One of the biggest challenges in this part of the course is for students to envision how to actually apply these concepts in real life. One of the reasons is that many of us have not been involved in the manufacturing process. To try to bring these concepts from the first four chapters home, please find a video showing a product being manufactured. Two good series for these types of videos are the Food Channel’s Unwrapped and How It’s Made from the Discovery Channel. There are also lots of good production videos on YouTube.
You will want to select a youtube video that shows you the production process from start to finish and provides enough information to answer the questions below. Please start your post with a link to the video that you watched. Then answer the following questions and number your answers:
Describe the product that is being made and identify the company making the product (if identified).
Provide a brief overview of the steps in the production process.
What are the direct materials used in the production process?
What are the indirect materials used in the production process? (This might be a good time to go back and review these terms.)
What are the jobs of the employees who would be considered direct labor?
Describe the jobs of the employees who might be included in indirect labor. (Remember, there are employees whose work is neither.)
In addition to indirect materials and indirect labor, what other overhead costs should be included? (You may have to make some assumptions here.)
What type of costing system would be most appropriate? Job-order, activity-based, or process costing? Be sure to defend your conclusion.
Once you have answered all of these questions, you need to reply your opinions to 2 other students’ posts as well.
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