Physical units actual unitstobeaccountedforduring

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern