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Alcoa Inc. is the world's largest producer of aluminum products. One product that Alcoa manufactures is aluminum sheet products for the aerospace industry. The entire output of the Smelting Dpartment is transferred to the Rolling Department. Part of the fully porcessed goods from the Rolling Drpartment are sold as rolled sheet, and the rmainder of the goods are transferred to the Converting Department for further processing into sheared sheet.
Prepare a chart of the flow of costs form the processing department accounts into the finische gooss accounts and then into the cost of goods sold account. The relevant accounts are as follows:
Cost of Goods Sold
Materials
Factory Overhead-Smelting Department
Factory Overhead-Rolling Dpartment
Factory Overhead-Converting Department
Finische Goods-Rolled Sheet
Finische Goods-Sheared Sheet
Work in Process-Smelting Department
Work in Process-Rolling Department
Work in Process-Converting Department
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Describe the history, current status, and adoption implications of a Financial Accounting Standards Board ongoing project.
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