980992
Description
Basic Cost
Accumulation
and Assignment
- Cost Pool
- group of individual cost items
- group of individual cost items
- Cost Allocation Base
- a factor that is a
common with
linking indirect
cost to cost
object
- a factor that is a
common with
linking indirect
cost to cost
object
- Job Costing System
- cost assigned to distinct
unit, batch, product
- Identify cost object, find direct, indirect, cost allocation base, find per unit, assign costs
- Add direct and indirect
cost to get job cost
- Add direct and indirect
cost to get job cost
- key source documents
- job cost record
- materials requisition record
- labour time record
- job cost record
- cost assigned to distinct
unit, batch, product
- Process Costing System
- cost object is masses of
identical units
- uses broad averages
- conversion cost
- manufacturing costs other than direct material
- manufacturing costs other than direct material
- Find physical units, eq units, compute eq unit cost, find total cost to account for, assign cost to completed and closing WIP
- Weighted Average Process Costing
- calculated eq unit cot of work done to date
- calculated eq unit cot of work done to date
- FIFO vs WA
- FIFO separates work done between diff periods
- FIFO separates work done between diff periods
- Transferred in Cost
- cost incurred in previous dept that are carried forward to next cycle
- other than transferred in costs, remember to include TiC from previous dept
- unit cost may fluctuate so in FIFO, they are ONE average cost
- cost incurred in previous dept that are carried forward to next cycle
- cost object is masses of
identical units
- Costing Methods
- Actual: Direct
- Actual
Indirect -
Actual
- Normal: Direct -
Actual Indirect -
Budgeted
- Actual: Direct
- Actual
Indirect -
Actual
- POHR
- rate used to apply manufacturing overhead (MOH) to
work in progress inventory
- POHR = Estimated MOH cost /
Estimated Amount of Cost Driver
- POHR = Estimated MOH cost /
Estimated Amount of Cost Driver
- rate used to apply manufacturing overhead (MOH) to
work in progress inventory
- Account for Over/Under
Allocation of Cost
- Close to COGS
- Debit COGS
- Credit MOH Control for total allocated
- Debit MOH Allocated to undo previous lousy allocation
- Debit COGS
- Proration based on
total amount of indirect
cost allocated in
closing balance
- most accurate
- most accurate
- Proration based on total closing balance
- cheap
- cheap
- Close to COGS
- Hybrid Costing System
- both job
and
process
costing
- operations costing
- applied to
batches of
similar products
- varies by a
single design
- applied to
batches of
similar products
- both job
and
process
costing
- Indirect Cost Allocation
- Support Departments
- maintains other dept
- maintains other dept
- Single Rate Cost Allocation Method
- all costs into ONE pool
- all costs into ONE pool
- Dual Rate Cost Allocation Method
- classifies cost into one cost pool
- fixed sub-cost pool
- Variable sub-cost pool
- fixed sub-cost pool
- classifies cost into one cost pool
- Operating Departments
- adds value to product/service
- adds value to product/service
- Support Departments
- Allocating
Cost of
Support
Departments
- Direct Method
- Cost of support is shared by the operating
- Cost of support is shared by the operating
- Step Down Method
- Cost of support is
passed down from
one to the other and
then to the operating
- Cost of support is
passed down from
one to the other and
then to the operating
- Reciprocal Method
- Equation method
- Equation method
- Direct Method
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