A list of expenses involved in the production of custom, professional lacrosse sticks are shown. For each item listed, state whether the cost should be applied to manufacturing or sales and administration. If the cost is a manufacturing cost, state whether it is direct materials, direct labor, or manufacturing overhead. If the cost is a manufacturing overhead cost, state whether it is indirect materials, indirect labor, or another type of manufacturing overhead.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
A list of expenses involved in the production of custom, professional lacrosse sticks are shown.
- For each item listed, state whether the cost should be applied to manufacturing or sales and administration.
- If the cost is a
manufacturing cost , state whether it is direct materials, direct labor, or manufacturing overhead. - If the cost is a manufacturing overhead cost, state whether it is indirect materials, indirect labor, or another type of manufacturing overhead.
If an item is not applicable, select "NA".
| Lacrosse Stick Production Costs |
Manufacturing or Sales and Administration Cost? |
If Manufacturing: Direct Materials, Direct Labor, Overhead or Other? |
If Overhead: Indirect Materials, Indirect Labor, or Other? |
| Carbon, fiberglass |
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| Administrative building rent |
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| Accountant salary |
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| Factory building |
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| Strings for the pocket |
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| Advertising |
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| Production supervisor salary |
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| Paint for sticks |
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| Research and development costs |
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| Wages of person who strings the sticks |
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| Cutting machine depreciation |
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| Human resources salaries |
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| Factory maintenance |
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