...CHAPTER 6 Reporting and Analyzing Inventory Study Objectives. • Describe the steps in determining inventory quantities. • Explain the basis of accounting for inventories and apply the inventory cost flow methods under a periodic inventory system. • Explain the financial statement and tax effects of each of the inventory cost flow assumptions. • Explain the lower of cost or market basis of accounting for inventories. • Compute and interpret the inventory turnover ratio. • Describe the LIFO reserve and explain its importance for comparing results of different companies. Study Objective 1 - Describe the Steps in Determining Inventory Quantities 1. Merchandising Inventory (items held for sale to customers): a. In a merchandising company, inventory consists of many different items. These items have two common characteristics: i. They are owned by the company, and ii. they are in a form ready for sale to customers. iii. Only one inventory classification, merchandise inventory, is needed to describe the many different items that make up the total inventory. 2. Manufacturing Inventories: a. In a manufacturing company, some inventory may not yet be ready for sale. Inventory is usually classified into three categories: i. finished goods inventory—items that are completed and ready for sale, ii. work in process—that portion of manufactured inventory that has been placed into the production process but is not yet complete, and iii...
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...| 1. | Question : | (TCO A) The variable portion of advertising costs is a | | | Student Answer: | | Conversion YES... Period NO. | | | | Conversion YES .... Period YES. | | | | Conversion NO.... Period YES. | | | | Conversion NO.... Period NO. | | Instructor Explanation: | Chapter 2 | | | | Points Received: | 0 of 6 | | Comments: | | | | 2. | Question : | (TCO A) The costs of staffing and operating the accounting department at Central Hospital would be considered by the Department of Surgery to be | | | Student Answer: | | direct costs. | | | | sunk costs. | | | | incremental costs. | | | | None of the above | | Instructor Explanation: | Chapter 2 | | | | Points Received: | 0 of 6 | | Comments: | | | | 3. | Question : | (TCO A) The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n): | | | Student Answer: | | period cost. | | | | direct material cost. | | | | indirect manufacturing cost. | | | | direct labor cost. | | | | None of the above | | Instructor Explanation: | Chapter 2 | | | | Points Received: | 6 of 6 | | Comments: | | | | 4. | Question : | (TCO A) When the activity level is expected to increase within the relevant range, what effects would be anticipated with respect to each of the following? | | | Student Answer: | | Fixed costs per unit...
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...http://downloadslide.blogspot.com CHAPTER 4 DISCUSSION QUESTIONS Q4-1. The five parts are: (a) Direct materials section (b) Direct labor section (c) Factory overhead (d) Work in process inventories (e) Finished goods inventories Q4-2. The balance sheet is a statement of financial position; the income statement is a statement of activity. The income statement is complementary to the balance sheet, accounting in particular for the change in the proprietary equity as a result of operations during the year. In that respect, the income statement is essentially nothing more than a major section of the retained earnings account. Therefore, the revenue and expense accounts in the income statement have been termed “explanatory” accounts, explaining the ebb and flow of revenues and expenses that lead to the new income (or loss) and to the new retained earnings balance in the balance sheet. Q4-3. The ordinary balance sheet and income statement are intended to provide information as to financial position and results of operation of a business, in accordance with several assumptons that are made in preparing the statements. From the standpoint of the criticisms made, the most important of these assumptions are that cost less appropriate amortization of cost measures unexpired cost, and that a business may be assumed to be going to continue operations indefinitely into the future. Accounting statements are usually prepared on the theory that a sale or some other definite event...
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...I الجامعة اإلسالمية -غزة كليــــــة التـــجــــــــارة قســــم المحــاسبـــــــــة Islamic University – Gaza Faculty of Commerce Department of Accounting A Graduation Research Proposal Presented to the Faculty of Commerce The Islamic University of Gaza Prepared By Mosa zuhair al-nassan Mosbah al-shaghnobi Mohammed Nabaheen 120091941 120092552 120102597 Supervisor's name Mr. Salah Shubir 3102 I I A Holy Qur'an Verse A Holy Qur'an Verse } وَقُل اعْمَلُوا فَسَيَرَى اللَّهُ عَمَلَكُمْ وَرَسُولهُ وَالْمُؤْمِنُونَ{ سورة التوبة– اآلية 105 صدق اهلل العظيم I Dedication Dedication We dedicate this work to our lovely Palestine, to second home of Islamic university, and to our parents, who sacrificed everything in their life for us, and also we thank them for pushing us to success. For all of Those, Who are inspiring us and see us on our way. II II Acknowledgement Acknowledgement In the beginning, we thank Allah for giving us the strength and health to let this work see the light and our parents for their help and support. Our Prophet Mohammed said: “Who doesn’t thank people he doesn’t thank Allah”. We want to thank everyone help and participated in making this study starting from our honorable: Mr. Salah Shubair. Who put a lot of faith in our capabilities and encouraged us to complete this study. We thank all of our teachers in the faculty of commerce and our colleagues...
