Chapter 20 Flashcards
What kind of products does a process manufacturer produce?
Products that are indistinguishable from each other using a continuous production process.
The cost accounting system used by process manufactures is called…?
Process Cost System
Job order manufacturer produces what products for customer or batches of similar products?
Custom
What’s the difference between a process cost system & a job order cost system?
A process cost system accumulates product costs in work in process accounts for each department
A job order cost system accumulates product costs by jobs using job sheets
What summarizes the production and cost data for a department in a process cost system?
Cost production report
Job order cost system: Work in process at end of period = ?
Sum of job sheets for partially completed jobs
Process cost system: Work in process at end of period =
Sum of the costs remaining in each dept. account
How many steps are needed to complete the Cost production report? What are they?
4; Step 1. Determine the units to be assigned costs
Step 2. Compute equivalent units of production
Step 3. Determine the cost per equivalent unit
Step 4. Allocate costs to units transferred out and partially completed units
What are whole units ?
The # of units in production during a period, whether completed or not
Equivalent units of production are…
The portion of whole units that are complete with respect to either materials or conversion costs
Conversion cost is made up of…
Factory overhead + direct labor
The direct materials cost per equivalent unit is…
Total direct materials for the period / total equivalent units of direct materials
Conversion Cost per Equivalent unit =
Total conversion costs for the period / total equivalent units of conversion costs
Total to be assigned costs =
Total units accounted for
Equivalent units is found by
Multiplying the whole units by the percent of materials added
Product costs must be allocated to what?
Units transferred out and the partially completed units on hand at the end of the period.
Journal Entry for each department’s requisitioned materials
Debit : Work in process - x dept , Work in process - x dept, Factory Overhead - x dept
Credit: Materials
Depreciation is considered a what?
Factory overhead cost
What can yield be used for?
To see how much material was lost or spilled during the process
Yield =
Quantity of material output / quantity of material input
Manufacturing cells are?
When processing functions are combined into work centers
Service activities are
Activities supporting the manufacturing process in a just-in-time production process
The weighted average cost method does what ?
Assigns costs to products based on the average of the accumulated costs
