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Essay / Research Paper Abstract
A 4 page paper assisting Tastee Fruit in establishing standard costing information for the manufacturing of its raspberry sherbet and discussing the issue of price-fixing for berries. The paper also briefly answers a few questions about Atlantico financial reporting. Bibliography lists 3 sources.
Page Count:
4 pages (~225 words per page)
File: CC6_KSacctIceCr2.rtf
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Unformatted sample text from the term paper:
outlined in the Atlantico Inc. case. In addition, write a 700-1,050-word report summarizing Atlanticos budgeting process and the purpose of budgeting in general," then youll need to order additional pages.
Introduction Tastee Fruit makes raspberry sherbet and seeks to establish standard costing data in an effort to meet the demands of increasing price
competition. a. Develop the standard cost of direct material, direct labor and packaging for a 10-gallon batch of raspberry sherbet. All costs except those
for the berries themselves are straightforward. Each gallon of sherbet requires 6 quarts of berries, but after culling out unacceptable berries the facility has to buy 5 quarts to
get 4 quarts of acceptable berries. Thus it needs to buy 20 percent (4/5 = .8) more berries than required, meaning that it must purchase 7.2 quarts to gain
6 quarts of useable berries (6 x .2 = 1.2; 1.2 + 6 = 7.2 quarts). Direct labor is 3 min/q x 7.2
q = 21.6 min/gal; 21.6 min ? 60 min x $9/hr = $3.24 for sorting. Blending is 12 min ? 60 min x $9/hr = $1.80, for total direct
labor of $5.04. Total direct material, direct labor and packaging costs per gallon is $12.89. The total cost for a 10-gallon batch
is $12.89/gal x 10 gal = $128.90. Per-gallon costs are presented in the table below. Table 1. Per-Gallon Costs Item Quantity Cost Total Cost Direct Material
7.2 q berries .80/q x 7.2 q 5.76 other ingred .45 total 0.45 6.21 Direct Labor @ $9/hr 3 min/q sorting
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