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MANAGEMENT ACCOUUNTING. 1. Process Costing (6,7 câu : 4,5 câu lí thuy t, 2,3 câu bài t p) ế - lí thuy t: phân bi t th t kĩ s khác nhau gi a Job order costing vs Process ế costing đ ko b confused khi làm tr c nghi m, s khác nhau gi a FIFO vs Weight average method. - bài t p: tính toán equivalent units, cost per EU ... d a trên 2 pp FIFO vs Weight average - Similarities Between Job-Order and Process Costing: Both systems assign material, labor and overhead costs to products and they provide a mechanism for computing unit product costs. Both systems use the same manufacturing accounts, including Manufacturing Overhead, Raw Materials, Work in Process, and Finished Goods. The flow of costs through the manufacturing accounts is basically the same in both systems. - Differences Between Job-Order and Process Costing: Process costing is used when a single product is produced on a continuing basis or for a long period of time. Job-order costing is used when many different jobs having different production requirements are worked on each period. Process costing systems accumulate costs by department. Job-order costing systems accumulated costs by individual jobs. Process costing systems compute unit costs by department. Job-order costing systems compute unit costs by job on the job cost sheet. - Process costing is used for products that are: c. Individual units produced to customer specifications. d. Purchased from vendors.
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a. Different and produced continuously. b. Similar and produced continuously. - Any unit in an organization where materials, labor or overhead are added to the product. - The activities performed in a processing department are performed uniformly on all units of production. Furthermore, the output of a processing department must be homogeneous. - Products in a process costing environment typically flow in a sequence from one department to another. - Equivalent units are the product of the number of partially completed units and the percentage completion of those units. - Equivalent units can be calculated two ways: The First-In, First-Out Method – FIFO is covered in the appendix to this chapter.
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Christopher Reinemann
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