Two different product lines are produced and sold by BANANABA Manufacturing Corp. Data with respect to each product lines follows: Product Banana Selling price/unit Variable cost/unit Original sales mix P5.00 60% 40% P10.00 Babana 4.00 2.00 Monthly fixed cost and expenses - P90,000 Required: 1. Based on the original sales mix: What is the weighted contribution margin per unit? What is the combined units to break-even? How many number of units each product line needs in order to а. b. c. break-even? 2. Suppose the mix is 50% for each product line: What is the weighted contribution margin percentage? What is the combined peso sales of two products needed in order to а. b. earn a total profit of P30,000. C. How much peso sale should each product line be generated?
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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