1. Would job costing or process costing be used by the manufacturer of the dye used to turn the Chicago River green for St. Patrick’s Day?
Original blog posting (March 15, 2017)

2. Chicago River – St. Patrick’s Day
Members of the Plumbers Local have dyed the Chicago River green in honor of St. Patrick’s Day since 1962
1966 a switch was made to use an eco-friendly vegetable dye
Dye is likely similar to the Bright Dyes Water Tracer Dye produced by Kingscote Chemicals of Ohio
Copyright: <a href=' / 123RF Stock Photo</a>

3. Chicago River – St. Patrick’s Day
Likely steps to produce dye:
Mix together several chemicals in powder form
Add a liquid chemical to the mix
Heat and stir the mixture
Cool the mixture
Dry and grind the cooled mixture into a power form
Dye is made in large batches
Sold in 1, 10, & 25 pound containers
Copyright: <a href=' / 123RF Stock Photo</a>

4. Question 1
Would Kingscote Chemicals be likely to use job costing or process costing when it accounts for the manufacture of its powder Bright Dyes products? Explain.

5. Question 2
List several conversion costs that might be incurred in the production of the Bright Dyes powder.

6. Question 3
Describe the accounting for conversion costs at a manufacturer such as Kingscote Chemicals.

7. Question 4
If Kingscote Chemicals routinely has little to no inventory at the end of each period, what effect would that lack of inventory have on its costing system?

8. Question Recap
Would Kingscote Chemicals be likely to use job costing or process costing when it accounts for the manufacture of its powder Bright Dyes products? Explain.
List several conversion costs that might be incurred in the production of the Bright Dyes powder.
Describe the accounting for conversion costs at a manufacturer such as Kingscote Chemicals.
If Kingscote Chemicals routinely has little to no inventory at the end of each period, what effect would that lack of inventory have on its costing system?

9. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at Questions or comments? Contact Dr. Wendy Tietz at