Add to Shopping Cart This pack includes the study guide. To order the version without the study guide, please perform a new search using the following ISBN: Business Reporting for Decision Making, 4th Edition is written for students who are required to complete a one semester unit on introductory accounting. The text covers the basic principles of financial accounting, management, finance as well as an introduction to ethics, corporate governance and business sustainability.
Exercises Problems Problems 1. Explain the characteristics 1, 2, 3, 4 and purposes of cost accounting. Prepare entries for jobs 16 8 3 2, 3, 4, 6, 7, 1A, 2A, 1B, 2B, completed and sold. Explain the characteristics and Q Q purposes of cost accounting.
From the data accumulated, both the total cost and unit cost of each product is determined. A cost accounting system consists of accounts for the various manufacturing costs.
These accounts are fully integrated into the general ledger of a company. An important feature of a cost accounting system is the use of a perpetual inventory system. Such a system provides information immediately on the cost of a product. The two basic types of cost accounting systems are a a job order cost system and b a process cost system.
Under a job order cost system, costs are assigned to each job or to each batch of goods. A process cost system is used when a large volume of similar products are manufactured. Process costing accumulates product-related costs for a period of time instead of assigning costs to specific products or job orders.
Job Order Cost Flow 5. There are two major steps in the flow of costs: No effort is made when costs are incurred to associate the costs with specific jobs. The cost of raw materials purchased are debited to Raw Materials Inventory when materials are received.
Factory labor costs are debited to Factory Labor when they are incurred. The cost of factory labor consists of 1 gross earnings of factory workers, 2 employer payroll taxes on the earnings, and 3 fringe benefits incurred by the employer.
Manufacturing overhead costs are recognized daily as incurred and periodically through adjusting entries. The costs are debited to Manufacturing Overhead. Assigning Manufacturing Costs to Work in Process A job cost sheet is a form used to record the costs chargeable to a specific job and to determine the total and unit cost of the completed job.
A separate job cost sheet is kept for each job. A subsidiary ledger consists of individual records for each individual item. The Work in Process account is referred to as a control account because it summarizes the detailed data regarding specific jobs contained in the job cost sheets.
Each entry to Work in Process Inventory must be accompanied by a corresponding posting to one or more job cost sheets. Raw materials costs are assigned when the materials are issued by the storeroom.
Work in Process Inventory is debited for direct materials used, Manufacturing Overhead is debited for indirect materials used, and Raw Materials Inventory is credited. Factory labor costs are assigned to jobs on the basis of time tickets prepared when the work is performed.
Work in Process Inventory is debited for direct labor costs, Manufacturing Overhead is debited for indirect labor costs, and Factory Labor is credited. Manufacturing Overhead Costs Instead, manufacturing overhead is assigned to work in process and to specific jobs on an estimated basis through the use of a predetermined overhead rate.
The predetermined overhead rate is based on the relationship between estimated annual overhead costs and expected annual operating activity. This relationship is expressed in terms of a common activity base such as direct labor costs, direct labor hours, or machine hours.
The formula for the predetermined overhead rate is:Fundamentals of FINANCIAL ACCOUNTING Fifth Edition FRED PHILLIPS Study the Accounting Methods Making Required Adjustments Preparing an Adjusted Trial Balance and the Financial Understand the Business Decision Pros and Cons of Extending Credit 2 BUSINESS ANALYTICS AND DECISION MAKING – THE HUMAN DIMENSION Chartered Global Management Accountant (CGMA®) Two of the world’s most prestigious accounting bodies, AICPA and CIMA, have collaborated to establish the Chartered Global Management Accountant.
Study Guide to accompany Financial Accounting: Tools for Business Decision Making, 7th Edition offers students an invaluable opportunity to focus their study time and better retain critical information.
Fully aligned with the test, each chapter contains an overview and lesson-by-lesson review to reinforce key points, followed by a chapter self /5(5).
The 4th edition of this title () is also available from our Ebook Central subscription. Audit planning Guide to help auditors plan the audit process using a risk based approach. Study Guide to Accompany: Accounting: Business Reporting for Decision Making Accounting Business Reporting for Decision Making 4th Edition.
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