Accounting discussion paper

There is currently a reality show called How It’s Made that highlights the manufacturing process for a wide variety of items. Everything from tequila to toilet paper has had a segment in one or more episodes. For this discussion you are asked to select a product and view the episode on how that item is manufactured. If you have Spectrum, there are episodes on demand or you can view episodes on YouTube. You can also use other online resources showing how a product is manufactured to complete this assignment. After viewing the segment you must detail the items that would be included as direct materials, the employees who would be considered part of direct labor (and why their tasks have them classified as direct labor) and two items that would probably be considered manufacturing overhead.

First off:

1. You may not duplicate a product one of your fellow students has already posted on. Also, are also not allowed to select the same item but with a different brand. For example, Student A does Patron so student decides to do Don Julio. That is a no go. The Don Julio gets zero points. This is first come, first serve. If you are devoted to your item – get it in first.

2. The following items are excluded (this means zero points if you submit your post for one of these items: Legos, Oreos (any sandwich cookie), Tequila (or any booze for that matter), mirrors and guitars. Again, if you duplicate an item that someone else already did you will receive zero points.

To receive full points for Part 1 of this discussion (35 points) you must:

1. Identify the product you have selected to focus on and why you chose it.

2. Explain in detail the manufacturing process that is shown. Please don’t refer me to the show or the clip as the purpose of this requirement is for you to show me that you understand the process. I watched three shows this evening, they walk you through the process so you should have no problem summarizing the process.

3. Explain in detail the items that would be considered direct materials, direct labor, and two items that would be considered manufacturing overhead.

4. Predict which costing method would most likely be used (job-order or process) and why.

5. Identify one indirect labor cost and one indirect materials cost.

6. Suggest at least one way you think the manufacturing process might be improved upon. This course is about using information to make informed decisions on how to improve profits by either lowering costs or increasing prices. Many times, costs can be lowered through improvements in the process.

7. It is fine to use bullet points for your listing of direct materials, direct labor and factory overhead.

As we will have finished the chapters discussing direct materials, direct labor and manufacturing overhead as well as the main types of costing systems (process and job-order).

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