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

Equivalent units of production refers to the number of units that could have been:

physically counted at the end of the period

purchased and placed into inventory during the period

sold to customers during the accounting period

completed given the amount of work done during the period

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Verified step by step guidance

Understand the concept of equivalent units of production: It refers to the number of units that could have been completed given the amount of work done during the period. This concept is used in process costing to allocate costs to partially completed units.

Identify the components of equivalent units: These include units completed and transferred out during the period, as well as the portion of work done on ending inventory (partially completed units).

Calculate equivalent units for materials: Determine the percentage of completion for materials in the ending inventory and multiply it by the number of units in ending inventory. Add this to the units completed and transferred out.

Calculate equivalent units for conversion costs: Determine the percentage of completion for conversion costs in the ending inventory and multiply it by the number of units in ending inventory. Add this to the units completed and transferred out.

Summarize the equivalent units: Combine the equivalent units for materials and conversion costs to determine the total equivalent units of production for the period.