1 Example: The data for the set-up activity in the microchip manufacturing company are shown as follows: Month Set-up cost Set-up hrs variable fixed January 1,000 100 February 3,800 600 March 2250 300 April 2500 400 May 3850 100 2 In June, total data for microchip production are as follows: microchips produced 100000 pieces sold for 5 pesos per piece variable costs incurred 50000 fixed costs 30000 mixed costs 20000 (an analysis of the mixed costs showed its composition as: fixed 8000 variable 12000 Required:prepare a variable costing income statement calculate the breakeven sales calculate the breakeven volume
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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