This document provides instructions for performing monthly inventory reconciliation in Viewpoint. It begins with an overview of the reconciliation process and explains that it is used to capture beginning and ending inventory levels, accumulate activity, and calculate ending values for a month based on the valuation method. It then provides the technical steps to perform monthly reconciliation, including initializing values, printing and reviewing reports, creating adjustments batches, and processing the batch. Finally, it explains how the reconciliation works by summarizing beginning balances, activity for the month, and calculating ending values and adjustments.
This document discusses different access control settings for operand values in billing. It provides examples of how consumption would be calculated for a factor and quantity operand under each access control setting, including:
1) "All Operand Values" considers all historical changes in the billing period.
2) "End of Rate Period" disregards changes and uses the value at the end of the period.
3) "Key Date" uses the value on a specified date, allowing proration if values change during the month.
4) The other settings consider values at different points in the billing period, such as the start or end, or take an average, to determine the value(s) to use for
1. Khalid Aziz teaches financial accounting and cost accounting courses for various qualifications including ICMAP stages 1-4, ICAP modules B and D, B.Com, BBA, MBA, and PIPFA.
2. He provides crash courses and fresh classes in financial accounting and cost accounting for individuals and groups.
3. Contact information is provided for Khalid Aziz located in Karachi, Pakistan.
Meter Reading Upload Interval :Used for uploading readings through IDocsRakesh Dasgupta
The document discusses an 'Upload Interval' field in SAP Utilities that controls the date range used to validate meter reading upload dates against schedule meter reading dates when using IDocs. Maintaining a proper value for the Upload Interval depends on business requirements for billing period duration. The schedule meter reading date must fall within the date range calculated by subtracting and adding the Upload Interval value to the upload date.
The document discusses the differences between standard price control and moving average price control in SAP. Standard price is a fixed price set in the material master record, while moving average price automatically adjusts based on the total value and quantity of stock. Variances from standard price are posted to price difference accounts, while variances from the moving average price update the price and stock value. The document recommends using standard price for semi-finished and finished goods and moving average price for raw materials.
Complete Cost Accumulation Procedures in Manufacturing Organizationsoptiplex7866
The document discusses different cost accumulation systems used in accounting, including job order costing and process costing. It explains that job order costing tracks costs for individual jobs or orders, while process costing accumulates average costs for batches of homogeneous products. The key differences and similarities between the two systems are outlined.
The document provides an overview of job order costing systems used in manufacturing. It discusses key terms like direct materials, direct labor, and factory overhead. It also outlines the flow of costs through the production process from purchasing raw materials to completing jobs and transferring finished goods to inventory or selling products. The example shows how costs like materials, labor, and overhead are assigned to specific jobs and accumulated to calculate the total cost of goods manufactured.
The document provides an overview and instructions for configuring product costing in SAP, including basic settings for material costing such as maintaining overhead cost elements, defining calculation bases, defining percentage and quantity-based overhead rates, and defining credits. It explains how to configure overhead rates and dependencies for a plant. The document encourages purchasing additional training materials to learn the full product costing configuration.
This document discusses different access control settings for operand values in billing. It provides examples of how consumption would be calculated for a factor and quantity operand under each access control setting, including:
1) "All Operand Values" considers all historical changes in the billing period.
2) "End of Rate Period" disregards changes and uses the value at the end of the period.
3) "Key Date" uses the value on a specified date, allowing proration if values change during the month.
4) The other settings consider values at different points in the billing period, such as the start or end, or take an average, to determine the value(s) to use for
1. Khalid Aziz teaches financial accounting and cost accounting courses for various qualifications including ICMAP stages 1-4, ICAP modules B and D, B.Com, BBA, MBA, and PIPFA.
2. He provides crash courses and fresh classes in financial accounting and cost accounting for individuals and groups.
3. Contact information is provided for Khalid Aziz located in Karachi, Pakistan.
Meter Reading Upload Interval :Used for uploading readings through IDocsRakesh Dasgupta
The document discusses an 'Upload Interval' field in SAP Utilities that controls the date range used to validate meter reading upload dates against schedule meter reading dates when using IDocs. Maintaining a proper value for the Upload Interval depends on business requirements for billing period duration. The schedule meter reading date must fall within the date range calculated by subtracting and adding the Upload Interval value to the upload date.
The document discusses the differences between standard price control and moving average price control in SAP. Standard price is a fixed price set in the material master record, while moving average price automatically adjusts based on the total value and quantity of stock. Variances from standard price are posted to price difference accounts, while variances from the moving average price update the price and stock value. The document recommends using standard price for semi-finished and finished goods and moving average price for raw materials.
Complete Cost Accumulation Procedures in Manufacturing Organizationsoptiplex7866
The document discusses different cost accumulation systems used in accounting, including job order costing and process costing. It explains that job order costing tracks costs for individual jobs or orders, while process costing accumulates average costs for batches of homogeneous products. The key differences and similarities between the two systems are outlined.
The document provides an overview of job order costing systems used in manufacturing. It discusses key terms like direct materials, direct labor, and factory overhead. It also outlines the flow of costs through the production process from purchasing raw materials to completing jobs and transferring finished goods to inventory or selling products. The example shows how costs like materials, labor, and overhead are assigned to specific jobs and accumulated to calculate the total cost of goods manufactured.
The document provides an overview and instructions for configuring product costing in SAP, including basic settings for material costing such as maintaining overhead cost elements, defining calculation bases, defining percentage and quantity-based overhead rates, and defining credits. It explains how to configure overhead rates and dependencies for a plant. The document encourages purchasing additional training materials to learn the full product costing configuration.
This document provides information on setting up and maintaining key components for product costing in SAP, including:
1. Maintaining material masters for raw materials, packaging materials, and finished goods with accounting and costing views.
2. Defining bills of materials which list the components and quantities that make up finished products.
3. Setting activity prices for cost centers that absorb costs into products based on activities like machine time or labor hours.
4. Identifying resources and work centers that define where operations are performed and their available capacities.
Product costing and material ledger documentation was summarized as follows:
[1] Product costing allows companies to plan, track, and analyze product costs from raw materials procurement through production to the final cost of goods sold. The material ledger provides actual costing functionality to revalue inventory costs.
[2] Key aspects of product costing include establishing standard costs, performing costing runs to calculate costs, and updating material master prices. The costing structure includes activity types, cost elements, and cost centers.
[3] The material ledger allows companies to determine actual costs for materials and revalue inventory using methods like moving average or standard price valuation.
This document provides an overview and configuration steps for product cost planning in SAP, including:
1) Maintaining overhead cost elements for material and production overheads.
2) Defining calculation bases of materials and wages for overhead application.
3) Setting percentage overhead rates of 5% for materials and 4% for wages in plant 9100.
4) Configuring credit keys to credit overhead cost centers and debit products.
This document describes how to automate the standard cost estimate process (CK40N) in SAP. It involves setting up a costing run with parameters for each step - selection, structure explosion, costing, analysis, marking, and release. These steps are configured to run in the background by activating background processing for each. Finally, the background jobs are scheduled and monitored to completion to automate the full CK40N process.
The document discusses product costing and cost estimation in SAP. It describes how standard costs are estimated based on input materials, activities, and overhead costs. It then outlines the tools used for cost estimation like costing variants, cost component splits, and cost estimates with or without quantity structures. Cost estimates are used to calculate the cost of goods manufactured and update standard prices in the material master record.
This document discusses inventory valuation methods and cost of goods sold calculations for different types of companies. It covers:
1) Types of companies including merchandising, manufacturing, and service and their different inventory considerations.
2) Methods for determining inventory amounts including periodic and perpetual systems.
3) Cost flow assumptions like specific identification, average costing, FIFO, and LIFO.
4) Calculations of cost of goods sold for merchandising and manufacturing companies using different inventory methods.
Process costing is an accounting method used to assign costs to units produced in continuous or repetitive processes. Costs like direct materials, direct labor, and manufacturing overhead are accumulated and averaged over total units produced during a period, then allocated to individual units. This contrasts with job costing, which tracks costs of individual jobs. Process costing is suitable when identical or similar units are mass produced continuously, as in oil refining or food manufacturing. Key aspects of process costing include determining equivalent units, allocating total costs based on normal or actual output, and assigning costs to completed units and work-in-process inventory.
