Costs transferred from one processing department


Nut House manufactures and sells jars of peanut butter. All of the company's output passes through five production processes, which are performed in sequential order. Identify all correct answers, assuming that process costing is in use.

a. The processing departments may define "units of output" differently.

b. Costs transferred from one processing department are charged to the next processing department.

c. The cost accounting system separately measures the per- unit cost of each manufacturing process.

d. No manufacturing overhead is charged to each processing department.

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Accounting Basics: Costs transferred from one processing department
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