Problem

Processes and Product Costs at PepsiCoVisit thePepsiCo Web site at:  http://www.pepsiusa.c...

Processes and Product Costs at PepsiCo

Visit thePepsiCo Web site at:

  http://www.pepsiusa.com/faqs.php/

Follow the link to “How Pepsi is Made” (under “Product Information”) for parts a.,b., and c. Follow the links under “Community Information” for part d.

Instructions

a. Identify and discuss briefly the processes involved in manufacturing Pepsi.


b. What are Pepsi’s direct materials?


c. Of the company’s conversion costs, does labor or manufacturing overhead comprise the larger component of manufacturing costs? Defend your answer.


d. View thePepsiCo’s charitable, educational, and environmental initiatives. Would it be improper forPepsiCo to report these initiatives as product costs? Do you believe that it is ethical for PepsiCo to report only the positive impacts of its community-oriented efforts throughout the world? Defend your answer.

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