Accounting for product costs in a JIT environment
a. uses a job order costing system.
b. classifies processing costs as raw (or direct) material, direct labor, and overhead.
c. is more complex than in other types of manufacturing environments.
d. follows process costing procedures whereby costs are accumulated by the process (cell) and attached to units processed for the period.
D
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During January of Year 1, Sports World experienced the following business events. The company uses the perpetual inventory system. 1) Jan 3. Purchased $10,000 of merchandise from a supplier, Apex Athletic Shoes. The terms of the purchase: 2/10, n/30 and FOB shipping point.2) Jan 5. Paid $275 cash for freight to trucking company to have goods shipped from Apex.3) Jan 7:(a) Sold merchandise for $1,500 to a customer on account. (b) The merchandise had cost Sports World $900.4) Jan 10. Returned $1,100 of defective shoes to Apex. 5) Jan. 11: (a) Recorded the cash discount on the goods purchased in Event 1(b) Paid amount due on account to Apex for merchandise purchased on Jan. 3.6) Jan. 12: (a) Accepted a return of $375 of the goods sold on Jan. 7. (b) The cost of these goods was
$225.Required:Record the events in general journal format. What will be an ideal response?
Many professions have adopted a series of ethical standards to provide guidance for their memberships. The Institute of Management Accountants (IMA), for example, has published standards that focus on competence, confidentiality, integrity, and credibility. In light of these standards, consider the three cases that follow.Case A-Leston Corporation has experienced serious financial difficulties in recent years. John Young, the company's chief financial officer, has just learned that a major competitor was likely to file for bankruptcy; however, he failed to disclose this information at a board meeting held later that day when a plant closure decision was being discussed. The board evaluated several proposals during the session that focused on improving Leston's financial position.Case
B-QBX Company manufactures fertilizer from various raw materials, including a raw material know as Felstar. Paul Kelly, the firm's purchasing manager, purposely acquired a lower grade of Felstar than normal because of a very attractive price. The lower-grade product resulted in increased usage during the manufacturing process but had no effect on the fertilizer's overall quality. An end-of-period report showed that QBX profited from Kelly's actions, with the overall savings in purchase price more than offsetting the cost of added consumption.Case C-Central Distributing has a participative budgeting process, allowing employees to have a say in projected sales targets for the upcoming period. These targets are reflected in a series of performance reports that compare actual sales achieved against targeted amounts. Hillary Baxter submitted very low sales targets because, as she confided in a colleague, "I always want to look good in terms of meeting targets, even if anticipated sales and closures don't materialize."Required:Evaluate the three cases and determine the ethical issues, if any, which are involved. Cite the IMA's standards if appropriate. What will be an ideal response?
Bankruptcy petitions are filed initially in
A) U.S. federal bankruptcy court. B) civil court. C) municipal court. D) state bankruptcy court.
Having negative net income every once in a while is not such a bad thing as long as you have planned for it
Indicate whether this statement is true or false.