ACC 117 Lecture Notes - Lecture 9: Indian Railways

• School: Tunxis Community College
• Department: Accounting
• Course: ACC 117
• Professor: Muccino

Document Summary

Any product or service that is basically homogenous and repetitively produced can take advantage of a process-costing approach: services, manufacturing firms with jit, traditional manufacturing firms. Service can not be stored, however it is possible for firms to engage in service production and have wip inventories. Manufacturing firms with jit may also operate without significant wip inv. Traditional manufacturing firms may have significant beginning and ending wip inv. Separates the cost of bwip from the cost of the current period. Cornerstone 6. 9: calculate the output for july, assign costs to units transferred out and ewip using the fifo method. Units in process july 1st, 75% complete //// 20000. Units in process july 31st 25% complete //// 10000. Bwip to be completed 20000 * 25% = 5000. Units started and completed 50000 - 20000 = 30000. Ewip started but not completed 10000 * 25% = 2500. Using calculations from 6. 4 and 6. 5 prepare a production report for july using fifo.