Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

What is the correct order of cost flows in a job order costing system?

Work in Process → Raw Materials → Finished Goods → Cost of Goods Sold

Raw Materials → Work in Process → Finished Goods → Cost of Goods Sold

Finished Goods → Work in Process → Raw Materials → Cost of Goods Sold

Raw Materials → Finished Goods → Work in Process → Cost of Goods Sold

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Verified step by step guidance

Understand the concept of a job order costing system: This system is used to track costs for specific jobs or batches of products, and it follows a logical flow of costs as materials and labor are transformed into finished goods.

Identify the starting point: Costs begin with Raw Materials, which are the physical inputs required to produce goods. These materials are initially recorded in the Raw Materials inventory account.

Trace the movement to Work in Process: As production begins, Raw Materials are transferred to the Work in Process account. This account also accumulates direct labor and manufacturing overhead costs associated with the production process.

Follow the transition to Finished Goods: Once the production process is complete, the costs accumulated in the Work in Process account are transferred to the Finished Goods inventory account, representing completed products ready for sale.

Conclude with Cost of Goods Sold: When the finished goods are sold, their costs are transferred from the Finished Goods inventory account to the Cost of Goods Sold account, reflecting the expense incurred to generate revenue.