ACCT351 Unit 4-IP

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Writing

Description

Develop a company and determine what it will produce and sell. The requirement for this company is that it be a high-end, special-order type of manufactured product. Complete the following in a Word document of 1,000 words:

  • Develop a list of inputs along with their associated costs, such as labor, materials, and overhead. You can research this information, make it up, or do a combination of both. Be specific as to costs.
  • You are to determine the selling price. Show your calculations, and discuss why you have determined this to be a good sale price.
  • How many items of your product will you need to produce to meet this sale price? How did you calculate this?
  • Determine which of the costing systems discussed in this class will work best for your company. Explain why.
  • o Explain why those not chosen were not a good fit for your company.

    o You must explain "why not chosen" for a minimum of 3 costing methods.

  • Please devote at least 1 paragraph to the ethical considerations of costing methods.
  • User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

    Explanation & Answer

    Attached.

    Running Head: COST ACCOUNTING METHODS

    Cost Accounting Methods
    Name
    Instructor
    Institutional Affiliation
    Date

    1

    2

    COST ACCOUNTING METHODS

    ABC is a high end company specializing in manufacturing household goods. The
    company has been operating in the market for a period of three years manufacturing and selling
    household electronics both directly and indirectly to the customers. The company distributes to
    the wholesalers and retailers at the same time sell to the end customer directly. The company
    inputs include resources such as people, raw materials, manufacturing plant, computer systems,
    information, and finance that are put into the system to enhance the operational efficiency of the
    company. It is imperative to understand that these resources should be allocated their associated
    costs to help the company plan more effectively. The following are the cost allocation for the
    company inputs.
    Inputs
    Direct Labor
    Raw Materials
    Manufacturing Plant Machinery & Equipment
    Inventory
    Factory Overheads

    Associated costs
    $ 300
    $ 500
    $ 100
    $ 500
    $ 200

    The cost assignment, in this case, relates to the company-specific input and their level of
    importance within the company. Manufacturing plant, machinery, and equipment have been
    assigned high cost because they play a critical role in the production process. On the same note,
    raw materials are ass...


    Anonymous
    Very useful material for studying!

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