Inv + COGM = Ending FG + COGS COGS = Beg FG = COGM – Ending FG Beg WIP + MC Cost of Total Available units -Ending WIP COGM CHAPTER 8: SYSTEMS DESIGN : JOB-ORDER COSTING Unit PC = Total MC Total units produced Predetermined OH Rate = Est Total MO cost Est. Total amt of the alloc. Base CHAPTER 9: SYSTEMS DESIGN : PROCESS COSTING A. Weighted-Average Method Equiv. Units = No. of partially completed units x Percentage completion Equiv. Units of Production= Units transferred to the
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Topic: Inventory Valuation (continue) These are assumptions of sequencing, but should know the cost of associated with whatever went out. Four (4) key methods of inventory valuation Method # 1: First In First Out (FIFO) First items to come into inventory are the first to leave Last items to come into inventory remain in inventory Method 2 Last in First Out (L-I-F-O) Last (most recent) items to come into inventory are first to leave inventory 1st items to come in remain in
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facing inventory problems in Farmers restaurant. For this reason, explanation of inventory management is necessary for solving the problem of Kristin. Following solutions are applicable to help Kristin. 1.1nventory management & weekly food costing can lower your food cost It’s easy and unfortunately common for restaurants to lose money through poor inventory management. Even the most well managed, established restaurants have ongoing challenges in this area. As a restaurant manager you share
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issues of the firm and the performance of the firm to formulate the strategic policies and strategies of the firm. The middle management consisting of the marketing manager, production manager etc will require information to effectively fulfill their job responsibilities and take actions accordingly. The external stakeholders such as the shareholders have invested their hard earned money in the business and would want to be informed about how well the firm is doing and the return that they will be getting
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GLOSSARY OF FINANCIAL TERMS Absorption costing A costing approach in which all manufacturing costs are charged to the product. | Absorption-cost pricing An approach to pricing that defines the cost base as the manufacturing cost; it excludes both variable and fixed selling and administrative costs. | Accelerated-depreciation method Depreciation method that produces higher depreciation expense in the early years than in the later years. | | Account A record of increases and decreases in
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With the plethora of entry-level accounting software available on the market Intuit’s QuickBooks Pro and Sage’s Peachtree Pro are still two of the most popular accounting software specially designed for the needs of small businesses. Both provide excellent solutions to many of the accounting challenges faced by small businesses that use double entry accounting. QuickBooks Pro and Peachtree Pro are promoted as software designed for users with little or no accounting knowledge. Although very similar
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total production cost. Sally’s boss has suggested that she do an analysis supporting her suggestion. Last week, Sally received an invitation to bid on a job for Husanti Industries, and she has decided to determine whether a “low” bid is warranted for this customer. From the production department, Sally received an estimate that the job will require 2000 labor hours, 8000 machine hours, and material cost of $178,000. Cost accounting has indicated that the average labor cost is $22 per hour.
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and vendors are rotated periodically among purchasing staff. • Enquire if standard purchase orders are used to order all goods from vendors. • Review the procedure for issuance of Purchase Orders (P.O.). Inquire if in addition to a P.O., there is also a written agreement with the vendors. If so, review the same for salient terms and conditions. • Is authorisation to issue or amend Purchase Orders given in writing, or electronically with password restrictions. • Ensure whether system user
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MANAGEMENT ACCOUNTING (Relevant Costing and Standard Costing) Instructions: In separate sheet of paper, number your paper 1 to 120, and write the letters only (a,b,c,d, T, F) TRUE-FALSE STATEMENTS 1. Incremental analysis identifies the probable effects of management decisions on future earnings. 2. In making decisions, management considers only financial information because accounting is presented in financial context. 3. In incremental analysis, total fixed costs will
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of women were called into doing traditionally men’s jobs. New jobs, such as working in munitions factories were created due to the war effort. Munitions factories later became the highest employer for women during 1918 employing over 30,000 women. They manufactured 80% of the war weapons and shells used. In addition to munitions factories, women also served as ambulance drivers, nurses and airplane engineers. Arguably they performed these jobs better than most men. The women started earning their
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