CHAPTER 17 PROCESS COSTING 17-1 Industries using process costing in their manufacturing area include chemical processing‚ oil refining‚ pharmaceuticals‚ plastics‚ brick and tile manufacturing‚ semiconductor chips‚ beverages‚ and breakfast cereals. 17-2 Process costing systems separate costs into cost categories according to the timing of when costs are introduced into the process. Often‚ only two cost classifications‚ direct materials and conversion costs‚ are necessary. Direct
Premium Units of measurement Costs Inventory
Advantages of marginal costing (Relative to the absorption costing) Preparation of routine operating statements using absorption costing is considered less informative for the following reasons: 1. Profit per unit is a misleading figure: in the example above the operating margin of Rs2 per unit arises because fixed overhead per unit is based on output of 5‚000 units. If another basis were used margin per unit would differ even though fixed overhead was the same amount in total 2. Build-up or run
Premium Generally Accepted Accounting Principles Cost Revenue
stated financial position of a company. Let’s take an example of my company McKesson. We are one of the United States largest drug distributors and we can carry a large amount of inventory at any one time. Under normal market conditions‚ using the FIFO method for recording inventory may be the prudent calculation and result in the highest stated revenues. However‚ if the price of a certain ingredient for a particular drug sky rockets because of a worldwide drought‚ then it would make more sense to
Premium Balance sheet Generally Accepted Accounting Principles Financial statements
Entry to record a change in depreciation methods. c 26. Disclosures required for a change in depreciation methods. c 27. Change from percentage-of-completion to completed-contracts. d 28. Disclosures required for a change from LIFO to FIFO. b 29. Change from FIFO to LIFO. c 30. Change in accounting estimate. a 31. Change in accounting estimate. b 32. Identify a change in accounting estimate. b 33. Change in accounting estimate. c 34. Identify a change in accounting estimate. d 35. Identify
Premium Depreciation Inventory FIFO and LIFO accounting
28. Sales during the first quarter were 1‚400 units at $75 per unit. The White Company uses a periodic inventory system. Using the White Company data‚ fill in the following chart to compare the results obtained under the FIFO‚ LIFO‚ and weighted-average inventory methods. FIFO LIFO Weighted Average Goods Available for Sale $82‚800 $82‚800 $82‚800 Ending Inventory‚ March 31 20‚000 16‚400 18‚400 Cost of Goods Sold 62‚800 66‚400 64‚400 3. Perpetual inventory system: journal entries. At the beginning
Premium Depreciation Inventory Generally Accepted Accounting Principles
Reasons why the LIFO method should not be repealed in the context of business tax reform In response to proposals by the Obama Administration to repeal the LIFO inventory method as part of the Administration’s budget proposals for Fiscal Years 2010-2013‚ the LIFO Coalition‚ which represents trade associations and business of every size and industry that employ the LIFO method‚ provided reasons why the LIFO method should not be repealed. The reasons for opposing the repeal of the LIFO inventory
Premium Tax Income tax FIFO and LIFO accounting
Balance 1-60 days 61-120 days 121-180 days Over 180 days $80‚000 Probability Uncollectible of Default 2% $70‚000 4% $40‚000 8% $32‚000 11% Total PART II Directions: 1) Calculate the inventory cost for both periodic and perpetual method LIFO and FIFO using the following information and table below to fill in the shaded areas: Jan. 5 - purchase 400 pieces of inventory on account at $20 each. Feb. 10 - sold 100 pieces of inventory with cash. Selling price is $85 each. April. 25 - sold 30 pieces of
Free FIFO and LIFO accounting Inventory
Biography of Paul Robin Krugman Abstract Dr. Paul Robin Krugman is an American economist‚ bestselling author‚ and professor. He was awarded the Nobel Prize in 2008 for Economics. Dr. Krugman is an international economics that experience’s in finance‚ trade theory‚ and economic geography. This paper is a short summary of his life. Dr. Paul Krugman is an amazing American economist‚ Best Selling Author‚ and Professor. He was awarded by the American Economic Association the John Bates Clark Medal
Premium Paul Krugman Economics Comparative advantage
Is Communism a better economic system than capitalism? By Michael Kujawski Since the beginning of the 20th century many countries have favored the economic system of communism over capitalism many political partys around the world that are communist based have the term “workers party”incuded in their name because communism is a system for the working class and capitalism is a competitive system for the upper class society to benefit.
Premium Economics International trade Capitalism
Balancing the Load: The See-Saw as a Simple Machine Introduction The see-saw is not just a playground toy‚ it is an example of a simple machine. In physics‚ simple machines are tools that make it easier to do work. A lever is an example of a simple machine. A lever is a straight rod or board that pivots on a stationary point called a pivot point or a fulcrum. Levers are often used to lift heavy loads. A see-saw‚ a shovel‚ and a wheelbarrow are all examples of levers. Abstract Have you ever tried
Premium Force Mechanical advantage Torque