How It\'s Made is a documentary television program that is aired on the Discover

Question

How It's Made is a documentary television program that is aired on the Discover/Science Channel weekly. This is a fascinating program explores the manufacturing process of products such as marbles, toothpicks, ice cream, and pencil erasers, to name a few.

Using the Internet, search to the television show How It's Made, select an episode that interests you and that has not already been posted. Watch the episode and discuss why you select that product. Take notes while watching the episode and share in this discussion thread the 'process' by which the product selected is made. No detail is too small, describe the entire process from beginning to end and include what are considered direct materials, direct labor, and what was included as factory overhead (all indirect costs). let me stress -- I want the costs. I want you to clearly label what are direct/indirect costs. That is what I will be mainly grading you on.

Explanation / Answer

                                                             HOW IT'S MADE - PEANUT BUTTER

Peanut Butter is a daily life product and is interesting to know the process for thing we like. The process of manufacturing peanut butter requires Peanuts ( 565 Gram of peanut for 500 gram of peanut butter), machines like hot air roaster, Grinder, stainless steel container, Glass Jar, Capping machine, salt, sugar, vegetable oil.

Process -

Direct Cost - Cost which are directly identifiable with the cost object are direct cost

Indirect Cost - Cost incurred which cannot be accurately attributed to specific cost objects are indirect costs.

Various Cost identified during the production process are labeled in below table as Direct or Indirect cost depending on their nature. ---

                 ---------------For any query feel free to express your views in comment section----------------

Particular Item Included Nature of Cost (Direct/Indirect) Materials Peanut, salt, sugar,Vegetable oil Direct Labour Automated Plant therefore no wages/ Labour Not Applicable Factory Overhead Depreciation, Salary of Supervisor, Rent Of premises Indirect Power Consumption Direct Primary Packaging Labels, Glass Jar Direct Secondary Packaging Wooden boxes for transportation Indirect Administration Overhead Front office expense, audit fees Indirect Selling Expenses Agent's Commission Indirect

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