CN17HO - Process Costing Chapter 17 2009 Foster School of...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
2009 Foster School of Business Cost Accounting L.DuCharme 1 Process Costing Chapter 17
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2009 Foster School of Business Cost Accounting L.DuCharme 2 Quote for today When I was a boy of fourteen, my father was so ignorant I could hardly stand to have the old man around. But when I got to be twenty-one I was astonished at how much the old man had learned in seven years. -- Mark Twain
Background image of page 2
2009 Foster School of Business Cost Accounting L.DuCharme 3 Overview—Process Costing When to use Accounting issue Equivalent Units (EUs) Mechanics of process costing w/o TI costs with TI costs Accounting for Spoilage (chapter 18)
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2009 Foster School of Business Cost Accounting L.DuCharme 4 When is it appropriate to use process costing? Or what companies use process costing? Which companies would not use process costing?
Background image of page 4
2009 Foster School of Business Cost Accounting L.DuCharme 5 Illustrating Process Costing Direct Materials, Direct Labor Indirect Manufacturing Costs Department A Department B Finished Goods Cost of Goods Sold
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2009 Foster School of Business Cost Accounting L.DuCharme 6 What is the BIG accounting issue? The task is to divide the total costs in WIP between ending WIP and inventory completed and transferred out (CTO). This is no big deal until you consider that E.WIP is partially completed and CTO by definition is 100% complete (for each step of production)! What do we do?
Background image of page 6
2009 Foster School of Business Cost Accounting L.DuCharme 7 Equivalent Units 15 half-time (50%) professors is equivalent to 7.5 full-time professors. Often for people we refer to FTEs. 100 teddy bears that are (on average) 45% complete are equivalent to 45 completed bears = 45 equivalent units.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2009 Foster School of Business Cost Accounting L.DuCharme 8 EU—when to use Not all organizations that use process costing have to calculate EUs! You only have to calculate/use EUs when
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/02/2009 for the course ACCTG 311 taught by Professor Ducharme during the Spring '08 term at University of Washington.

Page1 / 29

CN17HO - Process Costing Chapter 17 2009 Foster School of...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online