Real-World Focus
BYP3-3 Paintball is now played around the world. The process of making paintballs is actually quite similar to the process used to make certain medical pills. In fact, paintballs were previously often made at the same factories that made pharmaceuticals.
Address: Go to www.youtube.com/watch?v= 2hKrv60PJKE#t = 129 to access the video.
Instructions
View the video at the site listed above and then answer the following questions.
(a) Describe in sequence the primary steps used to manufacture paintballs.
(b) Explain the costs incurred by the company that would fall into each of the following categories: materials, labor, and overhead. Of these categories, which do you think would be the greatest cost in making paintballs?
(c) Discuss whether a paintball manufacturer would use job order costing or process costing.
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