How It\'s Made is a documentary television program that is aired on the Discover

Question

How It's Made is a documentary television program that is aired on the Discover/Science Channel weekly. This is a fascinating program explores the manufacturing process of products such as marbles, toothpicks, ice cream, and pencil erasers, to name a few.

Using the Internet, search to the television show How It's Made, select an episode that interests you and that has not already been posted. Watch the episode and discuss why you select that product. Take notes while watching the episode and share in this discussion thread the 'process' by which the product selected is made. No detail is too small, describe the entire process from beginning to end and include what are considered direct materials, direct labor, and what was included as factory overhead (all indirect costs).

Follow the minimum requirements for discussion board posts located in the general discussion area. Recall, those are the minimum requirements, more posts are always encouraged.

http://www.sciencechannel.com/tv-shows/how-its-made/videos/

How It's Made is a documentary television program that is aired on the Discover/Science Channel weekly. This is a fascinating program explores the manufacturing process of products such as marbles, toothpicks, ice cream, and pencil erasers, to name a few.

Using the Internet, search to the television show How It's Made, select an episode that interests you and that has not already been posted. Watch the episode and discuss why you select that product. Take notes while watching the episode and share in this discussion thread the 'process' by which the product selected is made. No detail is too small, describe the entire process from beginning to end and include what are considered direct materials, direct labor, and what was included as factory overhead (all indirect costs).

Follow the minimum requirements for discussion board posts located in the general discussion area. Recall, those are the minimum requirements, more posts are always encouraged.

Explanation / Answer

he Production Process at Coca-Cola

The Coca-Cola Company is one of the world’s largest producers of nonalcoholic beverages. According to the company, more than 11,000 of its soft drinks are consumed every second of every day.

In the first stage of production, Coca-Cola mixes direct materials—water, refined sugar, and secret ingredients—to make the liquid for its beverages. The second stage includes filling cleaned and sanitized bottles before placing a cap on each bottle. In the third stage, filled bottles are inspected, labeled, and packaged.

Work in process begins with the first stage of production (mixing and blending), continues with the second stage (bottling), and ends with the third stage (inspecting, labeling, and packaging). When products have gone through all three stages of production, they are shipped to a warehouse, and the costs are entered into finished goods inventory. Once products are delivered to retail stores, product costs are transferred from finished goods inventory to cost of goods sold.

An accounting firm engaged in providing accountancy/consultancy services can employ job order costing system, as it can treat work received from different clients as independent jobs. The job order costing system would be a perfect fit for such a type of organization because each and every job undertaken by the company may have different work areas and may require different skill sets/resources for completion. For Instance, a firm engaged in providing accounting and auditing services may perform maintenance of accounting records for one client and handling of taxation matters for another client. It becomes easier for the company to track the expenses that may be incurred in connection with each job (with the use of job order costing system) and bill the client accordingly.

Since, we are discussing the case of a service industry, the direct costs would majorly include labor costs (as the services are performed by the staff of the company). Other costs incurred in the process of providing such services (such as supplies) may be treated as part of overheads.

Overheads/Indirect Costs in case of service organizations may be allocated on the basis of direct labor hours or with the use of activity based costing system. Indirect costs may include expenses relating to photocopying, rent of the office from where such services are provided, cost of support staff, etc.

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