Wrigley Company (a subsidiary of Mars Incorporated) manufactures chewing gum. Visit the following address for the company:
Question:
Wrigley Company (a subsidiary of Mars Incorporated) manufactures chewing gum. Visit the following address for the company: http://www.wrigley.com/ea/about-us/how-gum-made.aspx. From this link, you will be provided an overview of how gum is made.
Instructions.
a. Prepare a simple flowchart that illustrates the major steps in the manufacture of chewing gum.
b. If Wrigley uses process costing, how many separate processing departments might be used and what would you label them?
c. What do you think are the major types of manufacturing overhead at Wrigley? What activity bases could be used to assign each type of overhead to the processing departments you listed in part b?
d. From the menu at the top of this web page, view Wrigley’s “Principles in Action” to learn about its charitable foundation, its volunteer projects, its environmental initiatives, and its commitment to oral care. Would it be improper for Wrigley to report the funding of these initiatives at product costs? And do you believe that its ethical for Wrigley to report only the positive impacts of its community-oriented efforts? Defend your answer.
Step by Step Answer:
Financial And Managerial Accounting The Basis For Business Decisions
ISBN: 9781260247930
19th Edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello