A Review of the Financial Records of Stonehenge,Inc

question 51

Essay

A review of the financial records of Stonehenge,Inc.for the current year revealed the following information:
Explain how each of the preceding items is presented in the cash flow statement,indirect method,or disclosed in the financial statements of Stonehenge,Inc.Indicate "not included" for any item that would not be reported or disclosed.Evaluate each item separately.

---

Definitions:

Beginning Work in Process

The inventory of production goods that have been partially completed but are not yet finished at the start of a period.

Ending Work in Process

The value of goods that are in the production process but not yet complete at the end of an accounting period.

Transferred Out

Transferred Out is a term often used in accounting and inventory control to denote goods or assets moved from one department, location, or account to another.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, computed by taking the number of partially completed units and converting them into a number of fully completed units.