1. Select a product from a small local store in your area who manufactures their own goods and sell it to customers all through the year. Based on the product that you have selected (can be imaginary as well), discuss the following points :

a. Write down the production process of the mentioned product. You MUST include what kind of raw materials the manufacturers use, what are the direct labours needed to manufacture the product, what can be regarded as the MOH cost for the manufacturer. You must write the details including numerical calculation of RM, DL, MOH (No need to calculate the predetermined OH rate or the applied MOH, just give examples of what can be regarded as MOH costs for your product) .

Explain in your own words, how the product is manufactured. (You MUST write a minimum of 300 words with no upper limit)

(25 marks)

b. Based on the nature of the product that you have chosen, suggest to the owner of this manufacturing company whether they should use job- order costing or process costing system. (5 marks ) (You MUST write a minimum of 100 words with no upper limit)