ACCT 221 help A Guide to career/Snaptutorial ACCT 221 help A Guide to career/Snaptutorial | Page 15

Instructions
(a)
Identify the types of costs that would likely be involved in
making this product.
(b)
Set up five columns as indicated.
Product Costs
.
Item
Direct Materials
Overhead
Period Costs
Direct Labor
Manufacturing
Classify the costs you identified in (a) into the manufacturing cost
classifications of product costs (direct materials, direct labor, and
manufacturing overhead) and period costs.
(c)
Assign hypothetical monthly dollar figures to the costs you
identified in (a) and (b).
(d)
Assume you have no raw materials or work in process
beginning or ending inventories. Prepare a projected cost of goods
manufactured schedule for the first month of operations.
(e)
Project the number of helmets you expect to produce the first
month of operations. Compute the cost to produce one bicycle helmet.
Review the result to ensure it is reasonable; if not, return to part (c)
and adjust the monthly dollar figures you assigned accordingly.
(f)
What type of cost accounting system will you likely use—
job order or process costing?
(g)
Explain how you would assign costs in either the job order
or process costing system you plan to use.
(h)
Classify your costs as either variable or fixed costs. For
simplicity, assign all costs to either variable or fixed, assuming there
are no mixed costs, using the format shown.
Item
Variable Costs Fixed Costs
Total Costs