Define job order and process costing

Assignment Help Other Subject

Reference no: EM133928729

Cookie Business

Assignment Objective: In this project, you will be opening your own specialty cookie company to see how product costing methods and changes in production affect business decisions. You will be creating a series of reports and analyzing the results using the template provided to guide you through the project. You will:

Gain an understanding of product costing (direct materials, direct labor, and overhead).
Review job order costing.
Review process costing.
Make business decisions based on analyzing accounting data.

Part 1: Establish a cookie business selling only one type of specialty cookie with two employees making the cookies.

Create a name and establish a location for the business.
Construct a mission statement for the business.
Decide on the type of cookie you want to make and sell.

Part 2: Develop costing and sales information for 1,000 cookies (this is the first and only order).
Estimate and explain the cost per cookie based on job order costing (manufacturing overhead is 30% of direct labor costs). Prepare a job order cost sheet by researching and identifying the top five ingredients and their estimated costs as your direct materials. Research and identify the cost of wages for your two employees as your direct labor. It typically takes two days to make 1,000 cookies.
For process costing, examine the costs per 1,000 cookies looking at these top three processes (departments): Mixing, Add-ins, Packaging.
The Mixing Department will be examined in depth (only do this department).
All materials will be added in at the beginning of the process.
The cookies will be in the Mixing Department for a total of 8 hours (use two employees, 4 hours each as your direct labor). The cookies will be 100% complete with respect to materials, and only be 40% complete with respect to conversion costs (labor and overhead) before they are transferred to the Add-ins Department. Manufacturing overhead is 30% of direct labor costs. Get expert online assignment help in the USA.
Estimate and explain the sales price you plan to set per cookie based on the cost data.

Part 3: Define job order and process costing. Then, compare and contrast the costing methods used in this project (job order vs. process costing), including which you believe provides the most useful information as a manager.

Part 4: Discuss what will happen to revenue if the number of the cookies sold increases or decreases.

Reference no: EM133928729

Questions Cloud

Calculate the expenses to determine what will change : Calculate the expenses to determine what will change and what will remain the same. Summarize your rationale, within each line item expense.

What can you find to share about the accounting profession : Discuss the differences between financial and managerial accounting. What types of documents are prepared by business organization using financial

Write a function that computes summary statistics : Write a function that computes summary statistics for any given dataset. Apply this function to the penguins dataset, generating statistics for each species

Summarize your results and present justification : Summarize your results and present justification of the best decision strategy and provide any recommendation to the client company.

Define job order and process costing : Define job order and process costing. Then, compare and contrast the costing methods used in this project - Discuss what will happen to revenue if the number

Relabel or change the names of any information : Provide a brief summary of why you chose this specific process/mind map, specifically how might this benefit your accountant internship site

Explain how you will apply each concept in your automotive : Explain how you will apply each concept in your automotive technology classroom. Be sure to support each concept application with relevant examples.

Develop comprehensive methodological frameworks : Develop comprehensive methodological frameworks that address multiple research questions, providing a unified approach to addressing these questions

Calculate the current dividend yield on the stock : Calculate the current dividend yield on the stock and Calculate the required rate of return (Ke) for an investment in the common stock

User Account

All Pages