Moises Corporation manufactures two products. Cost date related to each product for the year ended December 31, 2021 is shown in the table below: Description Sales Revenues Direct materials Direct labor Manufacturing Overhead (TOTAL) Total units produced Total units sold Variable manufacturing overhead per unit. Product 1 $1,340,000 $300,000 $400,000 $200,000 7,200 6,700 $8.00 Product 2 $2,600,000 $400,000 There were 2,100 units of product 2 in inventory on January 1, 2021 with a total cost of $294,000. Of the total cost of the 2,100 units of product 2 in inventory on January 1, 2021 $130,000 was fixed manufacturing overhead Required: Determine the absorption costing net operating income for year-end December 31, 2021. Description Per unit cost using variable costing Per unit cost using absorption costing $800,000 $300,000 10,900 13,000 $87,200 Determine the variable costing net operating income for year-end December 31, 2021. Determine the per unit costs of product 1 and product 2 by completing the information in the table below: Product 1 Product 2
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.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
