Managerial Accounting Writing Assignment 3 Process Cost Accounting

Budweiser manufactures a product that all students are familiar with - beer. Watch the video at http://www.hulu.com/watch/213607. If you have trouble accessing the video do a search for Ultimate Factories Budweiser and select the one that is about 45 minutes long.

They have hired you to advise them on accounting for the costs associated with producing beer. After you have reviewed the video draft a memo to Budwieser describing the best method for them to account for their process of brewing beer in order to accurately determine their product cost.

Review the text on process accounting for information as to the accounting process. Apply that process to what you see on video and be specific about accounting for Raw Materials, Labor and overhead describing the process by which costs will flow through the accounts in order to capture all costs associated with their production. Define terms you use in the memo, explain the flow of costs. Provide samples of journal entries and describe the importance of accurately capturing the costs as well as a description of the process cost summary sheet and its use in showing the costs that move from department to department in WIP and finally to finished goods.

The memo should be approximately 2-4 pages long single spaced. Use paragraph form (not bullet points).

The MEMO has to be written based on the video. The video can be found on YouTube. Search for Ultimate Factories Budweiser

Here is the video link on YouTube

Link: https://www.youtube.com/watch?v=ECOkUmcK9s0

MEMO

TO:

FROM:

DATE: