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 400 $ 52,000 180,000 $ 232,000 $130.00 450.00 $ 580.00 600 $ 78,000 180,000 $ 258,000 $ 130.00 300.00 $ 430.00 750 $ 97,500 180,000 $ 277,500 $ 130.00 240.00 $ 370.00 Riverside sells its canoes for $660 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 scenari 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 e
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
400
Scenario 1 Raises
Sales Price to $760
per Canoe
$ 52,000
180,000
$ 232,000
$ 130.00
450.00
$580.00
600
$ 78,000
180,000
$ 258,000
Contribution Margin Income Statement
$130.00
300.00
$ 430.00
Riverside sells its canoes for $660 each. Next year Riverside expects to sell 1,000 canoes.
Required:
Complete the Riverside's contribution margin income statement for each independent scenarlo. Assuming each scenario is
of Riverside's original data.
Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be ente
12.34 %) and all other answers to the nearest dollar amount.
Scenario 2 Increase
Sales Price and
Variable Cost per
Unit by 10 Percent
750
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$ 97,500
180,000
$ 277,500
$ 130.00
240.00
$ 370.00
Scenario 3
Decrease Fixed
Cost by 20 Percent
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