This is the prescribed textbook for your course.

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This is the prescribed textbook for your course.
Available NOW at your campus bookstore!
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Chapter 14

• Process costing perspectives

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Process costingmore than one department
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Cost flowsprocess costingmore than one
department
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Cost of production reportsmore than one process

• Step 1Identify physical units
• Step 2Calculate equivalent completed units
• Conversion costs
• Direct materials
• Step 3Identify total costs
• Step 4Compute equivalent unit costs
• Step 5Allocate total costs

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Valuation of inventory

• Weighted average
• FIFO
• Work already completed at the start of the period
• Work completed during the period
• Total cost transferred out
• FIFOalternative method

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Process costing and lost or spoiled units

• Spoilage
• Lost units (can also be referred to as spoilage)
• Types
• Normal
• Abnormal

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Process costing and lost or spoiled units (cont.)

• Accounting for normal spoilage
• Method 1
• FIFO
• Weighted average
• Method 2
• FIFO
• Weighted average
• Accounting for abnormal spoilage

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Chapter 15
Discusses

• Operation costing