test 1 Flashcards
where can you use process costing?
high production volume, low product flexibility, repetitive operations, homogeneous
number of units that could have been completed if all of a company’s effort had been used to just start and finish units
equivalent units
combines beginning WIP and current production period
weighted average method
number of whole units of output that could have been produced from the actual effort expended
equivalent units of production
do not attach to the product and go directly to the income statement when incurred
period costs
attach to the product and go where the products go. to inventory if not sold. to CGS if sold
product costs
production department needs materials for products to be manufactured
materials requisition
show hours spent on products as direct labor and indirect labor
time cards
show direct materials and direct labor costs traced to the job, and manufacturing overhead assigned and allocated to the job
job cost record
individual jobs such as houses or special orders
job order costing
long production runs of alike units
process costing
WIP
Materials Inventory
direct materials used
WIP
Wages payable
direct labor used
FOH
various accounts
Actual overhead
WIP
FOH
overhead applied
