process costing features (mass production/ service org.)
(1) goods indistinguishable (no allocation of direct costs + factory OH to individual units) (2) multiple processes (OH allocated to each process) (3) product produced in same manner + assume same direct costs/ OH
1 of 20
job costing features (unique products)
(1) goods differentiable (direct costs/ factory OH allocated to individual units) (2) detailed work to allocate individual costs to units
2 of 20
batch costing features (kitchen manufacturer)
(1) goods have common and individual characteristics (2) total cost of product will be combination of common operation cost + individual operation cost
3 of 20
output fully complete: process account no losses layout
.
4 of 20
output fully complete: normal loss (no scrap value)
losses expected to occur under efficient operating conditions (unavoidable)/ regarded as having no cost (absorbed into cost of good unit)
5 of 20
output fully complete: normal loss (scrap value)
valued at scrap/ not treated as revenue but reduction in cost (avg cost p.u)/
6 of 20
Scrap account layout (NL/AL/(AG))
when money received + goods sold = ceases to be WIP scrap account
losses not expected to occur under efficient operating conditions/ not inherent part of process (not included in process costs)/ not incorporated in inventory valuations (recorded as period cost w/off in P/L at period end)
9 of 20
abnormal loss/(gain): calculation
.
10 of 20
abnormal loss: calculation P/L account (add to COS)
less: scrap proceeds gained (gained opportunity to scrap)
11 of 20
output fully complete: abnormal gain (scrap value)
actual loss in process is less than expected/ considered an input of process
12 of 20
abnormal gain: calculation P/L account (deducted from COS)
less: scrap proceeds foregone (lost opportunity to scrap)
13 of 20
output partially complete (ending WIP) equivalent units
unit of unfinished production that hasn't incurred 100% of costs
14 of 20
output partially complete: units equation layout
.
15 of 20
output partially complete: equivalent units table layout
.
16 of 20
output partially complete process: process account
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