à những kỹ năng cơ bản mà các chuyên viên kế toán quản trị, tài chính cần có cho đặc thù công việc và ngành của mình như: Phân tích báo cáo tài chính, kế toán và quản trị chi phí, lập kế hoạch kiểm soát, lập và phân tích báo cáo báo cáo quản trị, tài chính doanh nghiệp và quản trị nguồn ngân sách, quản lý rủi ro, .
Trang 1Page 3-1
Trang 2Process Costing Process Costing
Managerial Accounting
Fifth Edition
Trang 3Page
3-3
study objectives
order cost and process cost systems
costs in a process cost system
production cost report
Trang 4preview of chapter 3
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3-5
Use to apply costs to similar products that are
mass-produced in a continuous fashion
Examples include the production of
Cereal, Paint, and Soft Drinks
Illustration 3-1
SO 1 Understand who uses process cost systems.
Nature of Process Cost Systems
Nature of Process Cost Systems
Uses of Process Cost Systems
Trang 6Illustration 3-2
Nature of Process Cost Systems
Nature of Process Cost Systems
Process and Job Cost
Comparison
Trang 7Page
3-7
Which of the following items is not a characteristic of a
process cost system:
a Once production begins, it continues until the finished
product emerges.
b The focus is on continually producing homogenous
products
c When the finished product emerges, all units have
precisely the same amount of materials, labor, and overhead.
d The products produced are heterogeneous in nature
Review Question
SO 1 Understand who uses process cost systems.
Nature of Process Cost Systems
Nature of Process Cost Systems
Solution on notes page
a Once production begins, it continues until the finished
product emerges.
b The focus is on continually producing homogenous
products
c When the finished product emerges, all units have
precisely the same amount of materials, labor, and overhead.
d The products produced are heterogeneous in nature
Trang 8Service companies that provide specific,
nonroutine services will probably benefit from
using a job order cost system
Those that perform routine, repetitive services
will probably be better off with a process cost
system.
Nature of Process Cost Systems
Nature of Process Cost Systems
Process Costing for Service
Companies
Trang 9Page
3-9
SO 2 Explain the similarities and differences
between job order cost and process cost
systems.
Nature of Process Cost Systems
Nature of Process Cost Systems
Similarities and Differences Between
Job Order Cost and Process Cost
Systems
Job Order Cost
Costs assigned to each
Products are uniform or relatively homogeneous and produced in a large volume
Trang 10Illustration 3-3
Nature of Process Cost Systems
Nature of Process Cost Systems
Similarities and Differences
Trang 11Page
3-11
SO 2 Explain the similarities and differences
between job order cost and process cost
systems.
Nature of Process Cost Systems
Nature of Process Cost Systems
3 The flow of costs
1 The number of work
in process accounts used
2 Documents used to
track costs
3 The point at which
costs are totaled
4 Unit cost
computations
Differences
Trang 12Illustration 3-4
Nature of Process Cost Systems
Nature of Process Cost Systems
Similarities and Differences
Trang 13Page
3-13
a Both a job order and a process cost system track the
same three manufacturing cost elements – direct materials, direct labor, and manufacturing overhead.
b In a job order cost system, only one work in process
account is used, whereas in a process cost system, multiple work in process accounts are used.
c Manufacturing costs are accumulated the same way in a
job order and in a process cost system.
d Manufacturing costs are assigned the same way in a job
order and in a process cost system
Indicate which of the following statements is not correct:
Review Question
SO 2 Explain the similarities and differences
between job order cost and process cost
systems.
Nature of Process Cost Systems
Nature of Process Cost Systems
Solution on notes page
a Both a job order and a process cost system track the
same three manufacturing cost elements – direct materials, direct labor, and manufacturing overhead.
b In a job order cost system, only one work in process
account is used, whereas in a process cost system, multiple work in process accounts are used
c Manufacturing costs are accumulated the same way in a
job order and in a process cost system.
d Manufacturing costs are assigned the same way in a job
order and in a process cost system
Trang 14Indicate whether the following
1 A law firm is likely to use process costing for
major lawsuits
2 A manufacturer of paintballs is likely to use
process costing
3 Both job order and process costing determine
total costs at the end of a period of time
4 Process costing does not keep track of
manufacturing overhead
False
True
False
Nature of Process Cost Systems
Nature of Process Cost Systems
False
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3-15
Nature of Process Cost Systems
Nature of Process Cost Systems
Process Cost Flow
SO 3 Explain the flow of costs in a process cost system.
Illustration 3-5
Tyler Company manufactures automatic can openers that it
sells to retail outlets Manufacturing consists of two
processes: machining and assembly The Machining
Department shapes, hones, and drills the raw materials
The Assembly Department assembles and packages the
parts.
