For your first writing assignment: Think about a product you would like to manufacture. It doesn't...

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For your first writing assignment: Think about a product you would like to manufacture. It doesn't have to be real, it can be anything you want. Then, list the costs involved in making that product and classify them as product or period costs. Make up some numbers for materials and labor and transfer costs to Work In Process, Finished Goods and then to Cost of Goods Sold using the same format as the examples in your book. For example: I would like to make and sell key fobs. What would be my costs? I need fabric, the hardware, a sewing machine, thread, pliers, a place to sew and a place to sell them. Fabric is about $8 a yard and I can get 50 fobs from a yard. I also need interfacing, which is about the same price. So that comes to 80 cents per fob. The hardware costs about 20 cents each. Make a table - one column is the stuff - fabric, thread, etc. The second column list the cost of that stuff. The third column use to classify each item as product or period. Then decide how many you'll make in a month, take your numbers and make journal entries for work in process, finished goods - when the product is completed - and then the journal entry for when you sell them. This shouldn't be more than 2 pages long Writing assignment two - Suppose a customer offers you a huge contract for your product (from the first assignment). This customer will pay you 10% less than your normal charge, but will order 5,000 units of your product. Using CVP analysis and the costs that you established in Assignment One, should you take the offer or not? (This is a "special order" decision.) This requires you to think about the costs - will you lose money - along with other considerations - is this a customer who will bring enough business in the future to make it worth losing money now? Is it your favorite uncle and you can't say no and still be invited to the family reunion? :) This assignment should be no more than a page, write your conclusion and show how you reached it. Writing assignment three - using the same information you've established previously, create a master budget for the next quarter. Please use excel for this one. For your first writing assignment: Think about a product you would like to manufacture. It doesn't have to be real, it can be anything you want. Then, list the costs involved in making that product and classify them as product or period costs. Make up some numbers for materials and labor and transfer costs to Work In Process, Finished Goods and then to Cost of Goods Sold using the same format as the examples in your book. For example: I would like to make and sell key fobs. What would be my costs? I need fabric, the hardware, a sewing machine, thread, pliers, a place to sew and a place to sell them. Fabric is about $8 a yard and I can get 50 fobs from a yard. I also need interfacing, which is about the same price. So that comes to 80 cents per fob. The hardware costs about 20 cents each. Make a table - one column is the stuff - fabric, thread, etc. The second column list the cost of that stuff. The third column use to classify each item as product or period. Then decide how many you'll make in a month, take your numbers and make journal entries for work in process, finished goods - when the product is completed - and then the journal entry for when you sell them. This shouldn't be more than 2 pages long Writing assignment two - Suppose a customer offers you a huge contract for your product (from the first assignment). This customer will pay you 10% less than your normal charge, but will order 5,000 units of your product. Using CVP analysis and the costs that you established in Assignment One, should you take the offer or not? (This is a "special order" decision.) This requires you to think about the costs - will you lose money - along with other considerations - is this a customer who will bring enough business in the future to make it worth losing money now? Is it your favorite uncle and you can't say no and still be invited to the family reunion? :) This assignment should be no more than a page, write your conclusion and show how you reached it. Writing assignment three - using the same information you've established previously, create a master budget for the next quarter. Please use excel for this one.