Carrabelle Boat Company case

Topics: Costs, Cost, Cost accounting Pages: 3 (827 words) Published: November 18, 2014
Carrabelle Boat Company
Carrabelle Boat Company serves boaters with a small, lightweight fiberglass sailboat capable of being carried on a car roof. Though the firm could hardly be considered as one of the nation’s industrial giants, its burgeoning business had required it to institute a formal system of cost control. Jan Larson, Carrabelle Boat’s president, explained: Our seasonal demand, as opposed to a need for regular level production, means that we must keep a good line of credit at the bank. Modern cost control and inventory valuation procedures enhance our credibility with the bankers and, more importantly, have enabled us to improve our operations. Our supervisors have realized the value of good cost accounting, and the main office has, in turn, become much more aware of problems in the barn. Carrabelle Boat’s manufacturing and warehouse facilities consisted of three historic barns converted to make 11-foot “Silver Streak” sailboats. The company’s plans included the addition of 15- and 18-foot sailboats to its present line. Longer-term plans called for adding additional sizes and styles in the hope of becoming a major factor in the regional boat market. The “Silver Streak” was an open-cockpit, day sailer sporting a mainsail and small jib on a 17-foot, telescoping aluminum mast. It was ideally suited to the many small lakes and ponds of the region, and after three years it had become quite popular. It was priced at $2,265 complete. Manufacturing consisted basically of three processes: molding, finishing, and assembly. The molding department mixed all ingredients to make the fiberglass hull, performed the actual molding, and removed the hull from the mold. Finishing included hand additions to the hull for running and standing rigging, reinforcement of the mast and tiller steps, and general sanding of rough spots. Assembly consisted of the attachment of cleats, turnbuckles, drain plugs, tiller, and so forth, and the inspection of the boat with mast,...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Donner Company Case Analysis Essay
  • Donner Company Case Essay
  • Cartwright Lumber Company case Essay
  • Chabot Wallpaper Company Case
  • Abrams Company Case Study. Essay
  • Farcent Company Case Study Essay
  • Essay on Case Solution on Abrasm Company
  • Wilkerson Company Case Essay

Become a StudyMode Member

Sign Up - It's Free