Anthony Burkhardt's Ch21-PowerPoint

Oh 2 determine total manufacturing costs 3 calculate

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: he period Chapter 21-5 PROCESS COST ACCOUNTING For each process or department, we need to: For 1 Summarize manufacturing costs (DM, DL, & Man. O/H) 2 Determine total manufacturing costs 3 Calculate unit product costs How do we do these in a process cost accounting system? Through a Production Cost report, of which the three major parts are: Through Production Raw Material, Factory Labor and Cost of Manufacturing Overhead: Raw 1 Calculate the physical units. Calculate 2 Calculate equivalent units of production. Calculate units WIP: 3 Calculate unit costs of production. Calculate Work In Process: 4 Assign costs to the units transferred and in process. Assign units (These four steps appear on the production cost report.) Chapter 21-6 EQUIVALENT UNITS Weighted Average Method In its simpliest terms, the concept of equivalent units is In just taking partially-completed units and combining them into 100% completed units. For example: Boeing manufactures airplanes and say at the end of May, they have two partially-completed airplanes: airplanes: 1 airplane that is 90% complete airplane 1 airplane that is 10% complete 10% 2 100% 100% Instead of having 2 partially-completed airplanes, Instead Boeing has one, 100% completed airplane. Again, this is very simple example. this Chapter 21-7 EQUIVALENT UNITS Weighted Average Method Equivalent units of production Equivalent – the work done during the period on the physical units of the output, ex...
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