The Sunset company, Inc. manufactures and sells a unique product. The following table presents the tota and unit costs within a relevant level of 30,000 to 60,000 units produced and sold annually. 1. Complete the information in the table. Total Costo Fixed Costs Variable Costs Total Cost Unit Cost Unit Fixed Cost Unit Variable Cost Total Unit Cost Units manufactured and sold 37,000 $ 90,000 $196,000 $286,000 48,000 53,000 2. Prepare an Income Statement in contribution format for a production level of 60,000 units per year sold at $50 each.
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.
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