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ACC200 Introduction to Management Accounting- Costing System

Our competitors are using and I want to know more about it. I need you to tell me what it's all about and whether it would suit us. They are calling it ABC or something like that. It is said to be a better costing system but I am not sure. Tell me more about it. I need to know how it works, its benefits and its limitations. If it works for us, I would like to implement it as well. I do not want to be left behind I" 

Prepare a report (no more than 10-pages) for Frank Burgess 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. (The schedules may be in the appendix). Explain why some items have been excluded from the schedules.
c) Complete the T-accounts 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; and,
vi. Over- or under-applied overhead in April.
d) Discuss how overheads can be over- or under-applied and how the company should deal with the over- or under-application.
e) Evaluate whether ABC should be introduced. (Hint: remember to consider both the costs.

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