Can someone just give me an example? We can make our own data up.

Product Costing Project Name: ___________________________________________________________________________ . 1) What is your product? Toilet Paper

2) Find the direct material cost. Direct Material Size of Package Cost for Entire Container Unit Size Cost per Unit Example: flour 5 lbs/22.5 cups $2.50 1 cup $0.11

3) How many units will be manufactured per production run?

4) List amounts of all direct materials used in production per production run. Direct Material Cost per Unit (from part 2 above) Quantity Used per Production Run Cost per Production Run Example: flour $0.11 2 cups $0.22 Total direct material cost per production run

5) List amounts of all indirect materials used in production per month. Indirect Material Size of Package Cost for Entire Container Amount Used per Month Cost per Month Example: paint 5 gallons $20.00 1 gallon $4.00 Total indirect material cost per month

6) List all small tools and equipment tht must be purchased. Small Tools and Equipment Cost Total cost of small tools and equipment

7) What are the labor requirements? Production Stage Hours per Production Run Labor Cost per Stage Total labor hours per production run Total labor cost per production run

8) How many production runs per month?

9) What are the estimated labor hours for the entire month?

10) Find the estimated manufacturing overhead costs for a month: Estimated Manufacturing Overhead Costs Cost Utilities Indirect materials (section 5) Small tools/equipment monthly depreciation (compute using section 6 information) Total estimated monthly manufacturing overhead cost

11) Using labor hours as the activity base, find the overhead application rate. Total estimated monthly manufacturing overhead cost (section 10) Total estimated monthly labor hours (section 9) Overhead application rate

12) Find the applied overhead per production run Labor hours per production run (section 7) Overhead application rate (section 11) Applied overhead

13) Find the product cost Direct Materials Cost per production run (section 4) Direct Labor Cost per production run (section 7) Applied Overhead per production run (section 12) Total product cost per production run Units manufactured per production run(section 3) Unit Cost

14) Pricing Decisions Be sure to include how the product will be packaged (how many per package, etc.) How did you arrive at the selling price? Selling Price

15) Convince your classmates to purchase your product (sell it!)

16) Any additional comments?