Question
Sample customer order data of varying manufacturing complexity Customer name Order Design & Fabric Quantity(# of pieces) Fabric used(meters) Sale Value (PKR) Direct material cost
Sample customer order data of varying manufacturing complexity | |||||||
Customer name | Order | Design & Fabric | Quantity(# of pieces) | Fabric used(meters) | Sale Value (PKR) | Direct material cost (PKR) | Other direct costs (PKR) |
AS | Pillowcase | Multi-colored with design | 1.512 | 544 | 469.612 | 329.295 | 6.513 |
AS | Duvet cover | Multi-colored with design | 342 | 1.614 | 877.642 | 618.783 | 79.612 |
CI | pillowcase | Plain | 1.400 | 634 | 294.063 | 222.682 | 69.805 |
CD | duvet cover | Plain | 200 | 1.048 | 362.702 | 292.510 | 3.209 |
CI | flatsheet | Plain | 400 | 1.105 | 301.650 | 213.819 | 70.206 |
Question: Describe the proposed costing system of Sapphire. Calculate the cost of the customer orders given in Exhibit 6 of the case using the proposed costing system | |||||||
And WHAT DO YOU RECOMMEND THE COMPANY SHOULD DO? |
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