微观经济学Cost-accounting-systems.ppt

Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,1,Chapter 21 Cost accounting systems,PowerPoint presentation by,Dr Anne Abraham,University of Western Sydney,2009 John Wiley&Sons Australia,Ltd,COST ACCOUNTING SYSTEMS,Cost accounting,involves the measuring,recording,and reporting of product costs,Both the total cost and the unit cost of each product is determined from the accumulated data,A,cost accounting system,consists of accounts for various manufacturing costs which are fully integrated into the general ledger of a company,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,2,LO1,COST ACCOUNTING SYSTEMS,continued,An important feature of a cost accounting system is the use of a perpetual inventory system,Such a system provides immediate,up-to-date information on the cost of a product,There are 2 basic types of cost accounting systems:,a job order cost system,a process cost system,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,3,Job order cost system,Under,a,job order cost system,costs are assigned to each job or each batch of goods,An,example of a job,would be the manufacture of a mainframe computer,An,example of a batch,would be the printing of 225 wedding invitations,The objective is to calculate the cost per job,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,4,Job order cost system,continued,Example of two different jobs,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,5,Process cost system,A,process cost system,is used when a series of connected manufacturing processes or departments produce a large volume of similar products,Process costing accounts for and accumulates product-related costs for a period of time,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,6,Process cost system,continued,Example of a process cost system,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,7,Job order cost accounting,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,10,Accumulating manufacturing costs,In a,job order cost system,manufacturing costs are recorded in the period in which they are incurred,Example,Consider the July transactions for Wallace Manufacturing Pty Ltd which makes machine tools and dies,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,11,Accumulating manufacturing costs,continued,Raw materials costs,At the time of purchase,no effort is made to associate the cost of materials with specific jobs or orders,On 4 July,Wallace purchases 2000 handles at$5 per unit and 800 modules at$40 per unit,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,12,July 4 Raw Materials Inventory 42 000,Accounts Payable 42 000 (Purchase of raw materials on account),Accumulating manufacturing costs,continued,Factory labour costs,In a manufacturing company,the cost of factory labour consists of,gross earnings of factory workers,employer payroll taxes on earnings,fringe benefits incurred by employer,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,13,Accumulating manufacturing costs,continued,Wallace incurs$32 000 of factory labour costs($27 000 relates to wages payable and$5000 relates to payroll taxes payable in July),PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,14,July 31 Factory Labour 32 000,Factory Wages Payable 27 000,Employer Payroll Taxes Payable 5 000 (To record factory labour costs),Accumulating manufacturing costs,continued,Manufacturing overhead costs,Overhead costs may be recognised daily,e.g.,machinery repairs,indirect materials,indirect labour,Overhead costs may also be recorded periodically through adjusting entries,e.g.,property taxes,depreciation,insurance,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,15,Accumulating manufacturing costs,continued,A summary entry for manufacturing overhead for July for Wallace is:,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,16,July 31 Manufacturing Overhead 13 800,Utilities Payable4 800,Prepaid Insurance2 000,Accounts Payable(for repairs)2 600,Accumulated Depreciation2 000,Property Taxes Payable1 400 (To record overhead costs),Assigning manufacturing costs to work in process,A,job cost sheet,is a form used to record the costs chargeable to a specific job and to determine the total and unit cost of the completed job,Postings to job cost sheets are made daily,Job cost sheets act as,subsidiary ledgers,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,17,LO3,Assigning manufacturing costs to work in process,continued,Raw materials costs,Raw materials costs are assigned when the materials are issued by the storeroom,Written authorisation is made on a prenumbered,materials requisition slip,showing,Quantity of materials,Type of materials(direct or indirect),Account and amount to be charged,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,18,Assigning manufacturing costs to work in process,continued,In July Wallace uses$24 000 of direct materials and$6000 of indirect materials,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,19,July 31 Work in Process Inventory 24 000,Manufacturing Overhead 6 000,Raw Materials Inventory 30 000 (To assign materials to jobs and overhead),Assigning manufacturing costs to work in process,continued,Factory labour costs,Factory labour costs are assigned to jobs on the basis of,time tickets,prepared when the work is performed,The time ticket should indicate,the employee,the hours worked,the account and job to be charged,total labour cost,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,20,Assigning manufacturing costs to work in process,continued,The$32 000 total factory labour cost consists of$28 000 of direct labour and$4000 of indirect labour,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,21,July 31 Work in Process Inventory 28 000,Manufacturing Overhead 4 000,Factory Labour 32 000 (To assign labour to jobs and overhead),Assigning manufacturing costs to work in process,continued,Manufacturing overhead costs,Manufacturing overhead is estimated and assigned to work in process and to specific jobs on an estimated bases through a,predetermined overhead rate,This rate is established by the beginning of the year and is based on the relationship between estimated annual overhead costs and expected annual operating activity,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,22,LO4,Assigning manufacturing costs to work in process,continued,This relationship is expressed in terms of a common activity base such as direct labour costs,direct labour hours,machine hours,or any other measure that will provide an equitable basis for applying overhead costs to jobs,Formula for the predetermined overhead rate:,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,23,Estimated annualoverhead costs,Expected annualoperating activity,Predeterminedoverhead rate,=,Assigning manufacturing costs to work in process,continued,Wallace uses direct labour cost as the activity base,Annual OH costs are expected to be$280 000 and$350 000 of direct labour costs