1. Estimating too high (or too low) a completion percentage for ending WIP Inventory to decrease (or increase) the cost per EUP and thereby distorting ending WIP and ending FG inventories on the balance sheet and Cost of Goods Sold on the income statement
2. Not updating standard costs to reflect new quantities or costs and thereby distorting ending WIP and ending FG inventories on the balance sheet and Cost of Goods Sold on the income statement and creating potentially significant variances that could be written off without management review
3. Ignoring the necessity to trace significant, direct costs to specific jobs in hybrid manufacturing situations and thereby understating the cost of products containing high-cost components or materials and overstating the cost of products containing low-cost components or materials
4. Treating abnormal spoilage as normal spoilage and thereby inflating the cost of “good” units and not reporting the abnormal spoilage as a current period loss on the income statement