管理會(huì)計(jì)443598課件

ChapterFour

SystemsDesign:

ProcessCostingSimilaritiesBetweenJob-OrderandProcessCostingBothsystemsassignmaterial,laborandoverheadcoststoproductsasawaytocalculatetheunitproductcost.Bothsystemsusethesamemanufacturingaccounts,includingManufacturingOverhead,RawMaterials,WorkinProcess,andFinishedGoods.Theflowofcoststhroughthemanufacturingaccountsisbasicallythesameinbothsystems.DifferencesBetweenJob-OrderandProcessCostingProcesscostingisusedwhenasingleproductisproducedonacontinuingbasisorforalongperiodoftime.Job-ordercostingisusedwhenmanydifferentjobsareworkedoneachperiod.Processcostingsystemsaccumulatecostsbydepartment.Job-ordercostingsystemsaccumulatecostsbyindividualjobs.Processcostingsystemscomputeunitcostsbydepartment.Job-ordercostingsystemscomputeunitcostsbyjobonthejobcostsheet.ProcessingDepartmentsAnyunitinanorganizationwherematerials,labororoverheadareaddedtotheproduct.Theactivitiesperformedinaprocessing

departmentareperformeduniformlyonall

unitsofproduction.Furthermore,theoutputof

aprocessingdepartmentmustbe

homogeneous.ProductionProcessofCoca-colaLearningObjective1Recordtheflowofmaterials,labor,andoverheadthroughaprocesscostsystem.ComparingJob-Order

andProcessCostingFinished

GoodsCostof

Goods

SoldDirectLaborManufacturingOverheadJobsCostsaretracedand

appliedtoindividual

jobsinajob-order

costsystem.DirectMaterialsComparingJob-Order

andProcessCostingFinished

GoodsCostof

Goods

SoldDirectLaborManufacturingOverheadProcessingDepartmentCostsaretracedandappliedtodepartmentsinaprocesscostsystem.DirectMaterialsT-AccountandJournalEntryViewsofCostFlowsassumetherearetwoprocessingdepartments–DepartmentsAandB.

WewilluseT-accountsandjournalentries.ProcessCostFlows

(injournalentryform)ProcessCostFlows

(inT-accountform)

WorkinProcess

DepartmentB

WorkinProcess

DepartmentA

SalariesandWagesPayableDirect

MaterialsDirect

MaterialsDirect

LaborDirect

LaborDirectLaborProcessCosting

(injournalentryform)ProcessCosting

(Injournalentryform)ProcessCostFlows

(inT-accountform)WorkinProcessDepartmentBWorkinProcess

DepartmentADirect

MaterialsDirect

LaborApplied

OverheadDirect

MaterialsDirect

LaborApplied

OverheadTransferred

toDept.BTransferred

fromDept.AProcessCosting

(injournalentryform)ProcessCosting

(injournalentryform)FinishedGoods

CostofGoodsSoldProcessCostFlows

(injournalentryform)

WorkinProcess

DepartmentBCostof

GoodsManufacturedDirect

MaterialsDirect

LaborApplied

OverheadTransferred

fromDept.ACostof

Goods

SoldCostof

Goods

SoldCostof

Goods

ManufacturedProcessCosting

(injournalentryform)EquivalentUnitsofProductionEquivalentunitsaretheproductofthenumberofpartiallycompletedunitsandthepercentagecompletionofthoseunits.

Weneedtocalculateequivalentunitsbecauseadepartmentusuallyhassomepartiallycompletedunitsinitsbeginningandendinginventory.EquivalentUnits–TheBasicIdeaTwohalfcompletedproductsareequivalenttoonecompletedproduct.So,10,000units70%complete

areequivalentto7,000completeunits.+=1LearningObjective2Computetheequivalentunitsofproductionusingtheweighted-averagemethod.EquivalentUnitsofProduction

Weighted-AverageMethodTheweighted-averagemethod...Makesnodistinctionbetweenworkdoneinpriororcurrentperiods.Blendstogetherunitsandcostsfrompriorandcurrentperiods.Determinesequivalentunitsofproductionforadepartmentbyaddingtogetherthenumberofunitstransferredoutplustheequivalentunitsinendingworkinprocessinventory.TreatmentofDirectLaborDirectlaborcosts

arebecomingsmall

incomparisonto

otherproductcostsinprocess

costsystems.Direct

MaterialsTypeofProductCostDollarAmountDirect

LaborConversionTreatmentofDirectLaborTypeofProductCostDollarAmountConversionDirectlaborandmanufacturingoverheadmaybe

