Business Administration 2257 Study Guide - Final Guide: Finance Lease, Preferred Stock, Retained Earnings

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Richie Bloomfield

Document Summary

Determine cormafu (t/b) and e/b (generally given) in rm. Includes all product costs, which fall into three categories: rm raw materials, dl direct labor, foh factory overhead. Determine cowip (t/b) and e/b in wip (prm + pdl + pfoh: prm = given, pdl = given, pfoh = (partial proxy/total proxy) x total. Determine cogafs (t/b) and e/b in finished. Calculate cogs (plug) and debit to cogs expense. Lessee = party making payments for the use of the asset (this is our focus) Does not transfer substantially all the risks and rewards incidental to ownership. Transfers substantially all the risks and rewards incidental to ownership. Equal to fv of the leased property or the pv of the minimum lease payments. Must calculate the pv of the lease payments because of the time value of money. A dollar today is worth more than a dollar in the future, because money now has the opportunity to earn a financial return (if invested)