User Account

All Pages

Explain what is involved in a product costing system

Assignment Help Managerial Accounting
Reference no: EM131175840

Question:

You, the managerial accountant, are asked by the CFO (Mr. Smith) of Wilson-West Manufacturing (a new company) to set up a product costing system.

The following are the types of expenses that will be included:

Direct labor
Direct materials
Utilities
Depreciation
Maintenance
Insurance on the equipment
Rent on the plant
Administrative salaries

Rent for the office

In a memo format, explain to Mr. Smith and the president what will be included in product costing.

Explain what is involved in a product costing system.

Explain why Wilson-West Manufacturing needs to have a product costing system.

Allocate the above expenses as fixed, mixed, or variable expenses.

Prepare calculations for the following, and explain your computations:

Variable cost: The unit rate is $0.25, and the actual hours used for manufacturing are 15,000.

Mixed cost: The unit rate is $0.25, actual hours are 10,000, and the fixed cost is $5,000 per month.

Total cost: Use your calculations from above.

Explain this to Mr. Smith who will prepare these calculations on a monthly basis.

Verified Expert

This document is written in word where we have built a memorandum to help a manufacturing company analyse its cost and inventory. The concepts of economics are involved like fixed cost, variable cost, profits. The word limit of 350 words is answered and all the questions are answered in memorandum. The work is original work.

Reference no: EM131175840

Questions Cloud

What is the required return for genesis energy shareholders : Calculate the required rate of return for Genesis Energy using the capital asset pricing model (CAPM). What is the required return for Genesis Energy shareholders?
Explain the principle value of two vision statements : Explain the principle value of two vision statements. Explain the principle value of two mission statements. Compare and contrast vision statements of each organization in terms of composition and importance
What changes might be made to achieve an advantage : If you were to compare your firm or organization to its closest competitor what would differentiate it, why, and what changes might be made to achieve an advantage?
Evaluate target customer segments and positioning products : Determine the primary and secondary target markets for your company. Next, analyze the primary and secondary target markets that you identified for your company. Be sure to cover the 4Ps, 5Cs and STP.
Explain what is involved in a product costing system : You, the managerial accountant, are asked by the CFO (Mr. Smith) of Wilson-West Manufacturing (a new company) to set up a product costing system
Identify factors free range should review before deciding : Identify the factors Free Range should review before deciding to go international. Make a recommendation for Free Range on how it should restructure to take its operations global.
Advise dan whether he is entitled to compensation : Advise Dan whether he is entitled to compensation from Toff Dry Cleaners - Dan is entitled to compensation for the loss of his dinner suit and the stained silk dress.
Prepare the consolidated statements for the p ltd : Prepare the following consolidated statements for the P Ltd Group for the reporting period ended 30 June 2012.- Consolidated statement of financial position.- Consolidated statement of changes in equity.
Explain how you would apply the segmentation : Indicate the competition of the product category in both home and foreign markets. Explain how you would apply the segmentation, targeting, and positioning (STP) approach to market the product in the foreign market

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Assume that your companys sales staff provides information

assume that your companys sales staff provides information on expected sales and selling prices for items making up the

  Compute plantwide overhead rates

What is the company's single plantwide overhead rate based on direct labor hours and what is the company's single plantwide overhead rate based on machine hours?

  Important information on managerial accounting

The allowance for uncollectible accounts currently has a credit balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger, the company's management estimates that uncollectible accounts will be $15,000.

  Compute the overhead volume variance for november

P3 Refer to information in QS23-19. Compute the overhead volume variance for November.

  The value of each cost element

Chelsea Household Renovations (CHR) is a rapidly growing company that has not been profitable despite increases in sales.

  Seek out a conversation with a friend relative classmate

seek out a conversation with a friend relative classmate co-worker or instructor. attempt to engage them in a

  Return on investment components

Return On Investment measurement issues.. Green Company has prepared the following information for three of its divisions:

  Calculate the net income earned and the taxes

Calculate the net income earned and the taxes that would have to be paid in each year if the new venture is formed as a corporation.

  Cost tracing-allocation-drivers and related issues

Describe the importance of cost tracing? Cost Allocation? How do they differ and how are them similar? Describe a cost driver? Select a day to day event that you may use these tools to properly budget yourself, and to see where you might be oversp..

  How should these centers be organized

How should these centers be organized: as cost centers, profit centers, or investment centers? Support your answer.

  What factors could possibly explain this shift

To get an overall picture of each company's capital structure it is helpful to see a chart that summarizes the company's capital structure over the past decade.

  Determine the cost per equivalent unit for direct materials

Determine the cost per equivalent unit for direct materials and for conversion costs using the weighted-average method.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd