Transcript PENEMBANGAN PRIBADI

6 -1
CHAPTER
Process
Costing
6 -2
Objectives
1. Describe theAfter
basicstudying
characteristics
this and cost
flows associated
with
process
manufacturing.
chapter, you should
2. Define equivalent
beunits
able and
to: explain their role
in process costing. Explain the differences
between the weighted average method and
the FIFO method of accounting for process
cost.
3. Prepare a departmental production report
Continued
using the weighted
average method.
6 -3
Objectives
4. Explain how process costing is affected by
nonuniform application of manufacturing
inputs and the existence of multiple
processing departments.
5. Appendix: Complete a departmental
production report using the FIFO method.
6 -4
Healthblend
Nutritional
Supplements
Picking
Encapsulating
Sequential
Processing
Bottling
Finished
Goods
6 -5
Parallel Processing
(hard disk drives for personal computers)
Process 1
Process 2
Assembly
Process 3
Production and
assembly of
write-head and
Production
disk driveof
circuit board
Process 4
Testing of
write-head and
disk drive
Testing of
circuit board
Finished
Goods
6 -6
Flow of Manufacturing Costs Through the
Accounts of a Process-Costing Firm (Healthblend)
Picking Department
Work in Process
Materials:
Herbs
Vitamins
Minerals
Picking labor
Applied OH
Encapsulating Dept.
Work in Process
Transferred-in
from Picking
Materials:
Capsules
Encapsulating
labor
Applied OH
Bottling Dept.
Work in Process
Transferred-in
from
Encapsulatin
g
Materials:
Bottles
Bottling
labor
Applied OH
6 -7
Healthblend
Nutritional
Supplements
Healthblend decides to produce
2,000 bottles of multivitamins.
The Picking Department costs are:
Direct materials
$1,700
Direct labor
50
Applied overhead
450
Work in Process (Encapsulating)
2 200 00
The receiving report and the invoice are
Work in Process (Picking)
used to record the receipt of the
merchandise and to control the payment.
The mixture is transferred from
picking to Encapsulating.
2 200 00
6 -8
The Encapsulating Department
costs are:
Healthblend
Nutritional
Supplements
Direct materials
Direct labor
Applied overhead
Work in Process (Bottling)
$1,000
60
500
3 760 00
The receiving report and the invoice are
Work in Process (Encapsulating)
3
used to record the receipt of the
merchandise and to control the
payment.
$2,200
+ $1,000
+ $60 + $500
The cost is transferred from
Encapsulating to Bottling.
760 00
6 -9
The Bottling Department costs are:
Healthblend
Nutritional
Supplements
Finished Goods
Direct materials
Direct labor
Applied overhead
$800
300
600
5 460 00
The receiving report and the invoice are
Work in Process (Bottling)
5
used to record the receipt of the
merchandise and to control the
payment.
$3,760
+ $800 +
$300 + $600
The cost is transferred to the
finished goods warehouse.
460 00
6 -10
A production report provides
In process cost, costs are
information about the
summarized by department
physical units processed in a
for a period of time in a
department and the
production report.
manufacturing costs.
6 -11
Equivalent Units of Production
Equivalent units of output are the
complete units that could have been
produced given the total amount of
manufacturing effort expended for the
period under consideration.
