Anda di halaman 1dari 18

Cost Accounting

System
Input
Measurement
Basis
Inventory
Valuation
Method
Cost
Accumulation
Method
Cost
Flow
Assumption
Recording
Interval
Capability
Pure
Historical
Normal
Historical
Standard
Throughput
Direct
(variable)
Full
Absorption
Activity
Based
Job Order
Process
LIFO
FIFO
Weighted
Average
Perpetual
Periodic
FIVE PARTS OF COST ACCOUNTING SYSTEM
Pure Historical Normal Historical
Actual Actual Standard Varaince
Material 500,000 Material 500,000
Direct Labour 20,000 Direct Labour 20,000
Factory Overhead 40,000 Factory Overhead 40,000 36,000 (4,000)
560,000 560,000 (4,000)
Output Inventory in
Pcs 20,000
Output Inventory
in Pcs 20,000
Unit Cost Unit Cost
Material 25.0 Material 25.0
Direct Labour 1.0 Direct Labour 1.0
Factory Overhead 2.0 Factory Overhead 1.8
28.0 27.8
Standard
Actual Standard Varaince
Material 500,000 320,000 (180,000)
Direct Labour 20,000 18,000 (2,000)
Factory Overhead 40,000 36,000 (4,000)
560,000 374,000 (186,000)
Material variance
Actual Qnty at Actual Rate
23,000 Kgs @ Tk. 21.74 =
Tk. 500,000
Actual Qnty at Std. Rate
23,000 Kgs @ Tk. 20 =
Tk. 460,000
Std. Qnty at Std. Rate
16,000 Kgs @ Tk. 20 =
Tk. 320,000
Rate Variance (Adverse)
Tk. 40,000
Qnty Variance (Adverse)
Tk. 140,000
Total Variance (Adverse)
Tk.180,000
Labour variance
Actual Hour at Actual Lab
Rate per hour
2,000 hrs @ Tk. 10 = Tk.
20,000
Actual Hour at Std. Lab
per hour
2,000 hrs @ Tk. 8 = Tk.
16,000
Std. Hour at Std. Lab Rate
per hour
2,250 hrs @ Tk. 8 = Tk.
18,000
Labour Rate Variance
(Adverse)
Tk. 4,000
Labour Efficiency
Variance (Favorable)
Tk. 2,000
Total Variance (Adverse)
Tk.2,000
Factory Overhead variance
Actual Overhead
Tk. 40,000
Standard Overhead for
actual unit produced at
standard rate
20,000 units @ 2 hrs @
Tk.0.9 per hour = Tk.
36,000
Total Variance
Cost
Accumulation
Method
Job Order
Costing
Process
Costing
a. A single homogenous product is produced on a continuous basis
over a long period of time. This differs from job-order costing in
which many different products may be produced in a single period.
b. Total costs are accumulated by department, rather than by
individual job.
c. The department production report is the key document showing the
accumulation and disposition of cost, rather than the job-cost sheet.
Cost
Flow
Assumption
LIFO FIFO Average
Monthly Inventory Purchase
Month Unit
Purchas
ed
Cost
per
Unit
Total
Value
January 1,000 $10 $10,000
February 1,000 $12 $12,000
March 1,000 $15 $ 15,000
Total 3,000 $37,000
Beginning Inventory = 1,000 units purchased
@ Tk. 8 each
Income Statement
Item LIFO FIFO Average
Sales
3,000 units
@ $ 60
$ 60,000 $ 60,000 $ 60,000
Beginning
Inventory
$ 8,000 $ 8,000

$ 8,000

Purchase $37,000 $ 37,000 $ 37,000
Ending
Inventory
$8,000 $ 15,000 $ 11,250
Cost of
sales
$37,000 $30,000 $ 33,750
Gross Profit $ 23,000 $ 30,000 $ 26,250
INVENTORY SYSTEMS

Merchandising entities may use either of the
following inventory systems:

1 Perpetual
Detailed records of the cost of each item are
maintained, and the cost of each item sold is
determined from records when the sale occurs.

2 Periodic
Cost of goods sold is determined only at the end of an
accounting period and requires a calculation be done
as part of the income statement.
Cost Accounting
System
Input
Measurement
Basis
Inventory
Valuation
Method
Cost
Accumulation
Method
Cost
Flow
Assumption
Recording
Interval
Capability
Normal
Historical
Full
Absorption
Process FIFO Periodic
FIVE PARTS OF COST ACCOUNTING SYSTEM IN CBL
Material
Labour
Direct Cost
Manufacturing Overhead
Manufacturing Depreciation

Cost of Thread
Material
Yarn
Dyes, Chemical,
Lubrication
Make Up Material
Labour
Direct labour Dyeing
Direct Labour - Finishing
Direct Cost
Gas, Electricity, Fuel
Spare parts
Repair Maintenance
Manufacturing Overhead
Payroll
Motor Vehicles Expenses
Insurance
Traveling
Repairs & Maintenance
Rates & Taxes
Recruitment & Training
Premises cost
Communications
Visitor cost
Computer
Office General Expenses
Stock Movement Expenses