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Product and Service Costing - Coggle Diagram
Product and Service Costing
Types of costing
Process costing
assigns costs to series of processes
products same cost, homogenous
Operation costing = job-order + process
Process Manufacturing
Sequential processing
Parallel processing
Production report
Physical units flow analysis
Calculation of equivalent units
Computation of unit cost
Valuation of inventories
Goods transferred out
Ending work in process
Cost reconcilation
Quantifying WIP
Equivalent full units (EFU)
units could have been produced
Beginning WIP
Weighted average
inventory + current period
Simplicity
Disadvantage: accuracy in computing unit costs
FIFO
separate inventory from current
Nonuniform inputs
Beginning of process than throughout process
Job costing
individually specific jobs
1 job differs that from another
Work-in-Process
Product costs
Direct materials
Direct labor
Overhead applied at predetermined rate