會計學(xué)原理英文教學(xué)課件：Chapter-20 Process Cost Accounting

1、PROCESS COST ACCOUNTINGChapter 20 Used for production of small, identical, low-cost items. Mass produced in automated continuous production process. Costs cannot be directly traced to each unit of product.PROCESS OPERATIONSC 1COMPARING JOB ORDERAND PROCESS OPERATIONSJob Order SystemsCustom ordersHet

2、erogeneous productsLow production volumeHigh product flexibilityLow to medium standardizationProcess SystemsRepetitive operationsHomogeneous productsHigh production volume Low product flexibilityHigh standardizationA 1DirectMaterialsFinishedGoodsCost per unit for each jobDirectLaborFactoryOverhead J

3、obsThe Goods in Process account consists of individual jobs in a job order system.COMPARING JOB ORDERAND PROCESS OPERATIONSA 1DirectMaterialsFinishedGoodsDirectLaborFactoryOverhead ProcessesThe Goods in Process account consists of specific processes in a process cost system.Costper unit processedCOM

4、PARING JOB ORDERAND PROCESS OPERATIONSA 1Same objective: to determine the cost of productsSame inventory accounts: raw materials, work in process, and finished goodsSame overhead assignment method:predetermined rate times actual activityCOMPARING JOB ORDERAND PROCESS OPERATIONSA 1Journal entries for

5、 both job order and process costing are identicalThe difference between job order and process costing lies in how the cost of goods transferred to finished goods is determined.COMPARING JOB ORDERAND PROCESS OPERATIONSA 1 Job order costingThe cost of goods transferred to finished goods is equal to th

6、e sum of all of the completed jobs for that period. Process costingThe cost of goods transferred to finished goods equals the number of completed units times the cost per equivalent unit.COMPARING JOB ORDERAND PROCESS OPERATIONSA 1GenX makes a product called Profen in a process cost system.GENX COMP

7、ANY AN ILLUSTRATIONA 1LaborMaterialsIndirectIndirectFactoryOverheadDirectDirectDeliveredtoCustomers Goods in ProcessFinishedGoodsAppliedOverheadPROCESS OPERATIONSAND COSTS GENXA 1EQUIVALENT UNITS OF PRODUCTIONCosts are accumulated for a period of time by process or department. Unit cost is computed

8、by dividing the accumulated costs by the number of equivalent units produced in the period.C 2EQUIVALENT UNITS OF PRODUCTION Equivalent units is a concept expressing a number of partially completed units as a smaller number of fully completed units.Two one-half full pitchers are equivalent to one fu

9、ll pitcher.+=So, 4,000 units that are 60 percent complete would total 2,400 equivalent units. C 2 For the current period, PencilCo started 15,000 units and completed 10,000 units, leaving 5,000 units in process 30 percent complete. How many equivalent units of production did PencilCo have for the pe

10、riod?a.10,000b.11,500c. 1,500d. 15,000QUESTION 10,000 units + (5,000 units .30) = 11,500 equivalent unitsP 4Cost perequivalent unit=Product costs for the periodEquivalent units for the periodCOST PER EQUIVALENT UNITP 4Now assume that PencilCo incurred $27,600 in production costs. What was PencilCos

11、cost per unit for the period?a.$1.84b.$2.40c.$2.76d.$2.90QUESTION$27,600 11,500 equivalent units = $2.40 per equivalent unitP 4Equivalent units may be different for material and labor and overhead at different stages of a process.At completion of Stage 1 of the process, materialis 40% complete, but

12、labor and overhead are only25% complete. Stage 140% ofMaterial25% ofLabor andOverheadEQUIVALENT UNITSP 4Stage 225% ofLabor andOverhead60% ofMaterialStage 140% ofMaterial25% ofLabor andOverhead+=100% 50%EQUIVALENT UNITSP 4Stage 350% ofLabor andOverheadThe process is now complete. Stage 225% ofLabor a

13、ndOverhead60% ofMaterialStage 140% ofMaterial25% ofLabor andOverheadEQUIVALENT UNITSP 4PROCESS COSTING ILLUSTRATIONGenX uses a weighted average cost flow system with the following four steps: Determine physical flow of units. Compute equivalent units of production. Compute cost per equivalent unit.

14、Assign and reconcile costs.C 3PROCESS OPERATIONS GENXC 3PROCESS OPERATIONS GENXC 3 DETERMINE PHYSICAL FLOW OF UNITSThese two amounts are reconciled.C 3 COMPUTE EQUIVALENT UNITS OF PRODUCTION - MATERIALSC 3 COMPUTE EQUIVALENT UNITS OF PRODUCTION DIRECT LABORAND FACTORY OVERHEADC 3 COMPUTE EQUIVALENT

15、UNITS OF PRODUCTIONC 3 COMPUTE COST PEREQUIVALENT UNITC 3 In the cost reconciliation, we will account for all costs incurred byassigning unit costs to the: A. 100,000 units transferred out. B. 20,000 units remaining in ending inventory. ASSIGN AND RECONCILE COSTSC 3C 3ProcessCostSummaryPROCESS COST

16、SUMMARYHelps managerscontrol theirdepartments.Provides costinformation forfinancial statements.Shows the flowof units and coststhrough work inprocess.Helps factorymanagers evaluatedepartment managerperformance.C 4 We will illustrate the process cost summary for GenX in three sections:Costs charged t

17、o production.Equivalent units of production and cost per equivalent unit.Cost assignment and reconciliation PROCESS COST SUMMARYC 4PROCESS COST SUMMARYP 5PROCESS COST SUMMARYP 5PROCESS COST SUMMARYP 5Hybrid costing systems contain featuresof both job order and process operations.Job OrderCostingProcessCostingHybrid CostingMaterial costs areaccounted for usinga job order system.Conversion costs areaccounted for usinga process system.HYBRID COSTING SYSTEMSA 2Lets look at the accounting journal entries for the process