Background
Giberson is a skilled glassblower whose business is a bit confusing. He works in his studio almost every day, and his products are popular and unique. He currently produces paperweights, tumblers, patterned glasses and vases. He is considering expanding his product line, or taking on custom work (one of kind orders) as customers have asked him to do this in the past, but he has not done so as yet. Because of the product cost mess he has no order in management.
He realizes his prices are too low, but he cannot figure out the product price structure and a course module pertaining to cost behaviors, product costing, and relevant costs. As a result, it is hard for him to give the exact price for four different kinds of glasses. Also, he only has a few thousand dollars. If he does not sell the products on time he will run out of money.

The main solution is to know about production schedule, the financial budget, direct labor cost and his timeframe .In analyzing this case, firstly, we need to thoroughly understand the production procedure, an annual statistics income statement. Secondly, we need to compute products variable costs and fixed costs. But in this case, the fixed cost is complicated. One type that occurs is only during the periods when Giberson is blowing glass not while during his vacation, such as total gas used. Another that exists is irrespective of production, such as truck loan interest, crucial facilities’ depreciation.

Cost Analysis
I started with 200 lbs of raw material, but ended up with product that consisted of 39.2 lbs. the rest of the 200 lbs was waste. First I need to multiply the final weight of each piece by the number made.

Patterned Glass = .5lbs / piece (he makes 19) 9.5 lbs
Paperweights = .9lbs / piece (he makes 10) 9.0 lbs
Wrapped Tumblers = .5lbs / piece (he makes 32) 16.0 lbs
Vases = .6lbs / piece (he makes