Reference no: EM132694527

Problem 1: Assume you are creating a Lego kit to resell. Also, assume that you are presenting this project to the Vice President of Product and Marketing Development and the Vice President of Sales who requires a two page - back and front - deliverable. This deliverable is worth 60% and the actual creation is worth 40%. Your deliverable should be a handout which will allow the VPs to determine if the company wishes to invest in the product and sell the item in the company. When determining the cost of the product, assume the following costs for the Lego bricks in determining the cost of your creation

Problem 1: Summarize all costs of production in a Production Cost Sheet format. You should show number of pieces in detail and show totals for all parts of the production process. Include your computation of selling price in this section as well. Make sure that this section is clearly presented.

• Selling Price Breakdown
• Production Process
• Production Cost
• Direct Materials= Cost of Material for brick, =Cost of Packaging, =Cost of paint for brick
• Direct Labor= Labor Cost for production of brick, = Labor Cost to paint brick specific color, = Labor Cost for packaging and checking for defects
• Overhead Cost= Depreciation on painting and manufacturing, = Factory utility expenses, = Indirect Materials needed to paint bricks, =Indirect Materials needed for package lego kit

Direct Material Breakdown

Total Cost of Good Manufactured and Selling Price breakdown