...Process Costing: The First-In, First-Out Method 1 FIFO Method of Process Costing In this supplement to Managerial Accounting we will illustrate the first-in, first-out (FIFO) method of process costing using the data for MVP Sports Equipment Company, which was given in Exhibit 4–4 in Chapter 4 of the text. Unlike the weighted-average method, the FIFO method does not commingle costs from two or more accounting periods. As the illustration will show, the costs from each period are treated separately. Step 1: Analysis of Physical Flow of Units The physical flow of units is unaffected by the process-costing method used. Therefore, step 1 is identical under the weighted-average and FIFO methods. See Exhibit 4–5 in the text. Step 2: Calculation of Equivalent Units A table of equivalent units, under FIFO process costing, is presented in Exhibit 4–A.* It is identical to the table prepared under the weighted-average method except for one important difference. Under the FIFO method, the equivalent units of direct material and conversion represented by the March 1 work-in-process inventory are subtracted in the last row of the table. By subtracting the equivalent units in the beginning work in process, we are able to determine the new equivalent units of activity accomplished in March only. The 20,000 physical units in the March 1 work in process have all of their materials, so they represent 20,000 equivalent units of direct material. However, these units are only 10 percent...
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...Work Study What is Work Study? What is work?: Work is an activity in which one exerts physical and mental effort to accomplish a given task or perform a duty. Task: An amount of work that is assigned to a worker or for which a worker is responsible. Work Element: A series of work activities that are logically grouped together because they have a unified function in the task Task Work Elements Basic Motion Elements The Pyramidal Structure of Work A work element consists of multiple basic motion elements Examples: Reaching for an object, Grasping the object, Moving the object, Walking, Eye movement Work Study • • Work Study is the systematic examination of the methods of carrying out activities such as to improve the effective use of resources and to set up standards of performance for the activities carried out. A generic term for those techniques, particularly method study and work measurement, which are used in the examination of human work in all its contexts, and which lead systematically to the investigation of all the factors which affect the efficiency and economy of the situation being reviewed, in order to effect improvement. Work study Method study Work measurement Method Study Method-study concerned with “the way in which work is done (i.e., method)”. It is used to simplify the way to accomplish a work and to improve the method of production. Method-study results in a more effective use of material, plant, equipment and manpower. Method...
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...the process. All conversion costs are added at about the same time, but in a pattern different from direct materials costs. Conversion costs are often added throughout the process, which can of any length of time, lasting from seconds to several months. 17-3 Equivalent units is a derived amount of output units that takes the quantity of each input (factor of production) in units completed or in incomplete units in work in process, and converts the quantity of input into the amount of completed output units that could be made with that quantity of input. Each equivalent unit is comprised of the physical quantities of direct materials or conversion costs inputs necessary to produce output of one fully completed unit. Equivalent unit measures are necessary since all physical units are not completed to the same extent at the same time. 17-4 The accuracy of the estimates of completion depends on the care and skill of the estimator and the nature of the process. Semiconductor chips may differ substantially in the finishing necessary to obtain a final product. The amount of work necessary to finish a product may not always be easy to ascertain in advance. 17-5 The five key steps in process costing follow: Step 1: Summarize the flow of physical units of output. Step 2: Compute output in terms of equivalent units. Step...
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...CHAPTER 17 Process Costing Overview This chapter explains how process-costing systems determine the cost of products or services. In the simplest case, a process has no beginning or ending work-in-process inventory. Considerable complexity is added when a process has both beginning and ending work-in-process inventory; this case necessitates selecting an inventory costflow method. The chapter illustrates two of these methods: the weighted-average method and the first-in, first-out (FIFO) method. Many detailed exhibits are included in the chapter because process costing is highly procedural. The chapter also explains how operation-costing systems determine the cost of products. The Appendix to the chapter describes the standard-costing method of process costing. Case 1 Case 2 Case 3 Beginning Inventory No No Yes Ending Inventory No Yes Yes 3. Case 1 is simple because there is no workin-process inventory in the Assembly Department. That is, all units of SG-40 are started and completed during the accounting period. The unit cost of the 400 units of SG-40 in this case is computed as follows: Direct material costs $32,000 ÷ 400 Conversion costs $24,000 ÷ 400 Cost per unit $ 80 60 $140 Highlights 1. In a process-costing system, the unit cost of a product (or service) is obtained by assigning total costs to many identical or similar units of output. A process-costing system separates costs into cost categories according...
