REG 1 - Module 3

Question 1

Uniform capitalization rules are applicable to?

Answer 1

Inventory

• Raw materials (RM)
• Direct labor (DL)
• Factory overhead (FOH)

Required when sales are over $25m

Question 2

Calculation for percentage-of-completion method

Answer 2

Cost incurred / total expected cost
Work done / total work

= percent earned