You would like to start a business in March 2021 manufacturing a smart phone-controlled robot for recreational use. In preparation for an interview with the bank to discuss your financing needs, you develop answers to the following questions. A number of assumptions are required (and some are provided for you below); clearly note all assumptions that you make.

(a) Identify the types of costs that would likely be involved in making this product by populating a spreadsheet with the five columns indicated below.

Product Costs Item Direct Materials Direct Labor Manufacturing Overhead Period Costs

I would like to see a minimum of 6 manufacturing overhead costs and 7 period costs. You should show one line item for both direct materials and direct labor, but please provide some detail of the costs in parentheses. Assign hypothetical monthly dollar figures to each cost you identified. The totals for each column must be $450,000 for Direct Materials, $120,000 for direct labor, $180,000 for Manufacturing Overhead, and $200,000 for period costs.

(b) Assume you have no raw materials or work in process beginning or ending inventories. Prepare a projected cost of goods manufactured schedule for the first month.

(c) You must produce 50,000 robots the first month of operations (March 2021). Compute the cost to produce one robot.

(d) What type of cost accounting system will you likely usejob order or process costing? Explain your answer in a good-sized paragraph!(e) Explain, in a good-sized paragraph, how you would assign costs in either the job order or process costing system you plan to use.