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...Complete the Final Project Science Meets Real Life Whether you think of yourself as an up and coming scientist or not, you use science every day. You will explore how you apply different aspects of science in your daily life in a two part project. In 1,500-words (minimum), discuss the following: PART I: SCIENTIFIC METHOD Each and every day, we are faced with having to make split-second decisions, and the need to solve random problems that we encounter. To reach those decisions and work those problems out you are subconsciously using the scientific method. Apply the five steps of the Scientific Method to two situations that could occur in your everyday life. Use the scientific method in the first scenario provided below to solve the problem at hand. Please come up with a second detailed scenario on your own and follow the same steps in the scientific method to find a resolution. Scenario 1: You arrive home late at night. You walk up to the front door, unlock it, and reach in to turn on the light switch located just inside the front door. The light does not come on! Now what? Scenario 2: Develop your own detailed problem/observation and apply the scientific method to solve. PART II: WHY I CANNOT LIVE WITH/WITHOUT SCIENCE As you have seen throughout this course, science is intricately interwoven with our lives: in the food we eat, in the clothes we wear, in the computers we use for this course, science has had a hand in them all. Answer the following questions: 1. Describe...
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...Conflict is unavoidable in today’s work environment. In order to resolve conflict we must first define what conflict is. According to Hellriegel, Slocum and Woodman conflict is the process in which one party perceives that its interests are being opposed or negatively affected by another party (p. 362). Workplace managers must be sensitive to the consequences of conflict. These consequences range from negative outcomes (such as loss of skilled employees, sabotage, low quality of work, stress and even violence) to positive outcomes (such as creative alternatives, increased motivation and commitment, high quality of work, and personal satisfaction) (Hellriegel, Slocum and Woodman, p. 365). Conflicts (whether they are negative or positive) will arise in organizations whenever interests collide -- and when these differences affect the relationship between interdependent people, they must be constructively managed (Hellriegel, Slocum and Woodman, p. 365). According to Hellriegel, Slocum and Woodman, conflict includes meanings, judgments, and values that crowd our minds move us to conflict. Feelings are an important dimension of conflict. For example, anger, hostility, fear, jealousy, insecurity, pain or sadness, inadequacy, are some of the feelings underneath conflicts. Although most conflicts involve disagreements of some kind, some of them can be more about feelings than thoughts. Many societies, including our own, express opposing views of conflict-sometimes it is bad, sometimes...
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...Course 1. Job Description (10%) * Duties in organisation * Methods and techniques used in carrying out duties * Type of equipment and facilities used * Salary aspects of the job * Related any problem encountered and how you resolve them (the problem must be work related) 2. Include any relevant flow charts, drawings, pictures, and diagrams at the appropriated sections Job Description (10%) * Duties in organisation * Methods and techniques used in carrying out duties * Type of equipment and facilities used * Salary aspects of the job * Related any problem encountered and how you resolve them (the problem must be work related) 3. Include any relevant Job Description (10%) * Duties in organisation * Methods and techniques used in carrying out duties * Type of equipment and facilities used * Salary aspects of the job * Related any problem encountered and how you resolve them (the problem must be work related) 4. Include any relevant Job Description (10%) * Duties in organisation * Methods and techniques used in carrying out duties * Type of equipment and facilities used * Salary aspects of the job * Related any problem encountered and how you resolve them (the problem must be work related) 5. Include any relevant Job Description (10%) * Duties in organisation * Methods and techniques used in carrying out duties * Type of equipment and facilities used * Salary aspects...
