Process Costing Flashcards
1
Q
Two Methods
A
FIFO and Weighted Average
2
Q
Cost per Equivalent Units
A
FIFO - Three steps and uses only current costs
Weighted Average - Two Steps and uses Beginning and Current costs
3
Q
Normal Spoilage (charged to factory overhead)
A
Inventory Cost - on Balance Sheet
occurs under regular operating conditions
4
Q
Abnormal Spoilage
A
period expense - on income statement
Ex. flood, fire damage, spoilage materially in excess of standard caused by inefficient equipment of labor.
