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29 Cards in this Set
- Front
- Back
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Process Costing is used in industries that convert _____ ______ into _________ products on a _______ bais |
Process Costing is used in industries that convert raw materials into homogeneous products on a continuous basis
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Production and products uses Processing costing when a(n)... |
1. company produces a continuous flow of units 2. units are indistinguishable from one another and two 3. an assembly operation is required |
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What is the difference between Job Order costing and process costing |
Job order costing can be traced by specific materials, labor and overhead costs, accumulate costs by jobs and cost formerly assigned by jobs whereas processing costing can not be traced because each order is filled from a continuous flow of identical units |
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How does process costing accumulate their cost |
by department for a given period of time. |
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_________ _________ is where work is performed on the _______ and where ______, ______, and _______ costs are added to the product. |
Processing Department is where work is performed on the product and where material, labor, and overhead costs are added to the product.
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The two essential features of a processing department is the.... |
1. department's process is performed uniformly on ALL units passing through the department 2. output of the department is homogeneous ALL of the units produced are identicial |
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Which departments have its own accounts and can be added in ANY processing department's work-in-process inventory |
Labor, Material and Overhead |
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After costs are accumulated in a given department, the number of units produced must be determined this is |
Equivalent units is the after costs are accumulated in a given department, as wel as the number of units produced must be determined |
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Find the units in ending work in process or ending inventory |
Number of units completed x percentage completion |
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The sanding department ends the period with 40 chairs that are 40% complete. What is the number of equivalent units in the departments ending WIP inventory |
40 x .4 = 16 Number of equivalent units...department...ending WIP inventory |
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What are the equivalent units in a processing department's work in process contains 300 units that are 40% complete |
120 Equivalent unit...department...WIP..complete |
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Which of the following products would most likely use a processing system? flour, gasoline or toothpaste |
all three |
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Job cost sheets to are used to accumulate costs using ____ ____ costing |
Job-order costing |
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True or false, the flow of costs through manufacturing accounts is basically the same for job order costing and process costing |
True, both costing system use the same manufacturing accounts to post costs |
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True or false, Process costing is used when a company produces a continuous flow of units that are homogeneous? |
True, in processing costing all units of the product are identical |
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The correct journal entry to apply manufacturing costs to processing department #1 would be to ______ MOH and _____ WIP department #! |
credit Manufacturing Overhead, debit Work in Process This is apply Manufacturing cost to processing department |
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What is the entry to record the sales of FG to customers |
Credit Finishing Goods and Debit Cost of Goods Sold |
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What are the different ways or method to compute the equivalent units of production |
FIFO method and weighted average method |
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what are equivalents units of production under the weighted-average method |
equivalent units in ending work in process + units transferred out |
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What type of output is produced in a processing department |
identical units and homogeneous |
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SP= 10 VC= 6 FC= $80,000 BEU = ? |
Break-even Unit si 20,000 (80000/(10-6)) = 20000 units |
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In processing, which account does every processing department have |
Work in process |
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________ ________ is a measure of how sensitive net operating income is to a change in SALES REVENUE |
Operating Leverage |
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Degree Operation Leverage; a business's contribution margin is $40,000 and its net operating income is $10,000 calculate the degree of operating leverage |
4 40000/10000 |
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The company's net operating income grow 4 times as fast as its sales: if the grow by 10%, then net operating income grows by |
40% |
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If sales drop by a % will we still break-even |
true, margin of safety |
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Expected sales = $410000 BE$ =225000 M of S: ? M of S Ratio: ? |
Expected sales - BE$ = M of S
( M of S / Expected sales ) x 100 = M of S Ratio % |
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_____ ______ the proportion of the fixed costs v. variable costs in an organization |
Cost structure |
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High Sales =? Low Sales = ? |
High sales =high fixed/low variable Low sales = low fixed/High variables use high fixed cost structure if sales volume greater than CM per unit use lower fixed cost structure if sales volume less than CM per unit |
