Mike Cichanowski founded Wenonah Conie, and later purchased Current Designs a company that designs and manufactures kayaks. The Kayak manufacturing facility is located just minutes from the conoe company's headquarters in Winona, Minnesota.
Current Designs makes Kayaks using two different processes. The rotational molding process uses high temperature to melt poyethylene powder in a closed rotating metal mold to produce a complete kayak hull and deck in a single piece. These kayaks are less labor intensive and less expensive for the company to produce and sell, Its other kayaks use the vacuum bagged composit lamination process. Layers of fiberglass or kevlar are carefully placed by hand in a mold and are bonded with resin. Then a high pressure vacuum is used to eliminate any excess resin that would otherwise add weight and reduce strength of the finished kayak. These kayaks require a great deal of skilled labor as each boat is individually finished. The exquisite finish of the vacuum bagged composite kayaks gave rise to Current Designs tag line "A work of art, made for life." Current Designs has the following managers:
Mike Cichanowski- CEO
Diane Buswell- controller
Deb Welch- purchasing manager
Bill Johnson- Sales Manager
Dave Thill- Kayak plant manager
Rick Thrune- Production manager for Composite Kayaks
What are the primary information needs of each manager?
Name on special purpose managment accounting report that could be designed for each manager. Include the name of the report, the information that it would contain, and how frequently it should be issued.
When diane buswell controller for current designs reviews the accounting records for a recent period, she noted the following items. Classify each item as a product cost, or a period cost. If an item is a product cost not that it is a direct materials, direct labor or manufacturing overhead item.
Payroll check to Sales manager
Payroll check to plant manager
Property taxes on manufacturing plant paid to Winona County
Property insurance for manufacturing plant paid to Winona agency
Electricity bill for manufacturing plant
Sales commissions
Payroll check to kayak assembler
shop supplies (brooms, paper towels) paid to Fastenal
Polyethylene powder whis is the main ingrediat for the rotational molded kayaks paid to Ravango
Kevlar favric for composite kayaks paid to North American Composites
Waste managment- trash disposal for company office building
bagging film used when kayaks are assembled- paid to Composite one