成本与管理会计

Job Costing 2009 Pearson Prentice Hall. All rights reserved. 2009 Pearson Prentice Hall. All rights reserved. Basic Costing Terminology Several key points from prior chapters: Cost Objects - including responsibility centers, departments, customers, products, etc. Direct costs and tracing materials and labor Indirect costs and allocation - overhead 2009 Pearson Prentice Hall. All rights reserved. logically extended Cost Pool any logical grouping of related cost objects Cost-allocation base a cost driver is used as a basis upon which to build a systematic method of distributing indirect costs. For example, lets say that direct labor hours cause indirect costs to change. Accordingly, direct labor hours will be used to distribute or allocate costs among objects based on their usage of that cost driver 2009 Pearson Prentice Hall. All rights reserved. Costing Systems Process-Costing: system accounting for mass production of identical or similar products. Continuous production. Such as : Oil refining, orange juice, Bao Steel Job-Costing: system accounting for distinct cost objects called Jobs. Each job may be different from the next, and consumes different resources Wedding announcements, aircraft, advertising, auditing 2009 Pearson Prentice Hall. All rights reserved. Distinction Between Job-Order Costing and Process Costing 2009 Pearson Prentice Hall. All rights reserved. Job-Order Costing Basic Records 2009 Pearson Prentice Hall. All rights reserved. Process Costing Compared With Job Costing 2009 Pearson Prentice Hall. All rights reserved. Process Costing Compared With Job Costing 2009 Pearson Prentice Hall. All rights reserved. 2009 Pearson Prentice Hall. All rights reserved.4-9 Job costing, process costing In each of the following situations, determine whether job costing or process costing would be more appropriate.a) A CPA firm b) An oil refinery c) A custom furniture manufacturer d) A tire manufacturer e) A textbook publisher f) A pharmaceutical company g) An advertising agency h) An apparel manufacturing plant Job costing Process costingJob costing Process costingJob costing Process costingJob costing Job costing (some process) 2009 Pearson Prentice Hall. All rights reserved. 2009 Pearson Prentice Hall. All rights reserved.4-10 i) A flour mill j) A paint manufacturer k) A medical care facilityl) A landscaping companym) A cola-drink-concentrate producern) A movie studioo) A law firmp) A commercial aircraft manufacturerq) A management consulting firmr) A breakfast-cereal companys) A catering servicet) A paper millu) An auto repair shop Process costing Process costingJob costing Job costingProcess costing Job costingJob costing Job costing Job costingProcess costingJob costingProcess costingJob costingJob costing, process costing 2009 Pearson Prentice Hall. All rights reserved. Process Costing Compared With Job Costing 2009 Pearson Prentice Hall. All rights reserved. Costing Approaches Actual Costing - allocates: Indirect costs based on the actual indirect-cost rates times the actual activity consumption EX P84; Normal Costing allocates: Indirect costs based on the budgeted indirect-cost rates times the actual activity consumption EX88 Both methods allocate Direct costs to a cost object the same way: by using actual direct-cost rates times actual consumption 2009 Pearson Prentice Hall. All rights reserved. Costing Approaches Summarized 2009 Pearson Prentice Hall. All rights reserved. Seven-step Job Costing1. Identify the Job that is the Chosen Cost Object2. Identify the Direct Costs of the Job3. Select the Cost-Allocation base(s) to use for allocating Indirect Costs to the Job4. Match Indirect Costs to their respective Cost-Allocation base(s) 2009 Pearson Prentice Hall. All rights reserved. Seven-step Job Costing (continued)5. Calculate an Overhead Allocation Rate: Actual OH Costs Actual OH Allocation Base6. Allocate Overhead Costs to the Job: OH Allocation Rate x Actual Base Activity For the Job7. Compute Total Job Costs by adding all direct and indirect costs together 2009 Pearson Prentice Hall. All rights reserved. Sample Job Cost Document 2009 Pearson Prentice Hall. All rights reserved. Sample Job Cost Source Documents 2009 Pearson Prentice Hall. All rights reserved. Job CostingOverview 2009 Pearson Prentice Hall. All rights reserved. Journal Entries Journal entries are made at each step of the production process The purpose is to have the accounting system closely reflect the actual state of the business, its inventories and its production processes. 