ch4 - Managerial Accounting Chapter 4 - Process Costing...

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Managerial Accounting Chapter 4 - Process Costing
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Chapter 4 Highlights Let’s look at the similarities & differences between J.O.C and process costing How do we prepare journal entries for a process costing system? How do we calculate equivalent units, prepare a quantity schedule, unit costs and cost reconciliation using Weighted Avg. Method (ie a production report)? What is operational costing?
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J.O.C. Vs Process Costing used when one homogeneous product is made 3 Similarities between J.O.C and process costing: objectives of the costing systems are the same to assign unit costs to products produced use the same set of G/L accounts (DM, DL, Mfg. OH, W.I.P., F.G.) the flow of these cost through the G/L is virtually the same
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J.O.C. Vs Process Costing Job-order costing Many jobs are worked  during the period. Costs are accumulated  by individual jobs. Job cost sheet   is the  key document. Unit cost computed by  job. Process costing A single product is produced for a long period of time. Costs are accumulated by departments. Department production report is key document. Unit costs are computed by department.
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Processing Department Processing Dept - any location in the factory where work on a product is done 2 Characteristics uniform activity performed on all products output is homogeneous
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Processing Department Each processing dept can have a W.I.P. account Transfers between Dept. W.I.P. accounts are common j.e. Transfer from A ->B Dept: Dr. W.I.P. B xxx Cr. W.I.P. A xxx
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Processing Department Direct Labor & Direct Materials work the same way as J.O.C.
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This note was uploaded on 06/20/2009 for the course ACC 406 taught by Professor Unknown during the Summer '09 term at Ryerson.

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ch4 - Managerial Accounting Chapter 4 - Process Costing...

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