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...MOBILE STORE MANAGEMENT SYSTEM _______________ A Thesis Presented to the Faculty of San Diego State University _______________ In Partial Fulfillment of the Requirements for the Degree Master of Science in Computer Science _______________ by Park B. Patel Fall 2012 iii Copyright © 2012 by Park B. Patel All Rights Reserved iv DEDICATION Dedicated to My Mother Chetna Patel, Father Bharat Patel, Wife Komal Trivedi And Brother Jatan Patel v ABSTRACT OF THE THESIS Mobile Store Management System by Park B. Patel Master of Science in Computer Science San Diego State University, 2012 The Mobile Store Management System is software which can become the backbone for a billing and inventory system for small organizations. This software provides an uncomplicated system to run mobile stores. This application could be very useful to small organizations. This application is inspired from current pen and paper based store management systems. It will provide an easy and attractive interface so that the user can easily manage and utilize the application. Various other approaches were considered for this application. This application is designed in a way that it will only require a minimum amount of information from the user. The goal was to look for the minimum amount of information that will meet needed requirements. vi TABLE OF CONTENTS PAGE ABSTRACT ...............................................................................................
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...MOBILE STORE MANAGEMENT SYSTEM _______________ A Thesis Presented to the Faculty of San Diego State University _______________ In Partial Fulfillment of the Requirements for the Degree Master of Science in Computer Science _______________ by Park B. Patel Fall 2012 iii Copyright © 2012 by Park B. Patel All Rights Reserved iv DEDICATION Dedicated to My Mother Chetna Patel, Father Bharat Patel, Wife Komal Trivedi And Brother Jatan Patel v ABSTRACT OF THE THESIS Mobile Store Management System by Park B. Patel Master of Science in Computer Science San Diego State University, 2012 The Mobile Store Management System is software which can become the backbone for a billing and inventory system for small organizations. This software provides an uncomplicated system to run mobile stores. This application could be very useful to small organizations. This application is inspired from current pen and paper based store management systems. It will provide an easy and attractive interface so that the user can easily manage and utilize the application. Various other approaches were considered for this application. This application is designed in a way that it will only require a minimum amount of information from the user. The goal was to look for the minimum amount of information that will meet needed requirements. vi TABLE OF CONTENTS PAGE ABSTRACT ................................................................
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... Overview of Accounting Information Systems Chapter 1 The Information System: An Accountant’s Perspective 3 Introduction to Transaction Processing 31 Ethics, Fraud, and Internal Control 91 Chapter 2 I Chapter 3 1 CHAPTER The Information System: An Accountant’s Perspective nlike many other accounting subjects, such as intermediate accounting, accounting information systems (AIS) lacks a well-defined body of knowledge. Much controversy exists among college faculty as to what should and should not be covered in the AIS course. To some extent, however, the controversy is being resolved through legislation. The Sarbanes-Oxley Act (SOX) of 2002 established new corporate governance regulations and standards for public companies registered with the Securities and Exchange Commission (SEC). This wide-sweeping legislation impacts public companies, their management, and their auditors. Of particular importance to AIS students is the impact of SOX on internal control standards and related auditing procedures. Whereas SOX does not define the entire content of the AIS course, it does identify critical areas of study that need to be included for accountants. These topics and more are covered in the chapters of this text. The purpose of this chapter is to place the subject of AIS in perspective for accountants. Toward this end, the chapter is divided into three major sections, each dealing with a different aspect of information systems. The first section explores the information...
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...authorities, such as the SEC, are considered internal users. | | | | Taxing authorities are considered external users. | | Instructor Explanation: | See Chapter 1, page 7. | | | | Points Received: | 3 of 3 | | Comments: | | | | 2. | Question : | (TCO C) Issuing shares of stock in exchange for cash is an example of a(n) | | | Student Answer: | | delivering activity. | | | | investing activity. | | | | financing activity. | | | | operating activity. | | Instructor Explanation: | See Chapter 1, page 9. | | | | Points Received: | 3 of 3 | | Comments: | | | | 3. | Question : | (TCO C) The statement of cash flows would disclose the payment of a dividend | | | Student Answer: | | nowhere on the statement. | | | | in the operating activities section. | | | | in the investing activities section. | | | | in the financing activities section. | | Instructor Explanation: | See Chapter 1, pages 9 and 10. | | | | Points Received: | 3 of 3 | | Comments: | | | | 4. | Question : | (TCO A) Resources owned by a business are referred to as | | | Student Answer: | | stockholders' equity. | | | | liabilities. | | | | assets. | | | | revenues. | | Instructor Explanation: | See Chapter 1, page 10. | | | | Points Received: | 3 of 3 | | Comments: | | | | 5. | Question : | (TCO C) Jamie Company recorded the following cash...
