Required information [The following information applies to the questions displayed below.] Red and White Company reported the following monthly data: Units produced Sales price Direct materials Direct labor Variable overhead Fixed overhead 3,900 units $ $ $ 44 per unit 8 per unit 9 per unit $10 per unit $8,970 in total
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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![Required information
[The following information applies to the questions displayed below.]
Red and White Company reported the following monthly data:
Units produced
Sales price
Direct materials.
Direct labor
Variable overhead
Fixed overhead
3,900 units
44 per unit
8 per unit
$
9 per unit
$ 10 per unit
$8,970 in total
$
$
A.) What is red and white's contribution
margin for this month if 1,170 units were sold
b.) what is red and whites net income under
absorption costing if 1170 units are sold and
selling and administrative expenses are
$14,200
c.) what is red and white net income under
variable costing if 1170 units are sold and
operating expenses are $14,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fee124333-d847-425e-be04-fc96a865d87e%2F608400e3-892e-4eb7-8ae9-82b6912bd145%2Fii8657l_processed.jpeg&w=3840&q=75)
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