COMM 291 Chapter Notes - Chapter 5: Finished Good, Ob River, Weighted Arithmetic Mean
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COMM 291 Full Course Notes
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By having inventories, costing is more complicated. Nd costs of each part of process to make a product. Ex. cost to blend, cost to carbonate and cost to bottle are each separate steps in process costing. Job costing vs process costing in relation to making bottled drink. Manufacturing -> speci c job -> nished goods -> cogs. Manufacturing costs -> blending process -> carbonating process -> packaging process. When a job is nished, its costs ow directly into finished goods inventory and into cogs when it is sold. In contrast process costing sees the cost ow between each manufacturing processes and on top of that uses different labour and equipment in each step. Each process has its own separate work in process inventory account. Direct materials, direct labour and manufacturing overhead are assigned to each processing departments wip account based on the manufacturing costs incurred by that process.