Sales (10,500 units) $1,470,000 Production costs (14,000 units): Direct materials $725,200 Direct labor 348,600 Variable factory overhead 173,600 Fixed factory overhead 116,200 1,363,600 Selling and administrative expenses: Variable selling and administrative expenses $211,400 Fixed selling and administrative expenses 81,800 293,200 f required, round interim per-unit calculations to the nearest cent.
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.
Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August
Prepare an income statement according to the variable costing concept
![**Shawnee Motors Inc.**
**Absorption Costing Income Statement**
*For the Month Ended August 31*
- **Sales:** $1,470,000
- **Cost of Goods Sold:** [Blank input]
- **Gross Profit:** [Blank input]
- **Selling and Administrative Expenses:** $293,200
- **Income from Operations:** [Blank input]
There is a note indicating that the "Cost of goods sold" amount was incorrectly entered or is missing, as shown by an "X" next to the blank. The check marks indicate correct or verified entries for their respective fields.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdefcfa59-3cac-495b-a116-a9b73867574c%2Fe6314ece-0d58-4437-8b8a-3a188b8d31ff%2Fo25f7_processed.png&w=3840&q=75)
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