Reference no: EM132647197

Questions -

Q1. Design your product and provide it a name and a description and visual/picture of it (this can be your own drawing or an image from the internet with your brand/logo assigned to the image). Justify your choice by explaining in details the reasons why you selected your product (i.e. is there a demand for it? will it solve any social, environmental or financial issues? etc.). What is your vision for the selected product?

Q2. Estimate the product's Research and Development (R&D) and Design costs (as you will be undertaking the R&D, building a prototype, testing the product. You should assign yourself an hourly wage rate based on market research and keep a record of the activities and how many hours it took you to design your product. This will determine your R&D and Design costs). Page 2 of 3 Provide detailed explanations about your R&D processes/steps and how product is manufactured.

Q3. Conduct a market research (i.e. search the internet, field research) to identify, estimate and determine the costs of your product's direct materials, direct labour and manufacturing overhead (fixed and variable). Clearly list and determine how much and types of materials, labour and other manufacturing resources will be required to produce one unit of your product and calculate your product's cost per unit. Explain the approach used to calculate the overhead cost per unit and clearly differentiate/list fixed and variable manufacturing overheads.

Q4. Over the period of one month, let's suppose that the cost of your beginning inventory was $5,000 and ending inventory equalled $5,000, and you purchased materials to produce 40,000 units of your product. Calculate the cost of direct materials purchased and used in production during the month.

Q5. Over the same month, the cost of your beginning work in process was $40,000, and ending was $40,000. Calculate the cost of goods manufactured using a cost of goods manufactured statement/schedule (for 40,000 units of your product) during the month.

Q6. Over the same month, the cost of your beginning finished goods was $40,000 and ending finished goods equalled $40,000. Prepar a cost of goods sold statement for the month for 30,000 units produced and sold to customers.

Q7. Determine the price of your product per unit and explain in detail how you determined the price (i.e. cost base used, the pricing method).

Q8. Conduct a market research to identify and estimate your downstream activities and the related costs (i.e. marketing, packaging, handling, storing, distribution and so forth). Explain how you will market and distribute your product in detail.

Q9. Prepare an income statement (using absorption costing) for the month given that 50,000 units were sold. Your administrative expenses during the month totalled $3,000, and the Australian company tax rate is 30%. Include all other relevant expenses for the month.