chapter 4

Question 1

Process cost systems:

Answer 1

assign costs to similar products that are mass-produced in a continuous way.

Question 2

Similarities and differences between Job order costing and process costing system:

Answer 2

The same:
1. The manufacturing cost component
2.The accumulation of the cost of DM, DL, MO
3. The flow cost

Differences
1. The number of work in process inventory accounts used
2.Documents used to track cost
3. The point at which costs are totaled
4. Unit calculation

Question 3

Units to be accounted for
And
Units accounted for

Answer 3

Units to be accounted for:
Work in process Begin
+ Started into production
Total units (Should be the same as total units for other)

Units accounted for
Work in Process end
+ Transferred out of production:
Total Units= (Same as other)

Question 4

Equivalent unit:

Answer 4

—————————————-Material Conversion
Transferred out xxx xxx
+Work in process end (xxx * %) (IM + IL * %)
Equivalent units or production =

Question 5

Cost Per Equivalent unit:

Answer 5

——————————————-Material Conversion
Cost Per equivalent:
Work in process Begin
+ Cost added during period
Total Cost
Equivalent units of production
/ Total Cost
= Cost per equivalent unit

Question 6

Total Cost to be accounted for:

Total cost accounted for

Answer 6

Work in process Beging
+Cost added during period
=Total cost (Should be the same)

Transferred out ( Transfered out * total cost)
Work in process end
Material * Material cost per unit
Conversion * Conversion cost per unit
= Total cost (Should be the same)