Click here to load reader

Akuntansi Biaya - modul. · PDF fileAkuntansi Biaya Cost Systems and ... In job order costing, cost is traced to an individual batch, lot, or contract. In process costing, cost is

  • View
    217

  • Download
    2

Embed Size (px)

Text of Akuntansi Biaya - modul. · PDF fileAkuntansi Biaya Cost Systems and ... In job order costing,...

  • Modul ke:

    Fakultas

    Program Studi

    Akuntansi Biaya Cost Systems and Cost Accumulation

    Suryadharma Sim, SE, M. Ak

    03 Ekonomi dan

    Bisnis

    S1 Manajemen

  • Cost Systems and Cost Accumulation

    Flow of Costs in a manufacturing enterprise

    Cost accountings functions include recording and measuring cost elements as

    the related resources flow through the production process. All manufacturing

    costs, regardless of their fixed or variable behavior, flow through the work in

    process and finished goods inventory accounts.

    The production process, the physical arrangement of the facility, and the

    decision-making need of managers determine how costs will be accumulated.

    Typically the general ledger accounts for manufacturing costs are Materials,

    Payroll, Factory Overhead Control, Work in Process, Finished Goods, and Cost

    of Goods Sold. These accounts are used to recognize and measure the flow of

    costs, from the acquisition of materials, through factory operations, to the cost of

    product sold.

  • Cost Systems and Cost Accumulation

    Cost Flows and Classifications in a Manufacturing Company

    Notice from the exhibit that as goods are completed, their costs are transferred from Work in Process to

    Finished Goods. Here the goods await sale to customers. As goods are sold, their costs are transferred

    from Finished Goods to Cost of Goods Sold. At this point the various costs required to make the product

    are finally recorded as an expense. Until that point, these costs are in inventory accounts on the balance

    sheet.

  • Cost Systems and Cost Accumulation

    An Example of Cost Flows

    To provide an example of cost flows in a manufacturing company, assume that a

    companys annual insurance cost is $2,000. Three-fourths of this amount ($1,500)

    applies to factory operations, and one-fourth ($500) applies to selling and

    administrative activities. Therefore, $1,500 of the $2,000 insurance cost would be

    a product (inventoriable) cost and would be added to the cost of the goods

    produced during the year. This concept is illustrated in Exhibit 1-8, where $1,500

    of insurance cost is added to Work in Process. As shown in the exhibit, this

    portion of the years insurance cost will not become an expense until the goods

    that are produced during the year are soldwhich may not happen until the

    following year or even later. Until the goods are sold, the $1,500 will be part of

    inventoriesWork in Process or Finished Goodsalong with the other costs of

    producing the goods.

    http://highered.mcgraw-hill.com/sites/0073379352/student_view0/ebook/chapter1/chbody1/product_cost_flows.htmlhttp://highered.mcgraw-hill.com/sites/0073379352/student_view0/ebook/chapter1/chbody1/product_cost_flows.htmlhttp://highered.mcgraw-hill.com/sites/0073379352/student_view0/ebook/chapter1/chbody1/product_cost_flows.htmlhttp://highered.mcgraw-hill.com/sites/0073379352/student_view0/ebook/chapter1/chbody1/product_cost_flows.htmlhttp://highered.mcgraw-hill.com/sites/0073379352/student_view0/ebook/chapter1/chbody1/product_cost_flows.html

  • Cost Systems and Cost Accumulation

    EXHIBIT 1-8

    An Example of Cost Flows in a Manufacturing Company

    By contrast, the $500 of insurance cost that applies to the companys selling and

    administrative activities will be expensed immediately.

  • Cost Systems and Cost Accumulation

    Reporting the Result of Operation

    The results of operations of a manufacturing enterprise are reported

    in the conventional financial statements just as they are for any other

    form of business. These statements summarize the periods

    operations and show financial position at the end of the period:

    Income Statement

    Balance Sheet

    Statement of Cash Flows

  • Cost Systems and Cost Accumulation

    Cost Systems

    Costs that are allocated to units of production may be actual costs or

    standard costs. In an actual cost system or historical cost system, cost

    information is accumulated as cost is incurred, but the presentation of

    results is delayed until all operations of the accounting period have been

    performed or, in a service business, until the periods services have

    been rendered. In a standard cost system, products, operations, and

    processes are costed based on predetermined quantities of resources

    to be used and predetermined prices of those resources. Actual costs

    are also accumulated separately, and variances or differences between

    actual costs and standard costs are collected in separate accounts.

