The case is a formal paper 4 pages long. There is no title page, no table of contents, and no list of references or appendix. The paper should be formatted using APA style.
Target Company is a manufacture company that makes shoes. Once Target Company designs the shoe, reviews the design and finalized it, the fabric is cut and shaped to the pre designed specifications required for the Shoes. Further, another machine thins the edges so various pieces are easier to sew together.
1-Discuss several production methods and the different accounting systems each requires that Target Company may use.
2. Discuss the cost accumulation process for a Target Company. Is it different for a service organization?
3. Explain the reasons product cost information is important for Target Company managers.
4. How does the Work-in-Process account both describe the transformation of inputs into outputs in Target Company and how Target Company account for the costs incurred in the process?
5. The accounting for Target Company must be familiar with the calculations of total manufacturing costs and cost of goods manufactured. Describe the three categories of manufacturing costs.
What is the difference between total manufacturing costs and cost of goods manufactured?
6. Target Co. had the following beginning and ending inventory balances for the year ended January 1, 2014 December 31, 2014
Materials $19,500 $ 8,100
Work in Process $24,000 $13,500
Finished Goods $22,500 $14,500
In addition, direct labor costs of $31,000 were incurred, overhead applied $48,000, materials purchased were $25,500 and selling and administrative costs were $22,000. Target Co. sold 25,000 units of product during the year at a sales price of $5.00 per unit.
Calculate the amount of Cost of Goods Manufactured for the year
Target Company Student`s Name Institutional Affiliation Target Company Question 1 Target Company can adopt popular methods of production to produce the right and quality shoes. Therefore company may use the three primary methods of production namely, batch production, flow production and, job production method Batch production method is applicable as it involves making products in distinct separate groups. Particularly, this allows the shoes in every batch to pass through the all individual stages of production. Another reason that make this method applicable to Target Company is that the products are identical, which allow specialization and customization of this products. Also, the method allows the company to employ division of labor technique, thus enabling the company to enjoy economies of scale. The accounting system applicable to batch production method is batch costing, a system that entails identifying and assigning of cost associated with production of a set amount of products. The system is applicable because under batch processing, each set of products are of identical units but the nature of the batch can be different, which is insignificant. Another factor is that the cost incurred at each batch can be identified against each batch number, for instance, the requisite shoe