Question

what costing system do you think is the glove manufacturer company adopting? Substantiate your answer. [40 marks]

Answer 1

Glove manufatcuring involves multiple processes such as:

• Pre-drying
• Washing and Chloronization
• Neutralisation
• Rinsing
• Siliconisation
• Cutting
• Printing
• Packing

So Multiple process involved in manufacturing gloves. Thus there will be material procurement, making such material ready for production, rinsing and chemically washing the material, labor for washing, rinsing, drying, cutting, and finally printing and packing. Thus multiple types of expenses with mutiple processes are invloved in makinga glove saleable. Thus, Glove manufacturing company uses Process Costing.