Why is it necessary to estimate the stage or degree of completion of work in process at

Question:

Why is it necessary to estimate the stage or degree of completion of work in process at the end of the accounting period under the process cost system?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Cost Accounting

ISBN: 9780840037039

15th Edition

Authors: Edward J. Vanderbeck

See More Books

Question Posted: Jan 07, 2012 06:50 AM

See More Questions

Why is it necessary to estimate many liabilities? Provide some examples of liabilities that must be estimated.
Why is it necessary to count inventory when a perpetual inventory control system is used? Explain. Why is it necessary to count inventory when a periodic inventory control system is used? Explain.
Why is it necessary to use comparative balance sheets, a current income statement, and certain transaction data in preparing a statement of cash flows?
Suppose there are 50 companies in a commercial building. Initially there is no automatic fire sprinkler system in the public area of the building. Each company has identical individual demand curve...
The financial statements of Mackay Corporation show the following information: Instructions: For each of the above events, indicate whether the company should a) Using horizontal analysis, analyze...
Use the quotient rule to simplify the expression. Use positive exponents to write your answer. 54
Suppose the scores x on a college entrance examination are normally distributed with a mean of 550 and a standard deviation of 100. A certain prestigious university will consider for admission only...
A project costs $1 million and has a base-case NPV of exactly zero (NPV = 0). What is the projects APV in the following cases? a. If the firm invests, it has to raise $500,000 by a stock issue. Issue...
In 20X7, an individual had employment income of $80,000 and a net capital loss of $7,500. He also had a 75% interest in a partnership with a $50,000 business loss for the year, and a 50% interest in...
Ten sources, six with a bit rate of 200 kbps and four with a bit rate of 400 kbps, are to be combined using multilevel TDM with no synchronizing bits. Answer the following questions about the final...
What is meant by the term equivalent production as used in the process cost system?
What would be the effect on the unit cost of finished goods if an estimate of the stage of completion of work in process was too high?
P Company reports its 10,000 shares of S Company at $40 per share. P Company then purchases an additional 60,000 shares of S Company for $65 each and gains control of S Company. What must be done...
St. Cecilia's Health System's current culture may be defined by a blend of historical ideals and problems. Given its history of primarily caring for women and children, it is likely to place a...
For this assignment, imagine we are the supervisor of case managers who come to us for support and guidance. You have noticed a theme of questions that are frequently asked, which mostly surround...
Audio Partners needs to invest in the next level of technology in order to be competitive. The company is exploring the purchase of a new piece of equipment that will cost $1,500,000, at an expected...
Choose a real company of their choosing and will focus on ways to help increase the company's digital consumer engagements. For example, how can the company better drive increased revenue, sales,...
Four morally and ethically relevant principles have been examined regarding scarcity and include: Treating people with consistency through the use of a lottery or first-come first-served basis...
The information for December should now all have been posted to the system and the adjustments for aceruals, prepayments doubtful debts and depreciation should have been made. The end of the month...
Q1) What is the a3 Value Q2) What is the a7 Value Q3) What is the a4 Value Q4) What is the b3 Value Q5) What is the b2 Value Q6) What is the sign of 2nd constraint? A pastry chef at a bakery wants to...
Consider a two-factor lognormal Libor Market Model. Ignore the drift, so that we can write dL i t = . . . dt + i L i t (a i1 dW t 1 + a i 2 dW t 2 ), where a 2 1i + a 2 1i = 1 and dW t 1 dW t 2 = 0....
Willy Industries Inc. uses backflush costing to account for its manufacturing costs. The trigger points for recording inventory transactions are the purchase of materials, the completion of products,...
An examination of M.J. Inc.'s records reveals the following transactions: a. On December 31, the physical inventory of raw material was 9,950 gallons. The book quantity, using the moving average...
One of the tennis rackets that Match Point manufactures is a tita- nium model (Slam) that sells for $149. The cost of each Slam consists of: Materials . . . . . . . . . . . . . . . . . . . . . . . ....
Glencove Company makes one model of radar gun used by law enforcement officers. All direct materials are added at the beginning of the manufacturing process. Information for the month of September...
Larren Buffett is concerned after receiving her weekly paycheck. She believes that her deductions for Social Security, Medicare, and Federal Income Tax withholding (FIT) may be incorrect. Larren is...
The major justification for adding Step 0 to the U.S. GAAP impairment test for goodwill and indefinite lived intangibles is that it: A. Saves money spent estimating fair values B. Results in more...

Why is it necessary to estimate the stage or degree of completion of work in process at

Question:

Step by Step Answer:

It is necessary to estimate the stage of completion o...View the full answer

Principles Of Cost Accounting

Students also viewed these Managerial Accounting questions