Prepare a production cost report and journal entries.
Although the focus within the chapter is the Average Method, the FIFO method is included in an appendix. Students also have the opportunity to learn about the allocation of joint costs using physical and sales value methods.
As a result of studying Chapter 22, students should be able to:
- Compare and contrast contribution margin income statements to traditional income statements.
- Explain differential analysis and describe its components.
- Use differential analysis to as a method of choosing the best solution.
- Apply differential analysis to managerial problems.