Carlos Corporation\'s Morgan Plant in Jackson, Florida, produces the company\'s
ID: 2464981 • Letter: C
Question
Carlos Corporation's Morgan Plant in Jackson, Florida, produces the company's weedcontrol chemical solution, Weed Terminator. Production begins with pure water from a controlled stream to which the plant adds different chemicals in the production process. Finally, the plant bottles the resulting chemical solution. The process is highly automated with different computer controlled maneuvers and testing to ensure quality of the end product. With only 15 employees, the plant can produce up to 6,000 bottles per day.
Recommend the type of costing system (job-order, process, or hybrid) Morgan Plant should use. Briefly explain your answer.
Explanation / Answer
Since the company manufactures a single product and the manufacturing process involves many processes, Morgan plant should use Process costing system.