CHAPTER21

ProcessS
Study Objectives
After studying this chapte, you should be able to:
Costing
1 Understand who uses process cost systems.
2 Explain the similarities and differences berween
job order cOst and process cost systems.
3Explain the flow of costs in a process cost system.

4Make the journal entries to assign manufactur

ing costs in a proces cost system.

S Compute equivalent units.

6 Explain the four steps necessery to prepare a

production cost report

P r e p a r e a production cost report.

Explain just-in-time (UIT) processing9 ACCOUNTING10

9 Explain activity based costing PRINCIPLES
(ABC)

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