tailieunhanh - Ebook Principles of cost accounting (15th edition): Part 2

(BQ) Part 2 book "Principles of cost accounting" has contents: Cost analysis for management decision making, cost accounting for service businesses and the balanced scorecard, the master budget and flexible budgeting,.and other contents. | CHAPTER 6 P r o c e s s Co s t Ac c o u n t i n g — Ad d i t i on al Pr o c e d u re s ; A c c o u n t i n g f o r J o i n t Pr o d u c t s a n d By -Pro d u c t s An article, ‘‘PepsiCo offers to buy 2 bottlers for $6 billion,‘‘ in the April 21, 2009 San Diego Union Tribune reported that PepsiCo, a company whose manufacturing process is ideal for process costing because its major brands (Pepsi-Cola, Frito-Lay, Tropicana, Quaker, and Gatorade) are produced in a continuous flow of identical bottles of soda, bags of chips, and the like, is attempting to acquire its two largest bottlers. If successful, ‘‘the company will handle about 80% of its total North American beverage volume.’’ This is a competitive move taken ‘‘in an effort to update the way it delivers its products.’’ In 1999 PepsiCo spun off Pepsi Bottling Group, but since then soft drink sales have fallen as the sales of noncarbonated beverages have soared. To learn more about PepsiCo and its brands visit . T he illustrative problems presented in Chapter 5 are based on the assumption that materials, labor, and factory overhead were uniformly applied during the processing period. When the work in process at the end of the accounting period was considered to be one-half completed, it was assumed that one-half of the materials cost, one-half of the labor cost, and one-half of the factory overhead cost had been added. Chapter 6 illustrates process cost accounting when materials, labor, and overhead are not applied uniformly during the period. Additional topics covered in this chapter include accounting for units lost and gained during production, assigning costs to inventories using the first-in, first-out method, and accounting for joint products and by-products. Learning Objectives After studying this chapter, you should be able to: Compute unit costs when materials are not added uniformly throughout the process. LO1 Account for units lost in the production process. LO2 Account for units .