Midterm Ch.18

Question 1

Job order costing system

Answer 1

An accounting system that accumulates costs by job. Used by companies that manufacture unique products or provide specialized services

Question 2

Process

Answer 2

One of a series of steps in manufacturing production;usually associated with making large quantities of similar items

Question 3

Process costing system

Answer 3

An accounting system that accumulates costs by process. Used by companies that manufacture identical units through a series of uniform production steps or processes

Question 4

Equivalent units of production (EUP)

Answer 4

Used to measure the amount of materials added to or work done on partially completed units and expressed in terms of fully completed units

Question 5

Conversion costs

Answer 5

The cost to convert raw materials into finished goods:DL +MOH

Question 6

Production cost report

Answer 6

A report prepared by a processing department for EUP, production costs, and the assignment of those costs to the completed and in process units.