Bài giảng môn Kế toán, kiểm toán - Chapter 13: Cost accounting and reporting

© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.Chapter 13Cost Accounting and ReportingPowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPADirect costsCan be easily and conveniently traced to a unit of product or other cost objective.Would not be incurred if the product or activity was discontinued.Indirect costsCannot be easily and conveniently traced to a unit of product or other cost object. Would be incurred even if the product or activity was discontinued.LO 3Direct Costs and Indirect Costs13-3LO 4Costs for Cost Accounting Purposes13-4The ProductRawMaterialsDirectLaborManufacturingOverheadLO 4Product Costs 13-5Cost of GoodsSoldDirect Labor Balance Sheet Costs Inventories Income StatementExpensesSelling andAdministrativePeriod CostsMaterial PurchasesManufacturingOverheadSelling andAdministrativeLO 4Product Costs andPeriod Costs 13-6THE JOBRawmaterial Direct  labor Traced directly to each jobTraced directly to each jobManufacturingoverhead (OH)Applied to eachjob using apredeterminedrateLO 5Cost Accounting Systems13-7Estimated total manufacturingoverhead cost for the coming periodEstimated total units in theallocation base for the coming periodPOHR = The predetermined overhead rate (POHR) used to apply overhead to jobs is determined before the period begins.Ideally, the allocation base is a cost driver that causes overhead.LO 6Cost Accounting Systems13-8Raw MaterialsMaterialPurchasesDirect MaterialsDirect MaterialsMfg. OverheadIndirect MaterialsWork in ProcessIndirect MaterialsActualAppliedLO 6Cost Accounting Systems13-9Direct LaborMfg. OverheadSalaries and Wages PayableWork in ProcessDirect MaterialsOverheadApplied to Work inProcessIndirectLaborDirect LaborOverhead AppliedIndirectLaborIndirect MaterialsActualAppliedIf actual and applied manufacturing overheadare not equal, a year-end adjustment is required.LO 6Cost Accounting Systems13-10Cost ofGoodsMfd. Finished GoodsCost ofGoodsSold Cost ofGoodsMfd. Cost of Goods SoldCost ofGoodsSold Work in ProcessDirect MaterialsDirect LaborOverhead AppliedLO 6Cost Accounting Systems13-11ProcessCostingJob OrderCosting Costs are accumulated by job. Used for production of large, unique, high-cost items. Built to order rather than mass produced. Many costs can be directly traced to each job.LO 8Cost Accounting Systems – Absorption13-12LO 8ProcessCostingJob OrderCosting Costs are accumulated by departments. Used for production of small, identical, low-cost items. Mass produced in an automated continuous process. Costs cannot be directly traced to each unit of product. Production is stated in “equivalent” units.Cost Accounting Systems – Absorption13-13Direct MaterialsDirect LaborVariable Manufacturing OverheadFixed Manufacturing OverheadVariable Selling and Administrative ExpensesFixed Selling and Administrative ExpensesVariableCostingAbsorptionCostingProductCostsPeriodCostsProductCostsPeriodCosts Absorption Costing and Variable CostingLO 8Cost Accounting Systems13-14Variable costing Balance Sheet Costs Inventories Income StatementExpensesCost of GoodsSoldSelling andAdministrativePeriod Costs Work in ProcessFinishedGoodsRaw MaterialsVariableManufacturing OverheadMaterial PurchasesDirect LaborSelling andAdministrativeFixedManufacturing OverheadAbsorption costingLO 8Absorption and Variable Costing13-15Identify activities and assign costs to those activities.Central idea . . .Products require activities.Activities consume resources.ABCACBLO 9Activity-Based Costing (ABC)13-16More detailed measures of costs.Better understanding of activities.More accurate product costs for . . .Pricing decisions.Product elimination decisions.Managing activities that cause costs.Benefits should always be comparedto the costs of implementation.LO 9The Benefits of ABC13-17Overhead Actual Rate Activity×Rate = Estimated overhead costs in activity cost pool Estimated number of activity units Identify activities that consume resources. Assign costs to a cost pool for each activity. Identify cost drivers associated with each activity. Compute overhead rate for each cost pool:5. Assign costs to products: LO 9Activity-Based Costing Procedures13-18End of Chapter 1313-19