When the units are completed, they are transferred to finished goods inventory and become costs of goods sold when the product is sold. Understanding the full manufacturing process for a product helps with tracking costs. This video on how drumsticks are made shows the production process for drumsticks at one company, starting with the raw wood and ending with packaging. Job order costing tracks costs for each unique manufacturing job and is commonly used for custom or batch production. So a manufacturer doing short specialty batch runs would use job costing. Each type of product produced will have a slightly...
September 25, 2024February 13, 2025