Flashcards
Chap 3
Cards in this deck (12)
- 1what are the 2 types of costing?job-order costing
process costing - 2What is process costing?essentially a system of averaging;
by dividing the production costs by the total number of homogenous items produced; - 3describe the cost-flow of the Process costing?refer slide 4 of Chap 3.
- 4Define Cost per equivalent unitcost of beg. inventory + cost incurred during the period
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units completed during the period + equivalent units in ending WIP - 5At end of April, 20000 gallons of preservative are on hand that are 50% complete , what are the equivalent units in ending WIP for material,labor and overheadMaterial = 20000
labor = 50% * 20000 = 10000
overhead = 50%*20000 = 10000 - 6What is production cost report?reconciliation of units completed and equivalent units at the endo f the period;
reconciliation of costs as well as the equivalent cost per equivalent unit calculation - 7assuming no damage, evaporation or theft, explain the reconciliation of units formulaunits beg WIP + units started = units completed + units ending WIP
- 8assuming no damage, evaporation or theft, explain the reconciliation of costscost of beg WIP + cost incurred during the period = cost assigned to ending WIP + cost transferred out
- 9what is first step in process costing?account for the number of physical units
- 10what is the second step in process costing?cost per equivalent unit (for material/labor/overhead) = beg cost + cost incurred during period / ( units completed + number of equivalent units in ending WIP)
- 11what is the 3rd stepassign costs to completed items and items in ending WIP
- 12what is the 4th Step?account for the product cost
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- asd Cost Management Flashcards on Chap 3, created by Mukundhan Srinivasan on 10/01/2016.
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- Mukundhan Srinivasan
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