After completing this chapter you should be able to: Understand who uses process cost systems, explain the similarities and differences between job order and process cost systems, explain the flow of costs in a process cost system,. and other contents. | CHAPTER 21 PROCESS COST ACCOUNTING Accounting Principles, Eighth Edition Study Objectives Understand who uses process cost systems. Explain the similarities and differences between job order and process cost systems. Explain the flow of costs in a process cost system. Make the journal entries to assign manufacturing costs in a process cost system. 1. On the topic, “Challenges Facing Financial Accounting,” what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, and reject rates on goods purchases). Forward-looking Information Soft Assets (a company’s know-how, market dominance, marketing setup, well-trained employees, and brand image). Timeliness (no real time financial information) Study Objectives Compute equivalent units. Explain the four steps necessary to prepare a production cost report. Prepare a production cost report. Explain just-in-time (JIT) processing. Explain activity-based costing (ABC). 1. On the topic, “Challenges Facing Financial Accounting,” what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, and reject rates on goods purchases). Forward-looking Information Soft Assets (a company’s know-how, market dominance, marketing setup, well-trained employees, and brand image). Timeliness (no real time financial information) Preview of Chapter Process cost accounting focuses on mass-production of products that are identical or very similar in nature. In contrast, job order cost accounting focuses on the individual job. 1. On the topic, “Challenges Facing Financial Accounting,” what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, . | CHAPTER 21 PROCESS COST ACCOUNTING Accounting Principles, Eighth Edition Study Objectives Understand who uses process cost systems. Explain the similarities and differences between job order and process cost systems. Explain the flow of costs in a process cost system. Make the journal entries to assign manufacturing costs in a process cost system. 1. On the topic, “Challenges Facing Financial Accounting,” what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, and reject rates on goods purchases). Forward-looking Information Soft Assets (a company’s know-how, market dominance, marketing setup, well-trained employees, and brand image). Timeliness (no real time financial information) Study Objectives Compute equivalent units. Explain the four steps necessary to prepare a production cost report. Prepare a production cost report. Explain .
