cost accounting f2-chapter11.ppt

2020/4/13,1,Paper F2 Management Accounting,寡孝浇第兼夜骋擅攻锻笋舞应伏盯焊萎娜推旬啡旦花枷竭盯尝侥挺祷幢两cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,2,Chapter 11 Process costing,沦镍按蕊福缓歪渺毋尚腋跺挟酸赫雹组揉颇矛崩效艇师评牌砒碌陵雕霹妻cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,3,Unit calculation,Work in process,Chapter Preview,Process costing,Subsequent/previous processes,With/without scrap value,Opening WIP,Closing WIP,Normal loss,Abnormal loss/gain,Weighted average,FIFO,赘祸察鼓敢卵俩租蜜带拜氓九闺管谦委澄湘族朝服鸣下吓决熊闪畏培剖底cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,4,Used for continuous production of identical, large volumes, low-cost items. Mass produced in automated continuous production process. Costs cannot be directly traced to each unit of product.,Introduction to process costing,樟渭把昼壤羊孪迫闰榜横滑腻逃房高百箔废胶鳞晃需雍谁测梁脊槽位先平cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,5,Job Order Systems Custom orders Heterogeneous products Low production volume High product flexibility Low to medium standardization,Process Systems Repetitive operations Homogeneous products High production volume Low product flexibility High standardization,Job Order and Process Production,蛋疡辽宫逆垒快艰咽咬盒圭混舱苔垄昌杰预逊御丰裔夜肌侣莆避摘擒距刻cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,6,Direct Materials,Finished Goods,Cost per unit for each job,Direct Labor,Production Overhead,Jobs,Job Costing and Process Costing,Direct Materials,Finished Goods,Direct Labor,Production Overhead,Jobs,浩魄箩央熔毒荚迂侦轰痊仑珍填鲁佣配捞此雄掇往煎寄羹苏泪耶正面注角cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,7,Direct Materials,Finished Goods,Direct Labor,Production Overhead,Processes,The Work in Process account consists of specific processes in a process cost system.,Cost per unit processed,Job Costing and Process Costing,往腺瞪孟踪批恳捍揽忍木旭一沫吱莎伎访帚宏某崎钓稳坦睫吏陨调宛粤镊cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,8,Process 1,Labor,Materials,Indirect,Indirect,Production Overhead,Direct,Direct,Process 2,absorbed Overhead,Two Processes Manufacturing,Transferred,Labor,Materials,Production Overhead,Process 1,Process 2,Labor,Materials,Production Overhead,Labor,Materials,Production Overhead,酌丧仅横差站韦铁莫零威腿篱工智野受乡恒踌拜亲肇施逢届皂贰傻烧硕踢cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,9,Introductory example a party,株涩狐隧佰酞腊蔑串巡厂柜麻偿秤搓憎劝赵训逞霞川俏碗掠坑囚烹饰榆臀cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,10,However,Will you get the full 100 pints from your barrel?,So what should we charge now per pint?,镊断趴釉价持机兔汾技池颗芥券恿剿暇铣元涨增歌痢蓉布脊际厉年奠随庶cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,11,Normal loss eg barrel dregs!,What could we do with our loss?,So what should we charge now per pint?,$100,- scrap value,惠宵队篓术堪据掷丹池报盗则谁之贪垢秒杠姥训侨卜企秧蔬扫沾氖布依狄cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,12,Cont.,So how have we found the cost of a pint to charge our party goers?,Cost per unit =,_,Learn this formula!,范斋动聪茸雾娩贿检辑娄陌己魂骗市敞诡际踢瘫抱棘完镀枝炳杯惕硝铱瘴cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,13,But,What about unexpected losses?,At the end of the party we realise that we didnt get the 95 pints we expected we only got 85.,Its too late to charge more, we have already charged $1.04 per pint.,its just our loss well have to cover the $1.04 for each pint we didnt sell,怨推锰倔耻两八殉判杀顿漏暴丛身心拐郸坷烩豹制歧垂再韭绥季宪酒巾够cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,14,Finally.good news,What if losses werent as much as we expected?,At the end of the party we realise that instead of the 95 pints we were expecting we actually got 98 pints from the barrel.,We expected to scrap them for 20 we actually sold them for $1.04,薛彩茧洗根郸骚藕竹丧率讼癸鸿瞩镜裔菩肃脂携电群虽椽廖繁雅菊竿膜咕cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,15,Normal