Bài giảng Kế toán, kiểm toán - Chapter 4: Process costing and hybrid product - Costing systems

Process Costing and Hybrid Product-Costing Systems Chapter 4Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Comparison of Job-Order Costing and Process CostingJob-order costingCosts accumulated by the job.Work in process has a job-cost sheet for each job.Many unique, high cost jobs.Jobs built to customer order.Process costingCosts accumulated by department or process.Work in process has a production report for each batch of products. A few identical, low cost products. Units continuously produced for inventory in automated process.4-2Process Cost Flows4-3Process Cost Flows4-4Equivalent Units: A Key ConceptCosts are accumulated for a period of time for products in work-in-process inventory. Products in work-in-process inventory at the beginning and end of the period are only partially complete. Equivalent units is a concept expressing these partially completed products as a smaller number of fully completed products.4-5Equivalent Units ExampleTwo half completed products are equivalent to one completed product.So, 10,000 units that are 70% completeare equivalent to 7,000 complete units.+=l4-6Calculating and Using Equivalent Units of ProductionTo calculate the direct materials and conversion costs per equivalent unit for the period:Materials cost perequivalent unit=Materials cost for the periodMaterials equivalent units for the periodConversion cost perequivalent unit=Conversion cost for the periodConversion equivalent units for the period4-7Departmental Production ReportProductionReport Analysis of physical flowof units.Calculationof equivalent units.Computationof unit costs.Analysis of total costs.4-8Equivalent Units of Production –Weighted-Average MethodThe weighted-average method . . .Makes no distinction between work done in the prior period and work done in the current period.Blends together units and costs from the prior period and the current period.The FIFO method is a morecomplex method and israrely used in practice.4-9 Computation of unit costsProduction Report Example$140,000 ÷ 50,000 equivalent units$200,700 ÷ 45,000 equivalent units$2.80 + $4.464-10Production Report Example Analysis of total costs 4-11Production Report Example Analysis of total costs4-12Production Report Example Analysis of total costsAll costs accounted for4-134-14Departmental Production ReportAnalysis of physical flowof units.Calculationof equivalent units.Computationof unit costs.Analysis of total costs.4-15Operation CostingOperation costing employs some aspectsof both job-order and process costing.Job-order Operation Costing Process Costing (Products produced in batches) Costing4-16Operation CostingOperation costing employs some aspectsof both job-order and process costing.Job-order Operation Costing Process Costing (Products produced in batches) CostingConversion costsare assigned to batchesas in process costing.Material costs are chargedto batches as injob-order costing.4-17