COMMERCE 2AB3 Study Guide - Final Guide: Weighted Arithmetic Mean, Indian Railways, European Cooperation In Science And Technology
27 Nov 2018
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Examples of industries that would use process costing include the pharmaceutical and semiconductor industry. The principal difference between process costing and job costing is that in job costing an averaging process is used to compute the unit costs of products or services. The averaging process is used to calculate unit costs in process costing. Process-costing systems separate costs into cost categories according to the timing of when costs are introduced into the process. Estimating the degree of completion for the calculation of equivalent units is usually easier for conversion costs than it is for direct materials. Estimating the degree of completion is easier for the calculation of direct materials since direct materials can be measured more easily than conversion costs. Process-costing journal entries and job-costing journal entries are similar with respect to direct materials and conversion costs. The accounting (for a bakery) entry to record the transfer of rolls from the mixing department to the baking department is:
