Costing System Process

Part 2: Process Costing:
Video #1: Process Costing Video Link: How It’s Made-stacked potato chips http://www.youtube.com/watch?v=q_ogZcvXBqQ&feature=related
Requirement 1: Questions to be answered:

  1. Discuss the weighted average concept:
    • Define weighted average concept.
    • Why is weighted average used to make this product?
    • Describe how weighted average works.
  2. List at least 6 items that is included in Direct Materials (items needed to manufacture potato chips).
  3. List at least 3 items that is included in Manufacturing Overhead (items needed by employees as they manufacture potato chips).

Video #2: Process Costing Video Link: https://youtu.be/2kttVyakHN4
Requirement 2: Questions to be answered:
The video is a second example of process costing, but this manufacturer uses the First In, First Out (FIFO) Concept.

  1. Discuss the FIFO concept:
    • Define the FIFO concept.
    • Why is FIFO method used to make this product?
    • Describe how the FIFO method works.
  2. List at least 6 items that is included in Direct Materials (items needed to manufacture bubble gum).
  3. List at least 3 items that is included in Manufacturing Overhead (items needed by employees as they manufacture bubble gum).

Submit a Word document in the Canvas assignment submit box with all of the requirements by the due date. Part #2 of this project is limited to two pages, typed, single spaced answer.
The due date for Part #2 is: September 30 at 11:59 pm

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