PA302 COST ACCOUNTING
COST ELEMENTS
Prepared by :Wan Maimunah Wan Ishak Politeknik Sultan Haji Ahmad Shah, Kuantan
Students will be able to classify the
elements of cost
Specific Objectives :
Cost Accumulation
Raw material
LabourDirect
Expenses
Overhead
MANUFACTURING ACTIVITIES
Production Cost
m)
1
RM
2 4
Production OH
DL
Cost for skilled or unskilled workers who involved directly in production
Eg : Carpenters/Machine operators in furniture industries
Cost that cannot be charged directly to the product
• Eg : Depre of machine
Cost that can be directly charged to product
Eg : Wood in furniture industries
3
DE
Any expenditure other than RM or DL that are directly incurred for the particular product
Eg : Hiring of special machine./tools
Examples :
Activities DM DL DEProductio
n OH
Clothing Company Clothes Tailor
Royalty on Patent
Factory Superviso
r
Bakery
? ? ? ?
Specific Objectives 2 :
Preparing Statement of Cost
Company XXXStatement of Cost
Direct material Opening stock of DM XXX + Purchase XXX
- Closing stock of DM XXXDM used XXX
Direct Labour XXXPRIMARY COST XXXProduction OH :
Indirect labour XXXDepre of machine XXX
XXX
XXX
+ Opening stock of WIP XXX- Closing stock of WIP XXX
Production Cost XXX
+ Administration OH:Clerk salary XXManager’s salary XX XX
+ Selling & Distribution OH :Sales expenses XXPromotion XX XX
XXX
+ Opening stock of FG XX_ Closing stock of FG (XX)TOTAL COST XXXX
Contoh
Reflection :
Do some reflection !
!
Question 1 :Cost information of a company :
Direct material 2,000,000Indirect material 50,000Advertising 95,000Direct Labour 650,000Indirect labour 170,000Production supervisor’s salary 45,000Depre for Factory building 65,000Depre for office building 35,000Factory machine’s depre 20,000Maintenance department’s cost100,000Administration cost 150,000Promotion 10,000Sales commission 5,000Office rent for salesman office 15,000
Exercise :
Calculate :
a. Total production OH costb. Total direct costc. Total production costd. Total indirect cost
a. Total production OH cost
Indirect material 50,000
Depre factory building 65,000
Depre factory machine 20,000
Indirect labour 170,000
Maintenance dept cost 100,000
Factory supervisor 45,000
Total production OH 450,000
Solution :
b. Total direct cost
Direct material 2,000,000
DL 650,000
Total 2,650,000
Solution :
c. Total production cost
DM 2,000,000
DL 650,000
OH 450,000
Total production cost 3,100,000
d. Total indirect cost
Production cost 450,000
Advertising 95,000
Depre office building 35,000
Admin cost 150,000
Promotion 10,000
Commission 5,000
Office rent for salesman 15,000
Total 760,000
Solution :
Question 2 :
Prepare Statement of Cost based on the following cost information :
RMSales 45,000Purchase of raw material 12,500DL 9,500Production OH 5,000Freight inwards of RM 200Factory supervising 700Opening stock :
RM 2,000WIP 550FG(1100 units) 1,650
Closing stock :RM 2,300WIP 1,000FG(3500 units) 5,250
Advertising & marketing cost is RM0.50/unit sold. There were 30,000 units produced.
TAWAKKAL
DOA
USAHA
NIAT
BERJAYA
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