are anticipated,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,24,OH rate=$280 000,$350 000,=80%,Assigning manufacturing costs to work in process,continued,Overhead applied for July is$22 400($28 000 x 80%),This application is recorded through the following entry:,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,25,July 31 Work in Process Inventory 22 400,Manufacturing Overhead 22 400 (To assign overhead to jobs),Assigning costs to finished goods,When a job is finished,an entry is made to transfer its total cost to finished goods inventory,Entry for Wallace is:,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,26,LO5,July 31 Finished Goods Inventory 39 000,Work in Process Inventory 39 000 (To record completion of job no.101),Assigning costs to cost of sales,Cost of sales is recognised when each sale occurs,On 31 July Wallace sells Job 101,costing$39 000,on account for$50 000,Two entries are required:,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,27,July 31 Accounts Receivable 50 000,Sales 50 000 (To record sale of Job no.101),July 31 Cost of Sales 39 000,Finished Goods Inventory 39 000 (To record cost of Job no.101),REPORTING JOB COST DATA,Cost of goods manufactured schedule,is used to summarise cost data for all jobs manufactured and sold,This schedule records:,Direct materials and direct labour,Manufacturing overhead costs applied(not actual costs incurred),PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,28,REPORTING JOB COST DATA,continued,Cost of goods manufactured schedule,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,29,Work in process,1 July$0,Direct material used$24 000,Direct labour 28 000,Manufacturing overhead applied,22 400,Total current manufacturing costs,74 400,Total cost of work in process 74 400,Less:Work in process,31 July,35 400,Cost of goods manufactured$,39 000,WALLACE MANUFACTURING PTY LTD,Cost of Goods Manufactured Schedule,For the month ended 31 July 2010,REPORTING JOB COST DATA,continued,Partial income statement,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,30,Sales$50 000,Cost of Sales,Finished goods inventory,1 July$0,Cost of goods manufactured,39 000,Cost of goods available for sale 39 000,Less:Finished goods inventory,31 July 0,Cost of sales,39 000,Gross profit$,11 000,WALLACE MANUFACTURING PTY LTD,Income Statement(partial),For the month ended 31 July 2010,JOB ORDER COSTING SYSTEMS FOR SERVICE ENTITIES,People rather than equipment dominate the process in providing services,Services are not physical products,But job order costing systems can be applied so the costs of resources can be assigned to each individual job or client,Direct labour is a major component in the cost structure,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,31,PROCESS COST SYSTEMS,Process costs systems,are,used to apply costs to similar products that are mass produced in a continuous fashion,They are tracked through a series of connected manufacturing processes or departments,An individual WIP Inventory account is maintained for each production department or manufacturing process,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,32,LO6,Similarities and differences between job order and process cost systems,Similarities,Manufacturing cost elements,Accumulation of costs of materials,labour and overhead,Flow of costs,Differences,Number of WIP accounts used,Documents to track costs,Point at which costs are totalled,Unit cost computation,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,33,LO7,Similarities and differences between job order and process cost systems,continued,Features Job order costing Process costing,WIP accountsOne for each jobOne for each process,Documents usedJob cost sheetsProduction cost report,Determination of Each jobEach period,total manufacturing,costs,Unit-cost(Cost of each job),(Total manufacturing,computations(Units produced forcosts)(Units produced,the job)during the period),PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,34,Process cost flow,Flow of costs does,not,follow specific jobs or batches,Costs are accumulated and then assigned to Work in Process,Different WIP Inventory accounts are used for different departments or stages of production,Costs of units completed in one department are transferred to next department as goods move through manufacturing process,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,35,LO8,Flow of costs in process cost system,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,36,Assignment of manufacturing costs journal entries,1.Materials costs,Materials are usually added to production at the beginning of first process,then at varying times for subsequent processes,To record materials used in production:,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,37,Work in Process-MachiningXXX,Work in Process,AssemblyXXX,Raw Materials InventoryXXX,(To record materials used),LO9,Assignment of manufacturing costs journal entries,continued,2.,Factory labour costs,Assigned to production according to stages of process,To assign factory labour to production:,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,38,Work in Process-MachiningXXX,Work in Process,AssemblyXXX,Factory LabourXXX,(To assign factory labour to production),Assignment of manufacturing costs journal entries,continued,3.,Manufacturing overhead costs,Cost drivers used to determine application rate should reflect activities involved,To apply overhead to production:,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,39,Work in Process-MachiningXXX,Work in Process,AssemblyXXX,Manufacturing Overhead XXX,(To assign overhead to production),Assignment of manufacturing costs journal entries,continued,4.,Transfer to next department,Costs are assigned as goods move through the production process,To record transfer of units from machining department to assembly department:,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,40,Work in Process-AssemblyXXX,Work in Process,MachiningXXX,(To record transfer of units to the Assembly department),Assignment of manufacturing costs journal entries,continued,5.,Transfer to finished goods,To record transfer of units to finished goods:,6.,Transfer to cost of sales,To record cost of units sold:,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,41,Cost of SalesXXX,Finished Goods InventoryXXX,(To record cost of units sold),Finished Goods InventoryXXX,Work in Process,AssemblyXXX,(To record transfer of units to finished goods),EQUIVALENT UNITS,Equivalent units of production,measure the work done during the period,expressed in terms of fully completed units,Equivalent units are used to determine the cost per unit of completed product,Calculation of equivalent units requires estimates of the degree of completion,PowerPoint presentation by Dr Anne Abraham,University of Western Sydney,42,LO10,EQUIVALENT UNITS,continued,Weighted-average method,The weighted-average method can be used to calculate the number of equi