Accounting 206 - Exam 2 || Questions and Answers.
Costing system in which:
-many different jobs are worked on during each period
-Costs are accumulated by the individual job
-Unit costs are computed by job on the job cost sheet
-unique / custom products are made correct answers Job-Order Costing
Costing system in which:
-A single product is produced either on a continuous basis or for long periods of time
-All units are identical
-Costs are accumulated by department
-Units are computed by department correct answers Process Costing
a method of averaging costs over the units of production correct answers process costing
defined as the product of the number of partially completed units and the percentage completion
of those units correct answers Equivalent Units
Why do equivalent units need to be calculated? correct answers Bc a department usually has
some partially completed units in its beginning and ending inventories
defined as the actual units to be accounted for during a period, regardless of work performed
correct answers Physical Unit
Units completed and transferred out = correct answers Units in Beg WIP Inventory + Units
transferred in - Units in Ending WIP Inventory
Cost of Ending WIP Inventory = correct answers E.U. in ending WIP inventory * cost per E.U.
Costing system in which:
-many different jobs are worked on during each period
-Costs are accumulated by the individual job
-Unit costs are computed by job on the job cost sheet
-unique / custom products are made correct answers Job-Order Costing
Costing system in which:
-A single product is produced either on a continuous basis or for long periods of time
-All units are identical
-Costs are accumulated by department
-Units are computed by department correct answers Process Costing
a method of averaging costs over the units of production correct answers process costing
defined as the product of the number of partially completed units and the percentage completion
of those units correct answers Equivalent Units
Why do equivalent units need to be calculated? correct answers Bc a department usually has
some partially completed units in its beginning and ending inventories
defined as the actual units to be accounted for during a period, regardless of work performed
correct answers Physical Unit
Units completed and transferred out = correct answers Units in Beg WIP Inventory + Units
transferred in - Units in Ending WIP Inventory
Cost of Ending WIP Inventory = correct answers E.U. in ending WIP inventory * cost per E.U.
