Lakeside Inc. produces Product A and Product B that require special machining time. Machine time capacity is 14,510 machine hours per month. Lakeside estimates April demand for each product and provides additional information as follows: Product A Product B April demand Contribution margin Required machine hours 4,100 units $ 699 per unit 3 per unit 3,100 units $ 610 per unit 2 per unit Required: Determine how many units of each product Lakeside should produce to maximize contribution margin in April. Product A Product B Product mix for April production units units
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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