6 -12
Equivalent Units of Production
Department A
Units in beginning work in process
Units completed
Units in ending work in process
(25% complete)
Total manufacturing cost
--1,000
600
$11,500
6 -13
Equivalent Units of Production
Concept:
=
100 units completed
= 100 equivalent units
=
200 units, 50% completed
= 100 equivalent units
Continued
6 -14
Equivalent Units of Production
Example:
1,000 units completed, 600 units, 25% complete
1000 units completed
= 1,000 equivalent units
600 units, EWIP, 25% completed
= 150 equivalent units
Total = 1,150 equivalent units
6 -15
Preparing a Production Report
1. Physical units flow analysis
2. Calculation of equivalent units
3. Computation of unit cost
4. Valuation of inventories (goods transferred
out and ending work in process)
5. Cost reconciliation
6 -16
Weighted Average Method
Healthblend
Nutritional
Supplements
Production:
Units in process, July 1, 75% complete
Units completed and transferred out
Units in process, July 31, 25% complete
Costs:
Work in process, July 1
Cost added during July
20,000
50,000
10,000
$ 3,525
10,125
6 -17
Weighted Average Method
Healthblend
Nutritional
Supplements
BWIP Cost
July Cost
$3,525
$10,125
$13,650
Total Manufacturing Cost
6 -18
Weighted Average Method
Output for July
60,000 Total Physical Units
BWIP
Becomes 52,500
Equivalent Units
20,000
+
Units Started and Completed
30,000
EWIP, 25% Complete
+
2,500
52,500
6 -19
Weighted Average Method
Cost Assignment:
Cost/Unit = $13.650 ÷ 52,500 = $0.26
Transferred Out ($0.26 x 50,000)
EWIP ($0.26 x 2,500)
Total Cost Assigned
$13,000
650
$13,650
6 -20
Step 1: Physical Flow Schedule
Units to account for:
Units in beginning work in process (75% complete)
Units started during the period
Total units to account for
Units accounted for:
Unit completed and transferred out:
Started and completed
From beginning work in process
Units in ending work in process (25%
complete)
Total units accounted for
20,000
40,000
60,000
30,000
20,000 50,000
10,000
60,000
6 -21
Step 2: Calculation of Equivalent Units
Weighted Average Method
Units completed
Add: Units in ending work in process x Fraction
complete (10,000 x 25%)
Equivalent units of output
Healthblend
Nutritional
Supplements
50,000
2,500
52,500
6 -22
Step 3: Computation of Unit Cost
$13,650
52,500
=
$0.26 per equivalent
unit
6 -23
Step 4: Valuation of Inventories
Cost of goods transferred to the encapsulating
department:
50,000 equivalent units x $0.26
Ending inventory:
2,500 equivalent units x $0.26
Healthblend
Nutritional
Supplements
$13,000
650
6 -24
Step 5: Cost Reconciliation
Goods transferred out
Goods in ending work in process
Total costs accounted for
$13,000
650
$13,650
Healthblend
Nutritional
Supplements
The
manufacturing
costs to
account for are
also $13,650.
6 -25
Production
Report
Weighted
average
Healthblend Company
Picking Department
Production Report for July 2004
6 -26
UNIT INFORMATION
Physical Flow
Units to account for:
Units in beginning
work in process
Units started
Total units to
account for
Units accounted for:
Units completed
20,000
Units in ending
40,000
work in process
Total units
60,000
accounted for
Equivalent Units
Units completed
50,000
Units in ending
work in process
2,500
Total equivalent units 52,500
Continued
50,000
10,000
60,000
6 -27
COST INFORMATION
Costs to account for:
Beginning work
in process
Incurred during
period
Total cost to
account for
$ 3,525
10,125
$13,650
Cost per equivalent unit $
0.26
Continued
6 -28
Costs accounted for:
Goods transferred out ($0.26 x
50,000)
Goods in ending work in
process ($0.26 x 2,500)
Total cost accounted for
Transferred
Ending
Out
WIP
Total
$13,000
---
$13,000
--$13,000
$650
$650
650
$13,650
6 -29
Nonuniform
Application of
Manufacturing
Inputs
Healthblend
Nutritional
Supplements
6 -30
Healthblend
Nutritional
Supplements
10,000 units
Beginning
WIP inventory 50,000 units
Started and
completed
Materials, 100%
complete; conversion
100% complete as to
cost, 50% complete
both materials and
conversion cost
Equivalent Units
Picking Department
60,000
equivalent units
of material and
conversion cost
transferred out
6 -31
Equivalent Units
Picking Department
Healthblend
Nutritional
Supplements
Materials
Conversion
Costs
60,000
60,000
10,000 units
Beginning
WIP inventory 50,000 units
Started and
completed
September
20,000 units
Ending WIP
inventory
Materials, 100% complete; conversion cost,
40% complete
6 -32
Equivalent Units
Picking Department
Healthblend
Nutritional
Supplements
Materials
Conversion
Costs
60,000
60,000
20,000
8,000
10,000 units
Beginning
WIP inventory 50,000 units
Started and
completed
September
20,000 units
Ending WIP
inventory
6 -33
Equivalent Units
Picking Department
Healthblend
Nutritional
Supplements
Materials
Conversion
Costs
60,000
60,000
20,000
80,000
8,000
68,000
10,000 units
Beginning
WIP inventory 50,000 units
Started and
completed
September
20,000 units
Ending WIP
inventory
Equivalent units
6 -34
Materials $1,600
Conversion
cost
$200
Healthblend
Nutritional
Supplements
Materials
$12,000
Conversion
cost
$3,200
MaterialsCost $13,600
Conver.
