The questions in this exercise are based on Anheuser-Busch Companies, Inc. The company had almost $15 billion in net sales in 2004. Although the company derives revenue from various sources, we are going to focus on the company’s core business—beer manufacturing. To answer the questions, you will need to download and view an on-line tour of the company’s beer brewing process at www.budweisertours.com/docs/onlinetour/Tour2.htm.

Required:
1. List each of the processing departments in Anheuser-Busch’s brewing process. For each department, identify any raw materials that are added to production within that department,.
2. Would you expect Anheuser-Busch’s brewing process to require fairly large amounts of manufacturing overhead costs? Why or why not?
3. Prepare a T-account model of the process costing fl ows for Anheuser-Busch that is similar to the one shown in Exhibit 4–3 on page 152. You need not take the diagram beyond the fi rst two processes: Mashing and Straining.
4. Why might Anheuser-Busch use a form of operation costing as described on page 160?