Preparing variable costing Income Statements, Production exceed sales ReVitalAde produced 13,000 cases of powdered drink mix and sold 12,009 Cases in April 2018. The Sales Price was $29, Variable costs were $12 Per case ($9 manufacturing and selling and administrative), and total fixed costs were $100,000 ($91,900 manufacturing overhead and $9,000 selling and administrative). The company had no beginning Finished Goods Inventory. Requirements Prepare the April income statement using variable costing. Determine the product cost per unit and the total cost of the 1,000 cases in the Finished Goods Inventory as of April 30.
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.
Preparing variable costing Income Statements, Production exceed sales
ReVitalAde produced 13,000 cases of powdered drink mix and sold 12,009 Cases in April 2018. The Sales Price was $29, Variable costs were $12 Per case ($9 manufacturing and selling and administrative), and total fixed costs were $100,000 ($91,900 manufacturing overhead and $9,000 selling and administrative). The company had no beginning Finished Goods Inventory.
Requirements
- Prepare the April income statement using variable costing.
- Determine the product cost per unit and the total cost of the 1,000 cases in the Finished Goods Inventory as of April 30.
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