$3,400
EU
10,000 units
Beginning
WIP inventory 50,000 units
Started and
completed
= Cost per EU
20,000 units
Ending WIP
inventory
August
September
October
80,000
68,000
$0.22
$0.05
Weighted
average
Healthblend Company
Picking Department
Production Report for September 2004
6 -35
UNIT INFORMATION
Physical Flow
Units to be accounted for:
Units accounted for:
Units in beginning
Units completed
work in process
10,000
Units in ending
Units started
70,000
work in process
Total units to
Total units
account for
80,000
accounted for
Continued
60,000
20,000
80,000
6 -36
Equivalent Units
Materials Conversion Cost
Units completed
Units in ending work in
process
Total equivalent units
60,000
60,000
20,000
80,000
8,000
68,000
Continued
6 -37
COST INFORMATION
Conversion
Materials
Cost
Total
Costs to account for:
Beginning work in process
Incurred during the period
Total costs to account for
$ 1,600
12,000
$13,600
$ 200
3,200
$3,400
$ 1,800
15,200
$17,000
Cost per equivalent unit
$
$ 0.05
$
0.17
Continued
0.22
6 -38
Costs accounted for:
Goods transferred out ($0.22 x
60,000)
Goods in ending work in
process:
Materials ($0.17 x 20,000)
Conversion ($0.05 x 8,000)
Total cost accounted for
Transferred
Ending
Out
WIP
Total
$13,200
---
$13,200
----$13,200
$3,400
400
$3,800
3,400
400
$17,000
6 -39
Multiple Departments
Units to account for:
Units in beginning work in process
Units transferred in during September
Total units to account for
Units accounted for:
Units completed and transferred out:
Started and completed
From beginning work in process
Units in ending work in process
Total units accounted for
15,000
60,000
75,000
55,000
15,000
5,000
75,000
6 -40
Multiple Departments
Transferred in:
Units completed
Add: Units in ending work in
process X Fraction complete
(5,000 x 100%)
Equivalent units of output
70,000
5,000
75,000
Unit cost (transferred-in category) = ($13,200 + $3,000/75,000)
= $16,200/75,000
= $0.216
6 -41
Production
Report—Fifo
Costing
6 -42
FIFO Method
BWIP Cost
July Cost
$3,525
$10,125
BWIP
Units
CurrentPeriod Units
6 -43
FIFO Method
Output for July
60,000 Total Physical Units
BWIP
Become 37,500
Equivalent Units
5,000
+
Units Started and Completed
30,000
+
EWIP, 25% complete
2,500
37,500
6 -44
FIFO Method
Cost Assignment:
Unit Cost = $10,125 ÷ 37,500 = $0.27
Transferred Out:
From beginning work in process
$ 3,525
Complete BWIP ($0.27 x 5,000)
1,350
Started and Completed in July
($0.27 x 30,000)
8,100
EWIP ($0.27 x 2,500)
Total Cost Assigned
675
$13,640
FIFO
Healthblend Company
Picking Department
Production Report for July 2004
UNIT INFORMATION
Units accounted for:
Units in beginning
work in process
Units started during
the period
Total units to
account for
20,000
40,000
60,000
Continued
6 -45
6 -46
Physical Equivalent
Flow
Units
Units accounted for:
Units started and completed
Units completed from beginning work
in process
Units in ending work in process
Total units accounted for
30,000
30,000
20,000
10,000
60,000
5,000
2,500
37,500
Continued
6 -47
COST INFORMATION
Costs to account for:
Beginning work
in process
Incurred during
period
Total cost to
account for
$ 3,525
10,125
$13,650
Cost per equivalent unit $
0.27
Continued
6 -48
Transferred
Out
Costs accounted for:
Units in beginning work in process:
From prior period
$ 3,525
From current period
($0.27 x 5,000)
1,350
Units started and completed
($0.27 x 30,000)
8,100
Goods in ending work in process
($0.27 x 2,500)
--Total cost accounted for
$12,975
Ending
WIP
Total
---
$ 3,525
---
1,350
---
8,100
$675
$675
675
$13,650
6 -49
Chapter Six
The End
6 -50