Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product lines: Restorative and Power. The following information relates to its first year of operations: TE Restorative Power Unit Sales Price $180 $95 Variable Cost Percentage 70% 65% Traceable Fixed Costs $260,000 $118,000 During the year, 12,000 units of Restorative and 10,500 units of Power were sold. Total common fixed costs of $90,000 were allocated to the product lines based on their respective percentage of total unit sales. Based on the above data, on which amounts should the performance of the two product lines be judged? O A. Restorative $1,252,000; Power $530,375 O B. Restorative $340,000; Power $169,125 OC. Restorative $1,852,000; Power $817,500 O D. Restorative $388,000; Power $231,125 O E. Restorative $680,000; Power $494,500
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.
![Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product lines: Restorative and Power. The following information relates to its first year of operations:
Restorative
Power
Unit Sales Price
$180
$95
Variable Cost Percentage
70%
65%
Traceable Fixed Costs
$260,000
$118,000
During the year, 12,000 units of Restorative and 10,500 units of Power were sold. Total common fixed costs of $90,000 were allocated to the product lines based on their respective percentage of total unit sales.
Based on the above data, on which amounts should the performance of the two product lines be judged?
O A. Restorative $1,252,000; Power $530,375
B. Restorative $340,000; Power $169,125
C. Restorative $1,852,000; Power $817,500
D. Restorative $388,000; Power $231,125
E. Restorative $680,000; Power $494,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2cd2d99-516c-4b65-8e09-74f02c50df79%2F7fc08438-f809-4a45-a775-2892aa4e4584%2Fgs2lj6c_processed.png&w=3840&q=75)
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