管理会计英文课件-(4).ppt

1、PowerPoint Authors:Susan Coomer Galbreath,Ph.D.,CPACharles W.Caldwell,D.B.A.,CMAJon A.Booker,Ph.D.,CPA,CIACynthia J.Rooney,Ph.D.,CPACopyright 2012 by The McGraw-Hill Companies,Inc.All rights reserved.Process CostingChapter 44-2Similarities Between Job-Order and Process CostingBoth systems assign mat

2、erial,labor,and overhead costs to products and they provide a mechanism for computing unit product costs.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 basicall

3、y the same in both systems.4-3Differences Between Job-Order and Process CostingProcess costing:1.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 having different production requirements are worked on each

4、 period.2.Systems accumulate costs by department.Job-order costing systems accumulated costs by individual jobs.3.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 produc

5、ed continuously.b.Similar and produced continuously.c.Individual units produced to customer specifications.d.Purchased from vendors.Quick Check 4-5Process costing is used for products that are:a.Different and produced continuously.b.Similar and produced continuously.c.Individual units produced to cu

6、stomer specifications.d.Purchased from vendors.Quick Check 4-6Processing DepartmentsAny unit in an organization where materials,labor,or overhead are added to the product.4-7Learning Objective 1Record the flow of materials,labor,and overhead through a process costing system.4-8Comparing Job-Order an

7、d Process CostingFinishedGoodsCost of GoodsSoldWork inProcessDirect MaterialsDirect LaborManufacturing Overhead 4-9Comparing Job-Order and Process CostingFinishedGoodsCost of GoodsSoldDirect LaborManufacturing Overhead Costs are traced andapplied to individualjobs in a job-ordercost system.Direct Ma

8、terials4-10Comparing Job-Order and Process CostingFinishedGoodsCost of GoodsSoldDirect LaborManufacturing Overhead ProcessingDepartmentCosts are traced and applied to departments in a process cost system.Direct Materials4-11T-Account and Journal Entry Views of Process Cost FlowsFor purposes of this

9、example,assume there are two processing departments Departments A and B.We will use T-accounts and journal entries.4-12 Raw MaterialsProcess Cost Flows:The Flow of Raw Materials(in T-account form)Work in Process Department B Work in Process Department ADirectMaterialsDirect MaterialsDirect Materials

10、4-13Process Cost Flows:The Flow of Raw Materials(in journal entry form)4-14Process Cost Flows:The Flow of Labor Costs(in T-account form)Work in Process Department B Work in Process Department A Salaries and Wages PayableDirect MaterialsDirect MaterialsDirect LaborDirect LaborDirect Labor4-15Process

11、Costing:The Flow of Labor Costs(in journal entry form)4-16Process Cost Flows:The Flow of Manufacturing Overhead Costs(in T-account form)Work in Process Department B Work in Process Department AManufacturing OverheadOverheadApplied to Work inProcessAppliedOverheadAppliedOverheadDirect LaborDirect Mat

12、erialsDirect LaborDirect MaterialsActual Overhead4-17Process Cost Flows:The Flow of Manufacturing Overhead Costs(in journal entry form)4-18Process Cost Flows:Transfers from WIP-Dept.A to WIP-Dept.B(in T-account form)Work in Process Department BWork in ProcessDepartment ADirect MaterialsDirect LaborA

13、ppliedOverheadDirect MaterialsDirect LaborAppliedOverheadTransferred to Dept.BTransferred from Dept.ADepartmentADepartmentB4-19Process Cost Flows:Transfers from WIP-Dept.A to WIP-Dept.B(in journal entry form)4-20Finished GoodsProcess Cost Flows:Transfers from WIP-Dept.B to Finished Goods(in T-accoun

14、t form)Work in Process Department BCost of Goods ManufacturedDirect MaterialsDirect LaborAppliedOverheadTransferred from Dept.ACost of GoodsManufactured 4-21Process Cost Flows:Transfers from WIP-Dept.B to Finished Goods(in journal entry form)4-22Finished Goods Cost of Goods SoldProcess Cost Flows:Tr

15、ansfers from Finished Goods to COGS(in T-account form)Work in Process Department BCost of Goods ManufacturedDirect MaterialsDirect LaborAppliedOverheadTransferred from Dept.ACost of GoodsSold Cost of GoodsSold Cost of GoodsManufactured 4-23Process Cost Flows:Transfers from Finished Goods to COGS(in

