Characteristics of process manufacturing
Impact of work-in-process inventories on process costing
Weighted average costing
Multiple inputs and multiple departments
Appendices

100

Firms making a homogeneous product use this type of costing.

What is process costing?

100

This combines beginning inventory costs and work done with current-period costs and work to calculate this period’s unit cost

What is the weighted average costing method?

100

This provides an analysis of the physical flow of units and its purpose is to trace the physical units of production

What is the physical flow schedule

100

These goods are viewed as materials added at the beginning of the process and are treated as a separate input category

What are transferred-in goods

100

Under fifo these are not counted in calculating this periods equivalent units.

What is BWIP

200

You will find units to account for and units accounted for on what section of the Production report

What is the unit information section?

200

This costing method is known as first in first out. It uses the earliest recorded inventory item in inventory when assigning cost

What is FiFO Costing

200

In order to determine unit costs, a company should use this method if greater accuracy in computing costs is desired

What is the FIFO method

200

The cost of material transferred out of a department is equal to     

What is the cost of transferred in goods

200

Under weighted average when transferring inventories between departments: the unit cost times units completed

What is the cost of goods transferred out

300

This requires that units pass through one process before they can be worked on in the next process in a sequence

What is sequential processing

300

What does the anacronym EWIP stand for 

What is ending work in process?

300

This report consists of five steps

What is a production report

300

What are the three input categories  for a department receiving transferred in goods?

transferred in materials, materials added, conversion costs

300

This type of report is comprised of two things: a unit information section and a cost information section

What is a production report

400

This type of processing pattern requires two or more sequential processes to produce a finished good

What is parallel processing

400

What does the anacronym BWIP stand for

What is Beginning Work in Process?

400

This is the benefit of the weighted average method

What is simplicity

400

This type of cost is typically added uniformly at discrete points of the production process?

Conversion costs

400

for computation of unit costs FIFO method, these type of manufacturing costs are used

What is current period manufacturing costs

500

This is a document that summarizes the manufacturing activity that takes place in a process department for a given unit of time

What is the production re[port

500

Knowing the output for a period and manufacturing costs for that period, unit cost is equal to

Total Cost / Equivalent units

500

This subsection of a production report has 2 parts: Units to account for and Units accounted for:

WHat is the physical flow schedule

500

Valuation of goods transferred out uses the unit cost, whereas valuation of EWIP uses what?

input category unit costs

500

What must be true for costs to be reconciled

Total costs assigned equal total costs accounted for