Accounting Unit 3 Individual Project

Accounting Unit 3 Individual Project

Manufacturing Purchasing Direct labor

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Direct labor




Overhead costs




Direct material






Question 2 sales price per pair


target sales


binding price per pair


total purchase


binding costs when bindings are purchased


gross profit


net profit


Maximum purchase price


Question 3 manufacturing Purchasing Sales volume


Sales volume




Binding cost per pair


Total costs for manufacturing


Other costs per pair


Total costs


Question 4

One important factor they should consider is the quality of the bindings. The company should compare manufactured bindings to purchased bindings. They should choose the better quality. Another significant factor is time consumed in manufacturing the bindings. If too much time is consumed in manufacturing the bindings, the compare should purchase them. This will increase productivity of the workers, since the saved time will be used in other areas of production (Hogget et al, 2008). It is also vital for the company to collect views and opinions from customers. They should greatly contribute to the choice of the bindings to be used on the skis.