Process Costing课件.ppt

Compute EquivalentUnit Costs (Step 3) Materials Conversion Current costs $84,050 $62,000 Equivalent units 35,000 31,400 Cost per unit $2.40 $1.975 Summarize and Assign TotalCosts (Steps 4 and 5) Work in process beginning inventory: $ 7,550 Current costs: Material 84,050 Conversion 62,000 Total $153,600 Same as using weighted-average Summarize and Assign TotalCosts (Steps 4 and 5) Costs transferred out: From beginning inventory: $7,550 Conversion costs added: 1,000 × 40% × $1.975 790 $ 8,340 From current production: 30,000 × $4.375 131,250 Total $139,590 Summarize and Assign TotalCosts (Steps 4 and 5) Work in process ending inventory: Materials: 5,000 × $2.40 $12,000 Conversion: 5,000 × 20% × $1.975 1,975 Total $13,975 Summarize and Assign TotalCosts (Steps 4 and 5) Costs transferred out $139,590 Cost in ending inventory $ 13,975 $153,565 ($35 rounding error) An alternative approach: Costs to account for $153,600 Cost in ending inventory $ 13,975 Costs transferred out $139,625 + = – = Key T-Account: FIFO Work in Process Inventory, Assembly Beg. Inv. 7,550 Transferred Materials 84,050 to Finishing Conversion 62,000 139,625 Balance 13,975 Comparison of Weighted-Average and FIFO Methods Weighted Average FIFO Difference Costs of units completed and transferred out $139,500 $139,625 +$125 Work in process, ending 14,100 13,975 –$125 Total costs accounted for $153,600 $153,600 0 Learning Objective 7 Incorporate standard costs into a process-costing system. Standard-Costing Methodof Process-Costing Example Process-costing systems using standard costs usually accumulate actual costs incurred separately from the inventory accounts. Assume that actual materials cost is $84,050 and standard materials cost is $84,250 What are the journal entries in the Asse