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Business LibreTexts

3.1: Chapter 3 Study Plan

  • Page ID
    10594
  • Study Plan: Process Costing

    Knowledge Targets

    I can define the following terms as they relate to our unit:

    Process Costing

    Equivalent Units

     

    Conversion Cost

    Predetermined overhead rate

     

    Weighted Average method Cost of Goods Manufactured

    Cost per Equivalent Unit

     

    Goods completed and transferred out

     

    Ending goods (or work) in process Process cost summary Percent Complete Goods started

     

    Reasoning Targets

    • I can identify the difference between process costing and job costing.
    • I can identify costs in process costing as direct materials, direct labor, and overhead.
    • I can understand the difference between beginning and ending balances in work inprocess inventory.
    • I can track process costs from raw materials to goods in process to finished goods and cost of goods sold.
    • I can identify accounts to use in recording the flow of process costing.
    • I can determine the percent complete for direct materials and conversion costs.
    • I can understand equivalent units of production and how it is used in process costing.
    • I can determine the ending balance in goods in process inventory.
    • I can understand a process cost summary report.

     

    Skill Targets

    • I can prepare and post journal entries for process costing from raw materials to cost of goods sold.
    • I can calculate the equivalent units for direct materials, direct labor and overhead using the weighted average method.
    • I can calculate the cost per equivalent unit using the weighted average method.
    • I can calculate the amount of cost to assign to goods completed and transferred out (also known as cost of goods manufactured) using equivalent units and cost per equivalent unit.
    • I can calculate the amount of cost to assign to ending goods in process inventory using equivalent units and cost per equivalent unit.
    • I can prepare a process cost summary report under the weighted average method.

    Click Process Cost Study Plan for a printable copy.