At the beginning of each day, the Factory General Manager consults with the sales department and determines which jobs will be completed for the day. The General Manager forwards the Job Cost Sheet and the materials requisition to the Materials Handling Department. Materials Handling obtains the materials needed for each job from the Warehouse stockroom and brings the materials to the appropriate department for the day$$s manufacturing.

Paper Hats are manufactured as follows:

Paper is delivered by Materials Handling to the Assembly Department.

Paper sheets are folded into a cone shape, taped and stapled in the Assembly Department. Finished hats are moved to the Finishing Department.

Hats are decorated in the Finishing Department using four stickers per hat.

Hats are placed on a table for inspection by Quality Control. Quality control also checks to ensure that the proper items are included in the order.

The manufacturing process for paper chains is as follows:

Paper is delivered by Materials Handling to the Cutting Department.

Links are cut in to $2$by $8\mathrm{.}5$ strips. Five strips can be made from one sheet of paper. Cut strips are moved to the Assembly Department.

Each link is connected to the previous link and then taped and stapled in the Assembly Department. Completed chains are moved to the Finishing Department.

Chains are decorated in the Finishing Department using eight stickers per completed chain.

Chains are placed on a table for inspection by quality control. Chains are then inspected by Quality Control before being packed for shipment with the completed job.

Identify the major elements of the value chain for the Paper Products Factory.

Identify the various costs involved in making the products. $($Do not concern yourself with dollar amounts at this point.$)$

Separate the list of costs identified as product or period costs. Further classify product costs as direct material, direct labor, and manufacturing overhead.

Answer rating: 100% (QA)

1 Direct Material Costs Paper Used for manufacturing both paper hats and paper chains Stickers Used for decorating both hats and chains Tape and Stapl... View the full answer