Professional Documents
Culture Documents
Process Costing
Process Costing
Process Costing
and Hybrid
ProductCosting Systems
McGraw-Hill/Irwin
Learning
Objective
1
4-2
Job-order
Costing
Job-order
Costing
Process costing
Costs accumulated by
department or process.
Work in process has a
production report for
each batch of products.
A few identical, low cost
products.
Units continuously
produced for inventory
in automated process.
4-5
Direct Material
Direct Labor
Manufacturing
Overhead
Jobs
Finished
Goods
Cost of
Goods
Sold
4-6
The work-in-process
account consists of
individual products in a
process cost system.
Products
Finished
Goods
Cost of
Goods
Sold
4-7
Learning
Objective
2
4-8
4-9
4-10
Learning
Objective
3
4-11
40.000
30.000
20.000
90.000
40.000
30.000
20.000
90.000
40.000
30.000
Overhead
20.000
90.000
4-16
(2) Calculation
physical flow
of units.
of equivalent
units.
Production
Report
(3) Computation
of unit costs.
(4)Analysis of
total costs.
4-23
4-25
___Cost ____
$ 50,000
7,200
90,000
107,500
193,500
$ 340,700
4-26
4-27
Conversion
Percentage
Complete
20,000
30,000
50,000
10%
40,000
10,000
50,000
100%
50%
Equivalent Units
Direct
Material Conversion
40,000
5,000
50,000
45,000
4-29
Learning
Objective
4
4-30
$2.80 + $4.46
Learning
Objective
5
4-32
4-33
4-34
All costs
accounted for
4-35
Learning
Objective
6
4-36
4-37
Actual Costing
Actual costs of
manufacturing overhead
are entered in Work-inProcess Inventory
vs.
Normal Costing
Manufacturing
overhead is
applied
to Work-inProcess Inventory
using a
predetermined
overhead rate
4-38
physical flow
of units.
Calculation
of equivalent
units.
Computation
of unit costs.
Analysis of
total costs.
4-39
Learning
Objective
7
4-40
Operation Costing
Operation costing employs some aspects
of both job-order and process costing.
Job-order
Costing
Operation Costing
(Products produced in batches)
Process
Costing
4-41
Operation Costing
Operation costing employs some aspects
of both job-order and process costing.
Job-order
Costing
Operation Costing
(Products produced in batches)
Process
Costing
Conversion costs
assigned to batches
as in process costing.
4-42