Accounting Project

CHAPTER 5 Product and Service Costing:? A go Systems Approach culture OBJECTIVES AFTER STUDYING THIS CHAPTER, YOU SHOULD BE up to(p) TO: 1. learn the rudimentary characteristics of process addressing, including cost flows, journal entries, and the cost of payoff report. 2.Describe process costing for settings without work-in-process inventories. 3.Define equivalent units, and explain their use in process costing. 4. piss a departmental action report using the FIFO method. 5.Prepare a departmental turnout report using the weighted average method. 6.Prepare a departmental production report with transferred-in goods and changes in produce measures. 7. Describe the raw material features of operation costing. 8. Explain how spoilage is case-hardened in a process costing system. CHAPTER SUMMARY THIS CHAPTER INTRODUCES THE address be formation DESIGNED FOR COMPANIES THAT PRODUCE LARGE NUMBERS OF self-coloured PRODUCTS passing play THROUGH A SERIES OF borderES. IT ALSO EXPLAINS wherefore PROCESS representING CAN BE employ IN THE SERVICE industry AND JIT MANUFACTURING FIRMS. WHEN give way-IN-PROCESS INVENTORIES ARE PRESENT, EQUIVALENT UNITS MUST BE USED TO MEASURE OUTPUTS. NOTE THAT TWO DIFFERENT METHODS (FIFO OR charge AVERAGE) CAN BE USED TO HANDLE THE PRIOR-PERIOD WORK AND PRIOR-PERIOD cost ASSOCIATED WITH THE BEGINNING WORK-IN-PROCESS INVENTORIES.

IN ADDITION, THE OPERATION COSTING IS PRESENTED AS A HYBRID SYSTEM FOR THOSE MANUFACTURING ENVIRONMENTS THAT HAVE BOTH excogitate AND PROCESS CHARACTERISTICS. CHAPTER REVIEW I.PROCESS COSTING SYSTEMS:?BA SIC ! OPERATIONAL AND COST CONCEPTS cultivate costing systems are designed to assign be to a large number of homogeneous products passing by dint of a series of processes. Each process performs specific activities that set agglomerate a product closer to completion. Thus, a process is a series of activities (operations) that are linked to perform a...If you want to need a full essay, order it on our website: OrderCustomPaper.com

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