Last year, Regio Company incurred the following costs: Direct materials 50,000 Direct Labor 20,000 Manufacturing overhead 130,000 Selling expense 40,000 Administrative expense 36,000 Regio produced and sold 10,000 units at a price of 31 each. 1. What is the prime cost per unit? 2. What is the conversion cost per unit? 3. What is the cost of goods sold per unit
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.
Last year, Regio Company incurred the following costs:
Direct materials 50,000
Direct Labor 20,000
Manufacturing
Selling expense 40,000
Administrative expense 36,000
Regio produced and sold 10,000 units at a price of 31 each.
1. What is the prime cost per unit?
2. What is the conversion cost per unit?
3. What is the cost of goods sold per unit
4. What is the gross profit per unit?
5. What is the operating income?
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