Income Statements, Variable and Absorption Costing The following information pertains to Vladamir, Inc., for last year:
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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Income Statements, Variable and Absorption Costing
The following information pertains to Vladamir, Inc., for last year:
Beginning inventory, units 1,300 Units produced 100,000 Units sold 101,000 Variable costs per unit: Direct materials $8.00 Direct labor $9.00 Variable overhead $2.00 Variable selling expenses $2.00 Fixed costs per year: Fixed overhead $300,000 Fixed selling and administrative expenses $230,000 There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next.
Required:
Question Content Area
1. How many units are in ending inventory?
fill in the blank c14522f82036f92_1 units2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income.
$fill in the blank c14522f82036f92_Question Content Area
Vladamir, Inc.Variable-Costing Income StatementFor Last Year3a. Assume the selling price per unit is $32. Prepare an income statement using variable costing.
$- Select - Less: - Select - - Select - Contribution margin $fill in the blank aba73603203efb3_7 Less: - Select - - Select - Operating income $fill in the blank aba73603203efb3_12 Question Content Area
Vladamir, Inc.Absorption-Costing Income StatementFor Last Year3b. Assume the selling price per unit is $32. Prepare an income statement using absorption costing.
$- Select - - Select - Gross profit $fill in the blank 216ecf042fe8fdb_5 - Select - Operating income $fill in the blank 216ecf042fe8fdb_8
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