Management_Accounting_Case_1_Fall_2009

Management_Accounting_Case_1_Fall_2009 - MANAGEMENT 122...

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MANAGEMENT 122 FALL 2009 M ANAGEMENT A CCOUNTING D ANNY S. L ITT CASE ASSIGNMENT 1 DSL Company manufactures and sells sweatshirts for advertising and promotional purposes. The company has two manufacturing operations, sweatshirt making and printing. When an order for sweatshirts is received, the Shirtmaking Department obtains the materials and colors requested and has the sweatshirts made in the desired mix of sizes. The completed sweatshirts are then sent to the Printing Department where the custom labels or designs are prepared and embossed on the sweatshirts. Page | 1 To support the manufacturing activity, the company has a building that houses the two manufacturing departments as well as the Sales Department, a Payroll Department, and a Design and Patterns Staff. To aid in cost control, the company accumulates the costs of these support functions in separate service departments: (S1) building occupancy, (S2) payroll accounting and (S3) design and patterns. The following is the income statement for DSL Company.
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Management_Accounting_Case_1_Fall_2009 - MANAGEMENT 122...

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