Determine the total cost of each three scenarios

Reference no: EM131209322

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.

Reference no: EM131209322

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