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ruslelena [56]
3 years ago
7

Your manager is concerned that costs are being misappropriated due to large balances in ending work in process inventories while

currently using the FIFO Method for accounting for beginning work in process inventories. Using examples from your own experience or from the book, explain to the manager which of the methods of process costing you believe should be used and why.
Business
1 answer:
AnnZ [28]3 years ago
3 0

Answer:

The company should use the weighted average method of process costing.

Explanation:

FIFO and Weighted average cost method are the two methods of Process costing. The company is already using the FIFO method for accounting of inventory under which cost are misappropriated into closing WIP.

To solve such issue, the company can use the weighted average method under which cost is calculated by weighted average and then evenly distributed to the unit transferred to other department and the ending work in process.

Example: Suppose company purchased goods lying stock 20000 units at $5 each. Weighted average cost calculated per unit is $3 per unit. Calculate Closing work in process

==> FIFO = 20000*5 = $100,000

==> Weighted average cost = 20000 * 3 =  $60,000

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Answer:

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Explanation:

Minimum wage is least amount a worker can earn in a particular country according to the legislation of that country.

According to the Employment and Labour minister TW Nxesi, he announced that the National Minimum Wage (NMW) for each ordinary hour worked has increased from R 20,76 to R 21,69 for the year 2021 effective from 01 March 2021.

The NMW legislation came into effect in South Africa on 01 January 2019 at a level of R 20 per hour. In terms of NMW act of 2018, the policy framework is a floor level below which no employee should be paid.

So, <u>the minimum wage in South Africa as at 2021 is R 21,69</u>

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3 years ago
Donna Holbrook, an administrative assistant at Mason Enterprises, charged some office supplies to the company credit card. Sever
Slav-nsk [51]

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Explanation:

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As in the question above, we can see that Donna Holbrook did not use the initial receipt from the credit card transaction. Instead, she tendered another receipt from the store for the same expense in her expense report. In this case, the cost for the office supplies had already been paid for by the company, but Donna reported a different receipt, hoping it would serve as proof that she in fact incurred the cost herself and therefore be reimbursed.

The company will therefore, be incurring the same cost twice.

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Question 13 of 20
Ganezh [65]

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Deb’s Auto Alarms has sold car alarms in the United States for 15 years. Owner Deborah Lefkowitz has read about the opportunitie
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