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

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

Financial Accounting

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

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Multiple Choice

The calculation of unit product cost requires information from the:

inventory records under the perpetual or periodic system

statement of cash flows

accounts receivable ledger

bank reconciliation statement

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Verified step by step guidance

Understand that the calculation of unit product cost involves determining the cost associated with producing a single unit of a product. This typically includes direct materials, direct labor, and manufacturing overhead costs.

Recognize that inventory records under the perpetual or periodic system are essential for calculating unit product cost. These records provide information about the cost of materials and goods used in production.

Note that the statement of cash flows, accounts receivable ledger, and bank reconciliation statement are not directly relevant to calculating unit product cost. These documents serve other financial purposes, such as tracking cash movements, customer balances, and reconciling bank accounts.

Focus on the inventory records to gather data on the cost of raw materials, work-in-progress, and finished goods. This data is crucial for determining the cost per unit under either the perpetual or periodic inventory system.

Ensure that the inventory records are accurate and up-to-date, as errors in these records can lead to incorrect unit product cost calculations. Use the formula: Unit Product Cost = (Direct Materials + Direct Labor + Manufacturing Overhead) / Total Units Produced.