Harris Company manufactures and sells a single product. A partially completed schedule of the company’s total costs and costs per unit over the relevant range of 56,000 to 96,000 units is given below: Required: 1. Complete the schedule of the company’s total costs and costs per unit as given in the relevant tab below. 56,000 units produced and sold 76,000 units produced and sold 96,000 units produced and sold Total Cost variable cost $151,200 Fixed Cost 350,000 Total Cost $501,200 Cost per unit variable cost
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.
Harris Company manufactures and sells a single product. A partially completed schedule of the company’s total costs and costs per unit over the relevant range of 56,000 to 96,000 units is given below:
Required:
1. Complete the schedule of the company’s total costs and costs per unit as given in the relevant tab below.
| 56,000 units produced and sold | 76,000 units produced and sold | 96,000 units produced and sold | |
|
Total Cost |
|||
| variable cost | $151,200 | ||
| Fixed Cost | 350,000 | ||
| Total Cost | $501,200 | ||
| Cost per unit | |||
| variable cost | |||
| fixed cost | |||
| Total Cost Per Unit |
2. Assume that the company produces and sells 86,000 units during the year at a selling price of $8.31 per unit. Prepare a contribution format income statement for the year.
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