Discon Corporation manufactures a popular doll called Teardrops. Last year the company started with 11.900 dots, produced 300,000 dolls, and ended the year with 9.900 dolls. Each doll was sold for $24. The actual unit cost for Teardrops is given below Direct material Direct Tabour variable overhead Floed overhead Total unit ant 0.70 3.20 9.25 $16.00 The only selling expenses were a commission of $2 per unit sold and advertising amounting to $369.000 Administrative expenses, all fixed, equalled $289,000. There were no beginning and ending work in process inventories Required: 1. Prepare an income statement. Discon Corporation Income Statement For the Year Ended December 21, XXxxx Selling and administrative expenses
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.
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