# Physical units actual unitstobeaccountedforduring

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Unformatted text preview: Production Cost Report Production Cost Report Key document used to understand activities. Prepared for each department and shows: Production Quantity Cost data Four steps in preparation: Step 1: Compute physical unit flow Step 2: Compute equivalent units of production Step 3: Compute unit production costs Step 4: Prepare a cost reconciliation schedule Chapter 21-32 Flow of Costs in Making Eggo Waffles Flow of Costs in Making Eggo Waffles Flow Illustration 21-12 Chapter 21-33 Comprehensive Example of Process Costing Comprehensive Example of Process Costing Comprehensive Basic Information Chapter 21-34 Illustration 21-13 Comprehensive Example Continued Comprehensive Example Continued Step 1: Compute Physical Unit Flow. Physical units actual units to be accounted for during a period, regardless of work performed Total units to be accounted for units started (or transferred) into production during the period + units in production at beginning of period Total units accounted for units transferred out during period + production at end of period Chapter 21-35 units in Comprehensive Example Continued Comprehensive Example Continued Comprehensive Step 1: Compute Physical Unit Flow -continued Illustration 21-14 Chapter 21-36 Comprehensive Example Continued Comprehensive Example Continued Comprehensive Step 2: Compute Equivalent Units of Production Measure of a department’s productivity Two computations required: one for materials and one for conversion costs Beginning work in process ignored Chapter 21-37 Illustration 21-15 Comprehensive Example Continued Comprehensive Example Continued Comprehensive Step 3: Compute Unit Production Costs Costs expressed in terms of equivalent units of production When equivalent units of production are different for materials and for conversion costs, three unit costs are computed: Materials Conversion Total Manufacturing Chapter 21-38 Comprehensive Example Continued Comprehensive Example Continued Comprehensive Step 3: Compute Unit Production Cost - continued Total Materials Cost Computation: Direct Materials Cost in Beginning Work in Process \$ 50,000 Conversion Costs Added to Production During Month 400,000 Total Materials Cost...
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