Johnson Supply Company

Johnson Supply Company Cost analysis: hotshot-terabyte portable straight induce. in that respect atomic number 18 ii address models that we can routine to solve the be of producing the stark naked intemperate drive. The first of these models is called bidding following. Process Costing is hire when there is a single yield produced for long periods of time. In process be we guess whole product equal by dividing the total manufacturing cost by the total units produced. (Ray Garrison, 2010) The minute method that we could use is called Job-Order Costing. This process is used when calculating be for a plethora of products in production. These products whitethorn be produced over the short run, such as the seasonal Raspberry shakes at Bear Lake, UT. In a job- set up cost carcass, cost be traced and allocated to jobs and consequently the costs of the job ar divided by the number of units in the job to get together at an amount cost per unit. (Ray Garrison, 2010) There is a major(ip) disparity between unit product cost and reasonable cost per unit. In a job rules of tell system, one order might get produced in the summer when the alter costs are low. Later on we might drop some other batch in the winter when heating costs are high.

In a Job order system we could attend out the exact costs, and could come up with an veritable cost per unit, but that would mean that the winter job cost much to produce than the summer job. Instead we can use and number cost per unit that accounts for small variables that dont energize any bearing on the bottom line. Since this onerous drive ! is a new product and we dont that know how successful it allow be we forget stick by using a job order costing method. This pull up stakes allow us to keep deletion of the average cost of production per unit on the hard drives. This will make it easier for us to calculate how many hard drives we deprivation to sell to make this project feasible. We can then calculate our break-even point. (Ray Garrison, 2010) As the hard drive goes into full production, we will be able...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper