Chapter 3, Problem 3.59ACT

Unwrapped or How It’s Made

Go to www.YouTube.com and search for clips from the show Unwrapped on the Food Network or How It’s Made on the Discovery Channel. Watch a clip for a product you find interesting.

Basic Discussion Questions

1. 1. Describe the product that is being produced and the company that makes it.
2. 2. Summarize the production process that is used in making this product.
3. 3. What raw materials are used to make this product?
4. 4. What indirect materials are used to make this product?
5. 5. Describe the jobs of the workers who would be considered “direct labor” in the making of this product.
6. 6. Describe the jobs of the workers who would be considered “indirect labor” in the making of this product.
7. 7. Define manufacturing overhead. In addition to the indirect materials and indirect labor previously described, what other manufacturing overhead costs would be incurred in this production process? Be specific and thorough. Make reasonable “guesses” if you do not know for sure.
8. 8. Would a job-order costing system or a process costing system be used for this production process? Give specific reasons for your choice of which costing system would be most appropriate for this manufacturer.