Prepare a report ( no more than 9 pages ) for Bradley Price that addresses the following :
a) The purpose of a product costing system
b) Preparation of a Schedule of Cost of Goods Manufactured and Cost of Goods Sold for last years accounts.Explain why some items have been excluded from the Schedules.
c) Complete the T account; and determine the following :
i. Work in Process at the end of April
ii. Raw materials purchased in April
iii. Overhead applied in April
iv. Cost of Goods Sold in April
v.Raw materials used in April
vi. Over or tinder applied overhead in April
d) Discuss how overheads can be under or over applied and how the company should deal with the under or over application