Required: 1-a. Prepare contribution format income statements for April.
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.
Required:
1-a. Prepare contribution format income statements for April.
![Complete this question by entering your answers in the tabs below.
Req 1A
Variable expenses:
Req 1B
Prepare contribution format income statements for April. (Round your "Percentage" answers to 1 decimal place (i.e. .1234 should be entered
as 12.3).)
Total variable expenses
Fixed expenses:
Req 3A
Total fixed expenses
Amount
$
Req 3B
Carbex, Inc.
Income Statement For April
Standard
0
0
%
%
%
%
%
%
0.0 %
0.0 %
Deluxe
Amount
$
0
0
%
%
%
%
%
%
0.0 %
0.0 %
Amount
$
$
Total
0
0
0
0
%
%
%
%
%
%
0.0 %
0.0 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5d7c6df9-9072-40bc-ad85-7ace55fd8504%2F97fee32c-eb0b-4bb4-b970-ccf411e53e70%2F0uwepb_processed.png&w=3840&q=75)
![Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard set and a Deluxe set and sells
them to retail department stores throughout the country. The Standard set sells for $100, and the Deluxe set sells for $115. The variable
expenses associated with each set are given below.
Variable production costs
Sales commissions (35% of sales price)
The company's fixed expenses each month are:
Advertising
Depreciation
Administrative
$ 125,000
$ 27,700
$ 73,000
April
May
Standard
$35.00
$35.00
Mary Parsons, the financial vice president, watches sales commissions carefully and has noted that they have risen steadily over the
last year. For this reason, she was shocked to find that even though sales have increased, profits for the current month-May-are
down substantially from April. Sales, in sets, for the last two months are given below:
Standard De luxe
Total
6,000 4,000
10,000
3,000 7,000 10,000
Deluxe
$50.00
$ 40.25](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5d7c6df9-9072-40bc-ad85-7ace55fd8504%2F97fee32c-eb0b-4bb4-b970-ccf411e53e70%2Fh9l7y2w_processed.png&w=3840&q=75)
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