Please give me step by step instruction on how to get cost of goods manufactured using the following: Cost of Goods Manufactured, using Variable and Absorption Costing On June 30, the end of the first year of operations, Johnson Industries, Inc., manufactured 6,100 units and sold 5,200 units. The following income statement was prepared, based on the variable costing concept: Johnson Industries, Inc.Variable Costing Income StatementFor the Year Ended June 30, 2016 Sales $1,300,000 Variable cost of goods sold: Variable cost of goods manufactured $732,000 Less inventory, June 30 108,000 Variable cost of goods sold 624,000 Manufacturing margin $676,000 Variable selling and administrative expenses 156,000 Contribution margin $520,000 Fixed costs: Fixed manufacturing costs $335,500 Fixed selling and administrative expenses 104,000 439,500 Income from operations $80,500 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing $ Absorption costing $ Liz C
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.
Please give me step by step instruction on how to get cost of goods manufactured using the following:
Cost of Goods Manufactured, using Variable and Absorption Costing
On June 30, the end of the first year of operations, Johnson Industries, Inc., manufactured 6,100 units and sold 5,200 units. The following income statement was prepared, based on the variable costing concept:
| Johnson Industries, Inc. Variable Costing Income Statement For the Year Ended June 30, 2016 |
||||
| Sales | $1,300,000 | |||
| Variable cost of goods sold: | ||||
| Variable cost of goods manufactured | $732,000 | |||
| Less inventory, June 30 | 108,000 | |||
| Variable cost of goods sold | 624,000 | |||
| Manufacturing margin | $676,000 | |||
| Variable selling and administrative expenses | 156,000 | |||
| Contribution margin | $520,000 | |||
| Fixed costs: | ||||
| Fixed manufacturing costs | $335,500 | |||
| Fixed selling and administrative expenses | 104,000 | 439,500 | ||
| Income from operations | $80,500 |
Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.
| Variable costing | $ |
| Absorption costing | $ |
Liz C
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