Accounting Principles: Managerial Accounting
Dublin Core
Title
Accounting Principles: Managerial Accounting
Subject
Accounting
Managerial Accounting
Managerial economics
Economics
Description
Process: Cost systems
Learning objectives
After studying this chapter, you should be able to:
• Describe the types of operations that require a process cost system.
• Distinguish between process and job costing systems.
• Discuss the concept of equivalent units in a process cost system.
• Compute equivalent units of production and unit costs under the average cost procedure.
• Prepare a production cost report for a process cost system and discuss its relationship to the
Work in Process Inventory account.
• Distinguish between normal and abnormal spoilage.
• Compute equivalent units of production and unit costs under the first-in first-out (FIFO)
system (Appendix 19-A).
• Discuss how joint costs are allocated to joint products (Appendix 19-B).
This chapter continues the discussion of cost accumulation systems. In Chapter 18, we explained
and illustrated job costing. The job cost system (job costing) accumulates costs incurred to
produce a product according to individual jobs. For example, construction companies use job costing
to keep track of the costs of each construction job.
Learning objectives
After studying this chapter, you should be able to:
• Describe the types of operations that require a process cost system.
• Distinguish between process and job costing systems.
• Discuss the concept of equivalent units in a process cost system.
• Compute equivalent units of production and unit costs under the average cost procedure.
• Prepare a production cost report for a process cost system and discuss its relationship to the
Work in Process Inventory account.
• Distinguish between normal and abnormal spoilage.
• Compute equivalent units of production and unit costs under the first-in first-out (FIFO)
system (Appendix 19-A).
• Discuss how joint costs are allocated to joint products (Appendix 19-B).
This chapter continues the discussion of cost accumulation systems. In Chapter 18, we explained
and illustrated job costing. The job cost system (job costing) accumulates costs incurred to
produce a product according to individual jobs. For example, construction companies use job costing
to keep track of the costs of each construction job.
Creator
Hermanson
Edwards
Ivancevich
Source
https://textbookequity.org/Textbooks/TBQ_PA_Accounting_managerial.pdf
Publisher
Textbook Equity, Inc
Contributor
Rahmah Agustira
Rights
Creative Commons
Type
Textbooks
Files
Collection
Citation
Hermanson, Edwards, and Ivancevich, “Accounting Principles: Managerial Accounting ,” Open Educational Resource (OER) - USK Library, accessed April 24, 2025, http://202.4.186.74:8004/oer/items/show/175.