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...UNIVERSITY MAKERERE UNIVERSITY BUSINESS SCHOOL FACULTY OF MARKETING AND INTERNATONAL BUSINESS IMPACT OF INVENTORY MANAGEMENT AND PROFITABILITY OF A COMPANY A CASE OF KK FOODS EXPOTORS LIMITED AMANYA AMOS 12/U/15971/EVE SUPRRVISED BY ATUGONZA FAITH A RESEARCH REPORT SUBMITTED TO MAKERERE UNIVERSITY BUSINESS SCHOOL IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF BACHELOR OF INTERNATIONAL BUSINESS OF MAKERERE UNIVERSITY APRIL, 2015 DECLARATION I declare that this research report is my original work compiled from my personal exposure in the stated fields and never previously submitted by anyone to any other university or institution for any award. Signature..…………………………… Date……………………………… AMANYA AMOS 12/U/15971/EVE APPROVAL This research report by Amanya Amos has been submitted for examination with my approval as her academic supervisor. Signature..………………………… Date……………………………… ATUGONZA FAITH (ACADEMIC SUPERVISOR) DEDICATION This work is dedicated to all my family members who have worked so hard to educate me. My the lord bless them ACKNOWLEGMENT To begin with, I thank the Lord Almighty for having blessed me with all that I have always needed in my life, and seeing me through up to this level that I have reached. I owe special thanks to KK Foods Exporters limited to be attached to their organization. I really have to owe special thanks to my mother Mrs.Baguma Beatrice, my sisters patience Penelope and Kobusinge Belinda plus...
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...Companies, 2004 “I felt we should go into something that we had some connection to”—Dwayne Lewis (standing; Michael Cherry sitting) 5 A Look Back Accounting for Merchandising Operations A Look at This Chapter This chapter emphasizes merchandising activities. We explain how reporting merchandising activities differs from reporting service activities. We also analyze and record merchandise purchases and sales transactions and explain the adjustments and closing process for merchandisers. A Look Ahead Chapter 6 extends our analysis of merchandising activities and focuses on the valuation of inventory. Topics include the items in inventory, costs assigned, costing methods used, and inventory estimation techniques. Chapter 4 focused on the final steps of the accounting process. We explained the importance of proper revenue and expense recognition and described the closing process. We also showed how to prepare financial statements from a work sheet. Larson−Wild−Chiappetta: Fundamental Accounting Principles, Seventeenth Edition 5. Accounting for Merchandising Operations Text © The McGraw−Hill Companies, 2004 Learning Objectives CAP Conceptual Analytical Procedural merchandising activities C1 Describeincome components for aand A1 Compute the acid-test ratio and explain its use to assess liquidity. identify merchandising company. (p. 178) (p. 193) P1 Analyze and record transactions a for merchandise purchases using perpetual system. (p. 180) perpetual...
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...Chapter 1—AIS overview (3 Questions = 4.5 points) Purpose of/value provided by AIS 1. Improving the quality and reducing the costs of products or service 2. Improve efficiency and effectiveness of the value chain and supply chain 3. Share knowledge 4. Improve the internal control structure 5. Improve decision making Key Role if the AIS 1. Collecting and storing data 2. Providing information for decisions 3. Safeguarding assets Value Chain Activities 1. Inbound Logistics------ receiving and storage 2. Operations -------------- manufacturing and repackaging 3. Outbound Logistics---- distribution shipping 4. Marketing & Sales------ advertising, selling 5. Service-------------------- repair, maintenance Characteristic of Useful Information 1. Relevant 2. Reliable 3. Timely 4. Verifiable 5. Understandable 6. Accessible 7. Complete Chapter 2/SUA Purpose/use of general ledger, subsidiary ledgers, special journals and cash prelist General Ledger= contains summary level data for every asset, liability, equity and revenue, and expense account...(accounts receivable) Subsidiary Ledger= contains detailed data for any general ledger account with many individualized subaccounts.... (Separate account for each accounts receivable) General Journal= used to record infrequent or non-routine transaction, such as loan payments Specialized Journal= records large numbers of repetitive...
