Systems Design -- Process Costing

Systems Design -- Process Costing

1. Model of Process Costing Flows

   • Raw Materials
     • Retrieved from Simplestudies, Manufacturing and Nonmanufacturing Costs
   • Wages Payable
   • Manufacturing Overhead
     • Work in Process Department A
       • Work in Process Department B
         • Finished Goods
           • Cost of Goods Sold
         • Retrieved from Simplestudies, Manufacturing and Nonmanufacturing Costs

2. Equivalent Units of Production

   • The number of units that would have been produced during a period if all of a department's efforts had resulted in completed units of product
     • Equivalent units are computed by taking copleted units and adjusting them for partially completed units in the work in process inventory
       • Two method of Calculation
         • Weighted-Average Method
           • Retrieved from SlideShare created by Norren, G. Managerial Accounting Chap004
         • FIFO(First-in-first-out) Method
           • Retrieved from SlideShare created by Norren, G. Managerial Accounting Chap004

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