Ac552 W3 Lecture Process Costing Quiz

After reading Chapter 6 of the textbook and the materials I found that I was struggling to understand the material more than usual. Before reading this chapter I had a slight idea of how much effort went into keeping track of the costs and inventory. The most that I knew was that you had to keep track of it, I didn’t know that there are different ways to keep track of those costs. After reading more into the different ways to keep track of inventory I found that the one that stuck out most to me and was the one that I spent the most time trying to understand was the LIFO (Last In First Out).

The second types of inventory methods to value its inventory that CVS uses is the most common one used for most business the First-In, First-Out (FIFO). First-In, First-Out (FIFO) is defined as the first inventories bought are the first ones to be sold. CVS only uses FIFO for Some Retail Pharmacy and Rest of Business (Front store). CVS utilizes this method because; the fresher products have to be out the door first. Also, FIFO is an easier method than Weighted Average Cost. And most importantly it may over inflate cost because the last products bought and out the door first are usually the most expensive products.

The inventory method that assigns the most recent costs to cost of goods sold is

The Last in first out (LIFO) liquidation Inventory valuation method was changed as Inventory level in1984, 1983 and 1984 was decreased by Harnischfeger. By adopting this process, inventory that was purchased at lower cost in previous years was sold at higher prices.

The modern scenario of the hat making industry has revolutionized the scene with a number of options in color, patterns and material. They blend the modern trends with the traditional camo cowboy hats, without losing its unique identity. Most of the companies also offer provisions for do-it yourself ideas. You can get the product customized according to your personal preferences.

After winning a hat in a hockey skills competition, it became apparent by the envious, questioning looks from my peers that the style was quite popular. I attempted to find the hat online so my friends could have one too, but when I came up empty handed I asked the question, “Why not make my own?” While the idea seemed impossible at the time, I began to research. The realization that achieving this goal wasn't going to be as easy as it sounded struck me when I attempted to read endless pages of fine print and legal documents. After many hours of research, insightful meetings with business owners, and quite a few letters, I was ready to proceed with my

In response to Brittany Hill’s thread on Job & Process Costing Systems, I can easily say that she was very articulate in her passage. The thread is well detailed and presented in a manner that is not confusing to the reader. To begin with, it is important that she starts out by highlighting the differences between the two. For most people, costing systems can mean almost the same but as described by Cohen & Kaimenaki (2011), different situations will allow specific systems to be utilized. This is exactly what Hill has been able to communicate.

FIFO is the procedure of first inventory received would be the first inventory to be sold. FOFI would be the process of last inventory received would be sold first ,accounting

Flowserve measures the cost of inventory using the first-in, first-out method. This relates to how inventory is handled and represents that the oldest inventory ships to customers first. The “inventories are stated at the lower of cost or market” (Flowserve Corporation, 2017). This ensures that the inventory balances as reported on the financial statements are not overstated. Inventory is stated at cost when appropriate and stated at market value when the cost of the inventory was higher than the current market value. In no circumstances are inventories listed at higher than cost value in keeping with the historical cost principal. Flowserve had an inventory turnover of approximately 2.88 for 2016 and days in inventory of approximately 121.57. The inventory ratios show that Flowserve is a very strong company and the inventories are well managed. Also, the inventory has a reasonable

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To account for inventory, the company uses, first in first out policy. Property plant and equipment are recorded at cost less the accumulated depreciation amount. Depreciation is charged on straight line method

Nonvalue-added activities do not add value to the goods or services. 1–4. Differential costs are important for managerial decision making, but other cost data can provide management with additional important information. For example, inventory values and costs of goods sold are important for income tax and financial reporting purposes as well as for most bonus and cost-plus contracting purposes. Costs for performance evaluation are not necessarily differential costs. Companies try to recover all costs, hence some estimate of total costs is needed. (This could be an opportunity to discuss short-run and long-run costs with students, noting that in the long run, all costs must be covered.)

(FIFO) policy, minimum stock reorder for each item and periodic stock evaluation. One of the

FIFO stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact newest physical object has been tracked and sold; this is just an inventory technique.

The computation of equivalent units under FIFO method differs from weighted average method in two ways. First the units transferred out figure are divided into two parts. One part consists of the units from beginning inventory that were completed and transferred out, and the other part consists of the units that were both started and completed during the current period. Second full consideration is given to the amount of work expended during the current period on units in the beginning work in process inventory as well as units the ending inventory. Thus, under the FIFO method, it is necessary to convert both beginning and ending inventories to an equivalent unit basis. For the beginning inventory, the equivalent units represent the work done to complete the units; for the ending inventory, the equivalent units represent the work done to bring the units to a stage of partial completion at the end of the period (the same as with the weighted average method). The formula for computing equivalent units of production is more complex under FIFO method than under weighted average