Trang 16Accumulation of materials, labor, and overhead
Debit Raw Materials Inventory for purchases of
Assignment of the three manufacturing cost
Nature of Process Cost Systems
Nature of Process Cost Systems
Assigning Manufacturing
Costs
Trang 17Nature of Process Cost Systems
Nature of Process Cost Systems
Material Costs
SO 4 Make the journal entries to assign manufacturing costs in a process cost system.
Trang 18Time tickets may be used in both systems.
All labor costs incurred within a production department are a cost of processing
The journal entry to record factory labor costs:
Nature of Process Cost Systems
Nature of Process Cost Systems
Factory Labor Costs
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3-19
Objective of assigning overhead
Allocate overhead to departments on an objective
and equitable basis.
Machine time used - primary driver
Journal entry to allocate overhead:
Nature of Process Cost Systems
Nature of Process Cost Systems
Manufacturing Overhead
Costs
SO 4 Make the journal entries to assign manufacturing costs in a process cost system.
Trang 20Monthly Entry to transfer goods to next department:
Nature of Process Cost Systems
Nature of Process Cost Systems
Transfer Costs
Entry to transfer completed goods to Finished Goods:
Entry to record Cost of Goods sold at the time of sale:
Trang 21Page
3-21
In making the journal entry to assign raw
materials costs:
a The debit is to Finished goods Inventory
b The debit is often to two or more work in
process accounts
c The credit is generally to two or more
work in process accounts
d The credit is to Finished Goods Inventory
Review Question
Nature of Process Cost Systems
Nature of Process Cost Systems
SO 4 Make the journal entries to assign manufacturing costs in a process cost system.
Solution on notes page
a The debit is to Finished goods Inventory
b The debit is often to two or more work in
process accounts
c The credit is generally to two or more
work in process accounts
d The credit is to Finished Goods Inventory
Trang 22K Christel Company manufactures ZEBO through two processes: blending and
bottling In June, raw materials used were Blending
$18,000 and Bottling $4,000 Factory labor costs were
Blending $12,000 and Bottling $5,000 Manufacturing
overhead costs were Blending $6,000 and Bottling
$2,500 The company transfers units completed at a
cost of $19,000 in the Blending Department to the
Bottling Department The Bottling Department transfers units completed at a cost of $11,000 to Finished Goods Journalize the assignment of these costs to the two
processes and the transfer of units as appropriate
Nature of Process Cost Systems
Nature of Process Cost Systems
Trang 23Page
3-23
Journalize the assignment of these costs
Nature of Process Cost Systems
Nature of Process Cost Systems
Work in Process—Bottling 4,000
Raw Materials Inventory 22,000
Work in Process—Blending 12,000 Work in Process—Bottling 5,000
Factory Labor 17,000
SO 4
Trang 24Journalize the assignment of these costs
Nature of Process Cost Systems
Nature of Process Cost Systems
Work in Process—Blending 6,000 Work in Process—Bottling 2,500
Manufacturing Overhead 8,500
Trang 25Page
3-25
Journalize the transfer of units as appropriate
Nature of Process Cost Systems
Nature of Process Cost Systems
Work in Process—Blending 19,000
Finished Goods Inventory 11,000
Work in Process—Bottling 11,000
SO 4 Make the journal entries to assign manufacturing costs in a process cost system.
Trang 26Total cost of instruction $9,000,000 Student population:
Full-time students 900 Part-time students 1,000
Illustration 3-6
Trang 27Page
3-27
Total cost of instruction $9,000,000
Number of full-time equivalent students / 1,500
Illustration: Part-time students take 60% of the
classes of a full-time student during the year To
compute the number of full-time equivalent students
per year, you would make the following computation
Cost of instruction per full-time equivalent student =
Trang 28Considers the degree of completion (weighting) of units completed and transferred out and units in ending work in process.
Most widely used method
Trang 29Page
3-29
Illustration: The output of K Christel Company’s
Packaging Department during the period consists of
10,000 units completed and transferred out, and
5,000 units in ending work in process which are 70%
Trang 30Illustration: Kellogg Company has produced Eggo®
Waffles since 1970 Three departments produce these
waffles: Mixing, Baking, and Freezing/Packaging The
Mixing Department combines dry ingredients,
including flour, salt, and baking powder, with liquid
ingredients, including eggs and vegetable oil, to make
Trang 31Page
3-31
Illustration: Information related to the Mixing
Department at the end of June
Illustration 3-9
Equivalent Units
Equivalent Units
SO 5 Compute equivalents units.
Refinements on the Weighted-Average
Method
Trang 32Conversion costs are labor costs plus overhead costs.
Beginning work in process is not part of the equivalent-units-of-production formula
Equivalent Units
Equivalent Units
Illustration 3-10
Trang 33SO 5 Compute equivalents units.
