صفحه 1:
Cost Accounting
Foundations and
ٌ Evolutions
Kinney, Prather, Raiborn
Chapter 6
Process Costing
0 000 7
صفحه 2:
* Contrast process costing and job
order costing
٠ كأتطنا تصملحتشنو ود سته اودع 05
production are used in process
99
ae oe lalnes
production, unit costs, and
inventory values using weighted
average method of process ناد اليك
ا پا cy الل يي
صفحه 3:
* Compute equivalent units of
production, unit costs, and
inventory values using FIFO
method of process costing
¢ Explain how standard costs are
used in a process costing system
° Explain why a company would use a
hybrid costing system
pW ee Olek TCs
صفحه 4:
¢ (Appendix 1) Explain the
alternative methods used to
calculate equivalent units of
production
* (Appendix 2) Describe how normal
and abnormal spoilage losses are
treated in an EUP schedule
صفحه 5:
ie.
۰
5
aay oe
Job Order Process Costing
* Assign costs to ان
job and then to averaging
units within the technique, assign
job costs directly to
units produced
during the period
صفحه 6:
۹
۰
5
* The Numerator - Production Costs
- Accumulate costs by department
- Accumulate costs by product
~ Direct material from material requisitions
- Direct labor from time sheets and wage
Pelion
- Overhead
* Actual
+ Predetermined application rates
صفحه 7:
ie.
۰
5
ال ال
Direct material from material -
requisitions
Direct labor from time sheets and -
۱
Overhead -
انك
Predetermined application rates *
صفحه 8:
ie.
۰
5
° The Denominator - Units Produced
* Complicated by work in process
- Units started last period and
completed this period
- Units started this period and not
completed
* Convert partially completed units
to equivalent whole units
صفحه 9:
Approximation of the number of whole
units of output that could have been
produced from the actual effort
expended
* Includes units
Bracco PCa ase C Rts menntc Renee Ce
- started and finished this period
- نطق امه فصح 8منتوم ونطا 0عاتماو
* Assumes FIFO physical flow through
the production department
صفحه 10:
* Weighted Average Method
- ومصنطومم
ا لين “ا تفلك
*current period production
° FIFO Method
~ separates
* beginning work in process
*current period production
صفحه 11:
0
5
Weighted Average
Beginning WIP 100%
Started and finished 10)
Ending WIP
BES
Beginning WIP 1 completed
Started and finished
Ending WIP % completed
صفحه 12:
ie.
۰
5
* Direct material
- added at the beginning, during, and/or at
the end of process
* Direct labor
- added throughout the process
* Overhead
- added throughout the process
*based on direct 9
based on other, multiple cost drivers
صفحه 13:
ie.
۰
5
1 Units to account for
2 Units accounted for و
3 Determine equivalent
4 Costs to account for
5 Compute cost per equivalent timits
6 Assign costs to inventories
صفحه 14:
ی عاص ۹
amid 2
اك
(ON a as عوخا
سوه ۳ یج ماس رس(
Cost Duta:
]9 a a ne
Ore Gs Pe
:لجوج ۱
6ك
WS Daca ععصوصرة) جا“ عاعد() كد
صفحه 15:
0۱ Te ele
+ Eliminate periodic cost recomputations
* Same as FIFO computations
- emphasize current period costs and
* Inventories are stated at standard cost
* Variances are calculated for material,
labor, and overhead
صفحه 16:
۰ Assigns a “normal” production cost
ا ا ا ا
each period
4 تن
recognize and investigate
significant deviations from expected
production costs
. ie benchmarking with other
rms
صفحه 17:
ie.
۰
5
ات قطن ٠
Ty ل 1
* Various product lines ۳
- different direct material - job order
0
0000 g etd - job order costing
- same process - process costing
* Hybrid costing used for furniture,
clothing, jam
صفحه 18:
Oe) Cael
Cue eT
PCE
۵ aie
transferredout
0 aC 0
basis
Paar an
past inspection
point inending
هت
transferredout on
۲ عادو
صفحه 19:
* What is an equivalent unit of
production?
* What is the difference between the
weighted average and FIFO
methods of calculating equivalent
units?
* Why would a company use a hybrid
costing system?
pW ee Olek TCs