会计学原理英文课件：Chapter_20 Process Cost Accounting.ppt

Direct material, direct labor, and factory overhead costs are accumulated for a process for a production period. Once the costs are properly accumulated in the process, we will divide these costs by the equivalent units processed to get the cost per unit for the period. The concept of equivalent units can cause some difficulty, so we will use several examples to illustrate its use in process cost systems. * Equivalent units is a term that refers to the number of units that would have been completed if all of the effort during a period had been applied only to the units started in that period. For example, 4,000 units that are 60 percent complete would total 2,400 equivalent units (60 percent of 4,000 equals 2,400). Take a few minutes to answer the following two questions. They deal with calculating and using equivalent units. Check your progress on these concepts before moving on. * Part I. Here is the first of your two questions.Part II. The number of equivalent units is equal to the number of units completed plus the number of units remaining in ending goods in process times the completion percentage for those incomplete units. * Total production costs for a production period are divided by the equivalent units produced for the period to get the cost per unit. * Part I. Here is your second question. Part II. Total production costs are divided by the equivalent units produced for the period to get the cost per unit. * If materials, labor and overhead are added at different stages in the process, the completion percentages will be different. Multiplying different percentages times the unfinished units will result in different equivalent units for materials, labor and overhead. * In this example, we see that material is added before labor and overhead, resulting in a higher completion percentage. This is not unusual as material must be present first before the work can begin. Think about baking cookies. All of the ingredients (materials) are pre