This document discusses different costing methods used in management accounting including job costing, process costing, batch costing, contract costing, and service costing. It provides examples and explanations of key concepts in job costing like job cost sheets, predetermined overhead rates, and manufacturing overhead. Process costing is explained as a method used for mass production of nearly identical units where costs are accumulated and assigned to units produced. Batch costing is defined as identifying and assigning costs to a set amount of similar goods produced in a batch. Contract costing applies especially to long-term construction projects performed over multiple periods. Finally, service costing calculates the full costs of services an entity provides using direct and indirect costs.
Process planning and cost estimation unit iis Kumaravel
This document discusses process planning activities including setting process parameters, work holding devices, inspection methods, and the economics of process planning. It covers topics such as calculating cutting speed, feed rate, and depth of cut. It also discusses work holding devices, jigs and fixtures, quality assurance methods, and total quality management principles. Process planning aims to optimize the manufacturing process to improve quality and reduce costs.
Type of Production: Homogeneous
Firm using it : Chemical, Oil,flour, Plastic and paint,
Focal Point: Processing Center,,
Control Document :Cost of Production Report,
Reporting period: Time period such as month,
Unit cost computation:by processing center
Flow of products:continuous,
Measurement of Output: Equivalent Unit of Production.
This white paper discusses the benefits of implementing an ERP software solution specifically designed for heavy/civil contractors. It notes that a unified system allows for greater integration, efficiency, transparency and profitability across job management, equipment management, materials management, and other key areas. It highlights Viewpoint Construction Software as an integrated ERP product with functionality tailored to the unique needs and profit centers of heavy/civil businesses. The white paper argues that specialized construction industries require specialized software rather than generic or piecemeal solutions.
This document contains the resume of Amal Mandal summarizing his professional experience as a software engineer with 7 years of experience developing software using technologies like SQL Server, Visual Studio, and SSIS. He has strong skills in software development methodology including development, testing and releasing products on time and to expectations. His experience includes projects for clients like Microsoft, Infosys, Wipro, and Hewlett-Packard.
Baseball has had a profound influence on the English language. The sport introduced countless phrases that are now used in everyday language, from "touch base" to "out in left field" to "rain check." By the late 19th century, baseball slang was widely used in newspapers and adopted by fans. Over generations, baseball terminology became a way for young people to discuss their successes and failures. While some sought to suppress baseball slang early on, its influence only continued to grow as the sport developed. Today, the extent of baseball terms in the English language is enormous.
Bird Construction is a large Canadian general contractor that was experiencing limitations with its project management systems. It implemented Vista by Viewpoint in 2009 and has since rolled it out across the company. This has provided improved reporting, reduced data entry, and better visibility across the organization. Project managers now have access to all project information in a centralized location from anywhere, saving significant time. The integrated approach between finance and operations has also created efficiencies for accounting.
Este documento describe la configuración externa del diencefalo, incluyendo el epitalamo, tálamo, subtalamo e hipotálamo. Explica la ubicación y funciones de cada una de estas estructuras, así como sus relaciones anatómicas. También describe la irrigación sanguínea del sistema porta hipofisario y la vascularización de la hipófisis.
Four voices one word ,An exhibition of IB Diploma Students ,Oakridge Internat...JINSON JOSEPH
The document describes The Botanika luxury residential project located near a botanical garden in Hyderabad, India. It provides details about the amenities and specifications of the residential towers, villas, and condominiums available. The project aims to bring luxury living close to nature with features like a clubhouse, swimming pools, gardens, and high-quality finishes for units.
Hepatitis viral aguda( virus no hepatotropicos)Sinai Palma
Los virus herpes pueden causar hepatitis aguda. El virus herpes simple puede producir hepatitis leve y autolimitada o fulminante, especialmente en embarazadas, neonatos y pacientes inmunodeprimidos. El virus varicela-zóster generalmente causa hepatitis leve, pero puede ser fulminante en receptores de trasplante u otros grupos vulnerables. El citomegalovirus usualmente induce hepatitis leve autolimitada como parte del síndrome viral agudo o en receptores de trasplante hepático.
Hígado, conductos biliares y vesícula biliar Sinai Palma
El documento describe la anatomía del hígado, los conductos biliares y la vesícula biliar. El hígado se localiza en el cuadrante superior derecho del abdomen y es el órgano más grande del cuerpo después de la piel. Procesa sustancias del tubo digestivo y almacena glucógeno y bilis. La bilis sale del hígado a través de los conductos biliares y se almacena en la vesícula biliar hasta que la comida llega al duodeno.
Code formats mandate how codes are sectioned, entered and appear. You will be deciding how many sections are in each code, how many characters in each section, the separators used and the justification for each section.
Las glucogenosis son un grupo de enfermedades hereditarias causadas por deficiencias en las enzimas que sintetizan o degradan el glucógeno, lo que provoca un depósito anormal de glucógeno en los tejidos. Los síntomas varían dependiendo de la enzima deficiente y los tejidos afectados, pero generalmente incluyen dificultad para movilizar las reservas de glucógeno. La glucogenosis tipo I se debe a la deficiencia de la enzima glucosa-6-fosfatasa y causa síntomas hepá
This document provides information on setting up and maintaining key components for product costing in SAP, including:
1. Maintaining material masters for raw materials, packaging materials, and finished goods with accounting and costing views.
2. Defining bills of materials which list the components and quantities that make up finished products.
3. Setting activity prices for cost centers that absorb costs into products based on activities like machine time or labor hours.
4. Identifying resources and work centers that define where operations are performed and their available capacities.
Product costing and material ledger documentation was summarized as follows:
[1] Product costing allows companies to plan, track, and analyze product costs from raw materials procurement through production to the final cost of goods sold. The material ledger provides actual costing functionality to revalue inventory costs.
[2] Key aspects of product costing include establishing standard costs, performing costing runs to calculate costs, and updating material master prices. The costing structure includes activity types, cost elements, and cost centers.
[3] The material ledger allows companies to determine actual costs for materials and revalue inventory using methods like moving average or standard price valuation.
This document provides an overview and configuration steps for product cost planning in SAP, including:
1) Maintaining overhead cost elements for material and production overheads.
2) Defining calculation bases of materials and wages for overhead application.
3) Setting percentage overhead rates of 5% for materials and 4% for wages in plant 9100.
4) Configuring credit keys to credit overhead cost centers and debit products.
This document describes how to automate the standard cost estimate process (CK40N) in SAP. It involves setting up a costing run with parameters for each step - selection, structure explosion, costing, analysis, marking, and release. These steps are configured to run in the background by activating background processing for each. Finally, the background jobs are scheduled and monitored to completion to automate the full CK40N process.
The document discusses product costing and cost estimation in SAP. It describes how standard costs are estimated based on input materials, activities, and overhead costs. It then outlines the tools used for cost estimation like costing variants, cost component splits, and cost estimates with or without quantity structures. Cost estimates are used to calculate the cost of goods manufactured and update standard prices in the material master record.
This document discusses inventory valuation methods and cost of goods sold calculations for different types of companies. It covers:
1) Types of companies including merchandising, manufacturing, and service and their different inventory considerations.
2) Methods for determining inventory amounts including periodic and perpetual systems.
3) Cost flow assumptions like specific identification, average costing, FIFO, and LIFO.
4) Calculations of cost of goods sold for merchandising and manufacturing companies using different inventory methods.
Process costing is an accounting method used to assign costs to units produced in continuous or repetitive processes. Costs like direct materials, direct labor, and manufacturing overhead are accumulated and averaged over total units produced during a period, then allocated to individual units. This contrasts with job costing, which tracks costs of individual jobs. Process costing is suitable when identical or similar units are mass produced continuously, as in oil refining or food manufacturing. Key aspects of process costing include determining equivalent units, allocating total costs based on normal or actual output, and assigning costs to completed units and work-in-process inventory.
