RSM222H1 Chapter Notes - Chapter 6: Indian Railways
Document Summary
Difference b/w job order and process costing systems: flow of units in process costing is continuous but for job order its only limited to that job. Production report: units in process order are uniform aka exactly the same, in process costing we divide costs by departments bc all units essentially have the same costs. Report that summarizes all activity in a department work in process account during a period. Contains: quantity schedule & computation of equivalent units, computation of total & unit costs, and a cost reconciliation. Accounting for labour costs in work in process accounting. Part of an organization where work is performed on a product and where materials, labour, or overhead costs are added to the product. For e. g. 3 processing departments = preparing potatoes, cooking, and inspection & packaging. Costs attached to partially finished products that are transferred from one work in process account to another.
