1/2 cup shortening 1/2 cup granulated sugar 1 cup packed brown sugar 2 eggs 1 1/2 tsp vanilla

1/2 cup butter

2 1/2 cups flour 1/2 tsp salt 1 tsp baking soda 1 12 oz package chocolate chips

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.

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