Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Unit contribution margin Contribution margin ratio i Contribution margin Net operating income 550 Scenario 1 Raises Sales Price to $560 per Cance $ 110,000 99,000 $ 209,000 $ 200.00 100.00 $380.00 750 $ 150,000 99,000 $ 249,000 Riverside sells its canoes for $460 each. Next year Riverside expects to sell 1,000 canoes Required: Complete the Riverside's contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riverside's original data. Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be entered as 12.34%) and all other answers to the nearest dollar amount. Contribution Margin Income Statement $ 200.00 132.00 $ 332.00 Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent 900 $ 180,000 99,000 $ 279,000 $ 200.00 110.00 $ 310.00 Scenario 3 Decrease Fixed Cost by 20 Percent
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.
![Riverside Incorporated makes one model of wooden canoe. Partial information for it follows:
Number of Canoes Produced and Sold
Total costs
Variable costs
Fixed costs
Total costs:
Cost per unit
Variable cost per unit
Fixed cost per unit.
Total cost per unit
Unit contribution margin
Contribution margin ratio i
Contribution margin
Net operating income
550
Scenario 1 Raises
Sales Price to $560
per Canoe
$ 110,000
99,000
$ 209,000
$ 200.00
180.00
$ 380.00
750
$ 150,000
99,000
$ 249,000
Riverside sells its canoes for $460 each. Next year Riverside expects to sell 1,000 canoes
Required:
Complete the Riverside's contribution margin income statement for each independent scenario. Assuming each scenario is a variation
of Riverside's original data.
Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be entered as
12.34%) and all other answers to the nearest dollar amount.
Contribution Margin Income Statement
$ 200.00
132.00
$ 332.00
Scenario 2 Increase
Sales Price and
Variable Cost per
Unit by 10 Percent
900
%
$ 180,000
99,000
$ 279,000
$ 200.00
110.00
$ 310.00
Scenario 3
Decrease Fixed
Cost by 20 Percent
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