Accounting Unit 3 Individual Project

Accounting Unit 3 Individual Project

Manufacturing Purchasing Direct labor

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

$35

Direct labor

$3.50

material

$30

Overhead costs

$1.50

Overhead

$15

Direct material

$6

Total

$80

Total

$11

Question 2 sales price per pair

$80

target sales

$10,000

binding price per pair

$11

total purchase

$105,000

binding costs when bindings are purchased

$215,000

gross profit

$800,000

net profit

$585,000

Maximum purchase price

$20

Question 3 manufacturing Purchasing Sales volume

$12,500

Sales volume

$12,500

equipment

$10,000

Binding cost per pair

$10.50

Total costs for manufacturing

$1,010,000

Other costs per pair

$11

Total costs

$268,750

Question 4

One important factor they should consider is the quality of the bindings. The company should compare manufactured bindings to purchased bindings. They should choose the better quality. Another significant factor is time consumed in manufacturing the bindings. If too much time is consumed in manufacturing the bindings, the compare should purchase them. This will increase productivity of the workers, since the saved time will be used in other areas of production (Hogget et al, 2008). It is also vital for the company to collect views and opinions from customers. They should greatly contribute to the choice of the bindings to be used on the skis.