Dayton, Inc. manufactured 15,000 units of product last month and identified the following costs associated with the manufacturing activity. Variable costs: Direct materials used $ 1,028,000 Direct labor 1,991,000 Indirect materials and supplies 233,000 Power to run plant equipment 211,000 Fixed costs: Supervisory salaries 921,000 Plant utilities (other than power to run plant equipment) 282,000 Depreciation on plant and equipment (straight-line, time basis) 144,000 Property taxes on building 199,000 Required: Unit variable costs and total fixed costs are expected to remain unchanged next month. Calculate the unit cost and the total cost if 21,000 units are produced next month. (Round "Unit costs" to 2 decimal places.)
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.
Dayton, Inc. manufactured 15,000 units of product last month and identified the following costs associated with the manufacturing activity.
| Variable costs: | ||
| Direct materials used | $ | 1,028,000 |
| Direct labor | 1,991,000 | |
| Indirect materials and supplies | 233,000 | |
| Power to run plant equipment | 211,000 | |
| Fixed costs: | ||
| Supervisory salaries | 921,000 | |
| Plant utilities (other than power to run plant equipment) | 282,000 | |
| 144,000 | ||
| Property taxes on building | 199,000 | |
Required:
Unit variable costs and total fixed costs are expected to remain unchanged next month. Calculate the unit cost and the total cost if 21,000 units are produced next month. (Round "Unit costs" to 2 decimal places.)
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