Scenario
You plan to open a business manufacturing collars, leashes, and harnesses for pets. To begin, you will manufacture these in a standard style and
size with plans to expand your range over the year. In a few weeks, you will present your company’s financial strategy to some key investors. To
begin creating your strategy, you need to consider and record all the costs associated with operating your business. You have decided to use the
job order costing system.
- Accurately classify all costs.Identify direct material, direct labor, overhead, and period costs. Determine your total variable cost per unit and the total fixed costs for each product.