Study Plan: Process Costing

Knowledge Targets

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

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 in process 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.