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Accounting Principles: Managerial Accounting

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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.

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Detail Information

Series Title

-

Call Number

657 HER a

Publisher

: ., 2011

Collation

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Language

English

ISBN/ISSN

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Classification

657

Content Type

text

Media Type

computer

Carrier Type

online resource

Edition

-

Subject(s)

Accounting

Specific Detail Info

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Statement of Responsibility

Roger H. Hermanson, James Don Edwards, Michael W. Maher

Other Information

Cataloger

maya

Source

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