Chapter 17 - Cost Accounting - JKBaker - Process Costing Chapter 17 ACCT 3270 Fall 2015 Jay K Baker MSFS MBA CPA CFP J Keith Baker 2015 Job Costing

Chapter 17 - Cost Accounting - JKBaker - Process Costing...

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J. Keith Baker © 2015 Process Costing Chapter 17 ACCT 3270 Fall - 2015 Jay K. Baker, MSFS, MBA, CPA, CFP®
17-2 J. Keith Baker © 2013 Job Costing Versus Process Costing Job-Costing Systems Distinct, identifiable units of a product or service Examples: Custom-made machines, houses Process-Costing Systems Masses of identical or similar units of a product or service Examples: Food, chemical processing LO 17 - 1 Identify the situations in which process-costing systems are appropriate.
J. Keith Baker © 2013 Process Costing Process costing is a system where the unit cost of a product or service is obtained by assigning total costs to many identical or similar units. Each unit receives the same or similar amounts of direct materials costs, direct labor costs, and manufacturing overhead. Unit costs are computed by dividing total costs incurred by the number of units of output from the production process.
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17-5 J. Keith Baker © 2013 Comparing Job Order and Process Operations A 1 5
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17-8 J. Keith Baker © 2013 Process costing – case 1 When using process costing without any beginning or ending work-in-process inventory, all costs that were introduced to the process during the period will be assigned to the finished units leaving work-in-process inventory at the end of the period. Go to Page 666 - 668 of your text.
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