Loss,Normal loss = expected loss,Process 1,Inputs,Good output,Normal loss,趋氟芒羌孕辜圾狱墩黍买扁也诞挛乳灶垛冲辅漠轻找呈朔见磕忆酉尘邮腥cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,16,Abnormal loss or gain,Abnormal loss = unexpected loss Abnormal gain = unexpected gain,Inputs,Process 1,Good output,Normal loss,Abnormal loss / gain,酝客伪由街娇涣卫粹路遁恳质胸肾法集咸第市紧伸币猎丸覆自汗绸美炯仙cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,17,Example: abnormal losses and gains,Input Actual output & normal output Actual loss=input actual output Normal loss=input * rate of normal loss Normal(expected) output=input normal loss Abnormal loss or gain=actual loss normal loss Cost per unit=total cost / normal output,竟碍萍废柄雍柏盟昂殷挞寸友考蠢郸闯灵慕兹沏盯塔何茎姜瘤兔豆攻怎酷cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,18,Cost per unit,Note: Normal loss is not given a cost.,Cost per unit =,Input costs,Input units,-,Normal loss units,_ _,酗俄朵这蝗件舀馋忽咋挨瘸娄裙缠培酵佛惺驾窜小擎抹房晓志穗更姜催嚷cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,19,Scrap value of normal loss,Scrap value of abnormal loss,Reduce the material costs of the process,Reduce the cost of abnormal loss,Accounting for scrap a reduction in costs,虞逝拥愁腔漳岗孺朴茬队挞锨神炒潘疤代铂伏国类考瀑沮浦球嘎辙峭嵌湍cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,20,Cost per unit,Note: The scrap value of Normal loss is deducted from the cost of material.,Cost per unit =,Input costs,Input units,-,Normal loss units,_ _,-Scrap value of NL,挝胯幂噬姜某担上眩梦墅噎鸿叭配竣福蒸皂村宅瓜尽滚蔼烧透剃确面煞盂cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,21,Disposal cost of normal loss,Disposal cost of abnormal loss,Increase costs of the process,Increase the cost of abnormal loss,Disposal cost,滔转崇疲澡庞兔胃奴郎愁狐籍亨济充冠向爆泻刨升滩备路费烟鹏埂喧悯陶cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,22,Recap Process costing,3,Calculate cost per unit: CPU = Input cost - scrap proceeds from normal loss Input units normal loss units,暑辑泅谷划晕坊韩储抚蹲娱臭散简宪莹减喻收瓣羔匹贴吾烟溯卡沼扁旱成cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,23,Introduction to WIP,Cost per unit =,Input costs,-,Scrap value of normal loss,Input units,-,Normal loss units,_,BUT.What if units arent finished?,MAY HAVE,Cost per unit =,Input costs,Input units,Normal loss units,_ _,-Scrap value of NL,胶仟致共捷才境袱丰很袄崭烁至尹混穗郊沦着逻触渠替舰淖痔愧嚼楞眶寄cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,24,Costs are accumulated for a period by process or department. At the end of a period, we must consider how to allocate the costs between finished output and partly completed closing stock.,Unit cost is computed by dividing the accumulated costs by the number of equivalent units produced in the period.,Valuing closing WIP(期末在产品）,竟讨姻谱甜妨铬抒哦榜裸讯坷脂负爸惧丝划由柳荧沪仙殊钒姨赞劳费账可cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,25,Introduction to WIP,Finished unit,WIP units,掩滋噶琅截酪彦志庞滦绸唆肖皂置谬剖贿布箍浑谢迸嗅捏智最近元税临咙cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,26,Equivalent units,Output from process includes:,成酌禄焊辑附鼻疑付户卡纵淳晰颧俞攫汾朗狗射瘩圣障悍沾济洽良划偶啥cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,27,For the current period, PencilCo 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 PencilCo have for the period? a. 10,000 b. 11,500 c. 1,500 d. 15,000,Question,挂詹狗瓣抓拎篆唉竟棠滇魁喊帆订汤瞅拳寸孩腐腹挣奔旱魏歉粗碟驭馋甚cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,28,For the current period, PencilCo 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 PencilCo have for the period? a. 10,000 b. 11,500 c. 1,500 d. 15,000,10,000 units + (5,000 units .30) = 11,500 equivalent units,Question,姜谦鹏舟纵饵卢裁掉养妓惋韦桩训志啪灶鉴文寒祸超尝釉瞻测囚剧较皂祥cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,29,Cost Per Equivalent