Accounting 1B Chapter 3

Front 1

cost of production report

Back 1

A report prepared periodically by a processing department, summarizing (1) the units for which the department is accountable and the disposition of those units and (2) the costs incurred by the department and the allocation of those costs between completed and incomplete production.

Front 2

cost per equivalent unit

Back 2

The rate used to allocate costs between completed and partially completed production.

Front 3

equivalent units of production

Back 3

The number of production units that could have been completed within a given accounting period, given the resources consumed.

Front 4

first-in, first-out (FIFO) inventory cost flow method

Back 4

The method of inventory costing based on the assumption that the costs of merchandise sold should be charged against revenue in the order in which the costs were incurred.

Front 5

just-in-time (JIT) processing

Back 5

A processing approach that focuses on eliminating time, cost, and poor quality within manufacturing and nonmanufacturing processes.

Front 6

manufacturing cells

Back 6

A grouping of processes where employees are cross-trained to perform more than one function.

Front 7

process cost system

Back 7

A type of cost system that accumulates costs for each of the various departments within a manufacturing facility.

Front 8

process manufacturers

Back 8

Manufacturers that use large machines to process a continuous flow of raw materials through various stages of completion into a finished state.

Front 9

whole units

Back 9

The number of units in production during a period, whether completed or not.

Front 10

yield

Back 10

A measure of materials usage efficiency.