18.3 Case 2: process costing with zero beginning and some ending WIP inventory

Question 1

what is case 2 of process costing

Answer 1

process costing with zero beginning work in process inventory and some ending work in process inventory

Question 2

5 steps in process costing

Answer 2

1. summarize the flow of physical units of ouputs (complete or incomplete)
2. compute output in terms of equivalent units
3. summarize total costs to account for
4. compute cost per equivalent unit
5. assign total costs to units completed and to units in ending work in process inventory

Question 3

derived amount of output calculated by (1) taking the quantity of each input (factor of production) in units completed and in incomplete units of work in process and (2) converting the quantity of input into the amount of completed output units that could be produced with that quantity to input

Answer 3

equivalent units

Question 4

when calculating equivalent units in step 2, focus on

Answer 4

quantities
disregard dollar amounts until after equivalnet units are computed