View More Purchase Options. Principles of Cost Accounting 17th Edition. Edward J. View as Instructor. Whether you need access offline or online, in print or on your mobile device, we have cost saving options. Social Science. Political Science. Literature Guides.
Popular Textbooks. Business Accounting Principles of Cost Accounting. Buy this textbook Buy launch. Principles of Cost Accounting. Edward J. Vanderbeck, Maria R. View More Textbook Editions. Section Chapter Questions. Problem 1Q. Problem 2Q. Problem 3Q. Problem 4Q. Problem 5Q. Problem 6Q. Problem 7Q. Problem 8Q. Problem 9Q. Problem 10Q. Problem 11Q. Problem 12Q. Problem 13Q. Problem 14Q. Problem 15Q. Problem 16Q. Problem 17Q. Merchandisers, identified with the product.
They have only one inventory convert raw materials into finished goods. Service businesses, such as airlines and sports fran- No, one of the component costs, direct labor, chises, provide intangible benefits such as would be added twice. The cost of manufactur- transportation and entertainment. They have ing includes direct materials, direct labor, and no inventory account. Both prime cost and conver- A perpetual inventory system involves main- sion cost include the cost of direct labor.
Costs for direct materials and direct labor are sues, and new balances of all goods in charged directly to the work in process ac- stock.
Under a periodic inventory system no count, while the factory overhead costs are attempt is made to record the cost of mer- chandise sold at the time of sale.
At the end first accumulated in the factory overhead ac- of the accounting period a physical inventory count and are then transferred to the work. Cost of goods sold represents the total cost of goods sold and the ending inventory.
The basic elements of production cost are: a given accounting period, while the cost of a. Direct materials. Direct labor. Factory overhead. Direct materials—the cost of those materi- Non-factory costs are charged to selling or als which become part of the item being general administrative expense accounts manufactured and can be readily identified and do not affect the determination of manu- with it. Costs which benefit both Indirect materials—the cost of those items factory and non-factory operations must be which are necessary for the manufacturing allocated in some equitable manner.
Job order costing is appropriate when the tured. Manufac- employees who are required for the manu- turers such as machine shops and ship- facturing process but who do not work di- builders, merchandisers such as computer rectly on the item being manufactured. Manufacturers such as As manufacturing processes have become increasingly automated, direct labor cost as chemical producers and candy makers, mer- a percentage of total product cost has de- chandisers such as newspapers and agricul- creased for many companies.
An advantage of accumulating costs by de- Standard costs are reasonably attainable partments process costing or by jobs j ob costs which are estimated by management order costing is that the information provid- in advance of production. Standard costs ed aids management in achieving control of are then compared with actual costs, and costs. With a process cost system, man- differences called variances are calculated agement can make departmental compari- and analyzed. A standard cost system is not sons of current period costs with prior period a separate cost accounting system but is costs and can take corrective action as applied in conjunction with either process needed.
If costs were accumulated for the costing or job order costing to increase cost factory as a whole, management would have control effectiveness. Square footage occupied by each of the ar- cessive costs and inefficiencies. The infor- eas would be a good cost allocation base to mation provided by a job order cost system use in allocating the depreciation expense aids management in the determination of between the factory operations and the sell- selling prices, the profit on each job, and ing and administrative function.
This distinc- costs applicable to similar jobs produced in tion is important because the depreciation future periods. A job cost sheet is a form on which all of the turing expense that becomes part of invento- individual costs applicable to a job are rec- ry cost and eventually cost of goods sold, orded. Since the job cost sheets show de- whereas the portion allocated to selling and tailed costs and gross profit for each job, administrative expense is a period cost that they are useful to management in bidding on is always expensed in the period incurred.
E No, the performance report should not be prepared just once a year. It should be furnished to managers at regular intervals, in this case monthly, on a timely ba- sis. If it is not provided in a timely fashion, it will not be effective in controlling fu- ture operations. E Merchandise inventory, January Items Materials Labor Overhead Expense a.
