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18 Cards in this Set

  • Front
  • Back
the main difference between process costing and job costing is the
extent of averaging used to compute unit costs of products or services
process costing systems separate costs into cost categories according to
when costs are introduced into the process
what are the five steps of process costing
1. Summarize the physical flow of units of output. (quantity report)
2. Compute output in terms of equivalent units.
3. Summarize Costs to be accounted for.
4. Calculate cost per equivalent unit.
5. Prepare a schedule of Costs Accounted For.
How do you compute the weighted average equivalent units
Step 2 – Compute equivalent units.
TO X 100%
+ EB X % Completed
= Equivalent Units.
What are the weighted average costs to be accounted for?
Costs in the Beginning Work in Process
Current period manufacturing costs (CPMC).
What is the weighted average cost per equivalent unit?
Compute the cost per Equivalent Unit (E.U.)

Beg WIP Costs + CPMC/
Total Equivalent Units
How do you Prepare a schedule of Costs Accounted For using the weighted average mehtod?
Costs Transferred out = E.U. Transferred Out X Cost per E.U.
Costs in Ending WIP =
E.U. in Ending WIP X Cost per E.U.
What does TO equal in Weighted average method
Units finished during this period
What does TO equal to in FIFO method?
Beginning Work in Process
+Units Started and Completed
How do you calculate equivalent units in FIFO method
Compute equivalent units E.U.)
Beg WIP X % to be completed
+ Units Started and Completed X 100%
+ End WIP X % completed
Wgat are the costs to be accounted for in the FIFO method?
Costs in the Beginning Work in Process
Current period manufacturing costs (CPMC).
How do you figure the costs per equivalent unit through the fifo method
Step 4: Calculate the Cost per E.U.
*Total Current Period Manufacturing Costs/Total Equivalent Units
How do you prepare a schedule of costs accounted for for the FIFO method?
Prepare a schedule of Costs Accounted For Layers of Costs T.O.:
Beg WIP costs from prior period
Current Period costs T.O:
E.U. to finish Beg WIP X Cost per E.U.
E.U. Started and Finished X Cost per E.U.
How do you calculate the costs in ending WIP for FIFO
Costs in Ending WIP:
E.U. in Ending WIP X Cost per E.U.
What are units to account for under FIFO
Beg WIP + Units started
What are units to be accounted for under FIFO
Beg WIP + Started and Completed + Ending WIP
What are TO units under FIFO
Beg Wip + started and completed
What is started and completed units under FIFO
TO - Beg WIP