you have been hired as a managerial accountant by Mr. Smith of Wilson-West Manufacturing a start up company that produces several different product lines.He would like you to set up the cost accounting system for the cabinet division.

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   Listed below are your new job requirements and at least one task for each. 1). Your role as an accountant prepare a job description that includes 3-4 typical duties of a managerial accountant. 2). Types of cost you plan on using to distinguish the different types of cabinets that will be produced. Examples should include direct cost items as well as variable costing. In other words include what are at least 5 types of expenses that are associated with manufacturing the cabinets? 3).Cost Accounting methods. Explain how product costing is used for a cabinet division. Give 2 examples of how you will use product costing. Which costing method will you use for the cabinet division: ABC, job order, or process costing? with 2-3 reasons for and 2-3 reasons against the other types of costing. Also include examples of how you plan to use your chosen costs. 4). Analysis for contribution margin, absorption, variable, thoughput and joint product costing. Using examples discuss how each will be used in the cabinet department. Include a formula where neccessary ( contribution margin). Explain in detail where you will find the appropiate information or calculation.  5). Fixed, Variable, Mixed Costs based on the cabinet divison give an explanation and 2 examples for each type of cost: fixed, variable, and mixed.

 

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