Session:5 Process Costing
Questions
Principles of Accounting, Volume 2: Managerial Accounting | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-managerial-accounting
10. LO 5.2Why is the number of equivalent units for materials only sometimes equal to the equivalent units for conversion?
15. LO 5.5Match each term with its description.
| A. conversion costs | i. total of direct material costs and direct labor costs |
| B. cost of goods sold | ii. manufacturing costs of the items sold |
| C. cost of production report | iii. number of units produced if each unit was produced sequentially |
| D. cost per equivalent unit | iv. total of direct labor costs, indirect labor costs, indirect material costs, and manufacturing overhead |
| E. equivalent units of production | v. where costs in a process cost system are reported before being applied to the product |
| F. manufacturing department | vi. detailed listing of the total costs of the product including the value of work in process |
| G. prime costs | vii. cost of materials or conversion for a specific department during production |
| H. transferred out costs | viii. product of the total cost per unit and the number of units completed and transferred during the time period |