P2-35A_Shzam_Soda_+E2-23&_32

P2-35A_Shzam_Soda_+E2-23&_32 - P2-35A ShaZam...

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Unformatted text preview: P2-35A ShaZam ColaValue Chain Cost Classification(In thousands)ProductionCostR&DDesignDirectMaterialsDirectLaborManufacturingOverheadMarketingDistributionCustomerServicePlant utilities$ 750Depreciation on plant and equipment3,000Payment for new recipe$1,000Salt*25Replace products with expireddates$ 50Rearranging plant layout$1,100Lemon syrup$18,000Lime flavoring1,000Production costs of cents-off store coupons for customers$ 600Delivery-truck drivers wages$250Bottles1,300Sales commissions400Plant janitors wages1,000Wages of workers who mix syrup$8,000Customer hotline 200Depreciation on delivery trucks150Freight-in1,500Total costs$1,000$1,100$21,800*$8,000$4,775$1,000$400$250*Salts low value makes it likely treated as indirect materials. However, some students may classify salt as direct materials.(continued) P 2-35AReq. 3Total inventoriable product costs:Direct materials.....................................$21,800Direct labor............................................Direct labor....
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This note was uploaded on 09/10/2011 for the course ACCT 101 taught by Professor Kang during the Spring '08 term at S.F. State.

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P2-35A_Shzam_Soda_+E2-23&_32 - P2-35A ShaZam...

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