give me this just- 1) Your project should havetitle page, and table of contents, letter of submission, executive summary (not more than 2 pages), reference,
give me this just- 1) Your project should havetitle page, and table of contents, letter of submission, executive
summary (not more than 2 pages), reference, and appendix (optional).
2)? No limitation of page.
3)? Attach a business card with whom you have contacted for your project.
ACT 201: Managerial Accounting Project topic: Determining The Cost of a Product Group members: 2 Requiren. S: You have to select a small local store (dokan) in your area who manufactures their own goods and sell it to customers all through the year. Your field job is to conduct an interview and find out their manufacturing process for one product. Based on your interview data, you will have to determine the cost of the product (for only one product) and answer the following: 1. Find out their product details. 2. Write down the production process. 3. Determine the cost of the product (DM, DL and MOH). You need to calculate the cost/product. 4. Are they following any costing method, i.e., job order/process/their own method? 5. What is the price of the product? Find out the profit margin of the product. 6. Based on your data calculate the contribution margin, breakeven point, breakeven revenue of the product. 7. Provide any feedback that can help them to be more attractive towards their customers. To do list: Your project should have title page, and table of contents, letter of submission, executive summary (not more than 2 pages), reference, and appendix (optional). No limitation of page. Attach a business card with whom you have contacted for your project.5. They Sales each product for $ 5 per Unit Now , Profit margin = ($ 5 - 3.24 )= $ 1.76 per unit. 6. Variable cost Direct materials $ 60,000.00 Direct labour $ 30,000.00 Varible MOH S 900.00 Variable SG& A $ 1,680.00 Total Variable costs $ 92,580.00 Cost sheet Income Statement approch No of units 30000 Particulars Amount per Unit Sales $ 150,000.00 5.00 Less: varible cost 92,580.00 3.09 Contribution 57,420.00 1.91 Less: fixed cost 4,620.00 0.15 Operating profit/ EBIT $ 52,800.00 $ 1.76 Contribution margin = 57,420/150000 x 100 % = 38.28% Break Even Point = Fixed cost / Contribution per unit1.5ia's Candles has a candles shop and a small manufacturing warehouse where they make There products. 2.They Produce candle and Sold them directly inTo The market. They have 10 workers who works at wage rate of S 3000 per month . They usually sales 30000 candles box each months. each box requires 3 2 Direct materials. They have Manufacturing lOverhead of S 3000 each month out of which 30% are variable and rest are fixed . They also have 3 4200 of selling and administrative overhead each month out of which 60% are fixed. Let us calculate the Cost of goods sold The month 3 No of Units Particulars details Per unit cost Direct Materialsl $2per unit} [30000 :62} $ 2.00 Direct labour [3000:6101 S 1.00 Primecost S 3.00 Add: Manufacturing Overhead variable momma} l$ 3000:: 30%]: . $ 0.03 Fixed MOH {30%} [3 3000:: 30%} $ 0.0? Cost of Production $ 3.10 Add: selling &Administrative Overhead variable 50 84A [$4200x40'3'6} Fixed 56% [$4200 x5036} CostDlsales S 3.24 So here cost per unit of Product is 53.10 and Cost of sales of a product is. $3.24 ILThey are following traditional casting method. = 4620/1.91 =2419 units ( Round off) Break even revenue = Fixed cost / Contribution margin =$ 4620/38.28% =$12,069( Round off ) 7. Sia's candle has very low amount of Fixed cost Which is good they should focus on increasing the contribution margin or may use some market research to maximize it's sales
