亨格瑞成本与管理会计（第16版） 课件Chapter 18 Process Costing

CostAccountingSeventeenthEdition,GlobalEditionChapter18ProcessCostingCopyright©2021PearsonEducationLtd.LearningObjectives(1of2)18.1Identifythesituationsinwhichprocess-costingsystemsareappropriate18.2Understandthebasicconceptsofprocess-costingandcomputeaverageunitcosts18.3Describethefivestepsinprocess-costingandcalculateequivalentunits18.4Usetheweighted-averagemethodandfirst-in,first-out(FIFO)methodofprocesscostingLearningObjectives(2of2)18.5Applyprocess-costingmethodstosituationswithtransferred-incosts18.6Understandtheneedforhybrid-costingsystemssuchasoperationcostingJobVersusProcess-CostingJob-costingsystemsDistinct,identifiableunitsofaproductorserviceExamples:Custom-mademachines,housesProcess-costingsystemsMassesofidenticalorsimilarunitsofaproductorserviceExamples:Food,chemicalprocessingProcessCostingProcesscostingisasystemwheretheunitcostofaproductorserviceisobtainedbyassigningtotalcoststomanyidenticalorsimilarunitsofoutput.Unitcostsarecalculatedbydividingtotalcostsincurredbythenumberofunitsofoutputfromtheproductionprocess.Eachunitreceivesthesameorsimilaramountsofdirectmaterialscosts,directmanufacturinglaborcosts,andindirectmanufacturingcosts(manufacturingoverhead).MoreonJob-VersusProcess-CostingInajob-costingsystem,individualjobsusedifferentquantitiesofresources,soitwouldbeincorrecttocosteachjobatthesameaverageproductioncost.Incontrast,whenidenticalorsimilarunitsofproductsorservicesaremass-produced,processcostingisusedtocalculateanaverageproductioncostforallunitsproduced.Themaindifferencebetweenprocesscostingandjobcostingistheextentofaveragingusedtocomputetheunitcostsofproductsorservices.Process-CostingCostCategoriesProcess-costingsystemsseparatecostsintocostcategoriesaccordingtowhencostsareintroducedintotheprocess.Directmaterialsareusuallyaddedatthebeginningoftheproductionprocess,oratthestartofworkinasubsequentdepartmentdowntheassemblyline.Conversioncostsaregenerallyaddedequallyalongtheproductionprocess.Process-Costing:ThreeCasesLet’slookattheprocess-costingprocessthreeways:Case1:Nobeginningorendingwork-in-processinventoriesCase2:Nobeginningwork-in-processinventoryandsomeendingwork-in-processinventoryCase3:Bothbeginningandendingwork-in-processinventoriesarepresentCase1:NoBeginningorEndingWork-in-ProcessInventory(1of3)Whenusingprocesscostingwithoutanybeginningorendingwork-in-processinventory,allcoststhatwereintroducedtotheprocessduringtheperiodwillbeassignedtothefinishedunitsleavingwork-in-processinventoryattheendoftheperiod.Case1:NoBeginningorEndingWork-in-ProcessInventory(2of3)Five-StepProcess-CostingAllocationSummarizetheflowofphysicalunitsofoutput.Computeoutputintermsofequivalentunits.Summarizetotalcoststoaccountfor.Computecostperequivalentunit.Assigntotalcoststounitscompletedandtounitsinendingwork-in-process.Case1:NoBeginningorEndingWork-in-ProcessInventory(3of3)EquivalentUnitsAderivedamountofoutputunitsthattakesthequantityofeachinputinunitscompletedandinunfinishedunitsofworkinprocessandconvertsthequantityofinputintotheamountofcompletedoutputunitsthatcouldbeproducedwiththatquantityofinput.Theyarecalculatedseparatelyforeachinput(directmaterialsandconversioncost).Whencalculatingequivalentunitsinstep2,focusonquantitiesanddisregarddollaramountsuntilaftertheequivalentunitsarecomputed.Case2:NoBeginning,SomeEndingWIPSteps1and2ExampleExhibit18.1SummarizetheFlowofPhysicalUnitsandComputeOutputinEquivalentUnitsfortheAssemblyDepartmentCase2:NoBeginning,SomeEndingWIPSteps3,4,and5ExampleExhibit18.2SummarizetheTotalCoststoAccountfor,ComputetheCostperEquivalentUnit,andAssignCoststotheUnitsCompletedandUnitsinEndingWork-in-ProcessInventoryfortheAssemblyDepartmentGeneralLedgerCostFlowsIllustratedExhibit18.3FlowofCostsinaProcess-CostingSystemfortheAssemblyDepartmentWeighted-AverageProcess-CostingMethod(1of2)Processcostingcanbeaccomplishedusingtheweighted-averagemethodortheFIFOmethod.We’lllookfirstatweighted-average.Weighted-AverageMethodCalculatescostperequivalentunitofallworkdonetodate(regardlessoftheaccountingperiodinwhichitwasdone)Assignsthiscosttoequivalentunitscompletedandtransferredoutoftheprocessandtoequivalentunitsinendingwork-in-processinventoryWeighted-AverageProcess-CostingMethod(2of2)Theweighted-averagecostisthetotalofallcostsenteringthework-in-processaccountdividedbythetotalequivalentunitsofworkdonetodate.Thebeginningbalanceofthework-in-processaccount(workdoneinapriorperiod)isblendedinwithcurrentperiodcosts.Let’slookatCase3(withbothbeginningandendingwork-in-processinventoryusingtheweightedaveragemethod).Case3:BeginningandEndingWIPSteps1and2Example(1of2)Exhibit18.4SummarizetheFlowofPhysicalUnitsandComputeOutputinEquivalentUnitsUsingtheWeighted-AverageMethodfortheAssemblyDepartmentCase3:BeginningandEndingWIPSteps3,4,and5Example(1of2)Exhibit18.5SummarizetheTotalCoststoAccountfor,ComputetheCostperEquivalentUnit,andAssignCoststotheUnitsCompletedandUnitsinEndingWork-in-ProcessInventoryUsingtheWeighted-AverageMethodfortheAssemblyDepartmentResultsoftheProcessTwocriticalfiguresariseoutofstep5ofthecostallocationprocess:Theamountofthejournalentrytransferringtheallocatedcostofunitscompletedandsentfromwork-in-processinventorytofinishedgoodsinventoryTheendingbalanceofthework-in-processinventoryaccountthatwillappearonthebalancesheetFirst-In,First-Out(FIFO)Process-CostingMethod(1of2)Assignsthecostofthepreviousaccountingperiod’sequivalentunitsinbeginningwork-in-processinventorytothefirstunitscompletedandtransferredoutoftheprocessAssignsthecostofequivalentunitsworkedonduringthecurrentperiodfirsttocompletebeginninginventory,nexttostartedandcompletednewunits,andfinallytounitsinendingwork-in-processinventoryFirst-In,First-Out(FIFO)Process-CostingMethod(2of2)AdistinctivefeatureofFIFOprocess-costingmethodisthatworkdoneonthebeginninginventorybeforethecurrentperiodiskeptseparatefromworkdoneinthecurrentperiod.Thecostsincurredandunitsproducedinthecurrentperiodareusedtocalculatethecostperequivalentunitofworkdoneinthecurrentperiod.Incontrast,theequivalent-unitandcostperequivalentunitcalculationsundertheweighted-averagemethodMERGEtheunitsandcostsinbeginninginventorywiththeunitsandcostsofworkdoneinthecurrentperiod.Case3:BeginningandEndingWIPSteps1and2Example(2of2)Exhibit18.6SummarizetheFlowofPhysicalUnitsandComputeOutputinEquivalentUnitsUsingtheFIFOMethodfortheAssemblyDepartmentCase3:BeginningandEndingWIPSteps3,4,and5Example(2of2)Exhibit18.7SummarizetheTotalCoststoAccountfor,ComputetheCostperEquivalentUnit,andAssignCoststotheUnitsCompletedandUnitsinEndingWork-in-ProcessInventoryUsingtheFIFOMethodfortheAssemblyDepartmentComparingWeighted-AverageandFIFOMethods(1of2)FIFOassumesthatalltheunitsfromthepreviousperiod(highercostunitsinourexample)inbeginningWIParethefirsttobecompletedandtransferredoutandthatendingWIPconsistsofonlythelowercostcurrent-periodunits.Theweighted-averagemethodsmoothsoutthecostperequivalentunitbyassumingthatmorelowercostunitsaretransferredoutandsomehighercostremaininendingWIP.ComparingWeighted-AverageandFIFOMethods(2of2)Managersuseinformationfromprocess-costingsystemstomakepricingandproduct-mixdecisionsandunderstandhowwellafirm’sprocessesareperforming.FIFOprovidesmanagerswithinformationaboutchangesinthecostsperunitfromoneperiodtothenext.Inaperiodofrisingprices,theweighted-averagemethodwilldecreasetaxesbecausecostofgoodssoldwillbehigherandoperatingincomelower.Transferred-InCostsTransferred-incostsarecostsincurredinpreviousdepartmentsthatarecarriedforwardastheproduct’scostwhenitmovestoasubsequentprocessintheproductioncycle.Theyarealsocalledpreviousdepartmentcosts.Journalentriesaremadetomirrortheprogressinproductionfromdepartmenttodepartment.Transferred-incostsaretreatedasiftheyareaseparatetypeofdirectmaterialaddedatthebeginningoftheprocess.Steps1and2ExampleforBeginningandEndingWIPandTransferred-inCosts:WeightedAverageMethodExhibit18.8SummarizetheFlowofPhysicalUnitsandComputeOutputinEquivalentUnitsUsingtheWeighted-AverageMethodfortheTestingDepartmentSteps3,4,and5ExampleforBeginningandEndingWIPandTransferred-InCosts:WeightedAverageMethodExhibit18.9SummarizetheTotalCoststoAccountfor,ComputetheCostperEquivalentUnit,andAssignCoststotheUnitsCompletedandUnitsinEndingWIPInventoryUsingtheWeighted-AverageMethodfortheTestingDepartmentSteps1and2ExampleforBeginningandEndingWIPandTransferred-InCosts:FIFOMethodExhibit18.10SummarizetheFlowofPhysicalUnitsandComputeOutputinEquivalentUnitsUsingtheFIFOMethodfortheTestingDepartmentSteps3,4,and5ExampleforBeginningandEndingWIPandTransferred-InCosts:FIFOMethodExhibit18.11SummarizetheTotalCoststoAccountfor,ComputetheCostperEquivalentUnit,andAssignCoststotheUnitsCompletedandUnitsinEndingWIPInventoryUsingtheFIFOMethodfortheTestingDepartmentPointstoRememberAboutTransferred-InCosts(1of2)Besuretoincludethetransferred-incostsfrompreviousdepartmentsinyourcalculations.WhencalculatingthecoststobetransferredusingtheFIFOmethod,donotoverlookcostsassignedinthepreviousperiodtounitsthatwereinprocessatthebeginningofthecurrentperiodbutarenowincludedintheunitstransferred.

TheseunitcostswillbetransferredtothenextdepartmentatONEAVERAGEUNITcost.PointstoRememberAboutTransferred-InCosts(2of2)Unitcostsmayfluctuatebetweenperiodssotransferredunitsmaycontainbatchesaccumulatedatdifferentcosts(usingFIFO).Unitsmaybemeasuredindifferentdenominationsindifferentdepartments(feetinonedepartmentandyardsinanotherorkilosversusliters).Inthiscase,measurementsmustbeconvertedtothecorrectmeasure.HybridCostingSystems(1of2)Product-costingsystemsdonotalwaysfallneatlyintoeitherjob-costingorprocess-costingcategories.Ahybrid-costingsystemblendscharacteristicsfrombothjob-costingandp