ACC ch 4

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ACC ch 4
2012-09-21 12:24:27
Chapter4 Process Costing

Ket terms
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  1. Conversion cost
    Direct labor cost plus manufacturing overhead cost. (p. 148)
  2. Equivalent units
    The product of the number of partially completed units and their percentage of completion with respect to a particular cost. Equivalent units are the number of complete whole units that could be obtained from the materials and effort contained in partially completed units. (p. 148)
  3. Equivalent units of production (weighted-average method)
    The units transferred to the next department (or to finished goods) during the period plus the equivalent units in the department's ending work in process inventory. (p. 148)
  4. FIFO method
    A process costing method in which equivalent units and unit costs relate only to work done during the current period. (p. 148)
  5. Operation costing
    A hybrid costing system used when products have some common characteristics and some individual characteristics. (p. 152)
  6. Process costing
    A costing method used when essentially homogeneous products are produced on a continuous basis. (p. 142)
  7. Processing department
    An organizational unit where work is performed on a product and where materials, labor, or overhead costs are added to the product. (p. 143)
  8. Weighted-average method
    A process costing method that blends together units and costs from both the current and prior periods. (p. 148)