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Process Costing

Process Costing. Weighted Average. PROCESS COSTING. Cost flow. FIFO. Finished Goods. Assembling. Sequential Processing. Cutting. Parallel Product Flow Selective Product Flow. Step 1: Summarize the flow of physical units of output. Step 2: Compute output

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Process Costing

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  1. Process Costing

  2. Weighted Average PROCESS COSTING Cost flow FIFO

  3. Finished Goods Assembling Sequential Processing Cutting Parallel Product Flow Selective Product Flow

  4. Step 1: Summarize the flow of physical units of output. Step 2: Compute output in terms of equivalent units. Step 3: Compute equivalent unit costs. Step 4: Summarize total costs to account for. Five Steps in Process Costing Step 5: Assign total costs to units completed and to units in ending work in process inventory.

  5. Weighted average method

  6. Step 1: Summarize the flow of physical units of output.

  7. = = 100 equivalent units 200 units, 50% completed Concept: = 100 units completed = 100 equivalent units Step 2: Compute output in terms of equivalent units .

  8. Step 2: Compute output in terms of equivalent units (Cont’d)

  9. CUTTING DEPT. Step 2: Compute output in terms of equivalent units (Cont’d)

  10. Step 3: Compute equivalent unit costs

  11. CUTTING DEPT. Step 3: Compute equivalent unit costs (Cont’d)

  12. CUTTING DEPT. Step 4: Total costs to account for: $29,600 Step 5: Assign total costs: Completed and transferred out: 500 × $50 $25,000 Work in process, ending (200 units): Direct materials 120 × $25 3,000 Direct labor 40 ×$10 400 FOH 80 × $15 1,200 Total $29,600 Step 4 & 5: Summarize and Assign Total Costs

  13. Step 1: Summarize the flow of physical units of output.

  14. = = 100 equivalent units 200 units, 50% completed Concept: = 100 units completed = 100 equivalent units Step 2: Compute output in terms of equivalent units .

  15. Step 2: Compute output in terms of equivalent units (Cont’d)

  16. ASSEMBLING DEPT. Step 2: Compute output in terms of equivalent units (Cont’d)

  17. Step 3: Compute equivalent unit costs

  18. ASSEMBLING DEPT. Step 3: Compute equivalent unit costs (Cont’d)

  19. CUTTING DEPT. Step 4: Total costs to account for: $62,701 Step 5: Assign total costs: Completed and transferred out: 580 × $93.65 $54,317 Work in process, ending (100 units): Cost from prev Dept.100 ×$49.00 4,900 Direct materials 100 × $11.95 1,195 Direct labor 70 ×$14.90 1,043 FOH 70 × $17.80 1,246 Total $62,701 Step 4 & 5: Summarize and Assign Total Costs

  20. FIFO method

  21. Dalamasumsialiranbiaya FIFO, biaya unit pertama yang ditransferkeluardarisatudepartemendianggapberasaldaripersediaanawal. • Jika unit daripersediaanawalbelumsepenuhnyaselesai, unit tersebutharusdiselesaikanterlebihdahuludenganbiayaperiodeberjalansebelumdapatditransferkeluardaridepartementersebut. • Total unit ekuivalendariperiodeberjalanmerupakanjumlahdarijumlah unit ekuivalenuntukbiayaditambahkan di periodeberjalangunamenyelesaikan unit di persediaanawalditambah unit yang dimulaidandiselesaikanselamaperiodeberjalanserta unit ekuivalen di persediaanakhir. • Untuk unit ekuivalendaribiayaperiodeberjalan yang diperlukangunamenyelesaikan unit di persediaanawal, tingkatpenyelesaian di persediaanawalharusdiketahui. Notes

  22. Step 1: Summarize the flow of physical units of output.

  23. Step 2: Compute output in terms of equivalent units (Cont’d)

  24. CUTTING DEPT. Step 2: Compute output in terms of equivalent units (Cont’d)

  25. CUTTING DEPT. Alternative for Step 2: Compute output in terms of equivalent units (Cont’d)

  26. Step 3: Compute equivalent unit costs

  27. CUTTING DEPT. Step 3: Compute equivalent unit costs (Cont’d)

  28. CUTTING DEPT. Step 4: Total costs to account for: $29,600 Step 5: Assign total costs: Work In Process, Beginning (100 units): From previous period’s $3,088 Aded during current period’s Direct materials 20 × $25.20 504 Direct labor 60 × $10.00 600 FOH 40 × $15.20 608 Started & Completed durring current period’s: 400 × $50.40 $20,160 Work in process, ending (200 units): Direct materials 120 × $25.20 3,024 Direct labor 40 ×$10.00 400 FOH 80 × $15.20 1,216 Total $29,600 Step 4 & 5: Summarize and Assign Total Costs

  29. Step 1: Summarize the flow of physical units of output.

  30. Step 2: Compute output in terms of equivalent units (Cont’d)

  31. ASSEMBLING DEPT. Step 2: Compute output in terms of equivalent units (Cont’d)

  32. Step 3: Compute equivalent unit costs

  33. ASSEMBLING DEPT. Step 3: Compute equivalent unit costs (Cont’d)

  34. ASSEMBLING DEPT. Step 4: Total costs to account for: $62,661 Step 5: Assign total costs: Work In Process, Beginning (180 units): From previous period’s $10,143 Aded during current period’s Direct materials 108 ×$12.00 1,296 Direct labor 144 × $15.002,160 FOH 144 × $18.00 2,592 Started & Completed durring current period’s: 400 × $94.92 $37,968 Work in process, ending (200 units): Cost from prev. dept. 100 x $49.92 $4,992 Direct materials 120 × $12.00 1,200 Direct labor 40 ×$15.00 1,050 FOH 80 × $18.00 1,260 Total $62,661 Step 4 & 5: Summarize and Assign Total Costs

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