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a. What are the direct material, direct labor and manufacturing overhead cost involved in making the two products? b. How many units of each product

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a. What are the direct material, direct labor and manufacturing overhead cost involved in making the two products? b. How many units of each product the business normally produce? c. How many units of each product the business normally sell? d. How much is the current selling price that charged by the owner? Use target costing/cost plus costing to calculate your suggested selling price, e. Does the business have workers? How many workers? How much is their salary? Differentiate between direct labor and indirect labor. f. What other cost needed to make the products? Rifferentiate between manufacturing overhead and period cost. List down in table format. & Where is the location of the factory, or shop? How much does it cost to buy/rent the place? h. Does the business provide online sales? How much is the cost of delivering the products to the customers? i. What about the machine, equipment, and other asset? How much will it cost? j. What other cost involve in selling the products? Differentiate between expenses and asset. Once you get an idea of what products the business makes and sells then complete the following tasks: - Task 1: Prepare the following cost in table form: - a, Raw materials used to make one UNIT for EACH product, and the cost per unit. You need to classify the raw material as direct material and indirect material. One table per product. b. Salary of production wackers - how many workers does the business have and how much is the wages per hour per worker c. List of Manufacturing Overhead cost include insurance, utilities, depreciation, maintenance. etc). d. List of Selling and administrative cast c. The Cost of purchasing assets (machine, squirment and other asset needed for the business), Task 2: Prepare the following budget for both products for two months: a. Sales Budget (per each product). b. Production Budget (per each product). c. Direct Material Budget (per each product). ACCT 212 - SEM 201 d. Direct lahor Budget (per each product). e. Manufacturing overhead. f. Selling and administration. 1. Prepare the budgeted income statement for two months. 2. Compute the sales mix of these product and calculate the breakeven number in units and dollar. 3. Calculate the margin of safety ratio. 4. If the business wants to earn net income of SR 100.000 how many units of these products need to be sold. (show your calculation)

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