combinedintooneproductcostcalledconversion.Direct

MaterialsDirectlaborcosts

maybesmall

incomparisonto

otherproductcostsinprocess

costsystems.Weighted-AverageExampleDoubleDiamondSkisreportedthefollowingactivityinShapingandMillingDepartmentforthemonthofMay:ThefirststepincalculatingtheequivalentunitsistoidentifytheunitscompletedandtransferredoutoftheDepartmentinMay(4,800units)Weighted-AverageExampleThesecondstepistoidentifytheequivalentunitsinendingworkinprocesswithrespecttomaterialsforthemonth(160units)andaddthistothe4,800unitsfromstepone.Weighted-AverageExampleWeighted-AverageExampleThethirdstepistoidentifytheequivalentunitsinendingworkinprocesswithrespecttoconversionforthemonth(100units)andaddthistothe4,800unitsfromstepone.Equivalentunitsofproductionwillalwaysbeequal:Unitscompletedandtransferredout+EquivalentunitsremaininginworkinprocessWeighted-AverageExampleLearningObjective3Computethecostperequivalentunitusingtheweighted-averagemethod.Beginningworkinprocess:200units Materials:55%complete $ 9,600 Conversion:30%complete 5,575

ProductionstartedduringMay 5,000unitsProductioncompletedduringMay 4,800unitsCostsaddedtoproductioninMay Materialscost $368,600 Conversioncost 350,900

Endingworkinprocess

400units Materials: 40%complete Conversion: 25%completeComputeandApplyCostsComputeandApplyCostsTheformulaforcomputingthecostperequivalentunitis:Costper

equivalent

unit=Costofbeginning

workinprocess

inventoryCostaddedduringtheperiodEquivalentunitsofproduction+NumeratorDenominator

Hereisaschedulewiththecostandequivalentunitinformation.ComputeandApplyCostsComputeandApplyCosts$356,475÷4,900units=$72.75

$378,200÷4,960units=$76.25

Hereisaschedulewiththecostandequivalentunitinformation.LearningObjective4Assigncoststounitsusingtheweighted-averagemethod.

BasicEquationforInventoryAccounts BeginningbalanceAdditions

toinventory+=EndingbalanceWithdrawals

frominventory+ApplyingCostsApplyingCostsApplyingCostsComputingtheCostofUnitsTransferredOutComputingtheCostofUnitsTransferredOutComputingtheCostofUnitsTransferredOutReconcilingCostsReconcilingCostsAppendix4AFIFOMethodFIFOvs.Weighted-AverageMethodTheFIFOmethod(generallyconsideredmoreaccuratethantheweighted-averagemethod)differsfromtheweighted-averagemethodintwoways:Thecomputationofequivalentunits.Thewayinwhichthecostsofbeginninginventoryaretreatedinthecostreconciliationreport.LearningObjective5ComputetheequivalentunitsofproductionusingtheFIFOmethod.EquivalentUnits–FIFOMethodLet’srevisittheDoubleDiamondSkisexample.AssumethefollowingactivityisreportedinShapingandMillingDepartmentforMay:EquivalentUnits–FIFOMethodStep1:Determineequivalentunitsneededtocompletebeginninginventory.EquivalentUnits–FIFOMethodStep2:Determineunitsstartedandcompletedduringtheperiod.EquivalentUnits–FIFOMethodStep3:Addtheequivalentunitsinendingworkinprocessinventory.EquivalentUnits:WeightedAveragevs.FIFOAsshownbelow,theequivalentunitsinbeginninginventoryaresubtractedfromtheequivalentunitsofproductionpertheweighted-averagemethodtoobtaintheequivalentunitsofproductionundertheFIFOmethod.LearningObjective6ComputethecostperequivalentunitusingtheFIFOmethod.CostperEquivalentUnit-FIFOLet’srevisittheDoubleDiamondSkisShapingandMillingDepartmentfortheMonthofMaytoprepareourproductionreport.Beginningworkinprocess: 200units Materials:55%complete $ 9,600 Conversion:30%complete 5,575 $15,175ProductionstartedduringMay 5,000unitsProductioncompletedduringMay 4,800unitsCostsaddedtoproductioninMay Materialscost $368,600 Conversioncost 350,900Endingworkinprocess:

400units Materials: 40%complete Conversion: 25%completeCostperEquivalentUnit-FIFOTheformulaforcomputingthecostperequivalentunitunderFIFOmethodisasfollows:Costper

equivalent

unit=CostaddedduringtheperiodEquivalentunitsofproductionNumeratorDenominatorCostperEquivalentUnit-FIFOLearningObjective7AssigncoststounitsusingtheFIFOmethod.ApplyingCosts-FIFOStep1:Reco