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...are Thai food with over 100 grams of fat. It has a lot of fat for a meal, so it can be influence worse to blood fats in my body. Three food items should be avoid to eat in my diet. There are two ways that I could increase your fitness through activity or exercise. They are eating a light snack before exercising and drinking plain water while work out. Eating a light snack before exercising can increase a blood sugar levels that don’t cause weakness and slow reaction time (page 338). This way really works for me. I just eat a large meal after I work out, and I just eat some snack or drink a glass of milk to have a power for exercises, because that can affect my health situation. I will feel light and flexible through exercise if I don’t eat a large meal before work out. However, eating after work out will help muscles recover because that contains both protein and carbohydrates. Drinking plain water while work out is very important for me because my body will loss a lot of water after exercise or running. Plain water is sufficient for rehydration. Sometime drinking a bottle of sport drink containing electrolytes is necessary to work out. “The electrolytes in these products are minerals and ions such as...
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...Motivational Methods Jennifer Dobelstien Phoenix of Arizona In my organization, the department has to be downsized because it is too large. With the new changes that are going to take place; some motivational techniques need to be implemented to help with the new changes. Understanding different methods will ensure that our organization has the top notch of motivational skills needed to get the job done and everything running smoothly. As the manager of this organization, it is my responsibility to figure out which three motivational methods would work best for the company and figure out what theoretical concepts support the points that I am going to make through my readings. There are many motivational methods to use on employees in a workplace but I am going to mention about three good ones that I would use in an organization that is implementing change. As a manager, they should not use the same motivational techniques repeatedly on the same person. Always using different methods every time is more of a motivational challenge than using the same ones. A manager should get to know their employees and figure out which employees like what and what kind of position the employee is in first off before a manager starts using methods on an employee. “Money is a great motivator, but unfortunately there are but so many raises a manager can offer an employee.” (Meeks, 1999-2012). The three motivational methods I would use is setting a good example...
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...used to clarify that the candidate has shown knowledge and performance skills throughout the work place. The assessor only has a limited amount of time to spend with each candidate so using this assessment method allows others to contribute in the assessment process. Witness Testimonies can provide useful information to the assessor but only when the source is valid and reliable. Evidence provided by the witness should be fair, reliable, valid and appropriate to standards and criteria of the specific qualification. The evidence should be signed and dated by the witness and if felt appropriate the assessor should communicate with the witness to confirm authenticity. A copy of the witness testimony should be placed into each candidate’s profile. This is to ensure that if an internal verifier was to check then all the information and evidence will be present. The information provided by the witness testimony should never be used upon solely to make an assessment decision. The assessor should use the information gathered as a guide to help inform them in making the correct assessment decision. A witness testimony can be conducted by a colleague to the client who does a similar role or who has experience or perhaps more appropriately a supervisor or manager could do this for the assessor. Whoever does it, they need to witness the learner doing their job. The assessor will have to work out who is the most suitable & willing witness as well as ensuring that they are available to do...
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...QUALITY PLAN 1 Introduction 1. Scope The contents of this document are applicable for construction, inspection, testing and operation of works in an environmentally safe manner as carried out in the construction to Bitumen Standards of Meru bypass. 2 Purpose The project Quality Plan has been prepared and formulated as a summary of the quality related activities required, meeting the terms of the contract. This manual sets out the management practices and describes the quality management for this project and its relationship with contractor’s road quality system. 3 Terms and definition In the context of this document, the following abbreviations or phrases shall have the meanings noted against. a) Quality – Totality of Features and Characteristics of a product or service that relies on its ability to satisfy stated or implied needs. b) Quality Assurance – All those planned and systematic actions necessary to provide adequate confidence that a product or service will satisfy the given requirement for quality. c) Quality Control – Operational techniques of Controlling quality activities (e.g. Inspection and Testing) used to verify technical and quality requirement for services and or products. d) Quality Plan – A document setting out specific practices, resources and sequence of activities relevant to a particular material, procedure, service in a contract or project. e) Corrective Action – An activity, the intention of...
