notes-c4 - C4 PROCESS COSTING notes-c4.doc Written by...

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1 C 4 – PROCESS COSTING notes-c4.doc Written by Professor Gregory M. Burbage, MBA, CPA, CMA, CFM © CHAPTER LEARNING OBJECTIVES: MAJOR: - Conceptual understanding of and calculation of equivalent units. - Weighted-Average method and FIFO method - Appendix 4A. - Knowledge of production report contents and purpose. NOT IMPORTANT: - Production report preparation. Recall that in Job Order Costing there are 3 inventory accounts (RM, WIP & FG); it's the same for Process Costing. The Flow Of Costs and related journal entries are also the same. Costs are accumulated so we can calculate total cost and per unit cost in both Job Order and Process Costing. PER UNIT COST is the major goal for managerial purposes. In Job Order Costing costs are accumulated by Job but in Process Costing costs are accumulated by department. Each job is different in Job Order but in Process Costing each unit is identical to all others. In Job Order Costing cost data is summarized on a Job Cost Sheet but in Process Costing the data is summarized on a PRODUCTION REPORT.
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This note was uploaded on 01/13/2012 for the course ACCT 222 taught by Professor Staff during the Spring '11 term at Los Rios Colleges.

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