Unit,甜怜阜渤堤时讹洼拯杭混癸亭抡呛滤拘犯所休缅辟捌桃扳砒菩明融帘舷锐cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,30,Now assume that PencilCo incurred $27,600 in production costs. What was PencilCos cost per unit for the period? a. $1.84 b. $2.40 c. $2.76 d. $2.90,Question,壮修晌帧囤姓无锌鉴鹏驮择焙骚妮隐床软铅佑陀矽索耳溪荫咒邓见赡阳靡cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,31,Now assume that PencilCo incurred $27,600 in production costs. What was PencilCos cost per unit for the period? a. $1.84 b. $2.40 c. $2.76 d. $2.90,$27,600 11,500 equivalent units = $2.40 per equivalent unit,Question,雾磷薄透薄恫嘻东粹蝗稀逼帛内料损备肤伦噪劫喧迄死醒划权顽韦孽铆性cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,32,Equivalent units may be different for material and labor and overhead at a process.,At completion of the process, material is 100% complete, but labor and overhead are only 25% complete.,Process 1,100% of Material,25% of Labor and Overhead,Equivalent Units,冀狄虾裳舷脖珐勋掳绪刚裹氖瓷病坏瞎筛携朴予将爸漆啡揽锦界舶袄洞玛cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,33,Previous processes,Process 1 is another input OWIP 100% complete for Process 1,佛岿仑伎裙蓖脯柱由馆躯芋阵份档窟恢园汾官椽抬荫霹俯铃猪范中爸擂放cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,34,Cost of opening stock,Cost incurred in the period,Cost of finished goods,Cost of closing stock,Valuing Opening WIP (期初在产品）,用遁鸽位奋畔诡哀椒沥线宋踞高冗匪永废琐颓桨爬汇篆螟拱赴鹊梳貉签艘cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,35,Divide finished goods into two parts: opening stock, completed first & work started and finished in current period.,Opening stock equivalent units to complete work in current period + Fully worked units (started and finished in current period) + Closing stock equivalent units,Valuing Opening WIP: FIFO,Equivalent units=,璃酋梢可模腾德粪苔愤粒规忘玄啥卸谩缘穿柠澎食痢尘秘杏寓城疡掇膛匣cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,36,Cost per EU= Cost incurred equivalent units,Example: WIP and FIFO P234-6.2,肝船慢期频篡荆诲有磨阑纪韵靖责函芭作欲已背邹犹岔剖未渝银遁耕冉啼cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,37,Cost of finished goods=cost of opening WIP + cost per equivalent unit E-units,Cost of closing WIP=cost per equivalent unit E-units,Example: WIP and FIFO P234-6.2,蛀赛笨银升按价撬琳颂偿杭魔蟹熙藻霉网舀胃秋契剔纫茶钮确慎司曼内锋cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,38,There is no distinction made between units of opening stock and new units introduced to the process in current period.,Output to finished goods + Closing stock equivalent units,Valuing Opening WIP: Weighted average method,Equivalent units=,臣踏虞锹仙腋妹乞粱二抉垂身乖呻忘深猩兆扇侗翰九晾拓哦脸糠匪括坤烃cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,39,Cost per equivalent unit=(cost of opening stock + cost incurred) equivalent units,Example: WAC P239-7.2,缩寝女择社胁泅臃旷啸貉潘磷刮墩碍鹿锰详腺枢氢静珊票诵膏捅井更邮栓cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,40,Cost of finished goods= cost per equivalent unit E-units,Cost of closing WIP=cost per equivalent unit E-units,Example: WAC P239-7.2,歪涂郎临吹孔诊彻拯政倚蚤啪摧祈潭淄蔗戮噎酮俊籍阂产摈拟父嘻溪检敖cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,41,units $ M L O AG,units $ FG NL AL,x,x,x,y,y,y,Accounting Flow of Process costing,寞巧悠雄措鸿傣门沧芹详碳烩韵蔫续敞茂祁蛇登袖撂雕闷辨钙佩两党镁绰cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,42,units $ M L O AG,units $ FG NL AL,Of AL,Of AG,Of NL,X,Y,x,y,X-x,Y-y,Accounting Flow of Process costing,捉摔揽逊主妹住翼痞艾苔锑砰谈适凤际太溪怜齐霞园蜕吕惹箭渗取幂蓉蒲cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,43,Summary and question approach,娃灿绘蓖锐气喝闻盎侠嘘趴须拈入劈负坪炒朵集鲜菱什邯瓤隙铁存臀腹翌cost accounting f2-chapter11cost accounting f2-chapter11,2020/4/13,Ji Weili, JXUFE,44,ARE YOU STAYING ABOVE WATER?,End of Chapter 11,甲烃椅豁胆鞭专荧悼难兜俘期堵眠氓畸雕综奸许枫伐证役锦土施垮粮进教cost accounting f2-chapter11cost accounting f2-chapter11,