In a team of three or four people, choose a company whose mass production process you would like to learn. Use the library, the Internet, and (if possible) personal resources to gather information. Prepare a visual representation (similar to Exhibit 6–2) of that production process. In this illustration, indicate the approximate percentage of completion points at which various materials are added and where/how labor and overhead flow into and through the process. Assume that 1,000 units of product are flowing through your production process and are now at the 60 percent completion point as to labor. Prepare a written explanation about the quantity of direct material equivalent units that are included in the 1,000 units. Also explain how much overhead activity and cost have occurred and why the overhead percentage is the same as or different from the percentage of completion for labor.
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