Valuation of work in progress, Cost Accounting

Valuation of Work In Progress

The concept of Equivalent units

It is a notional quantity of completed goods in the production process. This is a collection of work application or direct materials and overheads, direct labor necessary to produce one complete unit of output. They are the number of units such would have been produced throughout a period of all the departments' efforts had resulted into completed units. The concept is employed for causes of translating the partially completed production into its completed unit's equivalent.This enables cost accountants to value the work-in-progress in an objective, reliable, consistent manner.

Posted Date: 2/7/2013 2:33:06 AM | Location : United States

Related Discussions:- Valuation of work in progress, Assignment Help, Ask Question on Valuation of work in progress, Get Answer, Expert's Help, Valuation of work in progress Discussions

Write discussion on Valuation of work in progress
Your posts are moderated
Related Questions
Decision Making Nature of Decision-making Decision-making may fall into any type of the following categories as: 1. Short run operational decisions 2. Short run t

#question.discuss the importance of cost classification to a business organisation?

Sam Edwards has been the accounting manager for Jade Manufacturing in a highly competitive international market for ten years. Jade Manufacturing produces heavy equipment for two m

The number of workdays varies from month to month due to the number of weekdays, holidays, days of vacation, and sick leave taken in the month. The number of units produced in a

NSC Ltd. has a 31 May fiscal year-end. NSC disposed of its Information Systems Group (ISG) on 31 January 20X3. ISG had a net loss (after taxes) of $37,700,000 in 20X3, to the date

Cost Estimation  Cost estimation may be defined with 'a study that attempts to predict among costs and the activity level or cost driver that causes those costs. In practical

1. The following three one-year "discount" loans are available toyou: Loan A: $120,000 at a 7 percent discount rate Loan B: $110,000 at a 6 percent discount rate Loan

Following figures are taken from annual budget of ABC manufacturers for the year 2013: Fixed factory overhead Rs. 4,000,000 Factory overhead absorption rate Rs. 70 per direct labor

Advantages and Disadvantages of Group Bonus Plan Benefits associated along with group bonus schemes involve i. It encourages teamwork and cooperation among workers ii.

What are the five accounts used in adjusting entry for periodic inventory at the end of the year?