This document discusses different costing methods used in management accounting including job costing, process costing, batch costing, contract costing, and service costing. It provides examples and explanations of key concepts in job costing like job cost sheets, predetermined overhead rates, and manufacturing overhead. Process costing is explained as a method used for mass production of nearly identical units where costs are accumulated and assigned to units produced. Batch costing is defined as identifying and assigning costs to a set amount of similar goods produced in a batch. Contract costing applies especially to long-term construction projects performed over multiple periods. Finally, service costing calculates the full costs of services an entity provides using direct and indirect costs.
Process planning and cost estimation unit iis Kumaravel
This document discusses process planning activities including setting process parameters, work holding devices, inspection methods, and the economics of process planning. It covers topics such as calculating cutting speed, feed rate, and depth of cut. It also discusses work holding devices, jigs and fixtures, quality assurance methods, and total quality management principles. Process planning aims to optimize the manufacturing process to improve quality and reduce costs.
Type of Production: Homogeneous
Firm using it : Chemical, Oil,flour, Plastic and paint,
Focal Point: Processing Center,,
Control Document :Cost of Production Report,
Reporting period: Time period such as month,
Unit cost computation:by processing center
Flow of products:continuous,
Measurement of Output: Equivalent Unit of Production.
This white paper discusses the benefits of implementing an ERP software solution specifically designed for heavy/civil contractors. It notes that a unified system allows for greater integration, efficiency, transparency and profitability across job management, equipment management, materials management, and other key areas. It highlights Viewpoint Construction Software as an integrated ERP product with functionality tailored to the unique needs and profit centers of heavy/civil businesses. The white paper argues that specialized construction industries require specialized software rather than generic or piecemeal solutions.
This document contains the resume of Amal Mandal summarizing his professional experience as a software engineer with 7 years of experience developing software using technologies like SQL Server, Visual Studio, and SSIS. He has strong skills in software development methodology including development, testing and releasing products on time and to expectations. His experience includes projects for clients like Microsoft, Infosys, Wipro, and Hewlett-Packard.
Baseball has had a profound influence on the English language. The sport introduced countless phrases that are now used in everyday language, from "touch base" to "out in left field" to "rain check." By the late 19th century, baseball slang was widely used in newspapers and adopted by fans. Over generations, baseball terminology became a way for young people to discuss their successes and failures. While some sought to suppress baseball slang early on, its influence only continued to grow as the sport developed. Today, the extent of baseball terms in the English language is enormous.
Bird Construction is a large Canadian general contractor that was experiencing limitations with its project management systems. It implemented Vista by Viewpoint in 2009 and has since rolled it out across the company. This has provided improved reporting, reduced data entry, and better visibility across the organization. Project managers now have access to all project information in a centralized location from anywhere, saving significant time. The integrated approach between finance and operations has also created efficiencies for accounting.
Este documento describe la configuración externa del diencefalo, incluyendo el epitalamo, tálamo, subtalamo e hipotálamo. Explica la ubicación y funciones de cada una de estas estructuras, así como sus relaciones anatómicas. También describe la irrigación sanguínea del sistema porta hipofisario y la vascularización de la hipófisis.
Four voices one word ,An exhibition of IB Diploma Students ,Oakridge Internat...JINSON JOSEPH
The document describes The Botanika luxury residential project located near a botanical garden in Hyderabad, India. It provides details about the amenities and specifications of the residential towers, villas, and condominiums available. The project aims to bring luxury living close to nature with features like a clubhouse, swimming pools, gardens, and high-quality finishes for units.
Hepatitis viral aguda( virus no hepatotropicos)Sinai Palma
Los virus herpes pueden causar hepatitis aguda. El virus herpes simple puede producir hepatitis leve y autolimitada o fulminante, especialmente en embarazadas, neonatos y pacientes inmunodeprimidos. El virus varicela-zóster generalmente causa hepatitis leve, pero puede ser fulminante en receptores de trasplante u otros grupos vulnerables. El citomegalovirus usualmente induce hepatitis leve autolimitada como parte del síndrome viral agudo o en receptores de trasplante hepático.
Hígado, conductos biliares y vesícula biliar Sinai Palma
El documento describe la anatomía del hígado, los conductos biliares y la vesícula biliar. El hígado se localiza en el cuadrante superior derecho del abdomen y es el órgano más grande del cuerpo después de la piel. Procesa sustancias del tubo digestivo y almacena glucógeno y bilis. La bilis sale del hígado a través de los conductos biliares y se almacena en la vesícula biliar hasta que la comida llega al duodeno.
Code formats mandate how codes are sectioned, entered and appear. You will be deciding how many sections are in each code, how many characters in each section, the separators used and the justification for each section.
Las glucogenosis son un grupo de enfermedades hereditarias causadas por deficiencias en las enzimas que sintetizan o degradan el glucógeno, lo que provoca un depósito anormal de glucógeno en los tejidos. Los síntomas varían dependiendo de la enzima deficiente y los tejidos afectados, pero generalmente incluyen dificultad para movilizar las reservas de glucógeno. La glucogenosis tipo I se debe a la deficiencia de la enzima glucosa-6-fosfatasa y causa síntomas hepá
An induction motor starter is necessary to control the starting current and torque of the motor. There are different types of starters that can be used depending on the size of the motor, including DOL, star-delta, primary resistance, and auto transformer starters. A soft starter uses electronics to gradually increase the voltage applied to the motor during starting and stopping, reducing mechanical and electrical stresses on the system.
Part IRequirement 1UnitsPriceTotalsSales60,000$12.50$750,000Variab.docxherbertwilson5999
Part IRequirement 1UnitsPriceTotalsSales60,000$12.50$750,000Variable Costs60,000$6.00$360,000.00Fixed Costs60,000$295,525$295,525.00Net Income$94,475.00Requirement 2Contribution Margin per Unit in Dollars = Selling Price – Variable CostsSelling PriceVariable Costs Contribution Margin per Unit $12.50$6.00$6.50Contribution Margin Ratio = Contribution Margin/Selling PriceContribution MarginSelling PriceContribution Margin Ratio$6.50$12.5052%Requirement 3Break-Even Point = Fixed Costs / Contribution MarginFixed Costs Contribution MarginBreak-Even Point in Units (Rounded)$295,52552%568,317Break-Even Point in Units X Selling Price per Unit = Break-Even Point SalesBreak-Even Point in UnitsSelling Price per UnitBreak-Even Point in Sales (Rounded)568,317$12.50$45,465Requirement 4AMargin of Safety in Units = Current Unit Sales – Break-Even Point in Unit SalesCurrent Unit SalesBreak-Even Point in SalesMargin of Safety in Units60,000$45,46514,535Requirement 4BMargin of Safety in Dollars = Current Sales in Dollars – Break-Even Point Sales in DollarsCurrent Sales in DollarsBreak-Even Point in Dollars Margin of Safety in Dollars$750,000$568, 312.50$181,688Requirement 4CMargin of Safety as a Percentage = Margin of Sales in Units / Current Unit SalesMargin of Safety in UnitsCurrent Unit SalesMargin of Safety Percentage14,53560,00024%Requirement 5Degree of Operating Leverage = Contribution Margin / Operating IncomeContribution MarginOperating IncomeOperating Leverage$655,525.00$750,000.000.8740Requirement 6Units$ Per UnitTotalsSales72,000$12.50$900,000Variable Costs72,000$6.00$432,000.00Fixed Costs72,000295,525$295,525.00Net Income$172,475.00Operating LeverageTimes % IncreaseIncrease would be XX%0.87445.2245.22Prior Income$94,475.00From Part 1Increase$78,000.00Prior Income X XX% AboveTotal$172,475.00Requirement 7Targeted Income = (Fixed Costs + Target Income) / Contribution MarginFixed Costs + Target IncomeDivided by Contribution Margin# of Units (Rounded)Fixed Costs$295,525Target Income$78,000Total$373,525$655,525.001# of Units Above X $ Per UnitProofRevenueXX,XXX X $XX.XX$78,000Variable CostsXX,XXX X $X.XX$432,000Contribution Margin$655,525Fixed Costs$295,525Net Income$360,000Requirement 8Sales MixCurrentSpecialtyTotalExpected Sales UnitsRevenue = Sales X Price$750,000$900,000$1,650,000Variable Costs X Units$360,000$432,000$792,000Contribution Margin$655,525$655,525$1,311,050Fixed Costs$295,525$295,525$591,050Operating Income$539,900Prior Net Income From Requirement 1$461,900.00Additional Operating Income(Operating Income Above Less Prior Income)$166,375.00Decision With ExplanationThe company needs to produce more of the umbrellas so as to increase the volume of sales that it will record in the market. Consequently, the profits realized by the firm will also increase. However, there is need for the costs of production to be reduced so as to increase the net revenue of the company.
