Windsor Corp. is a manufacturer of specialty in-line skates. The operating results for 2022 are as follows: Units produced Units sold Selling price Direct materials 19,800 Production information: Direct labour pairs 17,700 pairs $225.00 per pair Variable manufacturing overhead Fixed manufacturing overhead Variable marketing costs Fixed marketing costs $1,049,400 Manufacturing cost $ 742,500 415,800 821,700 177,000 196,900 There was no beginning finished goods inventory. Assume the company uses normal-absorption costing and uses the budgeted volume of 27,390 pairs to allocate the fixed overhead rate rather than the actual production volume of 19,800 pairs. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs. Do the following: 1. Calculate the manufacturing cost per unit. (Round per unit calculations and final answer to 2 decimal places, e.g. 15.25.) per unit 2. Prepare a normal-absorption-costing income statement for 2022. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.) WINDSORCorp. Income Statement-Normal-Absorption Costing
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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