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...young professor of business Mr. Rick Silver, a man struggling to make it in the academic world. Mr. Silver is a good teacher seeking tenure in a business school and who would like to have his work published. His area of expertise is project management and he hopes to see the ideas propagated in his articles make a difference in the world of project management (Goldratt, 1997). He soon realizes that the ideas and the theories that are currently in use in project management are outdated and incomprehensive and as a result, projects often delay and not completed in time (Goldratt, 1997). In his attempts to pass his ideas and concepts on better methods of project management, he encounters the fact that the content given in business schools is outdated. The therefore is convinced that business schools should revise their curriculum to accommodate the changes that occur in the business world. If the changes do not happen soon, then what the business schools teach their learners will soon be obsolete (Goldratt, 1997). The focus of the book is the shift of project management from the critical path method to the critical chain method of project management. Likewise, the focus of this paper shall be to show the necessity for the shift from the critical path method to the critical chain method and its comparative advantage to the process that is project management. Critical Measures of Project Success Bambrick (2011) in his paper titled A...
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...ASSIGNMENT ON COSTING Submitted By, MOHAMMED NAFAISE QUESTIONS 1. Define the term cost. Explain various types with relevant examples? 2. Methods and techniques of with relevant industrial examples? COST The cost is defined as the amount which is paid or given up to get something or to achieve the objective of the business. In business the objective may be to make a product, to provide a particular service and so on. Cost is usually a monetary valuation of effort, material, resources, time and utilities consumed risks incurred, and opportunity forgone in production and delivery of a good or service. The costs incurred by a business may be classified in various ways and one important way is according to how they behave in relation to changes in the volume of activity. There are: Based on behavior two types of cost are there 1.FIXED COST: those are fixed when changes occur to the volume of activity. Ex: the salary of employees, rent… 2.VARIABLE COST: these are cost which vary according the volume of activity. Ex: cost of raw materials used in manufacturing a product. DIFFERENT TYPES OF COST WITH EXAPLES * SEMI-FIXED(SEMI-VARIABLE )COST: In some cases, particular costs have an element of both fixed and variable cost. Thesecan be described as semi-fixed (semi-variable) costs. * Ex: telephone bill, electricity bill. * Actual Cost Actual cost is defined as the cost or expenditure which...
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...cost card. | | c. | process cost report. | | d. | materials requisition form. | 3.) The following information is available at the end of May: Balance in work in process on May 1 | $141,800 | Direct materials costs for May | 174,500 | Direct labor costs for May | 162,500 | Overhead applied at rate of 140% of direct labor dollars | | | Jobs completed during May: | | | | Job 84 | $198,780 | | Job 85 | 102,520 | | Job 86 | 119,450 | | Job 87 | 93,150 | | | | Job 88 was not complete at the end of May. | | | | If $72,400 of materials were charged to Job 88's job cost card, how much overhead was applied to Job 88? Answer | a. | $70,000 | | b. | $120,000 | | c. | $72,400 | | d. | $35,100 | 4.) Unit costs for each job are computed by dividing Answer | a. | estimated total costs by planned units to be produced. | | b. | actual costs by actual units sold. | | c. | cost of direct materials, direct labor, and overhead by number of units produced. | | d. | estimated total costs by actual units produced. | 5.) The _________ provide(s) the most direct means of calculating unit costs for a job. Answer | a. | job order cost card | | b. | general ledger | | c. | Finished Goods Inventory account | | d. | Overhead and Work in Process Inventory accounts | 6.) The following information is available at the end of the period for the completed...
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...Bury College CIPD CERTIFICATE IN HR PRACTICE Tutor: Bev Sutherst 3CJA ASSIGNMENT Contributing to the process of job analysis 1- Introduction This report aims to explain the purpose and principles of job analysis and the reasoning behind it. The report will describe the methods used and explore the advantages and disadvantages of these methods. It will give details of a job analysis plan and how it was carried out. It is good practice to carry out a job analysis to contribute to the recruitment for the right candidate for the role also for evaluating and determining the value of the job to the company. The company this report is based on is Alan Howards a Hair and Beauty Wholesalers in Oldham. The company has been established for over 25 years with 22 branches in the North West and supplies Professional Hairdressers and Beautician with products and materials at trade prices, the company also offers a delivery service to salons twice a week. The company currently employs 3 full time staff members and 1 part time staff member. This report aims to help with the recruitment for a full time senior sales assistant to temporarily cover a current colleague as she prepares to go on maternity leave, the employee has been with the company for 3 years and this report will show how the job role has changed helping to develop an accurate job description for the job advertisement. The role of a senior sales assistant within the company is to serve customers...
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