Chapter 4 - Full Student Version

Determine eup for each cost category 356475 4

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Unformatted text preview: ccount for. 4,960 4,900 Equivalent Units 72.75 $ 76.25 Materials Conversion 5. Calculate the cost per equivalent unit. $ 715,200 4,800 12,200 7,275 160 Total work in process, May 31 Total cost accounted for 4,800 160 5,200 Cost to be accounted for: W ork in process, May 1 Costs added in the Shipping a nd Milling Department 1. Calculate physical units to account for. 4,800 6. Assign the costs to inventories. 100 19,475 $ 734,675 4-27 ^  : K W  4-28   : K W  Differences: Both systems assign material, labour, and overhead costs to products and they provide a mechanism for computing unit product costs. 1. Process costing is used when a single product is produced on a Both systems use the same manufacturing accounts, including Manufacturing Overhead, Raw Materials, Work in Process, and Finished Goods. 2. 2. Process costing systems accumulate costs by department. Job-order continuing basis or for a long period of time. Job-order costing is used when many different jobs having different production requirements are worked on each period. costing systems accumulated costs by individual jobs. 3. Process costing systems use department production reports to accumulate costs. Job-order costing systems use job cost sheets to accumulate costs. The flow of costs through the manufacturing accounts is basically the same in both systems. 4. Process costing systems compute unit costs by department. Job- order costing systems compute unit costs by job on the job cost sheet. LO 1 LO 1...
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