ch03 - Chapter 3 Process Costing Objectives 1. Products'...

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    Chapter 3 Process Costing
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    Objectives 1. Products’ flow through departments costs’ flow through accounts. 2. Concept of an equivalent unit and cost per equivalent unit. 3. Cost of goods completed and the ending WIP balance in a processing department. 4. Production cost report.
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    Difference Between Job-Order and Process Costing Systems Job-Order Costing Systems assign costs to heterogeneous jobs. Process Costing Systems spread total manufacturing costs over total, homogenous, units produced.
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    Difference Between Job-Order and Process Costing Systems
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    Product and Cost Flows 1. Product Flows Through Departments 2. Cost Flows Through Accounts 3. Conversion Costs
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    Product Flows Through Departments
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    Cost Flows Through Accounts
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    Calculating Unit Cost To compute unit costs it is first necessary to compute Equivalent Units.
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    How Equivalent Units are Calcul
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  Cost Per Equivalent Unit Average unit cost in a Process Costing System is calculated as follows:
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This note was uploaded on 04/09/2008 for the course ACG 2071 taught by Professor Sumbiznatch during the Summer '06 term at University of Florida.

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ch03 - Chapter 3 Process Costing Objectives 1. Products'...

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