BUS 254 Study Guide - Midterm Guide: European Cooperation In Science And Technology, Dla Disposition Services

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 254
• Professor: Hwee Cheng Tan

Document Summary

It involves: measuring, recording, and reporting of product costs. It consists of account for various manufacturing costs, and uses a perpetual inventory system (fast and up-to-date information on the cost of a product) There are two basic types of cost accounting systems; The flow of the costs follow the same way that the materials physically flow as they turn into finished goods: flow: manufacturing costs wip inv finished goods inv cogs. If there are discounts, it credits this account: example: dr raw materials inv. The company assigns mo to wip: assigning manufacturing costs to wip, assigning mc to wip includes these entries, debits to wip inventory, credits to raw material inventory, factory labor, and manufacturing. Cr raw materials inventory: from the example above, t-accounts can be shown to explain how the money is moved through the process: Dr mo: after, factory labor is left with a zero balance, cr factory labor.