sales needed) Target profit (Dollar sales needed) Total revenue at expected unit sales Net income at expected unit sales Margin of safety as a percentage of sales Fixed $225,000 97,000 47,500 16,200 92,000 12,300 15,000 FORMULA1 $16.00 120,000 $20,000 Variable $2.30 4.70 3.00 0.75 0.25 FORMULA2 FORMULA3 FORMULA4 FORMULA5 FORMULA6 FORMULA7 FORMULAS FORMULA9 FORMULA10 FORMULA11 FORMULA12
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.
this is an excel style practice
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
