1. Using your favorite cookie recipe, estimate the quantity of direct materials and direct labor that will be needed (these figures will be used in a later assignment). Record your estimates on the attached cost worksheet. Direct Materials: Simply list the ingredients and their quantities from the recipe. Direct Labor: Identify and list the various stages of the cookie manufacturing process. Estimate the amount of time needed for each stage.

2. Bake a batch of cookies and record the actual costs incurred during the process. Direct Materials: ?Unit Cost? refers to the cost per measuring unit, not per cookie. If an ingredient is measured in teaspoons, for instance, this would be the cost per teaspoon. ?Total Cost? refers to the total cost for the batch. Direct Labor: Pretend you are being paid for this. Assume a REASONABLE wage rate. Manufacturing Overhead: It is okay to estimate these costs, but there must be some rationale behind your estimate.

3. Use the information gathered in part 2 to prepare a Schedule of Cost of Goods Manufactured. Use the format shown on page 144 (Unit 4.2) of your textbook.

4. Prepare a brief cover memo for the schedule identifying any non-value added costs (Unit 7.3) that were incurred during the process along with suggestions for eliminating them.

1/2 cup shortening1/2 cup granulated sugar1 cup packed brown sugar2 eggs1 1/2 tsp vanilla

1/2 cup butter

2 1/2 cups flour1/2 tsp salt1 tsp baking soda1 12 oz package chocolate chips

Direct Materials Ingredient Cost Worksheet Total Cost of Direct Materials Used Estimated Actual Unit Quantity Quantity Cost Total Actual Cost Direct Labor Process Stage Total Cost of Direct Labor Used Manufacturing Overhead Overhead Item Total Overhead Cost Incurred Estimated Actual Hourly Time Time Rate Estimated Actual Time Time Hourly Rate Total Actual Cost Total Actual Cost