管理会计教学课件

Chapter FourSystems Design:Process Costing4-2Similarities Between Job-Order and Process CostingBoth systems assign material,labor and overhead costs to products as a way to calculate the unit product cost.Both systems use the same manufacturing accounts,including Manufacturing Overhead,Raw Materials,Work in Process,and Finished Goods.The flow of costs through the manufacturing accounts is basically the same in both systems.4-3Differences Between Job-Order and Process CostingProcess costing is used when a single product is produced on a continuing basis or for a long period of time.Job-order costing is used when many different jobs are worked on each period.Process costing systems accumulate costs by department.Job-order costing systems accumulate costs by individual jobs.Process costing systems compute unit costs by department.Job-order costing systems compute unit costs by job on the job cost sheet.4-4Process costing is used for products that are:a.Different and produced continuously.b.Similar and produced continuously.c.Individual units produced to customer specifications.d.Purchased from vendors.Quick Check 4-5Processing DepartmentsAny unit in an organization where materials,labor or overhead are added to the product.The activities performed in a processingThe activities performed in a processingdepartment are department are performed uniformlyperformed uniformly on all on allunits of production.Furthermore,the output ofunits of production.Furthermore,the output ofa processing department must bea processing department must behomogeneoushomogeneous.4-6Production Process of Coca-cola4-7Learning Objective 1Record the flow of materials,labor,and overhead through a process cost system.4-8Comparing Job-Orderand Process CostingFinishedGoodsCost of GoodsSoldWork inProcessDirect MaterialsDirect LaborManufacturingOverhead 4-9Comparing Job-Orderand Process CostingFinishedGoodsCost of GoodsSoldDirect LaborManufacturingOverhead JobsCosts are traced andapplied to individualjobs in a job-ordercost system.Direct Materials4-10Comparing Job-Orderand Process CostingFinishedGoodsCost of GoodsSoldDirect LaborManufacturingOverhead ProcessingDepartmentCosts are traced and applied to departments in a process cost system.Direct Materials4-11T-Account and Journal Entry Views of Cost Flowsassume there are two assume there are two processing departments processing departments Departments A and B.Departments A and B.We will use T-accounts and We will use T-accounts and journal entries.journal entries.4-12 Raw MaterialsProcess Cost Flows(in T-account form)Work in Process Department B Work in Process Department ADirectMaterialsDirect MaterialsDirect Materials4-13Process Cost Flows(in journal entry form)4-14Process Cost Flows(in T-account form)Work in Process Department B Work in Process Department A Salaries and Wages PayableDirect MaterialsDirect MaterialsDirect LaborDirect LaborDirect Labor4-15Process Costing(in journal entry form)4-16Process Cost Flows(in T-account form)Work in Process Department B Work in Process Department AManufacturing OverheadOverheadApplied to Work inProcessAppliedOverheadAppliedOverheadDirect LaborDirect MaterialsDirect LaborDirect MaterialsActual Overhead4-17Process Costing(In journal entry form)4-18Process Cost Flows(in T-account form)Work in Process Department BWork in ProcessDepartment ADirect MaterialsDirect LaborAppliedOverheadDirect MaterialsDirect LaborAppliedOverheadTransferred to Dept.BTransferred from Dept.A4-19Process Costing(in journal entry form)4-20Finished GoodsProcess Cost Flows(in T-account form)Work in Process Department BCost of Goods ManufacturedDirect MaterialsDirect LaborAppliedOverheadTransferred from Dept.ACost of GoodsManufactured 4-21Process Costing(in journal entry form)4-22Finished Goods Cost of Goods SoldProcess Cost Flows(in journal entry form)Work in Process Department BCost of Goods ManufacturedDirect MaterialsDirect LaborAppliedOverheadTransferred from Dept.ACost of GoodsSold Cost of GoodsSold Cost of GoodsManufactured 4-23Process Costing(in journal entry form)4-24Product Cost FlowsCosts associated with the goods that are completed during the period are transferred to finished goods inventory.4-25Equivalent Units of ProductionEquivalent units are the product of the number of partially completed units and the percentage completion of those units.We need to calculate equivalent units because a department usually has some partially completed units in its beginning and ending inventory.4-26Equivalent Units The Basic IdeaTwo half completed products are equivalent to one completed product.So,10,000 units 70%completeare equivalent to 7,000 complete units.+=14-27 For the current period,Jones 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 Jones have for the period?a.10,000 b.11,500 c.13,500 d.15,000Quick Check 4-28Calculating Equivalent UnitsEquivalent units can be calculated two ways:The First-In,First-Out Method FIFO is covered in the appendix to this chapter.The Weighted-Average Method This method will be covered in the main portion of the chapter.4-29Learning Objective 2Compute the equivalent units of production using the weighted-average method.4-30Equivalent Units of ProductionWeighted-Average MethodThe weighted-average method.Makes no distinction between work done in prior or current periods.Blends together units and costs from prior and current periods.Determines equivalent units of production for a department by adding together the number of units transferred out plus the equivalent units in ending work in process inventory.4-31Treatment of Direct LaborDirect labor costsare becoming smallin comparison toother productcosts in processcost systems.DirectMaterialsType of Product CostDollar AmountDirectLaborConversion4-32Treatment of Direct LaborType of Product CostDollar