16、journal entry form)4-24Equivalent Units of ProductionEquivalent units are the product of the number of partially completed units and the percentage completion of those units.These partially completed units complicate the determination of a departments output for a given period and the unit cost that

17、 should be assigned to that output.4-25Equivalent Units The Basic IdeaTwo half completed products are equivalent to one complete product.So,10,000 units 70%completeare equivalent to 7,000 complete units.+=14-26 For the current period,Jones started 15,000 units and completed 10,000 units,leaving 5,00

18、0 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 4-27 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 eq

19、uivalent units of production did Jones have for the period?a.10,000 b.11,500 c.13,500 d.15,000 10,000 units+(5,000 units 0.30)=11,500 equivalent unitsQuick Check 4-28Calculating Equivalent Units4-29Learning Objective 2Compute the equivalent units of production using the weighted-average method.4-30E

20、quivalent Units of ProductionWeighted-Average MethodThe weighted-average method.1.Makes no distinction between work done in prior or current periods.2.Blends together units and costs from prior and current periods.3.Determines equivalent units of production for a department by adding together the nu

21、mber of units transferred out plus the equivalent units in ending Work in Process Inventory.4-31Treatment of Direct LaborDirect labor costsmay be smallin comparison toother productcosts in processcost systems.DirectMaterialsType of Product CostDollar AmountDirectLaborManufacturingOverhead4-32Treatme

22、nt of Direct LaborType of Product CostDollar AmountConversionDirect labor and manufacturing overhead may be combined into one classification of product cost called conversion costs.DirectMaterialsDirectLaborDirectLaborManufacturingOverhead4-33Weighted-Average An Example Smith Company reported the fo

23、llowing activity in the Assembly Department for the month of June:Percent CompletedUnitsMaterialsConversionWork in process,June 1300 40%20%Units started into production in June6,000 Units completed and transferred out5,400 of Department A during JuneWork in process,June 30900 60%30%4-34Weighted-Aver

24、age An ExampleThe first step in calculating the equivalent units is to identify the units completed and transferred out of Assembly Department in June(5,400 units)4-35Weighted-Average An ExampleThe second step is to identify the equivalent units of production in ending work in process with respect t

25、o materials for the month(540 units)and adding this to the 5,400 units from step one.4-36Weighted-Average An ExampleThe third step is to identify the equivalent units of production in ending work in process with respect to conversion for the month(270 units)and adding this to the 5,400 units from st

26、ep one.4-37Equivalent units of production always equals:Units completed and transferred +Equivalent units remaining in work in processWeighted-Average An Example4-38BeginningWork in Process300 Units40%CompleteEndingWork in Process900 Units60%Complete6,000 Units Started5,400 Units Completed5,100 Unit

27、s Startedand CompletedWeighted-Average An ExampleMaterials5,400 Units Completed 540 Equivalent Units900 60%5,940 Equivalent units of production4-396,000 Units Started5,400 Units Completed5,100 Units Startedand Completed 270 Equivalent Units900 30%5,670 Equivalent units of productionBeginningWork in

28、Process300 Units20%CompleteEndingWork in Process900 Units30%CompleteWeighted-Average An ExampleConversion4-40Learning Objective 3Compute the cost per equivalent unit using the weighted-average method.4-41Compute and Apply CostsBeginning Work in Process Inventory:400 units Materials:40%complete$6,119

29、Conversion:20%complete$3,920Production started during June 6,000 unitsProduction completed during June 5,400 unitsCosts added to production in JuneMaterials cost$118,621Conversion cost$81,130Ending Work in Process Inventory:900 unitsMaterials:60%completeConversion:30%complete4-42Compute and Apply Co

30、stsThe 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+4-43 Here is a schedule with the cost and equivalent unit information.Compute and Apply Costs4-44Compute and Apply

31、 Costs Here is a schedule with the cost and equivalent unit information.$124,740 5,940 units=$21.00Cost per equivalent unit=$21.00+$15.00=$36.004-45Learning Objective 4Assign costs to units using the weighted-average method.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 Out4-52Learning Objective 5Prepare a cost reconciliation report.4-53Reconciling Costs4-54Reconciling Costs