Conceptual objectives:

1. Explain process operations and the way they differ from job order operations.
2. Define and compute equivalent units and explain their use in process cost accounting.
3. Define and prepare a process cost summary and describe its purposes.
4. Appendix 16A—Explain and illustrate the accounting for production activity using FIFO.

Analytical objectives:

1. Compare process cost accounting and job order cost accounting.
2. Explain and illustrate a hybrid costing system.

Procedural objectives:

1. Record the flow of direct materials costs in process cost accounting.
2. Record the flow of direct labor costs in process cost accounting.
3. Record the flow of factory overhead costs in process cost accounting.
4. Record the transfer of completed goods to Finished Goods Inventory and Cost of Goods Sold.