We now turn our attention to Double Diamond Skis, a company that manufactures a high-performance deep-powder ski, and that uses process costing to determine its unit product costs. The company’s production process is illustrated in Exhibit 4–4 . Skis go through a sequence of five processing departments, starting with the Shaping and Milling Department and ending with the Finishing and Pairing Department. The basic idea in pro- cess costing is to add together all of the costs incurred in a department during a period and then to spread those costs uniformly across the units processed in that department during.
