
Concept explainers
Process Cost Summary:
It is a report which shows all the processes to produce the product and cost associated with each process. It also shows the equivalent unit of production.
Equivalent Unit of Production:
It shows the number of product produced with the manufacturer at the end of a particular time frame. At the end of the period, a manufacturer can have fully completed and partially completed product, it show all the product as equivalent fully completed product.
Journal Entries:
It is a book of original entry. It records and summarizes financial transaction of an entity in chronological manner, generally according to dual aspect of accounting.
Accounting rules regarding journal entries:
- Balance increase when: Assets, losses and expenses get debited and liabilities, gains, and revenue get credited.
- Balance decrease when: Assets, losses and expenses get credited and liabilities, gains, and revenue get debited.
1.
To prepare:
2.
To prepare:
3.
To identify: Two major estimates that determines the cost per equivalent unit.
b.
To explain: Bias by management for each management if management compensation is based on maintaining low inventory.

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Chapter 16 Solutions
GEN COMBO FINANCIAL AND MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD
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