Managing Products and Finance Assignment Example | Topics and Well Written Essays - 2500 words

Managing Products and Finance - Assignment Example Under a process cost system, the key points in costing are the various departments or processes in the production cycle. In a process cost system, the focal points in accumulating manufacturing costs are the individual production departments (or processes) involved in the production cycle. As a first step, the cost of raw materials, direct labour and factory overhead applicable to each department or process for a given period of time is compiled. Then the average cost of running a unit of product through each department is determined by dividing the total departmental cost by the number of units processed in that department during the period. When a product moves through two or more departments, the total unit cost of finished product is accumulated by tracing the costs of incurred in each department to the product as it moves from process to process. A basic objective of a process cost system is to determine the unit cost of direct materials, direct labour and overhead for each manufacturing process or department. These unit costs become the basis for valuing inventories and for tracing the flows of costs though the departmental work in process accounts and finally to finished goods inventory and to cost of goods sold (Meigs & Meigs, p1022-1033). To assess all the processes through whi... To evaluate the favorable and unfavorable variances determining labor capacity and efficiency. To inspect the reasons behind the unfavorable labour efficiency variance and total direct labour variance. To assess all the processes through which the production of the three doors passes in order to depict the correct picture of the process of production and the space occupied by joinery business comprising 5 units for every step involved in the production. To critically figure out the causes resulting into the tightening of joinery shop and to examine the existing shop layout. To gather the required data and information necessary to visualize the positioning and placement of machines used in the process of production within the joinery shop. To put forth suggestions for changes in the process and procedures within the joinery shop outlet to make it sufficiently spacious to carry out the process of production in different units of the shop. This study would help the company to reassign space to different units of joinery shop as appropriate and required for the process to be completed properly. Suggestion and Reason for Extending the Study The report has been extended to the study of process and procedures of materials and goods moving between the different estate units in order to give a complete account of the space occupied by different units through which the production of the three doors passes. This analysis has been considered necessary for an investigation into the effectiveness of product management being carried out by the company. The company did not have any provisions for product management at the outset. After having invested in a combined thicknesser and planer, the