Characteristics of process manufacturing
Firms making a homogeneous product use this type of costing.
What is process costing?
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?
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
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
Under fifo these are not counted in calculating this periods equivalent units.
What is BWIP
You will find units to account for and units accounted for on what section of the Production report
What is the unit information section?
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
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
The cost of material transferred out of a department is equal to
What is the cost of transferred in goods
Under weighted average when transferring inventories between departments: the unit cost times units completed
What is the cost of goods transferred out
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
What does the anacronym EWIP stand for
What is ending work in process?
This report consists of five steps
What is a production report
What are the three input categories for a department receiving transferred in goods?
transferred in materials, materials added, conversion costs
This type of report is comprised of two things: a unit information section and a cost information section
What is a production report
This type of processing pattern requires two or more sequential processes to produce a finished good
What is parallel processing
What does the anacronym BWIP stand for
What is Beginning Work in Process?
This is the benefit of the weighted average method
What is simplicity
This type of cost is typically added uniformly at discrete points of the production process?
Conversion costs
for computation of unit costs FIFO method, these type of manufacturing costs are used
What is current period manufacturing costs
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
Knowing the output for a period and manufacturing costs for that period, unit cost is equal to
Total Cost / Equivalent units
This subsection of a production report has 2 parts: Units to account for and Units accounted for:
WHat is the physical flow schedule
Valuation of goods transferred out uses the unit cost, whereas valuation of EWIP uses what?
input category unit costs
What must be true for costs to be reconciled
Total costs assigned equal total costs accounted for