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Please help me answer this. Thank you. It is not a numerical answer, just a briefing on information. Chapter 5 is about two types of
Please help me answer this. Thank you. It is not a numerical answer, just a briefing on information.
Chapter 5 is about two types of costing systems: Job Costing and Process Costing. To understand this better I want to take an industry that is new in the accounting world, especially in California: Marijuana. In November 2016, California voters approved the Adult Use of Marijuana Act (Proposition 64) to legalize the recreational use of cannabis. (Wikipedia) Since then, the industry has blown up but just like any other business, marijuana growers and dispensaries need to keep accurate books of record on their business and report on it each year. However, there is not much for growers to go by and accountants really haven't dealt with industry. Now they are. Here is the participation for this week. The life cycle of cannabis can be broken down into four primary stages from seed to harvest: germination, seedling vegetative, and flowering. And for simplicity, lets say it takes four months from start to finish. There is obviously a lot more to it, but this is what l've found when doing research. Using what you learned in chapter 5, describe to me how accounting would look like for growers of marijuana using both the job costing and process costing methodStep by Step Solution
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