Hershey chocolate Essay

Go the Hershey website to learn how to make Hershey hot chocolate. (There is overly a print friendly interlingual rendition of the chocolate making c atomic number 18 for at the end of the video.) Review the process and play a look at roughly of the videos. Pay particular attention to the process steps of mill around and pressing, meld the ingredients, and refining. In at least one paragraph, depict the address system that you would recommend Hershey commit to account for its cost of goods sold and why. acknowledge a few product be you think would be traceable, which be should be eachocated and how Hershey should account and apply the manufacturing overhead cost. subsequently reviewing the chore videos on the Hersheys website, it seems apt(predicate) the company would use process costing versus job costing techniques to track the cost associated with producing the various chocolate bars. Both techniques lead identify the cost associated with producing the confect bars, the difference is the process costing technique allocates the extreme cost of take across all units of output. This usually entails accumulation of costs for each stage (or department) of production and assigning those costs to all output from that stage. I find that the process technique best matches the production process Hershey utilizes.Even on their website videos, Hershey breaks the production of the candy bars into seven pick functions, each with the end goal of ontogeny the finest chocolate bars possible precisely with unique and separate processes. Just as Hershey has multiple processes, they allow for overly eat up multiple product costs. A few traceable product costs that fall out to mind are associated with the seven website videos. The prototypical film shows the production of the raw coffee beans. The company will determine the costs associated with the purchase of raw materials such as the beans, sugar, and milk. This cost would be shifting costs, as the production is increased, the volume of raw materials would also increase. The second stage of roasting and breach the beans may also ready protean inventory costs, and possibly a junto fuel costs to heat the roasters. Hershey will always have the fuel costs, precisely the nitty-grittys will vary depending on the amount of beans being roasted.The third stage of milling and pressing the beans will also have a combination of fuel cost to run the machinery. The process of blending and mixing of the chocolate looks to have a take of direct labor and once once again fuel costs to run mixers, heaters and dryers in addition to the variousemployees creating direct labor costs. The refining process runs many unsounded granite rollers and mixers to develop the chocolate into a glitter texture and will also get additional fuel and power costs. Finally, the wrapping and packaging stages will have variable costs for the materials to wrap and package the candy in preparation for t ransportation to the consumer.In each of the categories, fuels and power costs are utilized in the preparation of the chocolate bars. This is one cost that one that could be allocated to each department. In addition, the facility costs, square up footage and non direct labor may be allocated to the various departments. I feel Hershey should debit factory overhead for the actual costs incurred and credit Factory Overhead as these costs are allocated to Work in Process, which eventually gets transferred to expense as damage of Goods Sold as shown via the preceding entries.