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 materials are frequently
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must be kept consistent when recording inventory so that it is fairly valued in accordance with the accounting method chosen such as, FIFO, LIFO, or weighted average method to determine the value of inventory. The inventory method chosen can results in different amounts for the cost of goods sold. Inventory detail can be an issue as it must be accurate related to FIFO and LIFO so when selling units the correct per price point is used for each method. Shrinkage costs can be an issue if the difference
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to A/S/c/K/N/D where K and D the capacity of the queue and queueing discipline[2] and N the size of the population of jobs to be served.[3][4] When the final three parameters are not specified (e.g. M/M/1 queue), it is assumed K = ∞, N = ∞ and D = FIFO. In queueing theory, Kendall's notation (or sometimes Kendall notation) is the standard system used to describe and classify a queueing node. D. G. Kendall proposed describing queueing models using three factors written A/S/c in 1953[1] where A denotes
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A. Get the Big Picture: At Manzana the new policies (RUNs) are believed to be more profitable because they “commanded the highest premiums” and also because they considered that costumers would renew their policies anyway so they didn’t need to pay as much attention to the RERUNs. Nevertheless, we consider that these are not the most profitable policies and for instance they should not be given high priority. Table 1: Manzana Profit for 2nd quarters Looking at the profits we can see that
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CHAPTER 8 Valuation of Inventories: A Cost-Basis Approach ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis 1, 2, 3, 5 1. Inventory accounts; 1, 2, 3, 4, determining quantities, 5, 6, 8, 9 costs, and items to be included in inventory; the inventory equation; balance sheet disclosure. 1, 3 1, 2, 3, 4, 5, 6 1, 2, 3 2. Perpetual vs. periodic. 2 9, 13, 17, 20 4, 5, 6 3.
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NETW320 -- Converged Networks with Lab Lab #3 Title: IPv4 TOS and Router Queuing Objectives In this lab, you will work with an intranet for an organization that will encompass four different site locations in different cities. The subnets of these locations will be connected by a backbone IP network. The organization will be using a converged network that allows data and real-time voice traffic to traverse the same packet-switched network. The data traffic will consist of FTP (file transfer
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C H A P T E R 8 VALUATION OF I NVE NTOR I E S : A COST-BASIS APPROAC H LEARNING OBJECTIVES After studying this chapter, you should be able to: •1 •2 •3 •4 •5 •6 •7 •8 •9 •10 Identify major classifications of inventory. Distinguish between perpetual and periodic inventory systems. Identify the effects of inventory errors on the financial statements. Understand the items to include as inventory cost. Describe and compare the cost flow assumptions used to account for inventories. Explain
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CHAPTER 20 QUESTIONS 1. Comparability enables users to relate accounting information to a benchmark or standard. The benchmark may be in the form of another firm’s financial statements or financial data of the same firm but for some other time period. An accounting change could make it difficult to compare data from one period to another or from one firm to another, thus detracting from comparability. For example, if a company switched from straight-line depreciation to double-declining-balance
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Accounting 2301 – Practice Questions for Exam #2 1. Mahler Company began the accounting period with a $5,000 debit balance in its accounts receivable account. During the accounting period Mahler recorded revenue on account amounting to $17,000. The accounts receivable account at the end of the accounting period contained a $8,000 debit balance. Based on this information alone, the cash collected from accounts receivables during the period is A) $14,000 B) $17
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valued at $50 * DR Accumulated Inventory Impairment $2,000, CR Impairment Expense $2,000 * Here it does not matter how much greater the value is, we do not account for increases in value Methods of Inventory Valuation * FIFO (First In, First Out) – units purchased first are the ones to be sold first. Assigns most recent costs to inventory and older costs to COGS. This is the normal course of business – older units are always shipped first. * LIFO (Last In, First
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