ACC 255 Chapter 4

Direct labour cost plus manufacturing overhead cost.

The product of the number of partially completed units and their percentage of completion with respect to particular cost. Equivalent units are the number of complete whole units one could obtain from the materials and effort contained in partially completed units.

The units transferred to the next department (or to finished goods) during the period plus the equivalent units in the department's ending workk in process inventory.

A method of accounting for cost flows in a process costing system in which equivalent units and unit costs relate only to work done during the current period.

A hybird costing system used when products are manufactured in batches and when the products have some common characteristics and some individual characteristics. This system handles materials the same as in job-order costing, and labour and overhead the same as in process costing.

A costing method used in situations where essentially homogeneous products are produced on a continuous basis.

Any location in an organization where work is performed on a product and where materials, labour,or overhead costs are added to the product.

A report that summarizes all activity in a department's Work in Process account during a period and that contains three parts: a quantity schedule and a computation of equivalent units, a computation of total and unit costs, and a cost reconciliation.

A method of allocating service department costs that gives full recognition to interdepartmental services.

The cosnt attached to-products that have been received from a prior- processing department.

A method of process costing that blends together units and costs from both the current and prior periods.