The contribution margin per unit was:
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.
MANO Company produces a single product. Last year, ABC manufactured 17,000 units and sold 13,000 units. Production cost for th eyear were as follows:
| Direct materials | 153,000 |
| Direct labor | 110,000 |
| Variable manufacturing overhead | 204,000 |
| Fixed manufacturng overhead | 255,000 |
Sales were Php 780,000 for the year, variable selling and administrative expenses were Php 88,400 and fixed selling and administrative were Php 170,000. There was no beginning inventory. Assume the direct labor is a variable cost.
The contribution margin per unit was:
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