The following information is for LaPlanche Industries Inc.: East West Sales volume (units): Product XX 45,000 38,000 Product YY 60,000 50,000 Sales price: Product XX $700 $660 Product YY $728 $720 Variable cost per unit: Product XX $336 $336 Product YY $360 $360 a. Determine the contribution margin for the Product YY.$ b. Determine the contribution margin for the West Region.
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.
The following information is for LaPlanche Industries Inc.:
| East | West | ||
| Sales volume (units): | |||
| Product XX | 45,000 | 38,000 | |
| Product YY | 60,000 | 50,000 | |
| Sales price: | |||
| Product XX | $700 | $660 | |
| Product YY | $728 | $720 | |
| Variable cost per unit: | |||
| Product XX | $336 | $336 | |
| Product YY | $360 | $360 |
a. Determine the contribution margin for the Product YY.
$
b. Determine the contribution margin for the West Region.
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