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The Process Costing System: Bread

In: Business and Management

Submitted By sascione
Words 809
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1300 years ago, Egyptians during the king tut era had already started baking 40 different types of leaven bread. Nearby in Greece, they were contributing to this history of bread by the creation of the oven and the baking of 70 different types of flavored bread. Bread had such a positive impact, the Romans decided to bring the Greek bakers over to Rome and the ovens to Gaul. Therefore, bread became one of the primary foods of Western Europe in the middle ages.

Several Ingredients such as, flax seeds, buckwheat, soy and mullet, are used to create Multi Grain bread. The flour is poured on a protective grill that prevents unwanted materials from falling into the recipe mix; the ingredients are then grounded into a mill in very large containers. The ingredients are mixed together and then are placed in kneading troughs where the fermentation of yeast begins. The fermented yeast makes the dough rise a lot. The dough is then placed in a huge mixer where it is kneaded for about 8 minutes. When the dough is thoroughly homogenous, it is emptied out onto a large tub. The dough is then loaded onto a slide at the bottom of the machine where it passes through a small hole. The small hole has mechanical arms that cut the dough into equal lengths as it tries to escape through the small hole. The dough then is dropped onto the conveyor and then it’s rolled into balls, which can be more easily worked with. Flour is sprinkled on the dough as it prevents the dough balls from sticking while they are being transported or molded. The balls are then transported from their divider to the molder and during this transitions, the dough is resting which causes the yeast to act. Then the dough is folded and rolled into identical sizes and dropped into their baking bowls where they squished to the bottom of the bowls. The bowls are then placed in the prover where they rise for an hour and then put to bake for about 20 minutes. The loaf is finally baked when it has a nice golden color. The loaves are then sucked off their molds by a vacuum and then placed on a conveyor to cool. They are taken to different sections of the bakery by a guiding system and once they are cooled off enough, they go through a slicer that uses steel saw blades to slice the loaf up into bread slices. The Sliced loaves are then transported for packaging and for shipping. The total time it takes to create a finished product is 5 hours.

When products are manufactured by continuous processing or by mass production methods, then the process costing system is used. For example, A bakery is an example of a manufacturer that uses this system Homogenous or identical products are used by this costing systems. And instead of using individual costs, it uses all cost of the units to average it out to per unit cost. Another example that the bakery uses the cost processing system is that the bakery has several departments that the product has to go through before it is released for sale. For example in the bread manufacturing industry the two main departments that the bread has to go through are the “Baking” or mixing and then the processing department. In the baking department, the ingredients of the bread are being mixed together to form the bread. In the processing department, the bread is placed in different molds to form the shape of the bread, cut and placed into packaging and then are ready for delivery. For instance direct materials are the costs in the first department. The direct materials would be the yeast, flour, mixers and ovens. In the second department, the costs are in the direct materials like the molds, blades, and packaging plastics. And costs such as labor, power, indirect materials etc. are processed between both departments.
The process costing systems works like this in certain bread manufactures by accumulating the costs of each process, or “departments”. A day’s, weeks or years average unit cost is calculated by dividing the cost of the department, by the number of breads manufactured of a specific time period. Under the process cost system, departments accumulate the costs of direct materials, labor and factory over head costs. The baking, or production department would have the ending work in process. The formula for ending work in progress is: Beginning work in process + Manufacturing costs – Costs of goods Manufactured.

Works Cited
HowItsMadeEpisodes. "How It's Made: Bread." YouTube. YouTube, 18 Jan. 2009. Web. 01 Apr. 2012. .
"Student Help Center." : PROCESS COSTING IN PASUPATI BREADS. Web. 01 Apr. 2012. .
"What Is the Ending Work in Process formula? - Questions & Answers - AccountingTools." What Is the Ending Work in Process formula? Web. 01 Apr. 2012. .…...

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