Pacific Inc. has provided the following data for the latest quarter of the most recent year: Sales $300,000 Fixed manufacturing overhead 55,000 Direct labour 72,500 Fixed selling expense 46,250 Variable manufacturing overhead 41,000 Variable administrative expense 48,000 Direct materials 51,500 Fixed administrative expense 44,500 Variable selling expense 49,750 Assume that direct labour is a variable cost and that there was no beginning or ending inventories. The gross margin (loss) for Pacific for the latest quarter was? Multiple Choice $(12,500). $80,000. $131,500. $135,000.
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.
Pacific Inc. has provided the following data for the latest quarter of the most recent year:
| Sales | $300,000 |
| Fixed manufacturing |
55,000 |
| Direct labour | 72,500 |
| Fixed selling expense | 46,250 |
| Variable manufacturing overhead | 41,000 |
| Variable administrative expense | 48,000 |
| Direct materials | 51,500 |
| Fixed administrative expense | 44,500 |
| Variable selling expense | 49,750 |
Assume that direct labour is a variable cost and that there was no beginning or ending inventories.
The gross margin (loss) for Pacific for the latest quarter was?
Multiple Choice
-
$(12,500).
-
$80,000.
-
$131,500.
-
$135,000.
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