SlideShare a Scribd company logo
Submitted by:
Rishabh Seth
This case provides an opportunity to explore very simple job-
order costing. It also provides a chance to discuss
contribution analysis in the context of a pricing decision and
the absorption of manufacturing-overhead costs by the
various jobs the company has under contract.
When the sale price covers the fixed cost or is able to
absorb a portion of the manufacturing overhead cost
then a job costing $ 1625 should be sold for $ 1500. In a
full cost basis all the cost of the product that includes the
manufacturing cost and, in addition, an allocation of the
indirect or overhead cost. In September, the indirect and
labor cost transferred to manufacturing overhead.
Cost accounting case study on LAMBETH CUSTOM CABINETS

More Related Content

What's hot

Cola wars between Cocacola and Pepsi
Cola wars between Cocacola and PepsiCola wars between Cocacola and Pepsi
Cola wars between Cocacola and Pepsi
Unitedworld School Of Business
 
Supply chain of coca cola
Supply chain of coca colaSupply chain of coca cola
Coca cola globalization
Coca cola   globalizationCoca cola   globalization
Coca cola globalization
NIVETHA V
 
Coca cola Presentaion
Coca cola PresentaionCoca cola Presentaion
Coca cola Presentaion
2AM
 
Toyota motor manufacturing: Problems and solutions
Toyota motor manufacturing: Problems and solutionsToyota motor manufacturing: Problems and solutions
Toyota motor manufacturing: Problems and solutions
Gaurav Khatri
 
Comparative Analysis Coca Cola vs Pepsi
Comparative Analysis Coca Cola vs PepsiComparative Analysis Coca Cola vs Pepsi
Comparative Analysis Coca Cola vs Pepsi
Amity International Business School
 
curled-metal case study analysis
curled-metal case study analysiscurled-metal case study analysis
curled-metal case study analysis
ancientsoul90
 
Wal-Mart Stores’ Discount operations
Wal-Mart Stores’ Discount operationsWal-Mart Stores’ Discount operations
Wal-Mart Stores’ Discount operations
AJAL A J
 
PepsiCo.
PepsiCo.PepsiCo.
Leadership development at goldman sachs
Leadership development at goldman sachsLeadership development at goldman sachs
Leadership development at goldman sachs
Pallavi Goyal
 
Barriers and gateways to communication
Barriers and gateways to communicationBarriers and gateways to communication
Barriers and gateways to communication
Sasi Vignesh
 
Coca cola 4 p s
Coca cola 4 p sCoca cola 4 p s
Coca cola 4 p s
Amitava Sengupta
 
Fold rite furniture v1.7
Fold rite furniture v1.7Fold rite furniture v1.7
Fold rite furniture v1.7
Frisca Listyaningtyas
 
Controlling process of coca cola company
Controlling process of coca cola companyControlling process of coca cola company
Controlling process of coca cola company
Rupa Bhowmik
 
ROI- Sponsored ads
ROI- Sponsored adsROI- Sponsored ads
ROI- Sponsored ads
Anmol Khurana
 
The evolution of toyota
The evolution of toyotaThe evolution of toyota
The evolution of toyota
María Alejandra López Chica
 
Moon chem chap 11 case study
Moon chem chap 11 case study Moon chem chap 11 case study
Moon chem chap 11 case study
Arpit Singh
 
Case Study : Eco7-Launching a New Motor Oil
Case Study : Eco7-Launching a New Motor OilCase Study : Eco7-Launching a New Motor Oil
Case Study : Eco7-Launching a New Motor Oil
Hafizullah Mohd Amin
 
Harley davidson presentation
Harley davidson presentationHarley davidson presentation
Harley davidson presentation
kazi rasel
 
Unethical practices done by coca cola company
Unethical practices done by coca cola companyUnethical practices done by coca cola company
Unethical practices done by coca cola company
Ravichandra Devadiga
 

What's hot (20)

Cola wars between Cocacola and Pepsi
Cola wars between Cocacola and PepsiCola wars between Cocacola and Pepsi
Cola wars between Cocacola and Pepsi
 
Supply chain of coca cola
Supply chain of coca colaSupply chain of coca cola
Supply chain of coca cola
 
Coca cola globalization
Coca cola   globalizationCoca cola   globalization
Coca cola globalization
 
Coca cola Presentaion
Coca cola PresentaionCoca cola Presentaion
Coca cola Presentaion
 
Toyota motor manufacturing: Problems and solutions
Toyota motor manufacturing: Problems and solutionsToyota motor manufacturing: Problems and solutions
Toyota motor manufacturing: Problems and solutions
 
Comparative Analysis Coca Cola vs Pepsi
Comparative Analysis Coca Cola vs PepsiComparative Analysis Coca Cola vs Pepsi
Comparative Analysis Coca Cola vs Pepsi
 
curled-metal case study analysis
curled-metal case study analysiscurled-metal case study analysis
curled-metal case study analysis
 
Wal-Mart Stores’ Discount operations
Wal-Mart Stores’ Discount operationsWal-Mart Stores’ Discount operations
Wal-Mart Stores’ Discount operations
 
PepsiCo.
PepsiCo.PepsiCo.
PepsiCo.
 
