The Hashemite University

Faculty of Economics and Administrative Sciences

Department of Accounting
Cost Accounting 2006-2007

The Hashemite University

Accounting Department

Course: Cost Accounting (0202211)

Instructor: Wasim Al-Shattarat, Ph.D.
Office: 317- Economic Faculty
Phone: 00962-53903333 –Ext. 4599
Email: wasimshattarat@hu.edu.jo
Office Hours: Monday, Wednesday (12.30-01:30)
Sunday, Tuesday, Thursday (11:00-12:00)

“I encourage you to come by the office during regularly scheduled office hours. If these times
are inconvenient, or if there is an emergency, please call first to make sure I am in. I will gladly
schedule an appointment at a mutually convenient time outside of office hours”

Prerequisites
Accounting Principles (1) - 0202101, Accounting Principles (2) - 0202102

Course Description
This course aims to identify: the importance of cost accounting in making managerial decision,
cost behavior, cost allocation, process and job accounting system and other different subjects.

Course Objectives: Learning Outcomes :

The course aims to presents the concepts of Cost Accounting, with an emphasis on the
identification, determination, and analysis of costs for the purposes of managerial planning and
control. This general objective will be achieved through the following learning outcomes:

A- Knowledge and Understanding

1. Students should be able to explain the the main concepts of cost and cost elements;
2. Discuss the job order and process costing systems
3. Formulate how to analyze standard costs variances

B- Intellectual Skills- Students should be able to

1. Identify the cost terms with some examples
2. Design and implement the job-order costing system
3. Design and implement the process costing system
4. Analyze the standards costs and make the variance analysis

C- Practical skills-with ability to

1. Use appropriate tools such as Excel sheets to formulate some records
2. Be aware of the practical problems facing the Jordanian firms in implementing Cost
Accounting and Standard Costing

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 The Hashemite University
Faculty of Economics and Administrative Sciences
Department of Accounting
Cost Accounting 2006-2007
This course is appropriate for undergraduate curricula at a second-year. The level of the course is
to be supplemented by using real-world projects and available materials and resources.

Exams and Evaluations

Examinations may consist of multiple choice, essay questions or/ and problem solving.
Exams:
First Test 20 Points (22/03/2007 Thursday at 4 P.M)
Second Test 20 Points (03/05/2007 Thursday at 4 P.M)
Homework and Class Participation 10 Points
Final Examination 50 Points Determined by the University

A+= 90-100 Points C+=64-67 Points

A = 85-89 Points C =59-63 Points
A- = 81-84 Points C-=56-58 Points
B+ = 77-80 Points D+=53-55 Points
B = 73-76 Points D =50-52 Points
B-=68-72 Points F = Below 50 Points
Note: This scale was applied last year so the student can use it just as a guide only for how the
marks are distributed

Course Contents:

Week Chapters and Activities

Week 1 Chapter 1: Introduction to Cost Accounting
ƒ Cost Accounting and Financial Accounting: Concepts and
Differences.

Week 2 Chapter 2: An Introduction To Cost Terms And Purposes, Ch.2.

ƒ Costs Terminology.
ƒ Direct Costs and Indirect Costs.
ƒ Variable and Fixed Costs.

Week 3 Chapter 2: An Introduction To Cost Terms And Purposes, Ch.2.

ƒ Prime Costs and Conversion Costs.
ƒ Computing Costs Of Goods Manufactured And Cost Of Goods
Sold
ƒ Exercises and Problems

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 The Hashemite University
Faculty of Economics and Administrative Sciences
Department of Accounting
Cost Accounting 2006-2007
Week 4 Chapter 4: Job Costing Systems, Ch. 4.
ƒ Job Costing Systems in Manufacturing.
ƒ The T Accounts
ƒ Exercises and Problems

Chapter 4: Job Costing Systems, Ch. 4.

Week 5 ƒ Allocating Indirect Costs To Jobs
ƒ Journal Entries
ƒ Exercises and Problems

Chapter 17: Process Costing System, Ch.17.

Week 6 ƒ Process Costing With Equivalent Units: Five Key Steps.
ƒ The Case of No Beginning and Ending WIP Inventory
ƒ The Case of Ending WIP Inventory

Week 7 Chapter 17: Process Costing System, Ch.17.

ƒ The Case of Beginning and Ending WIP Inventory
ƒ Weighted Average Method and First In, First Out Method
ƒ First In, First Out Method.
ƒ Journal Entries
ƒ Exercises and Problems

Week 8 Chapter 17: Process Costing System, Ch.17.

ƒ Transferred Costs In Process Costing
ƒ Exercises and Problems

Week 9 Chapter 15: Cost Allocation, Indirect Costs, Ch.15

ƒ Cost Allocation and Costing System
ƒ Allocation Costs from one Department to Another
ƒ Allocation Costs of Support Departments.
ƒ Direct Allocation Method.
ƒ Step Down Allocation Method
ƒ Reciprocal Allocation Method

Week 10 Chapter 16: Cost Allocation, Joint Products, Ch.16

ƒ Joint Products And By Products.
ƒ Approaches To Allocate Joint Cost.
ƒ Accounting For By Products
ƒ Exercises and Problems

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 The Hashemite University
Faculty of Economics and Administrative Sciences
Department of Accounting
Cost Accounting 2006-2007
Week 11 Chapter 7&8: Standard Costing, Topics from Chapter 7 and 8
ƒ Material Variances
ƒ Labor Variances

Week 12 Chapter 7&8: Standard Costing, Topics from Chapter 7 and 8

ƒ Overhead Variances
ƒ Exercises and Problems

Week 13 Chapter 5: Activity Based Costing and Activity Based Management

Week 14 Chapter 9: Inventory Costing and Capacity Analysis

Week 15 Chapter 18: Spoilage Rework and Scrap

ƒ Review And The Final Exam

Materials

Main Textbook:

Charles T. Horngren; George Foster and Srikant Datar. (2003). Cost Accounting, A Managerial
Emphasis, 12th edition. Prentice Hall. Text site www.prenhall.com/horngren

Supporting Materials:

Garrison, R. and Noreen, E. (2000). Managerial Accounting. Ninth Edition, McGraw-Hill.

Dodge, R. (1994). Foundations of Cost and Management Accounting, Chapman and Hall.

Jackson, S. and Sawyers, R. (2001). Managerial Accounting: A Focus on Decision Making.

Harcourt College Publishers.

Websites:
www.hlms.hu.edu.jo