Chapter 17-Summary

Chapter 17-Summary - of work done to date BI of WIP is...

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

View Full Document Right Arrow Icon
Chapter 17 Process Costing Process Costing: Unit cost Equivalent Units Five step Process Costing Allocation 1. Summarize the flow of physical units of output 2. Compute output in terms of Equivalent units 3. Compute cost per Equivalent unit 4. Summarize total costs to account for 5. Assign total costs to units completed and to units in EI- WIP Three Different Methods 1. Weighted Average Calculate cost per EU of all work done to date Assign this cost to EU completed & transferred out & EI It is the total of costs in WIP divided by the total EU
Background image of page 1

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

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

Unformatted text preview: of work done to date BI of WIP is blended in with current period costs 2. First-In-First-Out Assigns the cost of previous period’s EU in BI-WIP to the first units completed & transferred out Assigns the cost of EU worked on during the current period first to complete BI, next to units started & completed, and lastly to units in EI-WIP 3. Standard Costing Teams work together to determine separate standard costs per EU Standard costs replace actual costs in EU calculations Similar to the FIFO in all the steps except the unit cost...
View Full Document

This note was uploaded on 03/21/2012 for the course BACC 7121 taught by Professor O during the Spring '12 term at Seton Hall.

Page1 / 2

Chapter 17-Summary - of work done to date BI of WIP is...

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