The following information is for Bullwinkle Industries Inc.: Line Item Description East West Sales volume (units): Product Alpha 45,000 38,000 Product Omega 60,000 50,000 Sales price: Product Alpha $500 $600 Product Omega $250 $225 Variable cost per unit: Product Alpha $275 $275 Product Omega $140 $140 a. Determine the contribution margin for the East Region and West Region. East Region: fill in the blank 1 of 2$ West Region: fill in the blank 2 of 2$ b. Determine the contribution margin ratio for the East Region and West Region. Round the contribution margin ratio to one-tenth of a percent. East Region: fill in the blank 1 of 2% West Region: fill in the blank 2 of 2%
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.
The following information is for Bullwinkle Industries Inc.:
| Line Item Description | East | West |
|---|---|---|
| Sales volume (units): | ||
| Product Alpha | 45,000 | 38,000 |
| Product Omega | 60,000 | 50,000 |
| Sales price: | ||
| Product Alpha | $500 | $600 |
| Product Omega | $250 | $225 |
| Variable cost per unit: | ||
| Product Alpha | $275 | $275 |
| Product Omega | $140 | $140 |
a. Determine the contribution margin for the East Region and West Region.
East Region: fill in the blank 1 of 2$
West Region: fill in the blank 2 of 2$
b. Determine the contribution margin ratio for the East Region and West Region. Round the contribution margin ratio to one-tenth of a percent.
East Region: fill in the blank 1 of 2%
West Region: fill in the blank 2 of 2%
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
