Accounting

processing costing

-Process costing accumulates costs by department. -Process costing assigns departmental costs uniformly to all identical units that pass through the department during a period. -Process costing systems compute unit costs by department.

A company has three processing departments: Mixing, Baking, and Packaging. The Baking Department transfers 500 units to the Packaging Department. How will the Packaging Department account for the costs of those 500 units?

Costs transferred in

Equivalent units is computed using which of the following formulas?

Equivalent units = Number of partially completed units x Percentage completion

The cost of beginning work in process inventory plus the costs added to production during the period equals the _______.

total cost to be accounted for

Sneaker Styles Company manufactures a wide variety of sneakers. Which of the following systems is most suitable for Sneaker Styles?

Operation Costing

Conversion cost is composed of _______.

direct labor and manufacturing overhead