Jayleen company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows: Units produced and sold of Carpet Kleen = 5,000 Units produced and sold of Floor Deodorizer = 4,000 Machine hours used for Carpet clean = 5,000 Machine hours used for Floor Deodorizer = 1,000 Sales price per unit of carpet clean = $9 Sales price per unit of Floor Deodorizer = $15 Variable cost per unit of Carpet Clean = $7 Variable cost per unit of Floor deodorizer = $13 Fixed costs of $37,000 per year are presently allocated equally between both products. If the product mix were to changed, total fixed costs would remain the same. Assuming there is unlimed demand for both products and Jaleen has 18,500 hours available, how many units of each product should be produced and sold?
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.
Jayleen company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows:
Units produced and sold of Carpet Kleen = 5,000
Units produced and sold of Floor Deodorizer = 4,000
Machine hours used for Carpet clean = 5,000
Machine hours used for Floor Deodorizer = 1,000
Sales price per unit of carpet clean = $9
Sales price per unit of Floor Deodorizer = $15
Variable cost per unit of Carpet Clean = $7
Variable cost per unit of Floor deodorizer = $13
Fixed costs of $37,000 per year are presently allocated equally between both products. If the product mix were to changed, total fixed costs would remain the same.
Assuming there is unlimed demand for both products and Jaleen has 18,500 hours available, how many units of each product should be produced and sold?
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