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Question :
1.Your employer engages in several joint process that produce important quantities and types of by- product. You have been asked to provide a report to management on the best way to account for by product. Prepare criteria for making such a choice and give reasons for each criteria, along with additional assumptions you wish to provide about the nature of the company you work for, recommend a particular technique of accounting for product and describe why you consider it to be better than the alternatives.
2. Susan Cheng is the CFO of Automotive solutions, a small company that makes specialized lighting equipment for the car industry. Due to intensified competition from foreign companies, Automotive Solutions has tremendous pressure price for its products. In response to this pressure top management has decided to focus more intently on the role of product quality to enhance the competitive position of the company.
With the change in competitive focus, Cheng identify that the company have to revise its CMS to better manage product quality. As an intern working for Cheng, purpose a memo describing how gap analysis could be used to revise the CMS.
Prepare journal entries for each event and adjusting entries.
Determine the current year's overhead application rate
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