JOURNAL OF ACCOUNTING AND FINANCE
Closing Pandora’s Box: Reducing Student Confusion with a Process Costing Simulation
Author(s): Marie Kelly, Nikki Shoemaker
Citation: Marie Kelly, Nikki Shoemaker, (2018) "Closing Pandora’s Box: Reducing Student Confusion with a Process Costing Simulation", Journal of Accounting and Finance, Vol. 18, ss. 7, pp. 56-61
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper describes a classroom Process Costing simulation that can be used in both introductory
managerial accounting and cost accounting courses in order to help students better understand the
principles of process costing and how to apply these principles to a problem. In groups, students work to manufacture candy necklaces for a set amount of time. After the manufacturing time has ended, students work together to determine equivalent units of production, cost per equivalent unit, and total costs for the period. Subsequently, a final class discussion provides opportunities for differences between groups to be discussed and any additional questions to be resolved. The simulation can be used for either the weighted-average method or first-in, first-out (FIFO) method of process costing.