Chapter 16 Flashcards
cost transferred from a prior process to a subsequent process; the last process then transfers costs to Finished Goods.
Transferred-In Cost
document that summarizes the manufacturing activity that takes place in a process department for given period of time. Also serves as the source document for transferring costs.
The Production Report
measure the manufacturing costs for a process department for a given period of time and then measure the output of the process department. Divide the costs by the number of units.
Unit Costs
are the complete units that could have been produced given the total amount of productive effort expended for the period under consideration.
Equivalent Units of Output
the equivalent units and manufacturing costs in beginning work-in-process are excluded from the current-period unit cost calculation.
FIFO Method
method treats beginning inventory costs and output as if they belong to the current period.
Weighted Average Costing Method
a blend of job-order and process costing procedures applied to batches of homogeneous products.
Operation Costing
are used to collect production costs for each batch.
Work Orders
are collected by process and assigned to products using a predetermined conversion rate.
Conversion Costs
is embedded in the total cost of the good units.
Normal Spoilage
is generally written off during the period as a quality cost.
Abnormal Spoilage