Part IIRequirement 1Hampshire CompanyVariable Costing Income Statemen.
High-Low method is used to determine variable cost per unit , total fixed costs, and the total cost equation.
Important steps in HL method:
Step 1: Select the activity with the highest and lowest amounts (miles is the activity).
Step 2: Select the costs adjacent to those activities:
Note that the cost amounts adjacent to these activity levels will be used, even though these cost amounts are not the highest and lowest 'costs.' Activity level rules.
Step 3: Determine the slope (the variable cost per unit):
= Change in Total Cost / Change in Activity level
Note that the activity levels and costs used are those of the two months chosen in step 1.
Step 4: Plug the variable cost from step 3 and the activity (miles) and total cost from either the high or the low point into the total cost equation, to solve for fixed costs (FC):
FC = Total Cost - (Variable Cost per unit x Activity Level)
The document discusses costing structures and methods in Oracle Manufacturing. It defines key costing concepts like cost elements, sub-elements, activities, and basis types used to assign costs. It also covers average costing updates, cost recognition processes, and important reports for analyzing costs and margins.
The document discusses key aspects of process costing, including:
- Process costing is used when identical products are produced continuously through multiple stages. Costs are accumulated by department rather than by individual job.
- Units are tracked as they move through each department/process, including beginning inventory, units started/transferred, finished, and ending inventory.
- Normal losses that occur due to the production process are estimated and their costs are absorbed into finished units, while abnormal losses are treated as expenses.
COST OF GOODS MANUFACTURED & MIXED COST & Contribution Margin Income Statemen...Zahid Gondal
The document discusses various accounting concepts related to costing, including:
- The cost of goods manufactured, which includes direct materials, direct labor, and allocated overhead for units completed or in process at the end of a period. It differs from cost of goods sold.
- Mixed costs, which have both fixed and variable components. The total cost is calculated as the fixed costs plus variable costs that increase with activity levels.
- The contribution margin income statement, which separates revenues, variable costs, and fixed costs to show contribution margin.
- The high-low method, which uses the highest and lowest data points to estimate variable and fixed costs and calculate costs at different production levels graphically.
Which of the following is an advantage of corporations relative to.docxphilipnelson29183
Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?
Lower taxes.
Most common form of organization.
Reduced legal liability for investors.
Harder to transfer ownership.
The group of users of accounting information charged with achieving the goals of the business is its
auditors.
investors.
creditors.
managers.
Which of the following financial statements is concerned with the company at a point in time?
Statement of cash flows.
Retained Earnings statement.
Balance sheet.
Income statement.
An income statement
presents the revenues and expenses for a specific period of time.
reports the changes in assets, liabilities, and stockholders’ equity over a period of time.
reports the assets, liabilities, and stockholders’ equity at a specific date.
summarizes the changes in retained earnings for a specific period of time.
The most important information needed to determine if companies can pay their current obligations is the
projected net income for next year.
relationship between current assets and current liabilities.
relationship between short-term and long-term liabilities.
net income for this year.
A liquidity ratio measures the
income or operating success of a company over a period of time.
ability of a company to survive over a long period of time.
percentage of total financing provided by creditors.
short-term ability of a company to pay its maturing obligations and to meet unexpected needs for
cash.
The convention of consistency refers to consistent use of accounting principles
among firms.
among accounting periods.
throughout the accounting periods.
within industries.
Horizontal analysis is also known as
vertical analysis.
trend analysis.
linear analysis.
common size analysis.
Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time
to determine the amount and/or percentage increase or decrease that has taken place.
that has been arranged from the lowest number to the highest number.
that has been arranged from the highest number to the lowest number.
to determine which items are in error.
Vertical analysis is a technique that expresses each item in a financial statement
starting with the highest value down to the lowest value.
in dollars and cents.
as a percent of the item in the previous year.
as a percent of a base amount.
Process costing is used when
production is aimed at filling a specific customer order.
dissimilar products are involved.
the production process is continuous.
costs are to be assigned to specific jobs.
An important feature of a job order cost system is that each job
has its own distinguishing characteristics.
must be completed before a new job is accepted.
consists of one unit of output.
must be similar to previous jobs completed.
In a process cost system, product costs are summarized:
after each unit is produced..
Which of the following is an advantage of corporations relative to.docxalanfhall8953
Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?
Reduced legal liability for investors.
Harder to transfer ownership.
Lower taxes.
Most common form of organization.
The group of users of accounting information charged with achieving the goals of the business is its
managers.
auditors.
investors.
creditors.
Which of the following financial statements is concerned with the company at a point in time?
Retained Earnings statement.
Income statement.
Statement of cash flows.
Balance sheet.
An income statement
reports the changes in assets, liabilities, and stockholders’ equity over a period of time.
presents the revenues and expenses for a specific period of time.
reports the assets, liabilities, and stockholders’ equity at a specific date.
summarizes the changes in retained earnings for a specific period of time.
The most important information needed to determine if companies can pay their current obligations is the
relationship between short-term and long-term liabilities.
projected net income for next year.
net income for this year.
relationship between current assets and current liabilities.
A liquidity ratio measures the
ability of a company to survive over a long period of time.
short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash.
percentage of total financing provided by creditors.
income or operating success of a company over a period of time.
The convention of consistency refers to consistent use of accounting principles
within industries.
among accounting periods.
among firms.
throughout the accounting periods.
Horizontal analysis is also known as
linear analysis.
vertical analysis.
common size analysis.
trend analysis.
Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time
to determine the amount and/or percentage increase or decrease that has taken place.
that has been arranged from the highest number to the lowest number.
that has been arranged from the lowest number to the highest number.
to determine which items are in error.
Vertical analysis is a technique that expresses each item in a financial statement
starting with the highest value down to the lowest value.
as a percent of the item in the previous year.
as a percent of a base amount.
in dollars and cents.
Process costing is used when
production is aimed at filling a specific customer order.
dissimilar products are involved.
costs are to be assigned to specific jobs.
the production process is continuous.
An important feature of a job order cost system is that each job
has its own distinguishing characteristics.
must be completed before a new job is accepted.
consists of one unit of output.
must be similar to previous jobs completed.
In a process cost system, product costs are summarized:
on job cost sheets.
w.
This document discusses break-even analysis, which examines the relationship between changes in volume, sales revenue, expenses, and net profit. It defines variable costs, fixed costs, total costs, contribution margin, break-even point, and margin of safety. An example is provided to illustrate how to calculate break-even point and margin of safety using fixed costs of Rs. 600, variable cost of Rs. 0.50 per unit, and selling price of Rs. 2 per unit. Limitations of break-even analysis are also outlined.
This document discusses unit or output costing. Unit or output costing is used when standard, identical products are mass produced through a common process. It is also known as single costing. The key characteristics are uniform, homogeneous production of identical products where the cost unit is a physical measure like per ton or meter. The objectives include determining total, unit, and element costs to compare costs over time, set prices, and tender prices. Cost elements include materials, labor, direct expenses, and overheads. Common methods to determine unit costs are cost sheets, statements of cost, and production accounts.
The Cost Of Production - Dealing with Cost - Explicit and Implicit Cost - Eco...FaHaD .H. NooR
Economics #UCP
What is 'Production Cost'
Production cost refers to the cost incurred by a business when manufacturing a good or providing a service. Production costs include a variety of expenses including, but not limited to, labor, raw materials, consumable manufacturing supplies and general overhead. Additionally, any taxes levied by the government or royalties owed by natural resource extracting companies are also considered production costs.
