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.
