Question

1.a.

Choose a simple product that you understand how it can be produced and fill the following table. Assume that 1,000 units of product are produced during 1 month. List the items needed to produce your chosen product such as Direct Material, Direct Labor and Manufacturing Overhead. Name of the product Items and ingredients Quantity* Cost/unit** * Quantity needed to produce 1,000 units of product. **Cost/unit is the cost for 1 unit of the given item or ingredient. See the example below. Assuming that for the production of 1,000 kg of ice cream 1,000 litres of milk are required and the cost of 1 litre of milk is $2, the information would be given as follows: Items and ingredients Quantity Cost/unit Milk 1,000 litres $2/litreRefer to the first question and classify each item as Direct Material, Direct Labor or Manufacturing Overhead. Item Direct Material Direct Labor Manufacturing Overhead