Choose an item that you would like to manufacture. You do notactually need to manufacture something, but will proceed throughthe assignment as if you were planning on manufacturing the itemyou have selected. The product should require materials and laborand be something that you are familiar with in process from startto finish. The product must be useful and marketable. You canchoose something as simple as making chocolate chip cookies, a typeof craft, or something more complicated. Consider production as ifyou were making the product from beginning to end, and not as ifusing a kit.
Perform the following steps:
Choose a product to manufacture and describe the manufacturingprocess.
Prepare the following budgets for 1 quarter, broken downmonthly, regarding your chosen item:
estimated sales budget
estimated direct materials budget
estimated direct labors budget
estimated manufacturing overhead budget
estimated selling and administrative expenses
estimated income statement.
Classify all manufacturing costs and selling and administrativeexpenses as either variable or fixed.
I am doing my assignment on cupcakes. I have an idea of salesand how the sales budget would work but I need help on the othersections.
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