Refined Equivalent Units of Production Formula
Trang 34The Mixing Department’s output during the period
consists of 20,000 units completed and transferred out,
and 5,000 units in ending work in process 60% complete
as to materials and conversions costs Beginning
inventory is 1,000 units, 40% complete as to materials
and conversion costs The equivalent units of production are:
Trang 35Page
The fabricating department has the following production and cost data for the current
Materials are entered at the beginning of the process
The ending work in process units are 30% complete as to conversion costs Compute the equivalent units of
production for (a) materials and (b) conversion costs
Trang 36The fabricating department has the following production and cost data for the current
materials and (b) conversion costs
Units transferred out 15,000
Ending work in process units 10,000
Trang 37Page
The fabricating department has the following production and cost data for the current
Compute the equivalent units of production for (a)
Units transferred out 15,000
Equivalent unit in ending WIP (10,000 x 30%) 3,000
18,000
Trang 38Key document used to understand activities.
Production Quantity and Cost data
Four steps in preparation:
Step 1: Compute physical unit flow
Step 2: Compute equivalent units of production
Step 3: Compute unit production costs
Step 4: Prepare a cost reconciliation
Equivalent Units
Equivalent Units
Production Cost Report
Trang 39Production Cost Report
SO 6 Explain the four steps necessary to prepare a production cost
report.
Trang 40Illustration: Assumed data for the Mixing
Department at Kellogg Company for the month of
June
Trang 41Page
3-41
Physical units - actual units to be accounted
for during a period, regardless of work performed
Total units to be accounted for - units started (or transferred) into production during
the period + units in production at
beginning of period.
Total units accounted for - units transferred out during period + units in production at end of period
Comprehensive Example of Process
Trang 42Comprehensive Example of Process
Trang 43Page
3-43
Department
Trang 44Costs expressed in terms of equivalent units of production.
When equivalent units of production are different for materials and for conversion costs, three unit costs are computed:
Trang 45Compute total materials cost related to Eggo®
Waffles:
Work in process, June 1
Direct materials costs $ 50,000 Cost added to production during June
Direct material cost 400,000 Total material costs $450,000
Illustration 3-17
Solution on notes page
Illustration 3-16
Trang 46Comprehensive Example of Process
Costing
Comprehensive Example of Process
Costing
Compute total conversion costs related to Eggo®
Waffles:
Work in process, June 1
Conversion costs $ 35,000 Costs added to production during June
Conversion costs 170,000 Total conversion costs $205,000
Illustration 3-18
Illustration 3-19
Trang 47Compute total manufacturing costs per
unit:
Solution on notes page
Illustration 3-20 Illustration 3-19
Trang 48Comprehensive Example of Process
Kellogg charged total costs of $655,000 to the Mixing
Department in June, calculated as follows
Costs to be accounted for
Work in process, June 1 $ 85,000 Started into production 570,000
Illustration 3-21
Trang 50Comprehensive Example of Process
Trang 51Page
3-51
Largo Company has unit costs of $10 for materials
and $30 for conversion costs If there are 2,500
units in ending work in process, 40% complete as
to conversion costs and fully complete as to
materials cost, the total cost assignable to the
ending work in process inventory is:
Trang 52In March, K Christel Manufacturing had the following unit production costs: materials $6 and conversion costs $9 On March 1, it had zero work in
process During March, K Christel transferred out 12,000
units As of March 31, 800 units that were 25 percent
complete as to conversion costs and 100 percent complete
as to materials were in ending work in process Assign the
costs to the units transferred out and in process.
Costs transferred out $180,000
Work in process, March 31
Materials (800 x $6) $4,800 Conversion costs (200 x $9) 1,800
Comprehensive Example of Process
Costing
Comprehensive Example of Process
Costing
Trang 53At the same time, the product may have some customized, individual features that require the use of a job order cost system.
Costing Systems – Final Comments
SO 7 Prepare a production cost report.
Comprehensive Example of Process
Costing
Comprehensive Example of Process
Costing
Trang 54 Wal-Mart has 138 million weekly customers.
In 2006 Wal-Mart had annual sales of $312 billion and
net income of more than $11.2 billion.
There are about 5,300 Wal-Mart stores worldwide
During a single recent year, it planned on adding 500 more stores, and it believes that the U.S has room for
at least 4,000 more “supercenters.”
Trang 55Page
3-55
During a recent year, 10,000 companies applied to be
new suppliers to Wal-Mart Of those, some 200 (about 2%) were accepted.
Wal-Mart doesn’t like to account for more than 30% of
a supplier’s total business for fear that changing an order can destroy the supplier.
As shown in the “About the Numbers” section in the
next column, Wal-Mart’s “kingdom” spreads across
many different countries Recently, however, it sold all
of its stores in Germany because they could not meet its desired profitability goals.