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    Lambeth Case Study: Submitted by

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    Haider Ali
    Mr. Lambeth owns a workshop that manufactures and sells custom cabinets. He and his son are the only employees. The summary analyzes the workshop's activities and costs for the month of September. It calculates raw material supplies, assets, labor costs, direct labor costs, and overhead costs. It also provides beginning and ending balance sheets showing the workshop's assets, liabilities, and owner's equity for September 1. The teaching strategy discusses using contribution analysis and whether allocated costs should be ignored, as well as generating class discussion on cost allocation.

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    © All Rights Reserved

    Lambeth Case Study: Submitted by

    Uploaded by

    Haider Ali
    326 views6 pages
    Mr. Lambeth owns a workshop that manufactures and sells custom cabinets. He and his son are the only employees. The summary analyzes the workshop's activities and costs for the month of September. It calculates raw material supplies, assets, labor costs, direct labor costs, and overhead costs. It also provides beginning and ending balance sheets showing the workshop's assets, liabilities, and owner's equity for September 1. The teaching strategy discusses using contribution analysis and whether allocated costs should be ignored, as well as generating class discussion on cost allocation.

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    Lambeth Custom Cabinets case study. complete report will all the descriptions.

    Original Title

    Lambeth Custom Cabinets

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    Mr. Lambeth owns a workshop that manufactures and sells custom cabinets. He and his son are the only employees. The summary analyzes the workshop's activities and costs for the month of September. It calculates raw material supplies, assets, labor costs, direct labor costs, and overhead costs. It also provides beginning and ending balance sheets showing the workshop's assets, liabilities, and owner's equity for September 1. The teaching strategy discusses using contribution analysis and whether allocated costs should be ignored, as well as generating class discussion on cost allocation.

    Copyright:

    © All Rights Reserved
    326 views6 pages

    Lambeth Case Study: Submitted by

    Uploaded by

    Haider Ali
    Mr. Lambeth owns a workshop that manufactures and sells custom cabinets. He and his son are the only employees. The summary analyzes the workshop's activities and costs for the month of September. It calculates raw material supplies, assets, labor costs, direct labor costs, and overhead costs. It also provides beginning and ending balance sheets showing the workshop's assets, liabilities, and owner's equity for September 1. The teaching strategy discusses using contribution analysis and whether allocated costs should be ignored, as well as generating class discussion on cost allocation.

    Copyright:

    © All Rights Reserved
    of 6

    Lambeth Case Study

    Submitted By Program
    Haider ali BBA
    Introduction
    Mr. Lambeth is sole owner of a workshop and shop which
    manufactures and sells custom made cabinets. Mr. Lambeth does not
    believe in hiring extra labors to work in this workshop. He and his
    son Jack junior are the only people who designs make and install the
    cabinets.
      Analysis
    • The workshop activities that based on a whole month of September was
    recorded.
    • The sum up of all the work during September was done, raw material
    supplies, assets, total labor, direct labor and overhead cost was calculated
    • The two big data from the case was calculated and the amount was picked
    out of the information and put it in T accounts
    • In the end the marginal analysis will be done which includes things like
    what if labor was essentially fixed variable cost, total variable cost?.
    Balance sheet
    Raw material work in progress inventory Supplies
    Beginning balance 2150 Beginning balance 5650 Beginning balance 620

    A3 A5 Other Assets
    DM 750 DM 325 Beginning balance 25310
    DL 1100 DL 700
    Ohd 550 Ohd 350
    Beg balance 2400 Beg balance 1375

    A4 Owner's equity
    DM 900 Beginning balance 2150
    DL 650
    Ohd 325
    Beg balance 1875
    Beginning balance sheet
    Assets September 1
    Inventory
    Raw Material $ 2,150
    Work in progress $ 5,650
    Supplies $ 620
    All Others $ 16,890
    Total Assets $ 25,310

    Liabilities
    Total Liabilities $0

    Owner's Equity
    Total Equity $ 25,310
    Teaching strategy
    • If a contribution analysis is useful , does that mean we can conveniently
    ignore the allocated cost as they are a viable party of that decisions being
    made and the context at the time?
    • In this case, assuming the judgment is made that a more lucrative
    opportunity is unlikely to be forgone by taking carter's order, more
    contribution is better then less contribution even if it is not at a level
    generating a profit as traditionally measured.
    • This question also affords instructors the opportunity to galvanize a class
    discussion on cost allocation by asking additional questions

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