MGM222H5 Chapter Notes - Chapter 4: Indian Railways, Flexible Manufacturing System
Document Summary
Activity performed in processing dept must be performed uniformly on all of the units passing through it. Output must be identical: process system: production costs not identified with specific units/batches. In such situation, por should charge overhead costs to products like job- order costing. Each dept would have its own separate rate: equivalent units: number or partially completed units x percentage of completion. Product of the # of partially completed units and their percentage of completion with respect to a particular cosy. # of complete whole units one could obtain from the materials and effort contained in partially completed units. These units would be added to any fully completed units to determine period"s output for the department = equiv. units of production. Fifo method: method of accounting for cost flows in a process costing system in which equivalent units and unit costs relate only to work done during the current period.
