LUMACANG, ALRIZH L.

BSA-2A
CONCEPTUAL FRAMEWORK: PROCESS COSTING

CUTTING
DEPARTMENT

MACHINING
DEPARTMENT

MATERIALS FINISHING
LABOR DEPARTMENT
FOH

FINISHED
GOODS

COST GOOD
SOLD
 PROCESS COSTING

WEIGHTED AVERAGE
FIFO METHOD METHOD

COST OF EQUIVALENT BASED

ON: BWIP
COST OF EQUIVALENT no assumed flow 𝒄𝒐𝒔𝒕 𝒊𝒏 𝒃𝒆𝒈 𝒊𝒏𝒕𝒚. +
BWIP BASED ON: assumed to have a include inventory
flow of of manufacturing 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒑𝒆𝒓𝒊𝒐𝒅 𝒄𝒐𝒔𝒕
require separate 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒑𝒆𝒓𝒊𝒐𝒅 𝒄𝒐𝒔𝒕
manufacturing an operation in comuting
computation 𝒆𝒒𝒖𝒊𝒗𝒂𝒍𝒆𝒏𝒕𝒔 𝒖𝒏𝒊𝒕 𝒊𝒏 process costing
𝒆𝒒𝒖𝒊𝒗𝒂𝒍𝒆𝒏𝒕 𝒖𝒏𝒊𝒕𝒔 𝒐𝒇 operation 𝒃𝒆𝒈 𝒊𝒏𝒗𝒕𝒚 +
𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒘𝒐𝒓𝒌 𝒅𝒐𝒏𝒆
𝒆𝒒𝒖𝒊𝒗𝒂𝒍𝒆𝒏𝒕 𝒖𝒏𝒊𝒕𝒔 𝒐𝒇
𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒘𝒐𝒓𝒌 𝒅𝒐𝒏𝒆

work done last work done last

month on the month on the
units in process unit is ignored
is considered