Q.18-11RQ - Horngren'S Financial And Managerial Accounting

Question

Question: Explain the terms to account for and accounted for.

Step-by-Step Solution

Answer

Answer:

The term account for includes the amount in process at the beginning of the period plus the amount started or added during the period.

The term accounted for shows what happened to the amounts to account for. They are either still in the process or completed and transferred out.

Step 1: Meaning of ‘Account for’

Account for is explained as the aggregate of the amount balance in work in process at the beginning of the period and the amount introduced during the year and the amount started during the year.

Step 2: Meaning of ‘Accounted for’

The accounted for explains whether the amount introduced in production process during the year is still in process or it is completed. It also explains the amount of production process transferred to other process or finished goods.