John Deere

The production process for John Deere usually begins at the Freightliner where the base superstructure required for the luxury home vehicles is designed, manufactured, and assembled. To achieve its goals, the plant has developed numerous standard processes and procedures upon which the factory workers need to match their working pace. For instance, they need to see if they have attained the planned completed units within the allotted period of time. Three elements of the base structure chassis are constructed in three different job phases: the rear, the front, and the middle. Squaring is the second process. Stage three involves dropping the front and rear axles, and the RV wheels into place. The engine is the fourth phase. The engine is then ribbed and assembled with other parts to form the base superstructure.
All these stages are achieved through job orders. When a specific job has been completed, all the costs that have been assigned to the job will then be transferred from the work-in-process inventory account to the finished goods inventory account. When the job completed has been sold and delivered to the buyer (in the case of John Deere the next plant of manufacturing for the body), all the company job …show more content…
The entire job order costing system involved the identification of a specific job before tracing of all the direct costs to the job. Indirect costs attributable to the job are then considered before being applied to the pre-determined overhead allocation rate. Total costs are then arrived at by summing up all the individual phases or stages of the job. In the case of John Deere, there are five phases involved in building the base superstructure. The under or over-applied manufacturing overhead costs are then transferred to the income statement or cost of goods sold. At this point, the cost accountant can determine the manufacturing profit or