ACCT 2550 Chapter 5: Chapter 5
19 Oct 2016
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Document Summary
Many different jobs are worked on during each period, with each job having different production requirements. The job cost sheet is the key document controlling the accumulation of costs by a job. Unit costs are computed by job on the job cost sheet. A single product is produced either on a continuous basis or for long periods. The department production report is the key document showing the accumulation and disposition of costs by department. Unit costs are computed by department on the department production report. Costs are traced to only a few processing departments. A processing department is any location in an organization where work is performed on a product and where materials, labour, and overhead costs are added to the product. Three features of a processing department: activities must be performed uniformly on all of the units passing through.
