Accounting Principles: Managerial Accounting

Dublin Core

Description

Process: Cost systems
Learning objectives
After studying this chapter, you should be able to:
• Describe the types of operations that require a process cost system.
• Distinguish between process and job costing systems.
• Discuss the concept of equivalent units in a process cost system.
• Compute equivalent units of production and unit costs under the average cost procedure.
• Prepare a production cost report for a process cost system and discuss its relationship to the
Work in Process Inventory account.
• Distinguish between normal and abnormal spoilage.
• Compute equivalent units of production and unit costs under the first-in first-out (FIFO)
system (Appendix 19-A).
• Discuss how joint costs are allocated to joint products (Appendix 19-B).
This chapter continues the discussion of cost accumulation systems. In Chapter 18, we explained
and illustrated job costing. The job cost system (job costing) accumulates costs incurred to
produce a product according to individual jobs. For example, construction companies use job costing
to keep track of the costs of each construction job.

Creator

Hermanson
Edwards
Ivancevich

Source

https://textbookequity.org/Textbooks/TBQ_PA_Accounting_managerial.pdf

Publisher

Textbook Equity, Inc

Contributor

Rahmah Agustira

Rights

Creative Commons

Type

Files

9 blm upload.pdf

Collection

Citation

Hermanson, Edwards, and Ivancevich, “Accounting Principles: Managerial Accounting ,” Open Educational Resource (OER) , accessed November 28, 2020, http://oer.iain-padangsidimpuan.ac.id/items/show/175.

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