Superite expects April sales of its deluxe model airplane, the C-14, to be 408,000 units at $11 each. Each C-14 requires three purchased components shown below. Number Needed Purchase Cost for Each C-14 Unit А-9 $.50 1 В-6 .25 2 D-28 1.00 3 Factory direct labor and variable overhead per unit of C-14 totals $3.00. Fixed factory overhead is $1.00 per unit at a production level of 500,000 units. Superite plans the following beginning and ending inventories for the month of April and uses standard absorption costing for valuing inventory.
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.
![Superite expects April sales of its deluxe model airplane, the C-14, to be 408,000 units at $11
each. Each C-14 requires three purchased components shown below.
Number Needed
Purchase Cost for Each C-14 Unit
А-9
$.50
1
В-6
.25
2
D-28
1.00
3
Factory direct labor and variable overhead per unit of C-14 totals $3.00. Fixed factory overhead is
$1.00 per unit at a production level of 500,000 units. Superite plans the following beginning and
ending inventories for the month of April and uses standard absorption costing for valuing
inventory.
Part No.
Units at April 1
Units at April 30
С-14
12,000
10,000
А-9
21,000
9,000
В-6
32,000
10,000
D-28
14,000
6,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F938b1266-8925-4eee-89e4-830667bf2ee4%2F251e0d1b-e999-444c-85b0-4bf5eb43996a%2Fvwp4upv_processed.png&w=3840&q=75)
![The budgeted unit production of C-14 for April will be
A. 408,000 units.
B. 406,000 units.
C. 410,000 units.
D. 330,000 units.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F938b1266-8925-4eee-89e4-830667bf2ee4%2F251e0d1b-e999-444c-85b0-4bf5eb43996a%2F7cy9bb_processed.png&w=3840&q=75)
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