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Process Cost Flow - both the Machining and Assembly...

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PROCESS COST FLOW Illustration  16-5  shows the flow of costs in the process cost system for Tyler Company. Tyler  Company manufactures automatic can openers that it sells to retail outlets. Manufacturing consists of  two processes: machining and assembly. The Machining Department shapes, hones, and drills the  raw materials. The Assembly Department assembles and packages the parts.  Illustration 16-5    Flow of costs in process cost  system As the flow of costs indicates, the company can add materials, labor, and manufacturing overhead in 
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Unformatted text preview: both the Machining and Assembly departments. When it finishes its work, the Machining Department transfers the partially completed units to the Assembly Department. The Assembly Department finishes the goods and then transfers them to the finished goods inventory. Upon sale, Tyler removes the goods from the finished goods inventory. Within each department, a similar set of activities is performed on each unit processed....
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