2009 Pearson Prentice Hall. All rights reserved. Journal Entries, continued All Product Costs are accumulated in the Work-in-Process Control Account Direct Materials used Direct Labor incurred Factory Overhead allocated or applied Actual Indirect Costs (overhead) are accumulated in the Manufacturing Overhead Control account 2009 Pearson Prentice Hall. All rights reserved. Journal Entries, continued Purchase of Materials on credit: Materials Control XX Accounts Payable Control XX Requisition of Direct and Indirect Materials (OH) into production: Work-in-Process Control XManufacturing Overhead Control Y Materials Control Z 2009 Pearson Prentice Hall. All rights reserved. Journal Entries, continued Incurred Direct and Indirect (OH) Labor Wages Work-in-Process Control XManufacturing Overhead Control Y Cash Control Z 2009 Pearson Prentice Hall. All rights reserved. Journal Entries, continued Incurring or recording of various actualIndirect Costs: Manufacturing Overhead Control X Salaries Payable Control A Accounts Payable Control B Accumulated Depreciation Control C Prepaid Expenses Control D 2009 Pearson Prentice Hall. All rights reserved. Journal Entries, continued Allocation or application of Indirect Costs (overhead) to the Work-in-Process account is based on a predetermined overhead rate. Work-in-Process Control X Manufacturing Overhead Allocated X Note: actual overhead costs are never posted directly into Work-in-Process 2009 Pearson Prentice Hall. All rights reserved. Journal Entries, continued Products are completed and transferred out of production in preparation for being sold Finished Goods Control X Work-in-Process Control X 2009 Pearson Prentice Hall. All rights reserved. Journal Entries, continued Products are sold to customers on credit Accounts Receivable Control X Sales X And the associated costs are transferred to an expense (cost) account Cost of Goods Sold Y Finished Goods Control Y Note: The difference between the sales and cost of goods sold amounts represents the gross margin (profit) on this particular transaction 2009 Pearson Prentice Hall. All rights reserved. Flow of Costs Illustrated 2009 Pearson Prentice Hall. All rights reserved. Illustrated General Ledger in a Job Cost Environment 2009 Pearson Prentice Hall. All rights reserved. Illustrated Subsidiary Ledger in a Job Cost Environment 2009 Pearson Prentice Hall. All rights reserved. Accounting for Overhead Recall that two different overhead accounts were used in the preceding journal entries: Manufacturing Overhead Control was debited for the actual overhead costs incurred. Manufacturing Overhead Allocated was credited for estimated (budgeted) overhead applied to production through the Work-in-Process account. 2009 Pearson Prentice Hall. All rights reserved. Accounting for Overhead Actual costs will almost never equal budgeted costs. Accordingly, an imbalance situation exists between the two overhead accounts If Overhead Control Overhead Allocated, this is called Underallocated Overhead If Overhead Control Overhead Allocated, this is called Overallocated Overhead 2009 Pearson Prentice Hall. All rights reserved. Accounting for Overhead This difference will be eliminated in the end-of-period adjusting entry process, using one of three possible methods The choice of method should be based on such issues as materiality, consistency and industry practice 2009 Pearson Prentice Hall. All rights reserved. Three Methods for Adjusting Over/Underapplied Overhead Adjusted Allocation Rate Approach all allocations are recalculated with the actual, exact allocation rate. Proration Approach the difference is allocated between Cost of Goods Sold, Work-in-Process, and Finished Goods based on their relative sizes Write-Off Approach the difference is simply written off to Cost of Goods Sold 2009 Pearson Prentice Hall. All rights reserved.