ADMS 3585 Chapter Notes - Chapter 8: Linsang, Weighted Arithmetic Mean, Spinach

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ivoryjackal461

6 Dec 2013

School

York University

Department

Administrative Studies

Course

ADMS 3585

Professor

Liona Lai

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Document Summary

Difference between those available for sale during the period and those on hand at the end of the period. Cogs = beginning inventory + purchases ending inventory. Gross profit or net income = sales cogs. Reporting ending inventory: determine inventory that should be included, cost that should be included in inventory, cost formula, test for impairment. Assume 2014 ending inventory is understated by ,000. Error discovered in 2015 after 2015 books are closed: No journal entry, but comparative statements must use corrected figures for presentation purposes. December 31st inventory errors both discovered after 2014 books were closed: Net income and retained earnings will be overstated by 45,000. Since the 2014 books have already been closed, journal entry to correct overstatement would be: 2013 ending inventory over by 110,000 over by 65,000 (110,000 45,000) Represent a future benefit, which the entity has control over or access to.

Related Questions

The cost per equivalent units of direct materials and conversion inthe Bottling Department of Beverages on Jolt Company is $0.60 and$0.10, respectively. The equivalent units to be assigned costs areas follows.

	Direct Materials	Conversion
Inventory in process, beginning of period	0	2,500
Started and completed during the period	50,780	50,780
Transferred out of Bottling (completed)	50,780	53,280
Inventory in process, end of period	3,060	2,200
Total units to be assigned costs	53,840	55,480

The beginning work in process inventory had a cost of $3,620.Determine the cost of completed and transferred out production andthe ending work in process inventory.

Cost of inventory transferred: ________

Ending Inventory: ________

chocolateturtle330

Cost of Units Transferred Out and Ending Work in Process

The costs per equivalent unit of direct materials and conversionin the Rolling Department of Keystone Steel Company are $60 and$10, respectively. The equivalent units to be assigned costs are asfollows:

	Equivalent Units
	Direct Materials	Conversion
Inventory in process, beginning of period	0	320
Started and completed during the period	7,500	7,500
Transferred out of Rolling (completed)	7,500	7,820
Inventory in process, end of period	1,000	300
Total units to be assigned costs	8,500	8,120

The beginning work in process inventory had a cost of $25,000.Determine the cost of completed and transferred-out production andthe ending work in process inventory.

Completed and transferred-out production	$
Inventory in process, ending	$

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ADMS 3585 Chapter Notes - Chapter 8: Linsang, Weighted Arithmetic Mean, Spinach

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