BREAKING DOWN 'Production Cost'
Also referred to as the cost of production, production costs include expenditures relating to the manufacturing or creation of goods or services. For a cost to qualify as a production cost it must be directly tied to the generation of revenue for the company. Manufacturers experience product costs relating to both the materials required to create an item as well as the labor need to create it. Service industries experience production costs in regards to the labor required to provide the service as well as any materials costs involved in providing the aforementioned service.
In production, there are direct costs and indirect costs. For example, direct costs for manufacturing an automobile are materials such as the plastic and metal materials used as well as the labor required to produce the finished product. Indirect costs include overhead such as rent, administrative salaries or utility expenses.
Deriving Unit Costs for Product Pricing
To figure out the cost of production per unit, the cost of production is divided by the number of units produced. Once the cost per unit is determined, the information can be used to help develop an appropriate sales price for the completed item. In order to break even, the sales price must cover the cost per unit. Amounts above the cost per unit are often seen as profit while amounts below the cost per unit result in losses.
Assignment Chap7_HW_CNOW1.Blueprint Problem Perpetual Averag.docxtidwellerin392
Assignment:
Chap7_HW_CNOW
1.
Blueprint Problem: Perpetual Average Cost
Inventory Valuation Basics
Income measurement and asset valuation are two concepts at the core of accounting. Recall that the matching principle requires that costs incurred to generate revenue should be recognized in the same period that the revenue is earned. For most
merchandising companies,
the cost and control of
inventory
is the focal point of the operation. Inventory valuation applies to many companies. Thinking about this lesson, choose which companies below might benefit from
inventory valuation.
Company Type
1. a law firm
_________________
2. an electronics company
_________________
3. a car dealership
_________________
4. a textbook company
_________________
Inventory Systems and Costing Methods
Inventory systems
and
inventory costing methods
must be understood for proper inventory valuation and measurement. The two basic systems of accounting for merchandise inventory are the perpetual inventory system and the periodic inventory system. Under the perpetual inventory system, continuous records are kept of the quantity and, usually, the cost of individual items as they are bought and sold. Under the periodic inventory system, the inventory not yet sold, or on hand, is counted periodically. This physical count is usually taken at the end of the accounting period.
What type of inventory tracking system is in use when changes in inventory are immediately displayed on the balance sheet?
_________________
"Goods Flow" versus "Cost Flow"
The term "goods flow" refers to the PHYSICAL MOVEMENT of inventory through the operations of the business. In most business, we try to sell our oldest merchandise first. The term "cost flow" refers to the COST associated with the assumed flow of merchandise (i.e. how much of the cost is allocated to to the items sold and how much is allocated to the unsold ending inventory). An accounting issue arises when identical units of merchandise are acquired at different unit costs during a period. In such cases, when an item is sold, it is necessary to determine its cost using a cost flow assumption and related inventory costing method. Does the "cost flow" method need to be the same as as the physical "goods flow"? _________________
Different valuation methods produce significantly different values for
cost of merchandise sold
and subsequent inventory levels. This means that the choice of inventory valuation method can have a significant effect on a company's financial position.
Although the implications are far reaching, the two items most directly and immediately affected by the choice of inventory valuation method are cost of merchandise sold on the _________________ and inventory on the _________________ .
The following formula illustrates the relationship between the cost of merchandise sold and the ending inventory. The part of the cost of merchandise available for sale is allocated to the co.
The document provides an overview of various cost analysis concepts for entrepreneurs, including defining key terms like cost centers, cost units, cost accounting, costing, and the principles of cost accounting. It also discusses the differences between cost accounting and financial accounting, concepts like marginal costing, variable costs, contribution, and break-even analysis.
The document provides an overview of various cost analysis concepts for entrepreneurs, including defining key terms like cost centers, cost units, cost accounting, costing, and the principles of cost accounting. It also discusses the differences between cost accounting and financial accounting, concepts like marginal costing, variable costs, contribution, and break-even analysis.
Company 1Company #1Income StatementBalance SheetAll numbers in thoLynellBull52
Company 1Company #1Income StatementBalance SheetAll numbers in thousandsAll numbers in thousandsRevenue20182017Period Ending20182017Total Revenue14,134,73212,866,757Current AssetsCost of Revenue9,510,2388,668,505Cash And Cash Equivalents1,290,2941,111,599Gross Profit4,624,4944,198,252Short Term Investments512-Operating ExpensesNet Receivables87,86875,154Selling General and Administrative2,576,0982,395,608Inventory1,641,7351,512,886Total Operating Expenses12,086,33611,064,113Other Current Assets11,84713,642Operating Income or Loss2,048,3961,802,644Total Current Assets3,151,1572,813,049Income from Continuing OperationsLong Term Investments7121,288Total Other Income/Expenses Net-7,676-16,488Property Plant and Equipment2,382,4642,328,048Earnings Before Interest and Taxes2,048,3961,802,644Other Assets187,718166,966Interest Expense-18,847-19,569Deferred Long Term Asset Charges--Income Before Tax2,040,7201,786,156Total Assets5,722,0515,309,351Income Tax Expense677,967668,502Current LiabilitiesNet Income1,362,7531,117,654Accounts Payable1,059,8441,021,735Short/Current Long Term Debt84,973-Other Current Liabilities9,90224,559Total Current Liabilities1,926,4021,752,506Long Term Debt311,994396,493Other Liabilities434,347412,335Total Liabilities2,672,7432,561,334Stockholders' EquityPreferred Stock--Common Stock3,7963,919Retained Earnings2,071,4001,801,138Treasury Stock-318,252-272,755Capital Surplus1,292,3911,215,806Total Stockholder Equity3,049,3082,748,017Net Tangible Assets3,049,3082,748,017
Company 2Company #2Income StatementBalance SheetAll numbers in thousandsAll numbers in thousandsRevenue20182017Period Ending20182017Total Revenue38,972,93435,864,664Current AssetsCost of Revenue27,831,17725,502,167Cash And Cash Equivalents3,030,2002,758,477Gross Profit11,141,75710,362,497Short Term Investments-506,165Operating ExpensesNet Receivables860,000327,166Selling General and Administrative6,923,5646,375,071Inventory4,579,0004,187,243Total Operating Expenses34,754,74131,877,238Other Current Assets-12,217Operating Income or Loss4,218,1933,987,426Total Current Assets8,469,2008,485,727Income from Continuing OperationsLong Term Investments--Total Other Income/Expenses Net-44,982-130,838Property Plant and Equipment5,255,2005,006,053Earnings Before Interest and Taxes4,218,1933,987,426Goodwill97,600100,069Interest Expense-8,860-64,295Intangible Assets-144,900Income Before Tax4,173,2113,856,588Other Assets504,000321,266Income Tax Expense1,113,4131,248,640Deferred Long Term Asset Charges-6,558Net Income3,059,7982,607,948Total Assets14,326,00014,058,015Current LiabilitiesAccounts Payable2,644,1002,488,373Short/Current Long Term Debt--Other Current Liabilities-1,429,136Total Current Liabilities5,531,3005,125,537Long Term Debt2,233,6002,230,607Other Liabilities1,512,5001,331,645Total Liabilities9,277,4008,909,706Stockholders' EquityPreferred Stock--Common Stock5,048,600628,009Retained Earnings-4,962,159Treasury Stock--441,859Capital Surplus--Other Stockholder Equity--4 ...
This document provides examples and explanations of cost-volume-profit (CVP) analysis concepts. It includes definitions of key CVP terms like break-even point, contribution margin, variable cost ratio, and sales mix. Examples are provided to demonstrate how to calculate break-even units and sales using CVP formulas. The effects of changes in variables like fixed costs, variable costs, selling price, and sales mix on break-even points are also illustrated.
The document describes a Consultant-in-a-Box system that provides tools to help businesses measure performance, set goals, and increase productivity and profits without hiring an expensive consultant. It includes tools to identify lost opportunities and key performance indicators, establish baselines, set growth goals, increase employee productivity and profits. The system provides a total financial performance management solution through a modular set of tools that can be used individually or together.
