Haitek Bhd manufactures and sells home-freezer and uses standard costing. Actual data relating to March, April and May 2021 are as follows: Month (a) March April May (b) Other related actual data: Beginning Production Inventory 0 600 600 REQUIRED: Manufacturing cost per unit produced .. Marketing cost per unit sold. 3,000 2,600 3,300 Sales Fixed Manufacturing costs per month .........…... Fixed Operating & marketing costs per month.... Selling price per unit........ (i) (ii) 2,400 2,600 3,450 The budgeted level of production used to calculate the predetermined fixed manufacturing cost per unit is 3,000 units. Any under/over applied fixed manufacturing cost due to change in production volume is charged to the cost of goods sold of the month it occurs. Assume there is no other variances related to fixed manufacturing. $550 $200 $320,000 $95,000 $1,700 Prepare income statements for Haitek in March, April and May 2021 under variable costing absorption costing Explain the difference in operating income for March, April and May under variable costing and absorption costing.
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.
Please no
Thank you
Step by step
Solved in 5 steps with 3 images
