The Bean Company provides fresh coffee beans for restaurant, hotels and other food service companies. Bean offers three types of cofee beans : Premium, Gourmet and Quality. Each of the three coffee is produced in a joint process in which beans are cleaned and sorted. The sorting process is the split-off point in this joint process and the output is the three types of beans The beans can be sold at the split-off or processed furhter, with different types or roasting and additional sorting. The additional processing requires additional separable processing costs, as showing next. Separable processing requires no special facilities and the production cost of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. join cost production the year were $ 90,000,000
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
| The Bean Company provides fresh coffee beans for restaurant, hotels and other food |
| service companies. Bean offers three types of cofee beans : Premium, Gourmet and Quality. |
| Each of the three coffee is produced in a joint process in which beans are cleaned and sorted. |
| The sorting process is the split-off point in this joint process and the output is the three types of beans |
| The beans can be sold at the split-off or processed furhter, with different types or roasting and additional sorting. |
The additional processing requires additional separable processing costs, as showing next. Separable processing requires no special facilities and the production cost of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. join cost production the year were $ 90,000,000
| Sales value and cost needed to evaluate Bean's production policy follow: | ||||||
| Premium | Gourmet | Quality | Total | |||
| Pounds produced | 10.000.000 | 12.000.000 | 20.000.000 | 24.000.000 | ||
| Separable |
$ 9.000.000 | $ 7.000.000 | $ 5.000.000 | $ 21.000.000 | ||
| Total Join Cost | $ 90.000.000 | |||||
| Sales price at split-off | $ 5 | $ 4 | $ 1 | |||
| Sales price/pound | $ 7 | $ 5 | $ 2 | |||
| (after additional processing) |
| Required | |
| 1. Determine last year's unit cost for each product assuming Bean allocates join production cost | |
| using : | |
| a. the physical measure method | |
| b. the NRV method | |
| 2. The Bean Company assesses the division manager's performance based on the profitability of | |
| the product division. In your opinion, what method of join cost allocation is preferred by the | |
| |
|
| 3. Which of The Bean's products should be processed further? Explain |
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