Maya Company reports the following information for March: View the data. Read the requirements. Data Requirement 1. Calculate the gross profit and operating income for March using absorption costing. Maya Company Income Statement (Absorption Costing) For the Month Ended March 31 Net Sales Revenue Variable Cost of Goods Sold 72,500 24,500 Fixed Cost of Goods Sold 8,400 Variable Selling and Administrative Costs 9,500 Fixed Selling and Administrative Costs 5,800 Operating Income Print Done Requirements 1. Calculate the gross profit and operating income for March using absorption costing. 2. Calculate the contribution margin and operating income for March using variable costing. - X
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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