| Product Costing Project |
| | Name: ___________________________________________________________________________ . |
| 1) | What is your product? |
| 2) | Find the direct material cost. |
| | Direct Material | Size of Package | Cost for Entire Container | Unit Size | Cost per Unit |
| | Example: flour | 5 lbs/22.5 cups | $2.50 | 1 cup | $0.11 |
| 3) | How many units will be manufactured per production run? |
| 4) | List amounts of all direct materials used in production per production run. |
| | Direct Material | | Cost per Unit (from part 2 above) | Quantity Used per Production Run | Cost per Production Run |
| | Example: flour | | $0.11 | 2 cups | $0.22 |
| | | | | Total direct material cost per production run |
| 5) | List amounts of all indirect materials used in production per month. |
| | Indirect Material | Size of Package | Cost for Entire Container | Amount Used per Month | Cost per Month |
| | Example: paint | 5 gallons | $20.00 | 1 gallon | $4.00 |
| | | | | Total indirect material cost per month |
| 6) | List all small tools and equipment tht must be purchased. |
| | Small Tools and Equipment | | | | Cost |
| | | | | Total cost of small tools and equipment |
| 7) | What are the labor requirements? |
| | Production Stage | | | Hours per Production Run | Labor Cost per Stage |
| | | | | Total labor hours per production run |
| | | | | Total labor cost per production run |
| 8) | How many production runs per month? |
| 9) | What are the estimated labor hours for the entire month? |
| 10) | Find the estimated manufacturing overhead costs for a month: |
| | Estimated Manufacturing Overhead Costs | | | | Cost |
| | Utilities |
| | Indirect materials (section 5) |
| | Small tools/equipment monthly depreciation (compute using section 6 information) |
| | | | | Total estimated monthly manufacturing overhead cost |
| 11) | Using labor hours as the activity base, find the overhead application rate. |
| | | | | Total estimated monthly manufacturing overhead cost (section 10) |
| | | | | Total estimated monthly labor hours (section 9) |
| | | | | Overhead application rate |
| 12) | Find the applied overhead per production run |
| | | | | Labor hours per production run (section 7) |
| | | | | Overhead application rate (section 11) |
| | | | | Applied overhead |
| 13) | Find the product cost |
| | | | | Direct Materials Cost per production run (section 4) |
| | | | | Direct Labor Cost per production run (section 7) |
| | | | | Applied Overhead per production run (section 12) |
| | | | | Total product cost per production run |
| | | | | Units manufactured per production run(section 3) |
| | | | | Unit Cost |
| 14) | Pricing Decisions |
| | Be sure to include how the product will be packaged (how many per package, etc.) |
| | How did you arrive at the selling price? |
| | Selling Price |
| 15) | Convince your classmates to purchase your product (sell it!) |
| 16) | Any additional comments? |
Greaze.Monkey7
ProductCostingonlinespreadsheet11.xls
