BUSI 2170U Chapter Notes - Chapter 6: Process Manufacturing, Weighted Arithmetic Mean, Finished Good
Document Summary
Process is entirely mechanized maintenance of machinery, supervision, fringe benefits, lights, and power. Capsules are sent to the bottling department: bottling. Capsules are loaded in a hopper, counted, and automatically dispensed into bottles that are mechanically capped. The direct labour then manually packs the correct number of bottles into boxes to ship to retailers. Sequential processing: requires units that pass through one process before they can be worked on in a later process: ex. Parallel processing: requires two or more sequential processes to produce a finished good: partially completed units ( two subcomponents) can be worked on simultaneously in different processes and then brought together in a final process for completion. Hard disk drives: regardless of which processing pattern exists, all units produced share a common property. Since units are homogeneous and subjected to the same operations for a given process, each unit produced in a period should receive the same unit cost.
