Question

In: Accounting

You are required to come up with a business that is fit to apply JOB Costing...

You are required to come up with a business that is fit to apply JOB Costing on. That is each product/service/project is unique than the other in its using resources, labor, and other indirect manufacturing costs.

1. You have to give a name for your business.

2. You have to explain the products or services or projects that you provide for your customers.

3. Write the Mission Statement and Vision of your firm

. 4. Come up with at least three strategic and operational objectives.

5. Come up with your Cost Pools and identify appropriate allocation base(s).

6. Give 1 example of one of your products/services/project and apply Job Costing to it. That is, you have to identify how much Direct Material, Direct Labor; and Manufacturing Overhead cost is incurred.

7. Come up with your example’s (6) price to be sold to your customers.

8. Prepare 3-year Forecasted/Budgeted Income Statements, explaining the logic behind your numbers with respect to revenues and expenses as well as interest and tax.

Solutions

Expert Solution

ANSWER:

1. Name of the business.

The name of the business is ‘cleaner’ as it is manufacturing liquid handwash

2. Products that is provided by the company to its customers.

The company is mainly catering the customers with liquid handwash by using it protects hands from germs and keep them hygienically clean. It can be used by all types of people like children, and others.it helps in keeping our family healthy.

3. Mission and Vision statement for the firm.

- The mission statement: ‘ To keep family hygenic and germs free.'

- The vision statement: ‘To become the quick cleaning partner by providing products with highest durability and sustainability.’

4. strategic and operational objectives:

- Strategic Objectives:

a. Growing the shareholder and their earning per share which would eventually increase the value of the company amidst the investors.

b. Increasing revenue and managing the cost so as to increase and maximize the profit as the costs are reduced and kept at the bay.

c. Increasing the customer retention ratio by increasing the value served and this would also help us win more such customers and orders from them again.

- Operational Objectives:

a. Improved production by managing the production unit in the best possible manner and this would increase increasing the production while minimizing the costs while the quality is raised.

b. Better debt management is another operational objective where by the company maximize their profits by proper collection of pending funds, billing, debt-service management and also making good and dependable lines of credit.

c. Increased use of information technology and integrating the various departments and having a real time update the various aspects like production, inventory, debt collection, billing, HR management and the like. And this can also be the use of social marketing and other platforms for increasing the revenue and customer base.

5. Cost pools and allocation bases:

Some of the cost pools and the allocation bases of the same are pointed below:

a. Direct Labor – Number of products produced

b. Direct Material - Number of products produced

c. Manufacturing OH - Number of products produced

6. The product to which I would apply the job costing would be the handwash which are produced and sold by my company.

Direct Material: $0.25

Direct Labor: $3.50

Manufacturing OH: $2

Total: $5.75

7. Price at which the product can be sold to the final consumers:

The product would be sold to the final consumers at the rate of $8 per handwash.

8. 3 year forecast income statements:

Particulars year 1 year 2
sales 64000 76360
expenses:
direct labour 28000 34960
direct material 2000 2760
manufacturing OH 16000 21160
PROFIT AS PER FORECAST 18000 17480

PARTICULARS

YEAR 3

1. Revenue or Sales

97152.00

2. Expenses

   a. Direct Labor

44160

   b. Direct Material

4195.2

   c. Manufacturing OH

28704

3. Profit as per the Forecast

20092.8


Related Solutions

You are required to come up with a business that is fit to apply JOB Costing...
You are required to come up with a business that is fit to apply JOB Costing on. That is each product/service/project is unique than the other in its using resources, labor, and other indirect manufacturing costs. 1. You have to give a name for your business. 2. You have to explain the products or services or projects that you provide for your customers. 3. Write the Mission Statement and Vision of your firm . 4. Come up with at least...
You are required to come up with a business that is fit to apply JOB Costing...
You are required to come up with a business that is fit to apply JOB Costing on. That is each product/service/project is unique than the other in its using resources, labor, and other indirect manufacturing costs. 1. You have to give a name for your business. 2. You have to explain the products or services or projects that you provide for your customers. 3. Write the Mission Statement and Vision of your firm . 4. Come up with at least...
To set up the business, you will be required to purchase an equipment costing $40,000.00. You...
To set up the business, you will be required to purchase an equipment costing $40,000.00. You expect inventory will increase by $9,000 and accounts payable will increase by $5000.All the other working capital components will stay the same. So the change in net operating working capital is $4,000.00 at t= 0. You expect to keep the company for 4 years and you expect to sell 7000.00 units of Pickles at a unit price of $5.00 and believe that both prices...
You are required to come up with a single header file (IntList.h) that declares and implements...
You are required to come up with a single header file (IntList.h) that declares and implements the IntNode class (just copy it exactly as it is below) as well as declares the IntList Class interface only. You are also required to come up with a separate implementation file (IntList.cpp) that implements the member functions of the IntList class. While developing your IntList class you must write your own test harness (within a file named main.cpp). Never implement more than 1...
Identify three problems in a business and come up with a possible solutions to that business...
Identify three problems in a business and come up with a possible solutions to that business problem that is Information Technology (IT)-related.   .
Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to...
Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year. ? Activity Cost Driver Amount of driver setups $240,000 number of setups 6,000 purchasing 160,000 number of parts 20,000 other overhead 300,000 direct labor hours 80,000 ? The following information about the jobs was given for April. ? ? Job 101 Job 102 Job 103 Job 104 Balance 4/1 $64,900 $40,770 $30,500 0 direct...
Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to...
Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year. Activity Cost Driver Amount of driver Setups $240,000 Number of setups 6,000 Purchasing 160,000 Number of parts 20,000 Other overhead 300,000 Direct labor hours 80,000 The following information about the jobs was given for April. Job 101 Job 102 Job 103 Job 104 Balance 4/1 $64,900 $40,770 $30,500 0 Direct materials 54,000 37,900 25,000...
Global Marketing In international marketing, the marketers are required to come up with a decision as...
Global Marketing In international marketing, the marketers are required to come up with a decision as to whether they are going to standardize the product or to modify the existing products which is one of the challenging decisions that they must make. Choose a company that is known internationally and analyze the standardization and adaptation strategies for the marketing mix (4Ps) of a product in both home and chosen country. Please provide the references with your answer. Thanks!
Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs....
Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information for the year is as follows: Activity Cost Driver Amount of Driver Materials handling $81,900 Number of moves 3,500 Engineering 135,150 Number of change orders 8,500 Other overhead 240,000 Direct labor hours 48,000 Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job 13-45 Job 13-46 Beginning balance...
Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs....
Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information for the year is as follows: Activity Cost    Driver Amount of Driver Materials handling $ 72,000      Number of moves 3,000   Engineering 165,000      Number of change orders 10,000   Other overhead 280,000      Direct labor hours 50,000   Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job 13-45 Job 13-46 Beginning...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT