Process-Costing-and-Hybr课件(PPT 45页)

1、Process Costing and Hybrid Product-Costing Systems 4Chapter Four第1页，共45页。Comparison of Job-Order Costing and Process CostingProcessCostingProcessCostingJob-orderCosting Used for production of small, identical, low cost items. Mass produced in automated continuous production process. Costs cannot be

2、directly traced to each unit of product.第2页，共45页。ProcessCostingProcessCostingJob-orderCosting Typical process cost applications: Petrochemical refinery Paint manufacturer Paper millComparison of Job-Order Costing and Process Costing第3页，共45页。Job-order costingCosts accumulated by the job.Work in proce

3、ss 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

4、 automated process.Comparison of Job-Order Costing and Process Costing第4页，共45页。Process Cost FlowsLets examine the cost flows in a process cost system with Departments A and B. We will use T-accounts and start with materials.第5页，共45页。 Raw MaterialsPurchasesDirect MaterialDirectMaterialOtherOverheadFa

5、ctory OverheadProcess Cost Flows Work in Process Department AIndirect MaterialIndirect Material第6页，共45页。Process Cost FlowsNext lets add labor and manufacturing overhead to the process cost flows. Are you with me?第7页，共45页。Direct LaborOther OverheadFactory OverheadProcess Cost Flows Work in Process De

6、partment ADirect MaterialSalaries andWages PayableIndirectLaborDirect LaborOverheadApplied to Work inProcessOverheadIndirect MaterialIndirectLabor第8页，共45页。Process Cost FlowsNext lets transfer work from Department A to Department B. Are you ready?第9页，共45页。Process Cost Flows Work in Process Department

7、 B Work in Process Department ADirect MaterialDirect LaborOverheadTransferred to Dept. BTransferred from Dept. A第10页，共45页。Process Cost FlowsNext lets add material, labor, and manufacturing overhead to Department B. Are you with me?第11页，共45页。Process Cost Flows Work in Process Department B Work in Pro

8、cess Department ADirect MaterialDirect LaborOverheadTransferred from Dept. ADirect MaterialDirect Labor Raw MaterialsPurchasesDirectMaterialDirect LaborSalaries andWages PayableTransferred to Dept. B第12页，共45页。Process Cost Flows Work in Process Department B Work in Process Department ADirect Material

9、Direct LaborOverheadTransferred from Dept. ADirect MaterialDirect LaborOther OverheadFactory OverheadOverheadApplied to Work inProcessIndirect MaterialIndirectLaborOverheadTransferred to Dept. B第13页，共45页。Process Cost FlowsNow lets complete the goods in Department B and sell them. Still with me? 第14页

10、，共45页。Finished GoodsCost of GoodsSold Cost of GoodsMfd. Cost of GoodsSold Cost of Goods SoldProcess Cost FlowsCost of Goods Mfd. Work in Process Department BDirect MaterialDirect LaborOverheadTransferred from Dept. A第15页，共45页。Process CostingDirectMaterialDirect-labor costsare usually smallin compari

11、son toother productcosts in processcost systems.(high level of automation)Type of Product CostDollar AmountDirectLaborManufacturingOverhead第16页，共45页。Process CostingConversionDirect-labor costsare usually smallin comparison toother productcosts in processcost systems.(high level of automation)So, dir

12、ect labor and manufacturing overhead are oftencombined into one product cost called conversion.DirectMaterialType of Product CostDollar Amount第17页，共45页。Direct MaterialFinishedGoodsCost of GoodsSoldDirect LaborManufacturingOverhead JobsThe work-in-process account consists of individual jobs in a job-

13、order cost system.Differences Between Job-Order and Process Costing第18页，共45页。Direct MaterialFinishedGoodsCost of GoodsSoldProductsThe work-in-process account consists of individual products in a process cost system.Differences Between Job-Order and Process CostingDirect Labor& Overhead(Conversion)Wh

14、en direct labor is a relatively small amount compared to material and overhead, it is often combined with overhead.第19页，共45页。Equivalent 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

15、 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.第20页，共45页。Equivalent Units ExampleTwo one-half completed products are equivalent to one completed product.So, 10,000 units 70 pe

16、rcent completeare equivalent to 7,000 complete units.+=l第21页，共45页。 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

17、. 15,000Equivalent Units Question 1第22页，共45页。 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. 15,000 10,000 units

18、 + (5,000 units .30) = 11,500 equivalent unitsEquivalent Units Question 1第23页，共45页。Calculating and Using Equivalent Units of ProductionTo calculate the cost perequivalent unit for the period:Cost perequivalent unit=Costs for the periodEquivalent units for the period第24页，共45页。 If Jones incurred $27,6

19、00 inproduction costs for the 11,500 equivalent units. What was Joness cost per equivalent unit for the period?a.$1.84b.$2.40c.$2.76d.$2.90Equivalent Units Question 2第25页，共45页。 If Jones incurred $27,600 inproduction costs for the 11,500 equivalent units. What was Joness cost per equivalent unit for

20、the period?a.$1.84b.$2.40c.$2.76d.$2.90$27,600 11,500 equivalent units = $2.40 per equivalent unitEquivalent Units Question 2第26页，共45页。Departmental Production ReportProductionReport Analysis of physical flowof units. Calculationof equivalent units. Computationof unit costs. Analysis of total costs.第

21、27页，共45页。Equivalent 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

22、 method and israrely used in practice.第28页，共45页。Production Report ExampleAt this point, we need to look at an example to illustrate the departmental production report. 第29页，共45页。MVP Sports Equipment Company makes baseball gloves in two departments, Cutting and Stitching. MVP uses the weighted-averag

23、e cost procedure.Material is added at the beginning of the Cutting Department, and conversion is incurred uniformly throughout the process.Using the following information for the month of March, lets prepare a production report for the Cutting Department. Production Report Example第30页，共45页。Work in p

24、rocess, March 1: 20,000 units Materials: 100% complete. $ 50,000Conversion: 10% complete. 7,200Units started into production in March:30,000 unitsUnits completed and transferred out in March:40,000 unitsWork in process, March 31: 10,000 unitsMaterials100% complete.Conversion 50% complete.Costs incur

25、red during MarchMaterials cost$ 90,000Conversion cost 193,500 Cost Production Report Example第31页，共45页。 Analysis of Physical Flow of UnitsProduction Report Example第32页，共45页。Production Report Example Calculation of Equivalent Units50% of 10,000 unitsBeginning inventory % is not used in weighted-averag

26、e method.第33页，共45页。Production Report Example Calculation of Equivalent Units100% of 10,000 units, allmaterial added at beginning第34页，共45页。 Computation of unit costsProduction Report Example$140,000 50,000 equivalent units$200,700 45,000 equivalent units$2.80 + $4.46第35页，共45页。All costs accounted forProduction Report Example Analysis