Leadership development at goldman sachs
Leadership development at goldman sachsLeadership development at goldman sachs
Leadership development at goldman sachs
 
Barriers and gateways to communication
Barriers and gateways to communicationBarriers and gateways to communication
Barriers and gateways to communication
 
Coca cola 4 p s
Coca cola 4 p sCoca cola 4 p s
Coca cola 4 p s
 
Fold rite furniture v1.7
Fold rite furniture v1.7Fold rite furniture v1.7
Fold rite furniture v1.7
 
Controlling process of coca cola company
Controlling process of coca cola companyControlling process of coca cola company
Controlling process of coca cola company
 
ROI- Sponsored ads
ROI- Sponsored adsROI- Sponsored ads
ROI- Sponsored ads
 
The evolution of toyota
The evolution of toyotaThe evolution of toyota
The evolution of toyota
 
Moon chem chap 11 case study
Moon chem chap 11 case study Moon chem chap 11 case study
Moon chem chap 11 case study
 
Case Study : Eco7-Launching a New Motor Oil
Case Study : Eco7-Launching a New Motor OilCase Study : Eco7-Launching a New Motor Oil
Case Study : Eco7-Launching a New Motor Oil
 
Harley davidson presentation
Harley davidson presentationHarley davidson presentation
Harley davidson presentation
 
Unethical practices done by coca cola company
Unethical practices done by coca cola companyUnethical practices done by coca cola company
Unethical practices done by coca cola company
 

Recently uploaded

Life upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for studentLife upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for student
NgcHiNguyn25
 
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
RitikBhardwaj56
 
Main Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docxMain Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docx
adhitya5119
 
PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.
Dr. Shivangi Singh Parihar
 
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)
Academy of Science of South Africa
 
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdfLiberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
WaniBasim
 
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective UpskillingYour Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Excellence Foundation for South Sudan
 
A Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdfA Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdf
Jean Carlos Nunes Paixão
 
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
Nguyen Thanh Tu Collection
 
Introduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp NetworkIntroduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp Network
TechSoup
 
Digital Artefact 1 - Tiny Home Environmental Design
Digital Artefact 1 - Tiny Home Environmental DesignDigital Artefact 1 - Tiny Home Environmental Design
Digital Artefact 1 - Tiny Home Environmental Design
amberjdewit93
 
Digital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments UnitDigital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments Unit
chanes7
 
A Survey of Techniques for Maximizing LLM Performance.pptx
A Survey of Techniques for Maximizing LLM Performance.pptxA Survey of Techniques for Maximizing LLM Performance.pptx
A Survey of Techniques for Maximizing LLM Performance.pptx
thanhdowork
 
How to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP ModuleHow to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP Module
Celine George
 
DRUGS AND ITS classification slide share
DRUGS AND ITS classification slide shareDRUGS AND ITS classification slide share
DRUGS AND ITS classification slide share
taiba qazi
 
clinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdfclinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdf
Priyankaranawat4
 
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movieFilm vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
Nicholas Montgomery
 
The basics of sentences session 5pptx.pptx
The basics of sentences session 5pptx.pptxThe basics of sentences session 5pptx.pptx
The basics of sentences session 5pptx.pptx
heathfieldcps1
 
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
National Information Standards Organization (NISO)
 
Hindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdfHindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdf
Dr. Mulla Adam Ali
 

Recently uploaded (20)

Life upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for studentLife upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for student
 
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
 
Main Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docxMain Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docx
 
PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.
 
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)
 
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdfLiberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
 
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective UpskillingYour Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective Upskilling
 
A Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdfA Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdf
 
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
 
Introduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp NetworkIntroduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp Network
 
Digital Artefact 1 - Tiny Home Environmental Design
Digital Artefact 1 - Tiny Home Environmental DesignDigital Artefact 1 - Tiny Home Environmental Design
Digital Artefact 1 - Tiny Home Environmental Design
 
Digital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments UnitDigital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments Unit
 
A Survey of Techniques for Maximizing LLM Performance.pptx
A Survey of Techniques for Maximizing LLM Performance.pptxA Survey of Techniques for Maximizing LLM Performance.pptx
A Survey of Techniques for Maximizing LLM Performance.pptx
 
How to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP ModuleHow to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP Module
 
DRUGS AND ITS classification slide share
DRUGS AND ITS classification slide shareDRUGS AND ITS classification slide share
DRUGS AND ITS classification slide share
 
clinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdfclinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdf
 
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movieFilm vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
 
The basics of sentences session 5pptx.pptx
The basics of sentences session 5pptx.pptxThe basics of sentences session 5pptx.pptx
The basics of sentences session 5pptx.pptx
 
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
 
Hindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdfHindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdf
 

Cost accounting case study on LAMBETH CUSTOM CABINETS

  • 2. This case provides an opportunity to explore very simple job- order costing. It also provides a chance to discuss contribution analysis in the context of a pricing decision and the absorption of manufacturing-overhead costs by the various jobs the company has under contract.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. When the sale price covers the fixed cost or is able to absorb a portion of the manufacturing overhead cost then a job costing $ 1625 should be sold for $ 1500. In a full cost basis all the cost of the product that includes the manufacturing cost and, in addition, an allocation of the indirect or overhead cost. In September, the indirect and labor cost transferred to manufacturing overhead.