Determine Physical Flow of units.
The work in process inventory account per process and having one work in process inventory account are aspects between two costing methods of manufactured goods.
What is the difference between the process system and job order system?
This consists of direct labor and applied overhead, and are the costs of converting raw materials into finished goods.
What are conversion costs?
This is the percentage that completed and transferred out inventory is always set to when computing EUP.
What is 100%?
What is the first part of the production cost report?
The units completed and transferred, and the ending work in process inventory are on the right half of the physical unit flow reconciliation.
What are the units completed for and transferred, and the ending work in process inventory?
This is the number of whole units that could have been started and completed given the costs incurred in the period, because unfinished units at the end of period still need to be assigned costs.
What is the equivalent units of production?
This is the weighted average method to calculate the cost per EUP.
What is the total cost divided by equivalent units of production?
The second part of the production cost report covers this area of process costing and analysis.
What is the equivalent units of production for direct materials and conversion?
What are the beginning work in process inventory and units started this period?
This is because direct materials and conversion costs typically enter processes at different rates.
Why are the equivalent units of production for direct materials and conversion costs calculated separately?
These are the units to account for when using the FIFO method for process costing.
What is the beginning work in process inventory and units started this period?
What is the cost assignment?
This happens when the units to account for and units accounted for match.
What happens when the physical flow of units are reconciled?
These are the units that make up the formula for EUP.
What are equivalent units completed and transferred out, plus equivalent units in ending work in process?
These two parts of inventory make up the total costs that factors into the cost per equivalent unit of production.
What is the costs of beginning work in process and costs added this period?
Measuring cost per unit after the completion of a job under job orders and measuring unit costs at the end of a period by combining costs per unit from each process under the process system shows this difference.
What is cost per unit?