AmountConversionDirect labor and manufacturing overhead may beDirect labor and manufacturing overhead may becombined into one product cost called combined into one product cost called conversionconversion.DirectMaterialsDirect labor costsmay be smallin comparison toother productcosts in processcost systems.4-33Weighted-Average ExampleDouble Diamond Skis reported the following activity in Shaping and Milling Department for the month of May:4-34The first step in calculating the equivalent units is to identify the units completed and transferred out of the Department in May(4,800 units)Weighted-Average Example4-35The second step is to identify the equivalent units in ending work in process with respect to materials for the month(160 units)and add this to the 4,800 units from step one.Weighted-Average Example4-36Weighted-Average ExampleThe third step is to identify the equivalent units in ending work in process with respect to conversion for the month(100 units)and add this to the 4,800 units from step one.4-37Equivalent units of production will always be equal:Units completed and transferred out +Equivalent units remaining in work in processWeighted-Average Example4-38Learning Objective 3Compute the cost per equivalent unit using the weighted-average method.4-39Beginning work in process:200 units Materials:55%complete$9,600Conversion:30%complete5,575Production started during May5,000 unitsProduction completed during May4,800 unitsCosts added to production in MayMaterials cost$368,600Conversion cost 350,900 Ending work in process 400 unitsMaterials:40%completeConversion:25%completeCompute and Apply Costs4-40Compute and Apply CostsThe formula for computing the cost per equivalent unit is:Cost perequivalent unit=Cost of beginningwork in processinventory Cost added during the periodEquivalent units of production+4-41NumeratorDenominator4-42 Here is a schedule with the cost and equivalent unit information.Compute and Apply Costs4-43Compute and Apply Costs$356,475 4,900 units=$72.75$356,475 4,900 units=$72.75$378,200 4,960 units=$76.25 Here is a schedule with the cost and equivalent unit information.4-44Learning Objective 4Assign costs to units using the weighted-average method.4-45Basic Equation for Inventory AccountsBeginningbalanceAdditionsto inventory+=EndingbalanceWithdrawalsfrominventory+4-46Applying Costs4-47Applying Costs4-48Applying Costs4-49Computing the Cost of Units Transferred Out4-50Computing the Cost of Units Transferred Out4-51Computing the Cost of Units Transferred Out4-52Reconciling Costs4-53Reconciling CostsAppendix 4AFIFO Method4-55FIFO vs.Weighted-Average MethodThe FIFO method(generally considered more accurate than the weighted-average method)differs from the weighted-average method in two ways:1.The computation of equivalent units.The computation of equivalent units.2.The way in which the costs of beginning The way in which the costs of beginning inventory are treated in the cost inventory are treated in the cost reconciliation report.reconciliation report.4-56Learning Objective 5Compute the equivalent units of production using the FIFO method.4-57Equivalent Units FIFO MethodLets revisit the Double Diamond Skis example.Assume the following activity is reported in Shaping and Milling Department for May:4-58Equivalent Units FIFO MethodStep 1Step 1:Determine equivalent units needed to complete beginning inventory.4-59Equivalent Units FIFO MethodStep 2Step 2:Determine units started and completed during the period.4-60Equivalent Units FIFO MethodStep 3Step 3:Add the equivalent units in ending work in process inventory.4-61Equivalent Units:Weighted Average vs.FIFOAs shown below,the equivalent units in beginning inventory are subtracted from the equivalent units of production per the weighted-average method to obtain the equivalent units of production under the FIFO method.4-62Learning Objective 6Compute the cost per equivalent unit using the FIFO method.4-63Cost per Equivalent Unit-FIFOLets revisit the Double Diamond Skis Shaping and Milling Department for the Month of May to prepare our production report.Beginning work in process:200 unitsMaterials:55%complete$9,600Conversion:30%complete5,575$15,175Production started during May5,000 unitsProduction completed during May4,800 unitsCosts added to production in MayMaterials cost$368,600Conversion cost 350,900Ending work in process:400 unitsMaterials:40%completeConversion:25%complete4-64Cost per Equivalent Unit-FIFOThe formula for computing the cost per equivalent unit under FIFO method is as follows:Cost perequivalent unit=Cost added during the periodEquivalent units of production4-65NumeratorDenominator4-66Cost per Equivalent Unit-FIFO4-67Learning Objective 7Assign costs to units using the FIFO method.4-68Applying Costs-FIFOStep 1Step 1:Record the equivalent units of production in ending work in process inventory.4-69Applying Costs-FIFOStep 2Step 2:Record the cost per equivalent unit.4-70Applying Costs-FIFOStep 3Step 3:Compute the cost of ending work in process inventory.4-71Cost of Units Transferred OutStep 1Step 1:Record the cost in beginning work in process inventory.4-72Cost of Units Transferred OutStep 2Step 2:Compute the cost to complete the units in beginningwork in process inventory.4-73Cost of Units Transferred OutStep 3Step 3:Compute the cost of units started and completed this period.4-74Cost of Units Transferred OutStep 4Step 4:Compute the total cost of units transferred out.Principle of FIFO4-75Reconciling CostsPart A4-76Reconciling CostsPart B4-77A Comparison of Costing MethodsIn a lean production environment,FIFO and weighted-average methods yield similar unit costs.When considering cost control,FIFO is superior to weighted-average because it does not mix costs of the current period with costs of the prior period.4-78End of Chapter 4谢谢！谢谢！79