Two costing experts discuss using direct costing techniques to understand the true cost of products or services. These ideas can help businesses be more competitive in pricing their products and services.
In this 30-minute session, you will learn:
1) ERP’s role in capturing manufacturing costs
2) The different methods used to track manufacturing costs
3) How overhead is calculated in total cost
Similar to Inventory Monthly Reconcilation - Job Aid (20)
How Can Hiring A Mobile App Development Company Help Your Business Grow?ToXSL Technologies
ToXSL Technologies is an award-winning Mobile App Development Company in Dubai that helps businesses reshape their digital possibilities with custom app services. As a top app development company in Dubai, we offer highly engaging iOS & Android app solutions. https://rb.gy/necdnt
UI5con 2024 - Boost Your Development Experience with UI5 Tooling ExtensionsPeter Muessig
The UI5 tooling is the development and build tooling of UI5. It is built in a modular and extensible way so that it can be easily extended by your needs. This session will showcase various tooling extensions which can boost your development experience by far so that you can really work offline, transpile your code in your project to use even newer versions of EcmaScript (than 2022 which is supported right now by the UI5 tooling), consume any npm package of your choice in your project, using different kind of proxies, and even stitching UI5 projects during development together to mimic your target environment.
Introducing Crescat - Event Management Software for Venues, Festivals and Eve...Crescat
Crescat is industry-trusted event management software, built by event professionals for event professionals. Founded in 2017, we have three key products tailored for the live event industry.
Crescat Event for concert promoters and event agencies. Crescat Venue for music venues, conference centers, wedding venues, concert halls and more. And Crescat Festival for festivals, conferences and complex events.
With a wide range of popular features such as event scheduling, shift management, volunteer and crew coordination, artist booking and much more, Crescat is designed for customisation and ease-of-use.
Over 125,000 events have been planned in Crescat and with hundreds of customers of all shapes and sizes, from boutique event agencies through to international concert promoters, Crescat is rigged for success. What's more, we highly value feedback from our users and we are constantly improving our software with updates, new features and improvements.
If you plan events, run a venue or produce festivals and you're looking for ways to make your life easier, then we have a solution for you. Try our software for free or schedule a no-obligation demo with one of our product specialists today at crescat.io
E-commerce Development Services- Hornet DynamicsHornet Dynamics
For any business hoping to succeed in the digital age, having a strong online presence is crucial. We offer Ecommerce Development Services that are customized according to your business requirements and client preferences, enabling you to create a dynamic, safe, and user-friendly online store.
Measures in SQL (SIGMOD 2024, Santiago, Chile)Julian Hyde
SQL has attained widespread adoption, but Business Intelligence tools still use their own higher level languages based upon a multidimensional paradigm. Composable calculations are what is missing from SQL, and we propose a new kind of column, called a measure, that attaches a calculation to a table. Like regular tables, tables with measures are composable and closed when used in queries.
SQL-with-measures has the power, conciseness and reusability of multidimensional languages but retains SQL semantics. Measure invocations can be expanded in place to simple, clear SQL.
To define the evaluation semantics for measures, we introduce context-sensitive expressions (a way to evaluate multidimensional expressions that is consistent with existing SQL semantics), a concept called evaluation context, and several operations for setting and modifying the evaluation context.
A talk at SIGMOD, June 9–15, 2024, Santiago, Chile
Authors: Julian Hyde (Google) and John Fremlin (Google)
https://doi.org/10.1145/3626246.3653374
Unveiling the Advantages of Agile Software Development.pdfbrainerhub1
Learn about Agile Software Development's advantages. Simplify your workflow to spur quicker innovation. Jump right in! We have also discussed the advantages.
SOCRadar's Aviation Industry Q1 Incident Report is out now!
The aviation industry has always been a prime target for cybercriminals due to its critical infrastructure and high stakes. In the first quarter of 2024, the sector faced an alarming surge in cybersecurity threats, revealing its vulnerabilities and the relentless sophistication of cyber attackers.
SOCRadar’s Aviation Industry, Quarterly Incident Report, provides an in-depth analysis of these threats, detected and examined through our extensive monitoring of hacker forums, Telegram channels, and dark web platforms.
What is Master Data Management by PiLog Groupaymanquadri279
PiLog Group's Master Data Record Manager (MDRM) is a sophisticated enterprise solution designed to ensure data accuracy, consistency, and governance across various business functions. MDRM integrates advanced data management technologies to cleanse, classify, and standardize master data, thereby enhancing data quality and operational efficiency.
Graspan: A Big Data System for Big Code AnalysisAftab Hussain
We built a disk-based parallel graph system, Graspan, that uses a novel edge-pair centric computation model to compute dynamic transitive closures on very large program graphs.
We implement context-sensitive pointer/alias and dataflow analyses on Graspan. An evaluation of these analyses on large codebases such as Linux shows that their Graspan implementations scale to millions of lines of code and are much simpler than their original implementations.
These analyses were used to augment the existing checkers; these augmented checkers found 132 new NULL pointer bugs and 1308 unnecessary NULL tests in Linux 4.4.0-rc5, PostgreSQL 8.3.9, and Apache httpd 2.2.18.
- Accepted in ASPLOS ‘17, Xi’an, China.
- Featured in the tutorial, Systemized Program Analyses: A Big Data Perspective on Static Analysis Scalability, ASPLOS ‘17.
- Invited for presentation at SoCal PLS ‘16.
- Invited for poster presentation at PLDI SRC ‘16.
UI5con 2024 - Keynote: Latest News about UI5 and it’s EcosystemPeter Muessig
Learn about the latest innovations in and around OpenUI5/SAPUI5: UI5 Tooling, UI5 linter, UI5 Web Components, Web Components Integration, UI5 2.x, UI5 GenAI.
Recording:
https://www.youtube.com/live/MSdGLG2zLy8?si=INxBHTqkwHhxV5Ta&t=0
WWDC 2024 Keynote Review: For CocoaCoders AustinPatrick Weigel
Overview of WWDC 2024 Keynote Address.
Covers: Apple Intelligence, iOS18, macOS Sequoia, iPadOS, watchOS, visionOS, and Apple TV+.
Understandable dialogue on Apple TV+
On-device app controlling AI.
Access to ChatGPT with a guest appearance by Chief Data Thief Sam Altman!
App Locking! iPhone Mirroring! And a Calculator!!
Mobile App Development Company In Noida | Drona InfotechDrona Infotech
Drona Infotech is a premier mobile app development company in Noida, providing cutting-edge solutions for businesses.
Visit Us For : https://www.dronainfotech.com/mobile-application-development/
1. “Your Goal is Our Goal: Developing
business solutions to increase productivity,
profits, and Visibility by Design”.
10645 N. Oracle Rd., #121-245
Oro Valley, AZ. 85737
(520)230-0533
linkedin.com/company/visibility-bydesign
plus.google.com/visibility-bydesign
www.visibility-bydesign.com
consulting@visibility-bydesign.com
BEFORE STARTING THE RECONCILIATION PROCESS
Before you start your month-end reconciliation, it is suggested that you print the “IN Inventory Totals by Matl and
Location” report. This report will give you a summary of information that will be used in the reconciliation process.
Another report that is helpful during the Month End process, would be the IN Value of Inventory report which can
be used as a GL Reconciliation tool. Additionally, it is suggested that the reconciliation process is reviewed and
understood before continuing.
PROCESS: INVENTORY MONTHLY RECONCILIATION
OVERVIEW:
The IN Monthly Reconciliation form is used to capture beginning and ending
Inventory levels, accumulate activity, and calculate ending values for a month.
Based on the Valuation Method that was specified in the IN Company Parameters
form, adjustments will be generated automatically to correct Inventory GL
Balances. So the GL reflects the value of inventory based valuation method. You
will want to perform the Monthly Reconciliation only after all activity has been
posted for the month (i.e. purchases, sales, transfers, production and adjustments).
