Complete the three sets of nine yellow boxes shown above, for each of the standard, LIFO and ABC costing methods.
|
|
Standard Cost |
|
|
|
LIFO |
|
|
|
ABC |
|
|
Customer 1 |
Customer 2 |
Total |
|
Customer 1 |
Customer 2 |
Total |
|
Customer 1 |
Customer 2 |
Total |
| Prior Year Standard Cost per Unit |
|
|
$1,800 |
|
|
|
$1,800 |
|
|
|
$1,800 |
| Current Year Standard Cost per Unit |
|
|
$2,000 |
|
|
|
$2,000 |
|
|
|
$2,000 |
| Current Year Production Volume |
|
|
14,500 |
|
|
|
14,500 |
|
|
|
14,500 |
| Current Year Sales Volume |
9,500 |
5,200 |
14,700 |
|
9,500 |
5,200 |
14,700 |
|
9,500 |
5,200 |
14,700 |
| Number of Orders |
300 |
400 |
|
|
300 |
400 |
|
|
300 |
400 |
700 |
| Unabsorbed Cost |
|
|
$200,000 |
|
|
|
$200,000 |
|
|
|
$200,000 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
$32,000,000 |
$21,000,000 |
$53,000,000 |
|
$32,000,000 |
$21,000,000 |
$53,000,000 |
|
$32,000,000 |
$21,000,000 |
$53,000,000 |
| Cost |
|
|
|
|
|
|
|
|
|
|
|
| Profit |
|
|
|
|
|
|
|
|
|
|
|
| Profit Margin Percent |
|
|
|
|
|
|
|
|
|
|
|
Determine the total cost of each three scenarios above, and allocate to customer.
Notes:
1. Complete the three sets of nine yellow boxes shown above, for each of the standard, LIFO and ABC costing methods.
2. Hint: Total Cost is Cost of Goods Sold plus the Unabsorbed.
3. Standard Cost and LIFO will use the same basis for allocation to customer.
4. ABC should use the most relevant method to allocate to customer.
5. Profit = Revenue - Cost
6. Profit Margin Percent = Profit/Revenue
For each of the graphs below, what is being depicted: Fixed Cost or Variable Cost? Enter in Yellow Box.