Chapter 8: Process Costing

Question 1

What are the five steps Process?

Answer 1

1. Measure the Physical Flow of resources
2. Compute the equivalent units of production
3. Identify the costs to assign to products
4. Compute the costs per equivalent unit
5. Assign product cost to batches of work

Question 2

What’s the formula when measuring the physical flow of resources?

Answer 2

Beg., WIP inventory + Units Started = Unit transferred out + End, WIP inventory

Question 3

How to get equivalent Units?

Answer 3

Transferred Out + End. WIP