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...Read Chapter 2, then select one of the two case study options below to complete. The two case study options are comparable to each other. Option 1 - This case study follows the Town of Eden Bay and is included in chapters 2, 3 & 4 of the text. The chapter 2 part of the case study is on pages 80-81 in the text. This is a good choice if you like following one organization through multiple scenarios. Option 2 - This case study is shown below and follows Kahuna Cleaning Supply and is related to chapters 2 & 4 of the text. If you choose this option, a different case study will be provided for chapter 3. Read through the case study for chapter 2 that you have selected (Eden Bay or Kahuna Cleaning Supply) and complete the tasks, using Word to write your answers. When you are finished, submit your Word file to this dropbox. Be sure to submit your Word file by the due date. . ********************************************************************** Case Study - Kahuna Cleaning Supply Background Kahuna Cleaning Supply is a family-run business based in New Haven, Connecticut. The cleaning company specializes in commercial cleaning supplies and business support products for commercial, industrial, and institutional clients in New England and Eastern New York. Kahuna Cleaning Supply originated in response to the growth of the cities of Bridgeport and New Haven from the suburban spread from New York City. The business has grown to fourteen warehouse locations, each with several...
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...CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING I. LEARNING OBJECTIVES 1. Describe what the master budget is and explain its benefits 2. Describe the advantages of budgets 3. Prepare the operating budget and its supporting schedules 4. Use computer-based financial planning models in sensitivity analysis 5. Explain kaizen budgeting and how it is used for cost management 6. Prepare an activity-based budget 7. Describe responsibility centers and responsibility accounting 8. Explain how controllability relates to responsibility accounting II. CHAPTER SYNOPSIS Chapter 6 introduces the important topic of budgets. Budgets are the primary financial planning tool used by businesses. The chapter explains how businesses use budgets and budgeting as part of the management process. The concept of responsibility centers and responsibility accounting is also discussed and related to the concept of controllability. III. CHAPTER OUTLINE Budgets represent in financial and nonfinancial terms the plans of a business for a specified period of time. Financial budgets are, in essence, financial statements that report expected or proposed future activity instead of what has already occurred. Supporting these financial budgets are nonfinancial budgets that report expected or proposed future activity in areas such as number of employees, new products developed, and number of units produced or sold. (Exhibit 6-1 illustrates...
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...ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A) For more course tutorials visit www.tutorialrank.com ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A) E1-5 E1-5 Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows. 1. Property taxes on the factory building. 2. Production superintendents’ salaries. 3. Memory boards and chips used in assembling computers. 4. Depreciation on the factory equipment. 5. Salaries for assembly-line quality control inspectors. 6. Sales commissions paid to sell laptop computers. 7. Electrical components used in assembling computers. 8. Wages of workers assembling laptop computers. 9. Soldering materials used on factory assembly lines. 10. Salaries for the night security guards for the factory building. The company intends to classify these costs and expenses into the following categories: (a) Direct materials, (b) Direct labor, (c) Manufacturing overhead, (d) Period costs. List the items (1) through (10). For each item, indicate the cost category to which it belongs. E1-9 E1-9 An incomplete cost of goods manufactured schedule is presented below. Complete the cost of goods manufactured schedule for Hobbit Company. E1-10 E1-10 Manufacturing cost data for Copa Company arc presented below. Case A Case B Case C Direct materials used $ (a) $68,400 $130,000 Direct labor ...
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...CHAPTER 2 Job Order Costing YOUR LEARNING OBJECTIVES After completing this chapter, you should be able to: LO1 LO2 LO3 LO4 LO5 LO6 Describe the key differences between job order costing and process costing. Describe the source documents used to track direct materials and direct labor costs to the job cost sheet. Calculate a predetermined overhead rate and use it to apply manufacturing overhead cost to jobs. Describe how costs flow through the accounting system in job order costing. Calculate and dispose of overapplied or underapplied manufacturing overhead. Calculate the cost of goods manufactured and cost of goods sold. Lecture Presentation–LP2 www.mhhe.com/whitecotton1e 36 FOCUS COMPANY: Toll Brothers Inc. “America’s Luxury Home Builder” www.tollbrothers.com H ave you ever found yourself in the following situation? You go out to a trendy new restaurant with a group of friends. You are on a limited budget, so you order the cheapest dish on the menu and a glass of ice water. Meanwhile, your friends indulge in a full-course meal with drinks, appetizers, entrees, and dessert. When it is time to pay the bill, would you prefer to split the check or get a separate tab for each person at the table? This common scenario illustrates the basic difference between the two costing systems discussed in the next two chapters. Process costing is similar to splitting the check, or spreading the total cost over the number of units produced (or in the case of a restaurant...
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