Chapter 16, Problem 3E

To determine

Factory Overhead Account:

Factory overhead account consists of the cost which is incurred to maintain the production facility but is not direct cost to produce the product. It is lump sum expense which are incurred after a period end and charged to each product by dividing by number of product produced during that period.

Process Cost Summary:

It is a report which shows all the processes to produce the product and cost associated with each process.

Equivalent Unit of Production:

It shows the number of product produced with the manufacturer at the end of a particular time frame. At the end of the period, a manufacturer can have fully completed and partially completed product, it show all the product as equivalent fully completed product.

Work in Progress Inventory Account:

Work in progress inventory account is asset accounts which show the balances of all partial produced products.

Raw Material Inventory Account:

Raw material inventory account is an asset account which show the balance of all those material which are not yet used to make a final product or work in progress.

Material Requisition:

It is a list which is used to take the goods required from inventory to manufacture a final good.

Finished Goods Inventory Account:

Finished goods inventory account is an asset account which shows the balance of all the finished good in the company.

To identify: Description of the purpose.