Inventory will not be checked to make sure no current batches are open for the
specified month; however, PO Receipts, AP Expense, JC,
EM or MS will not be checked. The Monthly Reconciliation process is the last
process that will need to be run before you close a month in the General Ledger. If
you reopen a month within the GL this process will need to be run again to ensure
proper beginning balances.
Note: Monthly reconciliation in Inventory must be done for every month starting
with the very first Inventory month in Viewpoint. Customers with converted data
from past years are unable to use this process.
IN monthly reconciliation.indd 1 6/16/15 20:46
2. Job Aid: IN Monthly Reconciliation Process
2
Technical Steps:
1. To perform a monthly reconciliation in Viewpoint, go to the Inventory module’s Programs
folder and open the IN Monthly Reconciliation form.
2. Enter the reconciliation month in the Month field.
3. Click Initialize to start the initialization process. The form will initialize beginning values
based on the prior month’s ending values, and a record is created for each location and ma-
terial. If any open batches exist, a message displays and the process cannot be completed.
4. Click Print to print and review the Reconciliation Report.
5. Click Update to create an Adjustments batch for correcting entries. The IN Batch Process
form will then display.
6. Process batch normally.
IN monthly reconciliation.indd 2 6/16/15 20:46
3. Job Aid: IN Monthly Reconciliation Process
3
HOW THE RECONCILIATION PROCESS WORKS
To better understand how Monthly Reconciliation works, you must first understand how the
various Cost Methods affect updates to your Inventory GL accounts as transactions are post-
ed. The examples below show how each Cost Method affects updates and the resulting value
of Inventory. The following is an example of a single material added to inventory with 0.00 units
on hand and initial unit costs of $1.25 each. Following that is an adjustment to establish the
material’s beginning balance, then a purchase, sale, and finally another purchase. This table
displays the quantity on hand and unit cost resulting from such an event.
Average Unit Cost – Cost Method: The next table illustrates how the Average Unit Cost
method affects updates and resulting value of Inventory. The posted Total Cost represents the
actual cost associated with each transaction; the Change to Inventory represents the debit or
credit posted to your GL Inventory Accounts. These two values always equal each other when
this cost method is used.
Note: The Average Unit Cost for a material is continuously updated by the system with each
purchase. Any ‘in’ transaction or adjustment will trigger an update. The total cost attributed
to a sale (any ‘out’ transaction) relies on the material’s cost method and the current value of
its Average Last, or Standard Unit Cost. Therefore, when using Average Unit Cost as your cost
method, the order of transaction processing plays a crucial role in determining this value and
the corresponding GL updates to your Inventory accounts.
Event Date Qty On Hand Last Unity Cost Avg Unit Cost Std Unit Cost
Beginning Balance 0 $1.25/ea $1.25/ea $1.25/ea
Adjustment Entry
for beginning
balance (100 @
$1.00/ea)
10/1/10 100 $1.25/ea $1.25/ea $1.25/ea
Buy 100 @ $1.00/ea 10/4/10 200 $1.00/ea $1.125/ea $1.25/ea
Sell 50 10/6/10 150 $1.00/ea $1.125/ea $1.25/ea
Buy 100 @ $2.00/ea 10/7/10 250 $2.00/ea $1.145/ea $1.25/ea
Event Posted Total Cost Change to inventory Ending Inventory
Adjustment Entry for
beginning balance
(100 @ $1.00/ea)
$125 (100*$1.25/ea) = $125 $125
Buy 100 @ $1.00/ea $100 (100*$1.00/ea) = $100 $225
Sell 50 $-56.25 (-50*$1.125/ea) = $56.25 $168.75
Buy 100 @ $2.00/ea $200 (100*$2.00/ea) = $200 $368.75
IN monthly reconciliation.indd 3 6/16/15 20:46
4. Job Aid: IN Monthly Reconciliation Process
4
Standard Unit Cost – Cost Method: The next table illustrates how the Standard Unit Cost
method affects updates and resulting value of Inventory. The Posted Total Cost represents the
actual cost associated with each transaction and the Change to Inventory represents the debit
and credit posted to your GL Inventory Accounts. These two values always equal each other
when this cost method is used.
Last Unit Cost – Cost Method: The next table illustrates how the Last Unit Cost method
affects updates and resulting value of Inventory. The Posted Total Cost represents the actual
cost associated with each transaction and the Change to Inventory represents the debit and
credit posted to your GL Inventory Accounts. These two values always equal each other when
this cost method is used.
Note: The Last Unit Cost for a material is continuously updated by the system with each pur-
chase. Any ‘in’ transaction or adjustment will trigger an update. The total cost attributed to
a sale (any ‘out’ transaction) relies on the material’s cost method and the current value of its
Average Last, or Standard Unit Cost. Therefore, when using Last Unit Cost as your cost meth-
od, the order of transaction processing plays a crucial role in determining this value and the
corresponding GL updates to your Inventory accounts.
The reconciliation process not only records a monthly ‘snapshot’ of your inventory, but also
summarizes all ‘ins’ and ‘outs’ to recalculate an ending value based on the selected Valua-
tion Method. For each stocked material, a beginning value is initialized from its prior month’s
ending values. If no prior entry exists in IN Monthly Activity, the beginning value will be 0.00.
Event Posted Total Cost Change to inventory Ending Inventory
Adjustment Entry for
beginning balance
(100 @ $1.00/ea)
$125 (100*$1.25/ea) = $125 $125
Buy 100 @ $1.00/ea $100 (100*$1.25/ea) = $125 $250
Sell 50 $-62.50 (-50*$1.25/ea) = $65.50 $187.50
Buy 100 @ $2.00/ea $200 (100*$1.25/ea) = $125 $312.50
Event Posted Total Cost Change to inventory Ending Inventory
Adjustment Entry for
beginning balance
(100 @ $1.00/ea)
$125 (100*$1.25/ea) = $125 $125
Buy 100 @ $1.00/ea $100 (100*$1.00/ea) = $100 $225
Sell 50 $-50 (-50*$1.00/ea) = $50 $175
Buy 100 @ $2.00/ea $200 (100*$2.00/ea) = $200 $375
IN monthly reconciliation.indd 4 6/16/15 20:46
5. Job Aid: IN Monthly Reconciliation Process
5
Activity is summarized by transaction type from IN Detail posted in the reconciliation month.
The sum of all activity represents total change to Inventory GL Accounts posted throughout
the month. A ‘posted’ ending value is determined from the material’s beginning value and it’s
summarized activity for the month. An ending value is then calculated based on the Valuation
Method. All values are recorded in the IN Monthly Activity.
When the Update button is pressed any difference between the ‘posted’ and calculated ending
value of a material will generate a reconciliation adjustment entry. The first month would be
reconciled as follows:
IN Monthly Activity
Begin Qty 0.00
Begin Value 0.00
Begin Last Unit Cost $0.00 E
Begin Avg Unit Cost $0.00 E
Begin Std Unit Cost $0.00 E
Purchase Qty 200
Purchase Cost $300 (Avg or Last Cost) $250 (Std Cost)
Job Sales Qty -50
Job Sales Cost -$56.25 (Avg Cost) -$62.50 (Std Cost) -$50 (Last Cost)
Adjustment Qty 100
Adjustment Cost $125
End Qty 250
End ‘Posted’ Cost $368.75 (Avg Cost) $312.50 (Std Cost) $375 (Last Cost)
End Last Unit Cost $2.00 E
End Avg Unit Cost* $1.4187 E
End Std Unit Cost $1.25 E
End Value**
As Posted
$368.75
(Avg Cost)
As Posted
$312.50
(Std Cost)
As Posted
$312.50
(Last Cost)
Avg Cost
$354.18
Std Cost
$312.50
FIFO
$362.50
LIFO
$325
* The Ending Average Unit Cost is calculated for each material as its beginning value plus the
actual value of all ‘ins’, divided by the sum of the month’s beginning quantity and all ‘in’ units (i.e.
Purcahses, prodcution, transfers in, and adjustments).
