FMGT 4210 Chapter 17
Physical Units - ANS-The units present at any given point in time in a production process.
Equivalent Unit - ANS-Measure used to convert partially completed units into the equivalent of a
full unit, it also factors in completed units for a given period.
Operations Costing - ANS-A combination of a process cost and a job order cost system in which
products are manufactured primarily by standardized methods, with some customization.
Weighted-Average Process-Costing Method - ANS-Method of process costing that assigns the
equivalent-unit cost of the work done to date (regardless of the accounting period in which it
was done) to equivalent units completed and transferred out of the process and to equivalent
units in ending work-in-process inventory.
FIFO Process-Costing Method - ANS-Method of process costing that assigns the cost of the
previous accounting period's equivalent units in beginning work-in-process inventory to the first
units completed and transferred out of the process, and assigns the cost of equivalent units
worked on during the current period first to complete beginning inventory, next to start and
complete new units, and finally to units in ending work-in-process inventory.
Standard-Costing Method - ANS-A method of cost measurement that uses the estimated or
standard costs of direct materials, direct labor, and overhead to calculate a product or service
unit cost.
Journal Entries - ANS-Page 701, 705, 719
Hybrid Costing System - ANS-Costing system that blends characteristics from both job-costing
systems and process-costing systems.
Transferred in Costs - ANS-Costs that were incurred in a previous process and brought into a
later process as part of the product's cost.
Physical Units - ANS-The units present at any given point in time in a production process.
Equivalent Unit - ANS-Measure used to convert partially completed units into the equivalent of a
full unit, it also factors in completed units for a given period.
Operations Costing - ANS-A combination of a process cost and a job order cost system in which
products are manufactured primarily by standardized methods, with some customization.
Weighted-Average Process-Costing Method - ANS-Method of process costing that assigns the
equivalent-unit cost of the work done to date (regardless of the accounting period in which it
was done) to equivalent units completed and transferred out of the process and to equivalent
units in ending work-in-process inventory.
FIFO Process-Costing Method - ANS-Method of process costing that assigns the cost of the
previous accounting period's equivalent units in beginning work-in-process inventory to the first
units completed and transferred out of the process, and assigns the cost of equivalent units
worked on during the current period first to complete beginning inventory, next to start and
complete new units, and finally to units in ending work-in-process inventory.
Standard-Costing Method - ANS-A method of cost measurement that uses the estimated or
standard costs of direct materials, direct labor, and overhead to calculate a product or service
unit cost.
Journal Entries - ANS-Page 701, 705, 719
Hybrid Costing System - ANS-Costing system that blends characteristics from both job-costing
systems and process-costing systems.
Transferred in Costs - ANS-Costs that were incurred in a previous process and brought into a
later process as part of the product's cost.