  • Cost Systems and Cost Accumulation

    The objective of a cost system or costing system is accumulate the

    costs of goods or services. The information on the cost of a product

    or service is used by managers to set the prices of the product,

    control operations, and develop financial statements. Also, the cost

    system improves control by providing information on the costs

    incurred by each department or manufacturing process.

    COST SYSTEMS DEPENDING ON HOW COSTS OF

    PRODUCTION ARE ACCUMULATED

  • Cost Systems and Cost Accumulation

    Cost Accumulation

    Any of the previously mentioned cost system can be used

    with job order costing, with process costing, or with other cost

    accumulation methods. In job order costing, cost is traced to

    an individual batch, lot, or contract. In process costing, cost is

    traced to a department, operation, or some other subdivision

    within the production facility. A third method, back flush

    costing, differs markedly from job order and process costing

  • Cost Systems and Cost Accumulation

    Job Order Costing

    A job order cost system provides a separate record for the cost of each quantity of

    product passing through the factory. A quantity of each particular product is called

    order. A job order cost system fits better in the industries that develop products with

    that have different specifications most of the time or that have a wide variety of

    products in stock. Many service companies use this type of system for costing

    orders by accumulating the costs associated with providing services to their

    customers. Some characteristics of the job order cost systems are listed below:

    - They accumulate in batches

    - Production under specific orders

    - Normally does not produces the same article

    - Examples: Accounting firm, Construction Company, law practice, apparel

    manufacturing, movie studio.

  • Cost Systems and Cost Accumulation

    7 STEPS TO MAKE A JOB ORDER COSTING

    1.- Identify the chosen cost-object

    2.- Identify the direct costs the job

    3.- Select the cost allocation bases

    4.- Identify the indirect costs

    5.- Calculate the rate per unit

    6.- Calculate the indirect costs 7.- Calculate the total cost of the job

  • Cost Systems and Cost Accumulation

    Process Costing

    In a process cost system, costs are accumulated for each department or

    process in the factory. A process cost system fits more in companies

    manufacturing products which are not distinguishable with each other during a

    process of continuous production. Some characteristics of process cost

    systems are listed below:

    - They accumulate costs by department

    - Production continuous and homogeneous

    - Examples: Oil Refinery, food processing, paper processing, soft drinks,

    medicines, buckets, toys, pants.

    "When" should the cost of production be determined?

    - Before we begin the process - Default costs (estimated or standard)

    - After or at the same time of the process - Actual costs (current or historical).

  • Cost Systems and Cost Accumulation

    PROCESS COSTING FLOW

  • Cost Systems and Cost Accumulation

    5 STEPS TO ACHIEVE A PROCESS COSTING

    1.- Summarize the physical flow of the units to produce

    2.- Calculate production in terms of equivalent units

    3.- Calculate equivalent unit costs

    4.- Summarize total costs to account for

    5.- Assign total costs to the units already completed and to

    units in ending work in process inventory (WIP).

  • Cost Systems and Cost Accumulation

    Blended Methods

    In some manufacturing, different units have significantly

    different direct material costs, but all units undergo identical

    conversion in large quantities. In these cases, direct

    materials costs are accumulated using job order costing,

    and conversion costs are accumulated using process

    costing.

  • Cost Systems and Cost Accumulation

    Backflush Costing

    Backflush costing is a workable way to accumulate manufacturing costs in a

    factory or part of a factory in which processing speeds are extremely fast, such

    as in a mature Just In Time system. Backflush costing is workable because it

    bypasses the routine cost accounting entries that are required in subsidiary

    records for job order and process cost accumulation, thus saving considerable

    data processing time. Where there is insufficient time and insufficient incentive

    to track the detailed costs of work in process, backflushing provides a method

    of cost accumulation by working backward through the available accounting

    information aft