please answer within the format by providing formula the detailed working Please provide answer in text (Without image) Please provide answer in text (Without image) Please provide answer in text (Without image) Variable and Absorption Costing-Service Company Jensen's Tailoring provides custom tailoring services. After the company's first year of operations, its owner prepared the following summarized data report: Sales (500 completed jobs) $100,000 Tailoring costs (550 jobs) Direct labor 47,000 Manufacturing overhead Variable 12,000 Fixed 9,000 Operating expenses Variable 5,600 Fixed 5,800 a. Prepare an income statement based on full absorption costing. b. Prepare an income statement based on variable costing. c. Assume that you must decide quickly whether to accept a special one-time order to alter 50 band costumes for $125 per costume. Which income statement presents the most relevant data? Determine the apparent profit or loss on the special order based solely on these data.
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.
please answer within the format by providing formula the detailed working
Please provide answer in text (Without image)
Please provide answer in text (Without image)
Please provide answer in text (Without image)
Variable and Absorption Costing-Service Company
Jensen's Tailoring provides custom tailoring services. After the company's first year of operations, its owner prepared the following summarized data report:
| Sales (500 completed jobs) | $100,000 | |||||
| Tailoring costs (550 jobs) | ||||||
| Direct labor | 47,000 | |||||
| Manufacturing overhead | ||||||
| Variable | 12,000 | |||||
| Fixed | 9,000 | |||||
| Operating expenses | ||||||
| Variable | 5,600 | |||||
| Fixed | 5,800 |
a. Prepare an income statement based on full absorption costing.
b. Prepare an income statement based on variable costing.
c. Assume that you must decide quickly whether to accept a special one-time order to alter 50 band costumes for $125 per costume.
Which income statement presents the most relevant data?
Determine the apparent profit or loss on the special order based solely on these data.
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