Chapter 6 Flashcards
process
a series of activities that are linked to perform a specific objective
transferred in cost
a cost transferred from a prior process to a subsequent process is referred to as this
job order costing
accumulates costs by each job
process costing
accumulates costs by each process
JE for Transferred out costs
WIP - Encapsulating
WIP Blending
WIP - Bottling
WIP Encapsulating
Finished Goods
WIP BottlingJE for transferred in costs
WIP Encapsulating (the first step)
Materials
Payroll
Overhead Control
production report
the document that summarizes the manufacturing activity that takes place in a process department for a given period of time
unit cost
first measure the manuf costs for a process
second measure the output
finally divide the costs of the period by the output of the period
total cost/units produced
equivalent units of output
the complete units that could have been produced given the total amount of productive effort expended for the period under consideration.
physical flow schedule
provides an analysis of the physical flow units and the calculation of the period’s equivalent units.
FIFO
first in first out
conversion costs
direct labor and overhead
weighted average method
picks up the beginning inventory costs and the accompanying equivalent output and treats them as if they belong to the current period
batch production costing
produce batches of different products which are identical in many ways but differ in others
operation costing
a blend of job order and process costing procedures applied to batches of homogeneous products
