tailieunhanh - Lecture Managerial accounting: Creating value in a dynamic business environment (9/e): Chapter 4 - Ronald W. Hilton
Chapter 4 - Process costing and hybrid product - costing systems. After completing this chapter, you should be able to: List and explain the similarities and important differences between job-order and process costing, prepare journal entries to record the flow of costs in a process-costing system with sequential production departments, prepare a table of equivalent units under weighted-average process costing,. | Chapter 4 Process Costing and Hybrid Product- Costing Systems Comparison of Job-Order Costing and Process Costing Process Costing Process Costing Job-order Costing Used for production of small, identical, low cost items. Mass produced in automated continuous production process. Costs cannot be directly traced to each unit of product. Learning Objective 1 This chapter covers process-costing systems. Process costing is used in repetitive production environments, where large numbers of identical or very similar products are manufactured in a continuous flow. (LO1) Industries using process costing include paper, petroleum, chemicals, textiles, food processing, lumber, and electronics. (LO1) Job-order costing Costs accumulated by the job. Work in process has a job-cost sheet for each job. Many unique, high cost jobs. Jobs built to customer order. Process costing Costs accumulated by department or process. Work in process has a production report for each batch of products. A few . | Chapter 4 Process Costing and Hybrid Product- Costing Systems Comparison of Job-Order Costing and Process Costing Process Costing Process Costing Job-order Costing Used for production of small, identical, low cost items. Mass produced in automated continuous production process. Costs cannot be directly traced to each unit of product. Learning Objective 1 This chapter covers process-costing systems. Process costing is used in repetitive production environments, where large numbers of identical or very similar products are manufactured in a continuous flow. (LO1) Industries using process costing include paper, petroleum, chemicals, textiles, food processing, lumber, and electronics. (LO1) Job-order costing Costs accumulated by the job. Work in process has a job-cost sheet for each job. Many unique, high cost jobs. Jobs built to customer order. 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. Comparison of Job-Order Costing and Process Costing In many ways, job-order costing and process costing are similar. Both product-costing systems have the same ultimate purpose—assignment of production costs to units of output. Moreover, the flow of costs through the manufacturing accounts is the same in the two systems. (LO1) In job-order costing, costs are accumulated by job order and recorded on job-cost records. The cost of each unit in a particular job order is found by dividing the total cost of the job order by the number of units in the job. (LO1) In process costing, costs are accumulated by department, rather than by job order or batch. The cost per unit is found by averaging the total costs incurred over the units produced. (LO1) Process Cost Flows Learning Objective 2 In a single production department situation, direct-material, direct-labor, and manufacturing-overhead costs are added to a
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