Product Tango has revenue of $194,600, variable cost of goods sold of $114,200, variable selling expenses of $32,800, and fixed costs of $60,200, creating an operating loss of $(12,600). a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue Product Tango (Alt. 1) or Discontinue Product Tango (Alt. 2) February 13 Continue Product Tango (Alternative 1) Discontinue Product Tango (Alternative 2) Differential Effects (Alternative 2) Revenues $fill in the blank 6c51bc020070005_1 $fill in the blank 6c51bc020070005_2 $fill in the blank 6c51bc020070005_3 Costs: Variable cost of goods sold fill in the blank 6c51bc020070005_4 fill in the blank 6c51bc020070005_5 fill in the blank 6c51bc020070005_6 Variable selling and admin. expenses fill in the blank 6c51bc020070005_7 fill in the blank 6c51bc020070005_8 fill in the blank 6c51bc020070005_9 Fixed costs fill in the blank 6c51bc020070005_10 fill in the blank 6c51bc020070005_11 fill in the blank 6c51bc020070005_12 Profit (Loss) $fill in the blank 6c51bc020070005_13 $fill in the blank 6c51bc020070005_14 $fill in the blank 6c51bc020070005_15 b. Determine if Product Tango should be continued (Alternative 1) or discontinued
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.
Product Tango has revenue of $194,600, variable cost of goods sold of $114,200, variable selling expenses of $32,800, and fixed costs of $60,200, creating an operating loss of $(12,600).
a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.
| Differential Analysis | |||
| Continue Product Tango (Alt. 1) or Discontinue Product Tango (Alt. 2) | |||
| February 13 | |||
| Continue Product Tango (Alternative 1) |
Discontinue Product Tango (Alternative 2) |
Differential Effects (Alternative 2) |
|
| Revenues | $fill in the blank 6c51bc020070005_1 | $fill in the blank 6c51bc020070005_2 | $fill in the blank 6c51bc020070005_3 |
| Costs: | |||
| Variable cost of goods sold | fill in the blank 6c51bc020070005_4 | fill in the blank 6c51bc020070005_5 | fill in the blank 6c51bc020070005_6 |
| Variable selling and admin. expenses | fill in the blank 6c51bc020070005_7 | fill in the blank 6c51bc020070005_8 | fill in the blank 6c51bc020070005_9 |
| Fixed costs | fill in the blank 6c51bc020070005_10 | fill in the blank 6c51bc020070005_11 | fill in the blank 6c51bc020070005_12 |
| $fill in the blank 6c51bc020070005_13 | $fill in the blank 6c51bc020070005_14 | $fill in the blank 6c51bc020070005_15 |
b. Determine if Product Tango should be continued (Alternative 1) or discontinued
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