Procedure Cost Accounting .


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Chapter 3. Process Cost Accounting. Keep your eye on the goal of Cost Accounting!. +. Direct Material. Direct Labor. What did the Finished Goods cost???. +. Manufacturing Overheads. =. Job order costing One (or more) work in process account. Costs are determined for each job.
Transcripts
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Part 3 Process Cost Accounting

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Keep your eye on the objective of Cost Accounting! + Direct Material Direct Labor What did the Finished Goods cost??? + Manufacturing Overheads =

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Job arrange costing (at least one) work in process account. Expenses are resolved for every occupation. Work cost sheet is the key report. Unit cost processed by costs added to work/units in the occupation. Handle costing WIP represent every division. Expenses are dictated by office. Creation cost report is the key archive. Unit costs processed by aggregate division costs/units created. Contrasts Between Job-Order and Process Costing

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Process Costing Direct Materials Direct work expenses might be little in contrast with other item costs in process cost frameworks. Fabricating Overhead Dollar Amount Direct Labor Type of Product Cost

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Process Costing Direct Materials Direct work expenses might be little in contrast with other item costs in process cost frameworks. Transformation Dollar Amount Type of Product Cost So, coordinate work and assembling overhead are frequently consolidated into one cost called change costs .

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Comparing Job-Order and Process Costing Direct Materials Finished Goods Work in Process Direct Labor ManufacturingOverhead Cost of Goods Sold

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Comparing Job-Order and Process Costing Direct Labor Raw Materials ManufacturingOverhead Job A Dept 1 Dept 2 Dept 3

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Comparing Job-Order and Process Costing Direct Labor Raw Materials ManufacturingOverhead Job A Dept 1 Dept 2 Dept 3

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Comparing Job-Order and Process Costing Direct Labor Raw Materials ManufacturingOverhead Job A Finished Goods Dept 1 Dept 2 Dept 3 Cost of Goods Sold Costs are followed and connected to individual employments in a vocation arrange cost framework.

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Comparing Job-Order and Process Costing Direct Labor Raw Materials ManufacturingOverhead Job B Dept 1 Dept 2 Dept 3

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Comparing Job-Order and Process Costing Direct Labor Raw Materials ManufacturingOverhead Job B Dept 1 Dept 2 Dept 3

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Comparing Job-Order and Process Costing Direct Labor Raw Materials ManufacturingOverhead Job B Finished Goods Dept 1 Dept 2 Dept 3 Cost of Goods Sold Costs are followed and connected to individual employments in an occupation arrange cost framework.

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Comparing Job-Order and Process Costing Direct Labor Raw Materials ManufacturingOverhead Job C Dept 1 Dept 2 Dept 3

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Comparing Job-Order and Process Costing Direct Labor Raw Materials ManufacturingOverhead Job C Dept 1 Dept 2 Dept 3

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Comparing Job-Order and Process Costing Direct Labor Raw Materials ManufacturingOverhead Job C Finished Goods Dept 1 Dept 2 Dept 3 Cost of Goods Sold Costs are followed and connected to individual employments in an occupation arrange cost framework.

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Comparing Job-Order and Process Costing Costs are followed and connected to offices in a procedure cost framework. Coordinate Materials Finished Goods Processing Department Direct Labor ManufacturingOverhead Cost of Goods Sold

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Comparing Job-Order and Process Costing Direct Labor Raw Materials ManufacturingOverhead WIP Dept 1 WIP Dept 2 WIP Dept 3 Finished Goods Cost of Goods Sold

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Comparing Job-Order and Process Costing Direct Labor Raw Materials ManufacturingOverhead WIP Dept 1 WIP Dept 2 WIP Dept 3 Finished Goods Cost of Goods Sold

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Comparing Job-Order and Process Costing Direct Labor Raw Materials ManufacturingOverhead WIP Dept 1 WIP Dept 2 WIP Dept 3 Finished Goods Cost of Goods Sold

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Raw Materials or different overheads (Purchase material) A/P or Cash WIP - Dept A WIP – Dept B Raw Materials (Transfer coordinate material) Manufacturing O/H Raw Materials (Transfer roundabout material) Process Cost Flows Materials Journal Entry

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Process Cost Flows Work in Process Department A Raw Materials Direct Materials Direct Materials Purchases Indirect Materials Work in Process Department B Manufacturing Overhead Actual Applied Direct Materials Other Overhead Indirect Materials

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Factory Wages (Payroll) Cash WIP - Dept A WIP – Dept B Factory Wages (Transfer coordinate work) Process Cost Flows Labor Journal Entry Manufacturing O/H Factory Wages (Transfer backhanded work)

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Factory Wages (Payroll) Cash OR WIP - Dept A WIP – Dept B Manufacturing O/H Factory Wages (Transfer producing work)

