Units Produced and Sold 40,000 50,000 60,000 Total costs: Variable costs 280,000 Fixed costs Total costs Cost unit: per Variable costs 11.00 Fixed costs Total cost per unit %24
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.
Harris Company manufactures and sells a single product. A partially completed schedule of the company's total and per-unit costs over the relevant range of 40,000 to 60,000 units produced and sold is given in the picture:
a) Assume that the company produces and sells 55,000 units during a year at a selling price of $18 per unit. Prepare contribution margin income statement
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