Cost management (accounting) Question:

1. Required: (Ignoring any WIP) Complete the following table to calculate the average cost per kilogram produced in 2014 and 2013

Simplified process costing method (ignores work-in-process inventory)

2. On the basis of your calculations in (b) above, where do you think the best opportunities for reducing the cost per kg resides?

FY2013 FY2014 Cost of Goods Sold: Peanuts Other ingredients Direct labor Overhead $ 189,296 $ 201,379 64,408 767,543 860,545 1,140,9841,188,372 S 2,166,422 $2,314,704 255,186 268,905 68,599 Cost of Goods Sold Kilograms Produced Ingredients Total 2014 Costs added MM produced Cost per kg 2013 Costs added MM produced Cost per k,g Conversion