(($0 X $0/ea) + ($425)) / (0+300) = $1.4167
IN monthly reconciliation.indd 5 6/16/15 20:46
6. Job Aid: IN Monthly Reconciliation Process
6
This calculation will only produce an accurate result when both the beginning quantity for the
month and the sum of beginning quantity plus ‘ins’ are positive. If the month’s beginning quan-
tity is less than or equal to 0, the ending average cost will be calculated from ‘in’ units only.
If neither of these conditions is met, the ending average cost will be set equal to the month’s
beginning average cost.
Begin Qty In Qty Begin Qty + In Qty End Avg Cost Calc
>0 <0 =0 Begin avg cost
>0 <0 <0 Begin avg cost
=0 >0 >0 In avg cost
=0 =0 =0 Begin avg cost
=0 <0 <0 Begin avg cost
<0 >0 >0 In avg cost
<0 >0 =0 In avg cost
<0 >0 <0 In avg cost
<0 =0 <0 Begin avg cost
<0 <0 <0 Begin avg cost
**Ending Value is calculated as follows depending on Valuation Method:
As Posted: Ending value is the beginning value plus summarized activity for the month. Result
depends on Cost Method used. No reconciliation adjustments/GL updates will be generated.
• Average Unit Cost = $368.75
• Standard Unit Cost = $312.50
• Last Unit Cost = $375.00
Valuation Method Ending Value
Average Unit Cost Ending Qty X Ending Avg Unit Cost (Does not depend
on Cost Method) (250* $1.4167/ea) = $354.18
Standart Unit Cost Ending Qty X Ending Last Unit Cost (Does not depend
on Cost Method) (250* $1.25/ea) = $312.50
FIFO and LIFO These methods require the use of two additional
tables, IN Reconciliation In and IN Reconciliation Out,
to track the dates, unit costs and quantities as which
the material was added to stock and subsequently
removed. For illustrations on how ‘Ending Value’
is calculated using these methods, refer to the
information below.
IN monthly reconciliation.indd 6 6/16/15 20:46
7. Job Aid: IN Monthly Reconciliation Process
7
FIFO VALUATION METHOD (FIRST IN, FIRST OUT)
The following is an example demonstrating how the ending value is calculated using the FIFO
Valuation Method. In addition to the standard Inventory tables, this method also uses infor-
mation from the IN Reconciliation In and IN Reconciliation Out tables, which store the dates,
unit costs, and quantities at which materials were added to and removed from stock. First, all
‘ins’ for the month are loaded into IN Reconciliation In table and sorted by Location, Material,
Actual Date, and Unit Cost. Note: the posted month and actual date recorded with each IN
detail transaction determines its order of processing, so accurately recording the true order of
inventory activity is crucial.
IN Reconciliation In
Event Date Unit Cost Units
Adjustment Entry for
beginning balance
(100 @ $1.25/ea)
10/1/10 $1.25/ea 100
Buy 100 @ $1.00/ea 10/4/10 $1.00/ea 100
Buy 100 @ $2.00/ea 10/7/10 $2.00/ea 100
Event Date Unit Cost Units
Adjustment Entry for
beginning balance
(100 @ $1.25/ea)
10/1/10 $1.25/ea 50
Buy 100 @ $1.00/ea 10/4/10 $1.00/ea 100
Buy 100 @ $2.00/ea 10/7/10 $2.00/ea 100
Next, the month’s total ‘out’ units is calculated. If the prior month’s ending quantity is negative,
then those units are added to the current month’s total ‘out; units. In our example, we have no pri-
or month quantities, so its ending quantity is assumed to be 0.00, but if the prior month had end-
ed with -10 units, then 10 units would have been added to the 50 sold for a total of 60 ‘out’ units.
After the total ‘out’ units has been determined, they are ‘applied’ in ascending date order. When
an IN Reconciliation In entry is fully applied (Units = 0) it is removed.
Example: Total ‘Out’ Units = 50
Using the FIFO method the 50 ‘out’ units are applied to the oldest ‘in’ units first. Therefore,50
units are subtracted from the 100 units posted on 10/1/10. This leaves 50 remaining units in
the IN Reconciliation In entry. The 50 ‘out’ units are then recorded in the IN Reconciliation Out
table along with the Out Month, Date, Unit Cost and In Month.
IN monthly reconciliation.indd 7 6/16/15 20:46
8. Job Aid: IN Monthly Reconciliation Process
8
If the total ‘out’ units had been equal to or greater than 100, the 10/1/10 entry would have been
deleted and the entire 100 units recorded in the IN Reconciliation Out table. Any remaining
‘out’ units would have been applied to the 10/4/10 entry. The process would continue until all
‘out’ units for the month had been applied.
After all of the ‘outs’ had been applied the ending inventory’s ending value is calculated from
the sum of Units X Unit Cost remaining in the IN Reconciliation In table. In our example, we have
(50 * $1.25) + (100 * $1.00 + 100 * $2.00)) = $362.50.
Note: if the month’s ending quantity is 0.00 then the ending value is set equal to 0.00. If the
ending quantity is negative then it is calculated as Ending Qty * Last Unit Cost
LIFO VALUATION METHOD (LAST IN, FIRST OUT)
The following is an example demonstrating how the ending value is calculated using the LIFO
Valuation Method. In addition to the standard Inventory tables, this method also uses informa-
tion from the IN Reconciliation In and IN Reconciliation Out tables, which store the dates, unit
costs, and quantities at which materials were added to and removed from stock.
First, all ‘ins’ for the month are loaded into IN Reconciliation In table and sorted by Location,
Material, Actual Date, and Unit Cost.
Note: the posted month and actual date recorded with each IN detail transaction determines
its order of processing, so accurately recording the true order of inventory activity is crucial.
IN Reconciliation In
Event Date Unit Cost Units
Adjustment Entry for
beginning balance
(100 @ $1.25/ea)
10/1/10 $1.25/ea 100
Buy 100 @ $1.00/ea 10/4/10 $1.00/ea 100
Buy 100 @ $2.00/ea 10/7/10 $2.00/ea 100
Next, the month’s total ‘out’ units is calculated. If the prior month’s ending quantity is negative,
then those units are added to the current month’s total ‘out; units. In our example, we have
no prior month quantities, so its ending quantity is assumed to be 0.00, but if the prior month
had ended with -10 units, then 10 units would have been added to the 50 sold for a total of 60
‘out’ units.
After the total ‘out’ units has been determined, they are ‘applied’ in descending date order.
When an IN Reconciliation In entry is fully applied (Units = 0) it is removed.
IN monthly reconciliation.indd 8 6/16/15 20:46
9. Job Aid: IN Monthly Reconciliation Process
9
Example: Total ‘Out’ Units = 50
Using the LIFO method the 50 ‘out’ units are applied to the newest ‘in’ units first. Therefore,
50 units are subtracted from the 100 units posted on 10/7/10. This leaves 50 remaining units
in the IN Reconciliation In entry. The 50 ‘out’ units are then recorded in the IN Reconciliation
Out table along with the Out Month, Date, Unit Cost and In Month.
Event Date Unit Cost Units
Adjustment Entry for
beginning balance
(100 @ $1.25/ea)
10/1/10 $1.25/ea 100
Buy 100 @ $1.00/ea 10/4/10 $1.00/ea 100
Buy 100 @ $2.00/ea 10/7/10 $2.00/ea 100
If the total ‘out’ units had been equal to or greater than 100, the 10/7/10 entry would have been
deleted and the entire 100 units recorded in the IN Reconciliation Out table. Any remaining
‘out’ units would have been applied to the 10/4/10 entry. The process would continue until all
‘out’ units for the month had been applied.
After all of the ‘outs’ had been applied the ending inventory’s ending value is calculated from
the sum of Units X Unit Cost remaining in the IN Reconciliation In table. In our example, we have
(100 * $1.25) + (100 * $1.00 + 50 * $2.00)) = $325
10645 N. Oracle Rd., #121-245
Oro Valley, AZ. 85737
(520)230-0533
linkedin.com/company/visibility-bydesign
plus.google.com/visibility-bydesign
www.visibility-bydesign.com
consulting@visibility-bydesign.com
IN monthly reconciliation.indd 9 6/16/15 20:46