The initial complication introduced in Chapter 6 regarding the application of materials, labor, and overhead to a product.
What is "They are not always uniformly applied during the processing period"?
100
The number of equivalent units in ending work in process related to material if 300 units were in work in process at month end and all material is added at the beginning of the production process.
***DAILY DOUBLE***
What is 300 units?
100
Losses that are expected in the manufacturing process and cannot be avoided.
What are normal losses?
100
Multiple items produced from a common process that are primary objectives of the procees.
What are joint products? (No, not those joints!)
100
1) A physical unit of measure(weight,volume,etc.), or
2) A chemical, engineering, or other type of analysis.
What are the other two methods for apportioning costs incurred after split-off? (other is relative sales value)
200
The inventory method introduced as another method of assigning costs to inventory during the production process.
What is FIFO (first in - first out)?
200
The number of equivalent units in ending work in process related to factory overhead if there were 300 units and they were 2/3 complete as to labor.
What is 200 units? (Note...Factory overhead equivalent units is always equal to the equivalent units for labor).
200
The cost of normal losses are included as part of the cost of all units and therefore are treated as this type of cost.
What are product costs? (the good units absorb the cost of the units lost)
200
Secondary items with relatively little value that result from a common process.
What are by-products?
200
Based on the logic that the greatest share of joint costs should be allocated to the product that has the highest sales value.
What is the reasoning behind the use of the relative sales value method of allocating joint costs to end products?
300
The percentage of completion for factory overhead always is the same as this other production factor.
What is Labor?
300
The formula for calculating unit cost for the month.
What is Cost of beginning work in process plus (+) Cost of production for the month divided by (/) equivalent units of production for the month?
300
Unexpected losses that should not happen during production and therefore are treated as period costs as opposed to product costs.
What are abnormal losses?
300
Material, labor, and factory overhead costs incurred during a joint production process.
What are joint costs?
300
Under this procedure, the estimated sales value of the by-products reduces the cost of the main products that are accumulated in work in process.
***DAILY DOUBLE***
What is
1) Creating an inventory account for the by-product
2) Crediting work in process for the estimated
sales value of the by-product
3) Using a gain or loss account to reflect actual/estimated
sales price?
2)
400
A cost system that uses predetermined set costs for production factors in order to furnish a measurement that helps management make decisions regarding the efficiency of operations.
*****DAILY DOUBLE*****
What is a Standard Cost System?
400
The most likely reason that the equivalent units of production in a department calculation will differ between material and conversion cost (labor and factory overhead).
*****DAILY DOUBLE*****
What is when materials are added at the beginning of the production process? (note...if the conversion costs were also complete there would be no work in process because the units would be fully completed in the department and therefore transferred to another department or to finished goods).
400
This procedure assumes that the unit costs calculated for the current period are used for a variety of reasons:first, to complete the beginning units of work in process; second, to start and fully complete an additional number of units; and, finally, to start other units that will remain unfinished at the end of the period.
What is the FIFO method?
400
The point at which joint costs become separately identifiable.
****DAILY DOUBLE****
What is the split-off point?
400
The circumstance where the unit cost of items produced using the average cost method will differ from the FIFO cost method.
***DAILY TRIPLE***
What is when material, labor, and/or factory overhead prices change during the production process?
500
The number of whole units of production that could have been completed during a period given the amount of work that was performed.
What are equivalent units?
500
The circumatance where there can be two (or more) claculations for equivalent units of production for material in beginning and/or ending work in process.
What is when materials are added at different times during the production process?
500
Although overall total production costs don't differ, these differences emerge between the FIFO and the average cost methods.
What are the calculated costs that end up in finished goods transferred out and the cost remaining in ending work in process?
500
The relative (or adjusted) sales value of each product.
What is one of the three methods to identify and apportion or allocate processing costs that occur after the split-off point?
500
Because the application of overhead is usually closely related to the incurrence of labor cost when direct labor is significant.
What is the reason for applying labor and factory overhead evenly the same way throughout the production process?