Process Costing - San Jose State University过程成本-圣何塞州立大学.ppt

process product-costing systems are used for costing inventories or services when they are mass-produced, identical units. these products differ from the custom- made or unique goods that are assigned costs under a job costing system many goods are produced using a continuous process. examples: 1. summarize total costs to account for. 2. summarize total physical and equivalent units. 3. compute cost per equivalent unit. 4. account for cost of units completed and cost of ending wip. calculation of cost per equivalent unit under the weighted average method beg. wip costs + costs added this period weighted average equivalent units weighted average: direct materials = $6,000+$30,500 =$3.0417 12,000 conversion costs=$4,200+$76,680=$7.0947 11,400 total cost per equivalent unit = $10.1364 calculation of equivalent units under the fifo method the current periods costs are used to allocate cost to work performed this period fifo: direct materials = $30,500 = $3.05 10,000 conversion costs=76,680 = $7.10 10,800 total cost per equivalent unit = $10.15 transferred-in costs: costs of processing performed in a previous department transferred-in costs are pooled separately from other costs normal spoilage: defective units that arise as part of regular operations abnormal spoilage: spoilage that is not part of everyday operations actual cost flows might not be known: * when are direct materials added? * when are conversion costs incurred? * how complete a