Tag Archives: manufacturing overhead

Would job order costing or process costing be used by the Smarties Candy Company?

Smarties come in six flavors: white (orange crème), yellow (pineapple), pink (cherry), green (strawberry), purple (grape), and orange (orange). Smarties are gluten free and vegan and have 25 calories per roll of 15 candies. The main ingredient in Smarties is dextrose, a form of sugar. The Smarties Candy Company, founded in 1949, makes its Smarties […]

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What types of costs are incurred when manufacturing marshmallow cookies?

This posting is about an activity you can use to discuss the various types of manufacturing costs.  The cost object is a box of marshmallow cookies.  The first step is to show (or ask students to watch) this 4:38 minute “How It’s Made” video about marshmallow cookies. Questions 1) What are the direct materials of the […]

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