管理会计chap004

McGraw-Hill/Irwin
Slide 6
Learning Objective 1
Record the flow of materials, labor, and overhead through a process costing system.
McGraw-Hill/Irwin
Slide 7
Slide 11
Process Cost Flows: The Flow of Raw Materials (in T-account form)
Raw Materials
•Direct Materials
Work in Process Department A
•Direct Materials
Work in Process Department B
a. Different and produced continuously.
b. Similar and produced continuously.
c. Individual units produced to customer specifications.
d. Purchased from vendors.
McGraw-Hill/Irwin
Slide 16
Process Cost Flows: The Flow of Manufacturing Overhead Costs (in journal entry form)
GENERAL JOURNAL
Date Description Work in Process - Department A Work in Process - Department B Manufacturing Overhead To apply overhead to departments. Post. Ref. Debit XXXXX XXXXX XXXXX
to products and they provide a mechanism for computing unit product costs.
Both systems use the same manufacturing accounts,
including Manufacturing Overhead, Raw Materials, Work in Process, and Finished Goods.
The flow of costs through the manufacturing accounts is basically the same in both systems.
McGraw-Hill/Irwin
Slide 2
Differences Between Job-Order and Process Costing
Jobs
Manufacturing Overhead
Cost of Goods Sold
Slide 9
McGraw-Hill/Irwin
Comparing Job-Order and Process Costing
Direct Materials
Costs are traced and applied to departments in a process cost system.
•Actual Overhead •Overhead Applied to Work in Process
•Direct Materials •Direct Labor •Applied Overhead
Work in Process Department B
•Direct Materials •Direct Labor •Applied Overhead
Page 4
Credit
McGraw-Hill/Irwin
Slide 17
Process Cost Flows: Transfers from WIP-Dept. A to WIP-Dept. B (in T-account form)
Work in Process Department A •Direct Transferred Materials to Dept. B •Direct Labor •Applied Overhead Work in Process Department B
•Direct Materials •Direct Labor •Applied Overhead •Transferred from Dept. A
Department A
McGraw-Hill/Irwin
Department B
Slide 18
Process Cost Flows: Transfers from WIP-Dept. A to WIP-Dept. B (in journal entry form)
Process costing systems accumulate costs by department. Job-order costing systems accumulated costs by individual jobs. Process costing systems compute unit costs by department. Job-order costing systems compute unit costs by job on the job cost sheet.
•Direct Materials
McGraw-Hill/Irwin
Slide 12
Process Cost Flows: The Flow of Raw Materials (in journal entry form)
GENERAL JOURNAL
Date Description Work in Process - Department A Work in Process - Department B Raw Materials To record the use of direct material. Post. Ref. Debit XXXXX XXXXX XXXXX
c. Individual units produced to customer specifications.
d. Purchased from vendors.
McGraw-Hill/Irwin
Slide 4
Quick Check
Process costing is used for products that are:
Page 4
Credit
McGraw-Hill/Irwin
Slide 13
Process Cost Flows: The Flow of Labor Costs (in T-account form)
Salaries and Wages Payable
•Direct Labor
Work in Process Department A
McGraw-Hill/Irwin
Slide 5
Processing Departments
Any unit in an organization where materials, labor or overhead are added to the product. The activities performed in a processing department are performed uniformly on all units of production. Furthermore, the output of a processing department must be homogeneous. Products in a process costing environment typically flow in a sequence from one department to another.
Direct Labor
Processing Department
Finished Goods
Manufacturing Overhead
Cost of Goods Sold
Slide 10
McGraw-Hill/Irwin
T-Account and Journal Entry Views of Process Cost Flows
Page 4
Credit
McGraw-Hill/Irwin
Slide 15
Process Cost Flows: The Flow of Manufacturing Overhead Costs (in T-account form)
Work in Process Department A
Manufacturing Overhead
Comparing Job-Order and Process Costing
Direct Process
Finished Goods
Manufacturing Overhead
Cost of Goods Sold
McGraw-Hill/Irwin
For purposes of this example, assume there are two processing departments – Departments A and B. We will use T-accounts and journal entries.
McGraw-Hill/Irwin
Systems Design: Process Costing
Chapter 4
©2010 The McGraw-Hill Companies, Inc.