Cloth used in a shirt factory Fiberglass used by a sailboat builder Cleaning solvent for the factory floor Wages of a binder employed in a printing plant Clarify relevant ethical issues by available for sale, the cost of goods confidential discussion with an objective manufactured must be determined and advisor. Consult your own attorney as to legal inventory to determine the cost of finished obligations and rights.
Since the merchandiser purchases rather than makes Corporate governance is the means by which goods to sell, the cost of purchases is a company is directed and controlled. Good added to beginning merchandise inventory corporate governance is important to all to compute the cost of goods available for stakeholders because, due to recent sale. Chapter 01 Finished Goods—this is an inventory account reflecting the total cost incurred in manufacturing goods on hand that are ready for sale to customers.
Work in Process—this inventory account includes all of the costs incurred to date in manufacturing goods that are not yet completed. Materials—this account represents the cost of materials on hand that will be used in the manufacturing process.
They may have as many as three products being manufactured. Prime cost is the cost of direct materials and Process, and Raw Materials. Merchandisers, direct labor; it represents cost specifically such as wholesalers and department stores, identified with the product. They have only one inventory factory overhead; it is the expense incurred to account, Merchandise Inventory. Service convert raw materials into finished goods.
They would be added twice. The cost of have no inventory account. A perpetual inventory system involves labor, and factory overhead. Both prime cost maintaining a continuous record of and conversion cost include the cost of direct purchases, issues, and new balances of all labor. Under a periodic inventory Costs for direct materials and direct labor are system no attempt is made to record the charged directly to the work in process cost of merchandise sold at the time of sale.
At the end of the accounting period a account, while the factory overhead costs are physical inventory is taken for the purpose of first accumulated in the factory overhead determining the cost of goods sold and the account and are then transferred to the work ending inventory. The basic elements of production cost are: Cost of goods sold represents the total a.
Direct materials. Direct labor. Factory overhead. Direct materials—the cost of those manufacturing cost of all goods that were materials which become part of the item finished during the accounting period. Non-factory costs are charged to selling or identified with it. Costs which benefit process but cannot be identified specifically both factory and non-factory operations with any particular item manufactured, and must be allocated in some equitable the cost of those materials which do become manner.
A mark-on percentage is a percentage of the individual jobs. Job order costing is appropriate when the manufacturing process but who do not work output of an enterprise consists of custom- directly on the item being manufactured.
Factory overhead—includes all costs Manufacturers such as machine shops and related to the manufacturing process except shipbuilders, merchandisers such as direct materials and direct labor, such as computer retailers, and service firms, such indirect materials, indirect labor, and all as CPAs and architects, all use job order other factory expenses.
As manufacturing processes have become increasingly automated, direct labor cost as In the case continuous or mass production of large quantities of substantially identical items. Chapter 01 Manufacturers such as chemical producers Standard costs are costs that would be and candy makers, merchandisers such as incurred under efficient operating conditions newspaper publishers and agricultural which are estimated by management in wholesalers, and services such as hospital X- advance of production.
Standard costs are ray departments and airlines all use process then compared with actual costs, and costing. An advantage of accumulating costs by and analyzed. A standard cost system is not departments process costing or by jobs j ob a separate cost accounting system but is order costing is that the information applied in conjunction with either process provided aids management in achieving costing or job order costing to increase cost control of costs.
With a process cost system, control effectiveness. Square footage occupied by each of the comparisons of current period costs with areas would be a good cost allocation base prior period costs and can take corrective to use in allocating the depreciation expense action as needed. If costs were accumulated between the factory operations and the for the factory as a whole, management selling and administrative function. This would have difficulty identifying specific distinction is important because the sources of excessive costs and depreciation allocated to factory operations inefficiencies.
The information provided by a is a manufacturing expense that becomes job order cost system aids management in part of inventory cost and eventually cost of the determination of selling prices, the profit goods sold, whereas the portion allocated to on each job, and costs applicable to similar selling and administrative expense is a jobs produced in future periods.
A job cost sheet is a form on which all of the period incurred. Since the job cost sheets show detailed costs and gross profit for each job, they are useful to management in bidding on similar jobs in the future.
0コメント