ITEM Cost per Unit Classification

Fabric $$0\mathrm{.}80$  Product

Interfacing $$0\mathrm{.}80$  Product

Hardware $$0\mathrm{.}80$  Product

Sewing Machine Monthly Cost Period

Thread Monthly Cost Period

Pliers One$-$time Cost Product

Workspace Rental Monthly Cost Period

Sales Venue Rental Monthly Cost Period

Monthly Costs :

Fabric and Interfacing: $60$ hair tie per yard

Hardware : $1$ per hair tie

Planing to make $500$ hair tie in a month

Fabric and Intefacing Cost :$($$$0\mathrm{.}80/1$ hair tie $)$x$500$ hier tie

Fabric and Interfacing Cost :$=$  $$0\mathrm{.}80$  x$500$ 

 $1$ 

:$$400$ 

Hardware Cost : $$0\mathrm{.}20$x$500$ 

:$$100\mathrm{.}00$ 

Total Product Costs

Total Product costs : Fabric and Interfacing Cost $+$ Hardaware Cost

:$$400+100$ 

:$$500$ 

Monthly Period Cost : Sewing Machine $,$ Thread $,$Pliers, Wrokspace Renat, Sales Venue Rental

Wok in Process $($WIP$)$ and Finished Goods

Date Account Dr Cr

devid WIP $$500$ 

Raw Materials inventory $$400$ 

 $($fabric and Interfacing$)$ 

Raw Materials inventory $$100$ 

Work in Process

Date Account Dr Cr

finished goods inventory $$500$ 

Work in Process $$500$ 

finished goods

Cost of Goods Sold Upon Sale Of key Fobs

Date Account Dr Cr

Cost Of Goods Sold $$500$ 

finished goods inventory $$500$ 

Cost Of Goods Sold

Monthly Period Costs:

Debit respective expense accounts $($e$.$g$.,$ Sewing Machine Expense, Thread Expense, Rental Expense$)$ for their monthly costs.

Explanation:

Period Costs: Costs associated with running the business that are not tied directly to the production of goods. Monthly costs like sewing machine usage, thread, and workspace rentals fall into this category.

Upon selling the hair tie, the costs are transferred from Finished Goods to COGS.

This process ensures proper accounting for the costs associated with manufacturing a product and the subsequent sale of that product.

For this work, previous information must be used, above is the previous information anWriting 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$.$d the following is what has to be developed.