Chapter 17

Derived amount of output units that (a) takes the quantity of each input (factor of production) in units completed and in incomplete units of work in process and (b) converts the quantity of input into the amount of completed output units that could be produced with that quantity of input.

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.

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 te current period first to complete beginning inventory, next to start and complete new units, and finally to units in ending work-in-process inventory.

Costs incurred in previous departments that are carried forward as the product's costs when it moves to a subsequent process in the production cycle.

Costing system that blends characteristics from both job-costing systems and process-costing systems.

A standardized method or technique performed repetitively, often on different materials, resulting in different finished goods. Multiple of these are usually conducted within a department.

Hybrid-costing system applied to batches of similar, but not identical, products. Each batch of products is often a variation of a single design, and proceeds through a sequence of operations, but each batch does not necessarily move through the same operations as other batches. Within each operation, all product units use identical amounts of the operation's resources.