Homework Help Question & Answers

Background: As the senior accountant at Technology on Demand (TOD), which manufactures flip phones, smartphones, notebooks,...

Background:

As the senior accountant at Technology on Demand (TOD), which manufactures flip phones, smartphones, notebooks, and smartwatches, you are responsible for assisting with employee related questions.

TOD manufactures mobile technology such as flip phones, smartphones, notebooks, and smartwatches in bulk quantity on the same type of product with no variations. However, Michael Clark, sales department manager, is considering taking special orders in an effort to further advance sales. If this is possible, he would like to begin with the smartphones as a pilot project. The smartphones itself would remain the same; however, the client would have the option of customizing certain features such as technology options and potentially other add on features, which may call for another department within the production department.

Michael has asked you:

  • Can you explain if it is possible for production and accounting to manage the smartphone pilot project? What type of costing system would this be called? Explain the process.
  • What would the difference in the costing system be, if any, from what it is now?
  • What additional documentation would be needed for the custom work?
  • Would you have any thoughts or concerns on this type of change in processing?

In consideration of the background, prepare a memo in a Word document to submit to the sales department manager, Michael Clark, with a cc to the controller.

0 0
Next > < Previous
ReportAnswer #1

Yes, it is possible for production and accounting to manage the Smartphone pilot project. This pilot project would need job order costing system

There is separate identity of this pilot project which has customised feature in the smart phone. Hence it is unique and not a regular mass production. Hence job order costing system should be applied. The job order should be maintained with a separate job cost sheet with details of customer.

· The material used for pilot project should be separately accounted based on Material requisition slip

· Direct labor hours should be charged based on labor hours spent on the project and record of time sheet should be maintained for the same.

· Overheads incurred should be accounted based on pre-determined rate or any specific overhead incurred for the project should be recorded

The current costing system is Process costing system since there is mass production without customisation of the production according to the customer needs. In Process costing cost is accumulated at process or department level. The cost per unit is calculated at the end of the month.

Additional documentation needed for the custom work

· Material requisition slips

· Time sheets

· Invoices of specific overheads incurred for the project

There is no concern in change in processing for this special order. The job order costing is need for accounting specific projects.

Memo to

Michael Clark

Sales department manager

Cc: To Controller

With reference to your need for accounting for special orders for further advancing the sales, I have attached herewith the detailed notes on how to account for the project .If you need any further clarifications kindly get in touch with me.

Regards

Know the answer?
Add Answer to:
Background: As the senior accountant at Technology on Demand (TOD), which manufactures flip phones, smartphones, notebooks,...
Your Answer: Your Name: What's your source?
Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Detailed Instructions: In a business setting, we are often asked to write a memo to communicate...

    Detailed Instructions: In a business setting, we are often asked to write a memo to communicate with internal and external professionals. This assignment further advances your communications within an organization through the use of a memo. Background: As the senior accountant at Technology on Demand (TOD), which manufactures flip phones, smartphones, notebooks, and smartwatches, you are responsible for assisting with employee related questions. TOD manufactures mobile technology such as flip phones, smartphones, notebooks, and smartwatches in bulk quantity on the...

  • As the senior accountant at Technology on Demand (TOD), which manufactures mobile technology such as flip...

    As the senior accountant at Technology on Demand (TOD), which manufactures mobile technology such as flip phones, smartphones, notebooks, and smartwatches, you are an active employee in the budgeting process. For years now, employees have not been in favor of budgeting. In fact, department managers have often expressed their degree of stress and feeling uncomfortable about the budget process and performance evaluations. This year, Michelle Dodd, the controller, wants to try a different approach to promote employee support of the...

  • Detailed Instructions: In a business setting, we are often asked to write a memo to communicate...

    Detailed Instructions: In a business setting, we are often asked to write a memo to communicate with internal and external professionals. This assignment further advances your communications within an organization through the use of a memo. Background: As the senior accountant at Jackson Quality Sportswear (JQS), which manufactures sport attire for men, women, youth, and children, you are responsible for assisting with employee related questions. JQS manufactures sport attire for men, women, youth, and children in bulk quantity on the...

  • Detailed Instructions: In a business setting, we are often asked to write a memo to communicate...

    Detailed Instructions: In a business setting, we are often asked to write a memo to communicate with internal and external professionals. This assignment further advances your communications within an organization through the use of a memo. Background: As the senior accountant at Jackson Quality Sportswear (JQS), which manufactures sport attire for men, women, youth, and children, you are responsible for assisting with employee related questions. JQS manufactures sport attire for men, women, youth, and children in bulk quantity on the...

  • Detailed Instructions: In a business setting, we are often asked to write a memo to communicate...

    Detailed Instructions: In a business setting, we are often asked to write a memo to communicate with internal and external professionals. This assignment further advances your communications within an organization through the use of a memo. Background: As the senior accountant at Jackson Quality Sportswear (JQS), which manufactures sport attire for men, women, youth, and children, you are responsible for assisting with employee related questions. JQS manufactures sport attire for men, women, youth, and children in bulk quantity on the...

  • General Instructions: For this case, you will be responsible for preparing a memo in a Word...

    General Instructions: For this case, you will be responsible for preparing a memo in a Word document to address the situation. Memo formats are available in Word under File, New, Search on Professional Memos or Memos for options. You can select a format or create your own memo in Word. If you create your own, be sure to follow general memo format rules such as Link  (Links to an external site.) (Links to an external site.)Furthermore, the link contains helpful information...

  • Are Drivers or Smartphones to Blame? Top-level leaders at a company that manufactures smartphones, tablet computers,...

    Are Drivers or Smartphones to Blame? Top-level leaders at a company that manufactures smartphones, tablet computers, and portable music players, among other electronic devices held a one-day retreat. The purpose was to think though how well the company was contributing to society. Technology chief, Olivia, commented, "I am very proud of us as a company. Think of what we have done for the world. Because of our products, people are more productive, smarter, and happier. At any time of the...

  • As the senior accountant at Jackson Quality Sportswear (JQS), which manufactures sports attire for men, women,...

    As the senior accountant at Jackson Quality Sportswear (JQS), which manufactures sports attire for men, women, youth, and children, your role with the budget process continues. You are very pleased with how well the budget workshop held on February 21st went. Department managers came, were engaged, and asked a number of important questions. Jacob Reynolds advised department managers that you would follow up in a memo to address a few of the department managers’ questions. Department managers asked: What is...

  • Please use own words. Thank you. CASE QUESTIONS AND DISCUSSION > Analyze and discuss the questions...

    Please use own words. Thank you. CASE QUESTIONS AND DISCUSSION > Analyze and discuss the questions listed below in specific detail. A minimum of 4 pages is required; ensure that you answer all questions completely Case Questions Who are the main players (name and position)? What business (es) and industry or industries is the company in? What are the issues and problems facing the company? (Sort them by importance and urgency.) What are the characteristics of the environment in which...

  • CASE 8 Unlocking the Secrets of the Apple iPhone in the Name of access the male...

    CASE 8 Unlocking the Secrets of the Apple iPhone in the Name of access the male San Bernardino suspect's iPhone 5c. Cook stated: Antiterrorism We are challenging the FBI's demands with the deepes respect for American democracy and a love of our country. We believe it would be in the best interest of everyone to step back and consider the implications While we believe the FBI's intentions are good, if would be wrong for the w e nt to force...

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.