note for process csting_std costs

note for process csting_std costs - PROCESS COST SYSTEMS...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
PROCESS COST SYSTEMS THAT USE STANDARD COSTING Process Cost Systems also use standard costing. In fact, the use of standard costs simplifies the cost calculations. The Production Report follows the same basic format as we used with the FIFO Method in a non-standard cost environment. The main difference is that there is no cost per EU calculation. Instead, you use std. costs for both DM and CC. Highlights of accounting for this method are as follows: Units are kept track of on a FIFO basis. This means that costs and units in Beginning WIP must be tracked as a separate group until the units are completed and transferred out. The Units to Account for Schedule is essentially the same with EU’s the same as under the FIFO method. On the Units Accounted for Schedule , there are three types of costs to track (as under the FIFO method). Two relate to Units Completed and Transferred out, and one relates to Ending WIP. The two parts of Units completed are : 1) EU’s necessary to complete Beginning WIP, and 2) Units completed from those started this period. . On the Costs to Account for Schedule , there are two groups of costs. Costs in beginning WIP (this can be calculated = Begin inv. units (given) x Std. cost per unit (given) for both DM and CC) Costs added this period = Total EU’s (representing work done this period ) from DM and CC column totals in the Units Accounted for Schedule, x Std cost for each of DM and CC ) On the Costs Accounted for Schedule , there are two main parts costs relating to units completed and transferred out, and costs in ending WIP. -The cost for the units completed and transferred out
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/03/2012 for the course ACCT 2460 taught by Professor Farrar during the Winter '12 term at Conestoga.

Page1 / 3

note for process csting_std costs - PROCESS COST SYSTEMS...

This preview shows document pages 1 - 2. Sign up to view the full document.

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