Important notice:I attached to you a guideline for the assignment and a sample assignment that I...

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Important notice:I attached to you a guideline for the assignment and a sample assignment that I want you to use it and paraphrase it to avoid the plagiarism issues.Regarding the paraphrasing:-1. I don’t want exact information to be used in data collection to avoid the plagiarism. 2. The trailer dimensions must be (length 2250mm × width 1500mm).3. Change some references and add some new references and add new data, photos and tables.4. Improve the assignment quality and presentation 5. No extension is given so if you are not able to do it, Mention that from the beginning.
	
Document Preview: Product CostingTo demonstrate your understanding of product costing thisAssignment requires you to:1.	Select a product for study e.g. from:– Department stores (a product of reasonable complexity and mass produced)– Supermarkets (you will be dealing with a high volume product)– Food chains (you will need to include processing and servicing costs to the customer)– Hardware stores (a substantial hardware item that has a significantNumber of parts/components)– Heavy equipment (probably manufactured in a low- volume run, or specialized equipment)- A product developed or studied during your Course- Or use other appropriate products – after discussion with the lecturer.4. Develop the cost structure and estimate the cost of this product.5. Write the final report Product considerations: Products and Appliances:• Choose a product from web site of Supermarket chain• The product must have a selling price for benchmarking of your costingThe chosen product should have sufficient level of complexity in cost analysis, e.g. due to number of components, number of manufacturing steps, variety of cost items or special processes.Developing the costs:•	What plant and materials will be required to produce the product?• 	Would you purchase or hire the manufacturing equipment?•	What are the labour rates and overheads?To demonstrate your   learning in this subject:•	You may consider the apportionment of costs across the direct manufacturing and production departments of the organization and then fully apportion costs to the actual product.•	You may consider if there is more than one product being produced by the organization – you only have to cost one product, however•	You may wish to propose a profit margin (determined by your costs and selling price) and establish how many/much of the product needs to be sold to “break even”.•	In the short term would you see “volume” or “pricing” as the determiner of the “break-even” point?Marking guidance• 10%...

Robert · Accepted Answer

Page 1 of 17 

Product Costing of the Trailer
Page 2 of 17 
 
Executive Summary 
The manufacturing cost of the mass products is typical and sensitive process as well as it requires many 
steps. In order to guarantee the success of the product cost analysis is done and also for the company 
benefits break even analysis and profit margin calculation is done. 
As a result of the same we discover the following 
1. We need to sell 596 units so that the company will not be in loss. 
2. Profit margin will be 16.63% 
3. If the company is able to sell 1550 trailed in a year than the profit of $386805 will be achieved. 
4. The manufacturing cost of labor and welder is high
Page 3 of 17 
 
Table of Content 
 
Executive Summary................................................................................................. 2 
Introduction............................................................................................................ 4 
Data Collection........................................................................................................ 5 
Production Process.................................................................................................. 8 
Production Cost..................................................................................................... 13 
Conclusion............................................................................................................. 16 
References............................................................................................................. 17 

Page 4 of 17 
 
Introduction 
Product costing is basically identifying the cost of the object or item. After identifying the cost, we need 
to identify the direct cost associated with that. In product costing there is also the identification of the 
overhead cost involved in that. In product costing there is also need to select the cost allocation base to 
use in assigning overhead costs to the cost object. After this the next step in product costing is to develop 
the overhead rate for allocating overhead to the cost object. In this we have to select the product then after 
selecting the product we need to develop the cost structure and estimated cost of the product. 
The product costing analysis starts by listing the parts which is generally involved in jotting down the 
components that will be involved in assembling the product. In this the analysis of the assembly is done 
that basically tells the time taken to assemble or making the product ready. The time involved in 
assembling the product is also referred as labor cost, which will be added to the final costing. 
This paper presents the cost analysis of the car trailer.
Page 5 of 17 
 
Data Collection 
After analyzing the trailer we come up with the following parts that are utmost necessary for the assembly 
of the same.

Important notice: I attached to you a guideline for the assignment and a sample assignment that I want you to use it and paraphrase it to avoid the plagiarism issues. Regarding the paraphrasing:- 1. I...

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