Term
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Definition
| works well whenever homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs. |
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Term
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Definition
| requires that units pass through one process before they can be worked on in the next process in the sequence. |
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Definition
| another processing pattern that requires two or more sequential processes to produce a finished good. |
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| Partially completed units (two sub components or more) |
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Definition
| can be worked on simultaneously in different processes and then brought together in a final process for completion. |
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Term
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Definition
| Units are __________ and subjected to the same operations for a given process and each unit produced in a period should receive the same unit cost. |
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Term
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Definition
| The manufacturing cost flows for a process-costing system are the same as those for a |
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Term
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Definition
| Similarly, raw materials, direct labor, and _________ costs flow into a work-in-process (WIP) account. |
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Term
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Definition
| In process costing, each ____________ has its own WIP account. |
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Term
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Definition
| The ________________ is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time. |
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Term
| Unit Costs= (service firms) |
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Definition
| Total costs for the period/ Number of services provided |
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Term
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Definition
| Total costs for the period/ Total output of the period. |
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Term
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Definition
| Total cost/ # of units produced |
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Term
| Equivalent units of output |
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Definition
| are the complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration. |
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Term
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Definition
| Units Completed + Units in EWIP X Fraction Complete |
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Term
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Definition
| Unit cost is calculated by dividing the cost of the period for a given process by the output of the period. The cost of goods (services) transferred out is the unit cost multiplied by the units completed. The cost of EWIP is the unit cost multiplied by the _____________ in EWIP. |
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Term
| weighted average costing method |
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Definition
| The ___________ combines beginning inventory costs and work done with current-period costs and work to calculate this period's unit cost. |
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Term
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Definition
| The _______ separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period. |
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Term
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Definition
| If _________ do not change from period to period, or if there is no BWIP inventory, the FIFO and weighted average methods yield the same results. |
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Term
| weighted average costing method |
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Definition
| The ___________________ treats beginning inventory costs and the accompanying equivalent output as if they belong to the current period. |
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Term
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Definition
The following five steps describe the general pattern of a process-costing production report:
1. ______________
2. calculation of equivalent units
3. computation of unit cost
4. valuation pf inventories (goods transferred out and EWIP)
5. cost reconciliation |
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