This was absolutely amazing. I took a couple of cost accounting courses and was good at calculating EU and cost per EU, but my brain couldn't process why we used cost per EU as most courses never really blend the whole WIP -> finished goods spiel well. In 16:40 you pretty much gave me an epiphany lol. I am so used to job order costing where it's just so simple to flow from raw mat/wages payable/O/H to WIP to finished goods to COGS. Thank you so much!
Wow this is great. I have to keep practicing own my own and I definitely will understand the whole chapter. Definitely going to watch your videos on other chapters I need to study on
How does the Process Costing Schedule relate to the COGS Manufactured? By this, I mean that in your MA8 video (Schedule of COGS Manufactured), we have a COGS schedule that includes Opening Inventory PLUS COGM Less Closing Inventory-COGS. Is the relative inventory value of the opening and closing inventory derived from the Production report? The way I see it is at the end of a reporting period, one would like the Production Cost schedule to derive a per-unit value for opening stock into the next period?
Great question - here's what I think but I'm not 100% sure - the Schedule of COGM is company wide - you prepare one schedule for the company. The Production report would be used for each individual department / by product. So the COGM Schedule is very high level, where production reports are very granular.
I have done this in the Members Only videos - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-PiY7WxGci3o.html No pressure to join, but they're in there!
