COMM 305 Chapter Notes - Chapter 4: Ganong Bros., Finished Good, Quebecor
7 Apr 2017
School
Department
Course
Professor
Document Summary
Companies use process cost systems to apply costs to products that are similar and are mass- produced continuously. : ganong bros. use a process cost system they produce jellybeans. Once the production of jellybeans starts, it continues until the jellybeans are fully made. The processing is the same for the entire run it uses the same of materials, labor and overhead. Each finished batch of jellybeans is like all the others. The manufacturing process starts with the blending of beverages. They"re then dispensed into bottles that are moved into position by an automated machine. The bottles are capped, packaged and forwarded to the finished goods warehouse. For companies just like cott, once the manufacturing process begins, it continues until they have the finished product and each unit of finished product is like every other unit. In comparison, a job-order cost system is assigned to a specific job. Many service companies specialize in performing routine, repetitive aspects of a particular business.
