Match the terms with their descriptions a. Transferred-in costs b. Conversion costs c. Normal spoilage d. Process
Question:
Match the terms with their descriptions
a. Transferred-in costs
b. Conversion costs
c. Normal spoilage
d. Process costing
e. Equivalent units
f. FIFO method
g. Weighted average method
h. Abnormal spoilage
(1) Waste that is inherent in the process and cannot be avoided
(2) Process costing method that assumes all units and associated costs should be used to calculate equivalent units and unit costs
(3) Costs incurred from the previous process or department
(4) Spoilage that is due to inefficiencies that are controllable and avoidable
(5) Unit that is representative of a complete unit
(6) Cost system that accumulates costs by departments or distinct processes
(7) Process costing system that distinguishes between the beginning inventory and the current activity and uses only current activity for equivalent units and unit costs
(8) Direct labor and manufacturing overhead
Step by Step Answer:
Managerial Accounting
ISBN: 9780137689453
1st Edition
Authors: Jennifer Cainas, Celina J. Jozsi, Kelly Richmond Pope