Coca Cola Company
Coca Cola Company is one of the biggest global manufacturer, marketer, and distributor of non alcoholic beverages. The company sells concentrates and syrups to authorized canning and bottling operators. Coca Cola company products include sparkling, juices, beverages, and bottled water. Around 75% of the coca cola revenue is international, and 53% are concentrate and syrup sales of Coke brands. Coca cola markets in world’s top five brands Coke, Diet Coke, Sprite, and Fanta. Coca-Cola is the most popular and biggest-selling soft drink in history. The Company was invented in 1886 by Dr. John S. Pemberton in Atlanta, Georgia. The name 'Coca-Cola' was suggested by Dr. Pemberton's bookkeeper, Frank Robinson. He kept the name Coca-Cola in the flowing script that is famous today. Coca-Cola was first sold as a soda fountain by mixing syrup with carbonated soda. In 1893, Coca Cola was registered in the United States.
Coca Cola adopted the SFAS 151 treating the costs to be allocated. Its allocations of freight, capacity, and handling costs with other allocable cost such as loss from wastage of raw materials and spoilage are expensed outright without out going to the inventory stage. However in production overhead like light, utility is allocated as being part of the inventory under “normal capacity” (The Coca-cola, 2008) of production facilities. The company cost of goods sold amounting to $2 billion and its allocable total allocable cost at 10% of goods sold. This means that the cost is not allocated into production; it would be expensed out and want wait until the goods are sold before they are accounted for. In the long run, the same amount will be generated for the bottom amount which is operating income. Coca Cola just like most of the other companies, uses a cost spreader, these costs are not directly identified to these products can take these costs. Then it becomes a production cost rather then a period cost which is outright expense.
Coca Cola adopted the SFAS 151 treating the costs to be allocated. Its allocations of freight, capacity, and handling costs with other allocable cost such as loss from wastage of raw materials and spoilage are expensed outright without out going to the inventory stage. However in production overhead like light, utility is allocated as being part of the inventory under “normal capacity” (The Coca-cola, 2008) of production facilities. The company cost of goods sold amounting to $2 billion and its allocable total allocable cost at 10% of goods sold. This means that the cost is not allocated into production; it would be expensed out and want wait until the goods are sold before they are accounted for. In the long run, the same amount will be generated for the bottom amount which is operating income. Coca Cola just like most of the other companies, uses a cost spreader, these costs are not directly identified to these products can take these costs. Then it becomes a production cost rather then a period cost which is outright expense.