Chapter 8. Startup of Manufacturing Operations
We are ready to start producing applesauce. The machinery is up and running, the workers are hired and we are about to receive a supply of raw materials.
While manufacturing goes fairly smoothly, we do botch a half-day’s production and have to scrap it. We will learn how to value our inventory “at standard” and book our first manufacturing variance. Raw materials keep rolling in.
Transaction 11. Receive two months’ supply of raw materials.
Transaction 12. Start up production. Pay workers and supervisor for the month.
Transaction 13. Book depreciation and other manufacturing overhead costs for the ...
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