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Process Cost Flows Work in Process Department A Factory Wages Direct Materials Direct Labor Direct Labor Indirect Labor Work in Process Department B Manufacturing Overhead Actual Applied Direct Materials Other Overhead Direct Labor Indirect Materials Indirect Labor

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WIP - Dept A WIP – Dept B Manufacturing Overhead (Apply overheads) Process Cost Flows Overhead Journal Entry

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Process Cost Flows Work in Process Department A Factory Wages Direct Materials Direct Labor Direct Labor Indirect Labor Applied Overhead Work in Process Department B Manufacturing Overhead Actual Applied Direct Materials Other Overhead Applied to Work in Process Direct Labor Indirect Materials Applied Overhead Indirect Labor

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Process Cost Flows Next, exchange work from Dept. A to Dept. B. At that point finish and offer them.

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Process Cost Flows Work in Process Department A Factory Wages Direct Materials Direct Labor Direct Labor Transferred to Dept. B Applied Overhead Indirect Labor Work in Process Department B Manufacturing Overhead Actual Applied Direct Materials Other Overhead Applied to Work in Process Direct Labor Applied Overhead Indirect Materials Transferred from Dept. An Indirect Labor

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Process Cost Flows Work in Process Department B Finished Goods Direct Materials Cost of Goods Manufactured Cost of Goods Manufactured Cost of Goods Sold Direct Labor Applied Overhead Transferred from Dept. A Cost of Goods Sold Cost of Goods Sold

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Group Exercise Take 10 minutes to do BE3-1, 2, & 3 on page 130

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Group Exercise BE 3-1 Altex Manufacturing buys $45,000 of crude materials on record, and it causes $50,000 of plant work costs. Journalize the two exchanges on March 31 expecting the work expenses are not paid until April. BE 3-2 Supporting records demonstrate that (a) the Assembly Department utilized $24,000 of crude materials and $30,000 of the plant work, and (b) the Finishing Department utilized the rest of. Journalize the task of the expenses to the two offices on March 31. BE 3-3 Manufacturing overhead is doled out to divisions on the premise of 200% of work expenses. Journalize the task of overhead to the Assembly and Finishing Departments.

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Try this issue: Schiller Company has unit expenses of $5 for materials and $15 for transformation costs. There are 4,200 units in consummation work in process which are 25% finished as to transformation costs, and completely total as to materials cost. What amount is the aggregate cost assignable to the completion work in process? $36,750 $84,000 $21,000 $15,750 $5 * 4,200 = $21,000 $15 * 4,200 * 25% = $15,750 $36,750

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Equivalent Units of Production Equivalent units are mostly total and are a piece of work in process stock. Mostly finished items are communicated as far as a littler number of completely finished units.

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Equivalent Units of Production Two half finished items are proportional to one finished item. + = So, 10,000 units 70 percent finish are proportionate to 7,000 finish units.

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Equivalent Units For the present time frame, Jones began 15,000 units and finished 10,000 units, leaving 5,000 units in process 30 percent finish. What number of proportional units of generation did Jones have for the period? a. 10,000 b. 11,500 c. 13,500 d. 15,000

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Equivalent Units For the present time frame, Jones began 15,000 units and finished 10,000 units, leaving 5,000 units in process 30 percent finish. What number of equal units of creation did Jones have for the period? a. 10,000 b. 11,500 c. 13,500 d. 15,000 10,000 units + (5,000 units × 0.30) = 11,500 proportional units

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Calculating and Using Equivalent Units of Production To figure the cost per equal unit for the period: Costs for the period Equivalent units of generation for the period Cost per equal unit =

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Equivalent Units Now accept that Jones brought about $27,600 underway expenses for the 11,500 equal units of creation. What was Jones\' cost per proportionate unit for the period? a. $1.84 b. $2.40 c. $2.76 d. $2.90 $27,600 ÷ 11,500 proportional units = $2.40 per comparable unit

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Equivalent Units of Production – Weighted Average Method The weighted normal technique . . . Sees no difference amongst work done in earlier and current period. Mixes together units and expenses from earlier period and current period. How about we perceive how this functions!

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Weighted Average Example Smith Company reported the accompanying action in Department A for the month of June: @100% @30% @60% Calculate the Equivalent Units of Production.

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Weighted Average Example Smith Company reported the accompanying movement in Department A for the month of June: @100% @30% @60% Equivalent Units of Production.

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Weighted Average Example Equivalent units of creation dependably squares with: Units finished and exchanged out + Equivalent units staying in work in process Smith Company reported the accompanying movement in Department A for the month of June: @100% @30% @60% Equivalent Units of Production.

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Equivalent Units Exercise 3-6 Do (an) exclusive .:

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